72nd OREGON LEGISLATIVE ASSEMBLY--2003 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 1065
(Including Amendments to Resolve Conflicts)
A-Engrossed
House Bill 2021
Ordered by the Senate April 30
Including Senate Amendments dated April 30
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
Presession filed (at the request of House Interim Committee on
Revenue)
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure.
{ - Decreases amount of capital or surplus required by health
care service contractor furnishing only dental service or
optometrical service. - } { + Allows health care service
contractor that furnishes only dental service or optometrical
service and that applies for original certificate of authority to
phase in required capital and surplus. + }
Declares emergency, effective on passage.
A BILL FOR AN ACT
Relating to health care service contractors; amending section 5,
chapter 318, Oregon Laws 2001; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. Section 5, chapter 318, Oregon Laws 2001, as amended
by section 3, chapter 33, Oregon Laws 2003 (Enrolled Senate Bill
353), is amended to read:
{ + Sec. 5. + } (1) To qualify for authority to transact
insurance in this state on and after January 1, 2002, an insurer
that is not authorized to transact insurance in this state on the
day before January 1, 2002, must possess and thereafter maintain
the applicable capital and surplus required by ORS 731.554,
731.562 and 731.566, as amended by sections 1 to 3, chapter 318,
Oregon Laws 2001.
(2) To qualify for authority to transact health care services
in this state on and after January 1, 2002, a health care service
contractor that is not authorized to transact health care
services in this state on the day before January 1, 2002, must
possess and thereafter maintain the applicable capital and
surplus required by ORS 750.045, as amended by section 6, chapter
318, Oregon Laws 2001.
(3) An insurer that is authorized to transact insurance in this
state on the day before January 1, 2002, and that possesses on
that date the applicable capital and surplus required under ORS
731.554, 731.562 and 731.566, as amended by sections 1 to 3,
chapter 318, Oregon Laws 2001, must thereafter maintain that
capital and surplus.
(4) A health care service contractor that is authorized to
transact health care services in this state on the day before
January 1, 2002, and that possesses on that date the applicable
capital and surplus required under ORS 750.045, as amended by
section 6, chapter 318, Oregon Laws 2001, must thereafter
maintain that capital and surplus.
(5) { - Notwithstanding the effective date of chapter 318,
Oregon Laws 2001, - } An insurer that is authorized to transact
insurance in this state on the day before January 1, 2002, and
that does not possess on January 1, 2002, the applicable capital
and surplus required under ORS 731.554 (1) and (2), 731.562 and
731.566, as amended by sections 1 to 3, chapter 318, Oregon Laws
2001, must possess and maintain at least the { + following + }
amounts of capital and surplus { - as follows - } :
(a) For insurers other than insurers transacting workers'
compensation insurance:
(A) $1,300,000, not later than December 31, 2002.
(B) $1,600,000, not later than December 31, 2003.
(C) $1,900,000, not later than December 31, 2004.
(D) $2,200,000, not later than December 31, 2005.
(E) $2,500,000, not later than December 31, 2006.
(b) For insurers transacting workers' compensation insurance:
(A) $3,400,000, not later than December 31, 2002.
(B) $3,800,000, not later than December 31, 2003.
(C) $4,200,000, not later than December 31, 2004.
(D) $4,600,000, not later than December 31, 2005.
(E) $5,000,000, not later than December 31, 2006.
(6) { - Notwithstanding the effective date of chapter 318,
Oregon Laws 2001, - } A health care service contractor that is
authorized to transact health care services in this state on the
day before January 1, 2002, and that does not possess on January
1, 2002, the applicable capital and surplus required under ORS
750.045, as amended by section 6, chapter 318, Oregon Laws 2001,
must possess and maintain at least the { + following + } amounts
of capital and surplus { - as follows - } :
(a) As of each date specified in this paragraph, a health care
service contractor other than one to which ORS 750.045 (3)
applies shall possess and maintain capital or surplus, or any
combination thereof, of not less than the minimum amount
specified in connection with the date or an amount equal to 50
percent of the average claims as defined in ORS 750.005 for the
preceding 12-month period, whichever is greater. The required
amount of capital and surplus for each date, however, shall not
be more than the maximum amount specified in connection with that
date. The dates and minimum and maximum required amounts of
capital and surplus are as follows:
(A) As of December 31, 2002, not less than $650,000 and not
more than $1,300,000.
