74th OREGON LEGISLATIVE ASSEMBLY--2007 Regular Session
Enrolled
House Bill 3484
Sponsored by Representative BONAMICI; Representatives BARNHART,
BERGER, CAMERON, GILLIAM, MACPHERSON, MAURER, ROBLAN, TOMEI
CHAPTER ................
AN ACT
Relating to life insurance; amending ORS 731.804 and 743.303; and
declaring an emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 731.804 is amended to read:
731.804. (1) Except as otherwise provided in this section, each
authorized insurer doing business in this state shall pay
assessments that the Director of the Department of Consumer and
Business Services determines { + are + } necessary to support
the legislatively authorized budget of the Department of Consumer
and Business Services with respect to functions of the department
under the Insurance Code. The director shall determine the
assessments according to one or more percentage rates established
by the director by rule. The director shall specify in the rule
when assessments shall be made and payments shall be due. The
premium-weighted average of the percentage rates { - shall - }
{ + may + } not exceed nine-hundredths of one percent of the
gross amount of premiums received by an insurer or { - its - }
{ + the insurer's + } insurance producers from and under
{ - its - } { + the insurer's + } policies covering direct
domestic risks, after deducting the amount of return premiums
paid and the amount of dividend payments made to policyholders
with respect to such policies. In the case of reciprocal
insurers, the amount of savings paid or credited to the accounts
of subscribers shall be deducted from the gross amount of
premiums. In establishing the percentage rate or rates, the
director shall use the most recent premium data approved by the
director. In establishing the amounts to be collected under this
subsection, the director shall take into consideration the
expenses of the department for administering the Insurance Code
and the fees collected under subsection (2) of this section. When
the director establishes two or more percentage rates:
(a) Each rate shall be based on such expenses of the department
ascribed by the director to the line of insurance for which the
rate is established.
(b) Each rate shall be applied to the gross amount of premium
received by an insurer or its insurance producers for the
applicable line of insurance as provided in this subsection.
(2) The director may collect fees for specific services
provided by the department under the Insurance Code according to
a schedule of fees established by the director by rule. The
director may collect such fees in advance. In establishing the
Enrolled House Bill 3484 (HB 3484-A) Page 1
schedule for fees, the director shall take into consideration the
cost of each service for which a fee is imposed.
(3) Establishment and amendment of the schedule of fees under
subsection (2) of this section are subject to prior approval of
the Oregon Department of Administrative Services and a report to
the Emergency Board prior to adopting the fees and shall be
within the budget authorized by the Legislative Assembly as that
budget may be modified by the Emergency Board.
(4) The director may not collect an assessment under subsection
(1) of this section from any of the following persons:
(a) A fraternal benefit society complying with ORS chapter 748.
(b) Any person or class of persons designated by the director
by rule.
(5) The director may not collect an assessment under subsection
(1) of this section with respect to premiums received from any of
the following policies:
(a) Workers' compensation insurance policies.
{ - (b) Annuity policies, whether fixed or variable in
nature. - }
{ - (c) - } { + (b) + } Wet marine and transportation
insurance policies.
{ - (d) - } { + (c) + } Any category of policies designated
by the director by rule.
SECTION 2. ORS 743.303 is amended to read:
743.303. Policies of group life insurance are subject to the
following requirements:
(1) The policy shall be issued upon the lives of persons who
are associated in a common group formed for purposes other than
the obtaining of insurance, except that either of the following
kinds of policies may be issued to persons other than those in a
common group:
(a) Group policies of credit life insurance; or
(b) Group policies of mortgage life insurance on first and
second mortgages secured by real estate { - ; - } { + . + }
(2) { - Not less than 75 percent of the eligible members of
the group or 10 lives, whichever is the greater, - } { + No
fewer than two lives + } are insured at the date of issue of the
policy { - ; - } { + . + }
(3) The amounts of insurance under the policy shall be based on
some plan precluding individual selection, except that optional
supplemental insurance may be available to persons insured under
the policy, if the amounts of such supplemental insurance are
based upon age, salary, rank or similar objective standards
{ - ; - } { + . + }
(4) { - The person contracting for the group coverage shall
be responsible for the payment of premiums; - } { + The premium
for the policy must be paid from the funds of the group
policyholder or from funds contributed by persons insured under
the policy, or from both sources. + }
(5) For the purposes of this section, the term 'mortgage '
includes trust deeds { - ; and - } { + . + }
(6) As used in this section, 'trust deed' has the meaning given
in ORS 86.705.
SECTION 3. { + This 2007 Act being necessary for the immediate
preservation of the public peace, health and safety, an emergency
is declared to exist, and this 2007 Act takes effect on its
passage. + }
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Enrolled House Bill 3484 (HB 3484-A) Page 2
Passed by House April 25, 2007
Repassed by House June 5, 2007
...........................................................
Chief Clerk of House
...........................................................
Speaker of House
Passed by Senate June 1, 2007
...........................................................
President of Senate
Enrolled House Bill 3484 (HB 3484-A) Page 3
Received by Governor:
......M.,............., 2007
Approved:
......M.,............., 2007
...........................................................
Governor
Filed in Office of Secretary of State:
......M.,............., 2007
...........................................................
Secretary of State
Enrolled House Bill 3484 (HB 3484-A) Page 4