(B) As of December 31, 2003, not less than $800,000 and not
more than $1,600,000.
(C) As of December 31, 2004, not less than $950,000 and not
more than $1,900,000.
(D) As of December 31, 2005, not less than $1,100,000 and not
more than $2,200,000.
(E) As of December 31, 2006, not less than $2,500,000.
(b) As of each date specified in this paragraph, a health care
service contractor to which ORS 750.045 (3) applies shall possess
and maintain capital or surplus, or any combination thereof, of
not less than the minimum amount specified in connection with the
date or an amount equal to 50 percent of the average claims as
defined in ORS 750.005 for the preceding 12-month period,
whichever is greater. The required amount of capital and surplus
for each date, however, shall not be more than the maximum amount
specified in connection with that date. The dates and minimum and
maximum required amounts of capital and surplus are as follows:
(A) As of December 31, 2002, not less than $300,000 and not
more than $600,000.
(B) As of December 31, 2003, not less than $350,000 and not
more than $700,000.
(C) As of December 31, 2004, not less than $400,000 and not
more than $800,000.
(D) As of December 31, 2005, not less than $450,000 and not
more than $900,000.
(E) As of December 31, 2006, not less than $1 million.
(7) An insurer authorized to transact insurance in this state
on the day before January 1, 2002, shall not be granted authority
to transact any other or additional class of insurance until the
insurer complies with the applicable provisions of ORS 731.554,
731.562 or 731.566, as amended by sections 1 to 3, chapter 318,
Oregon Laws 2001.
(8) An insurer or health care service contractor authorized to
transact insurance or health care services in this state on the
day before January 1, 2002, that reapplies for a certificate of
authority after having a certificate of authority revoked for any
cause shall not be granted authority to transact any insurance or
health care services until the insurer or health care service
contractor complies with the applicable provisions of ORS
731.554, 731.562, 731.566 or 750.045, as amended by sections 1 to
3 and 6, chapter 318, Oregon Laws 2001.
(9) If an insurer to which subsection (5) of this section
applies or a health care service contractor to which subsection
(6) of this section applies does not possess and maintain the
minimum amount of capital and surplus required by ORS 731.554 (1)
and (2), 731.562, 731.566 and 750.045, as amended by sections 1
to 3 and 6, chapter 318, Oregon Laws 2001, on or before December
31, 2006, the insurer or health care service contractor may apply
to the Director of the Department of Consumer and Business
Services for an extension of time within which to attain the
amount. The application must state the reasons for the failure to
attain the required minimum amount, the date by which the amount
is expected to be attained and the means and likelihood of
attaining the amount by that date. The director may grant the
extension if the director determines that the extension is
reasonable and appropriate in the circumstances, taking into
account factors that include but are not limited to the
following:
(a) Whether the insurer or health care service contractor has
made reasonable progress toward attaining the required minimum
amount during the time periods specified in this section; and
(b) Whether the insurer or health care service contractor is
likely to attain the required minimum amount by the date proposed
by the insurer or health care service contractor.
{ + (10) A health care service contractor to which ORS
750.045 (3) applies that is applying for its original certificate
of authority in this state on or after the effective date of this
2003 Act, and that does not possess on the effective date of this
2003 Act the applicable capital and surplus required under ORS
750.045, must possess and maintain at least the amounts of
capital and surplus specified in subsection (6)(b) of this
section in connection with that date on and after the date of
application. + }
SECTION 2. { + This 2003 Act being necessary for the immediate
preservation of the public peace, health and safety, an emergency
is declared to exist, and this 2003 Act takes effect on its
passage. + }
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