(1) Except as provided in subsection (2) of this section, deposits made in this state under ORS § 731.624 shall be held for the faithful performance by the insurer of all insurance obligations, including claims for unearned premiums, with respect to domestic risks pertaining to the particular class of insurance for which the deposit was made. However, there shall be excluded from each such obligation the same amount as is excluded in determining the obligation of the Oregon Insurance Guaranty Association under ORS § 734.510 to 734.710.

Terms Used In Oregon Statutes 731.608

  • Any other state: includes any state and the District of Columbia. See Oregon Statutes 174.100
  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.

(2) If at any time a deposit made under ORS § 731.624 by a particular insurer is insufficient to perform the insurance obligations upon the faithful performance of which the deposit was conditioned, then any other deposit made under ORS § 731.624 by that insurer shall be so used to the extent that such other deposit is not used to perform the insurance obligations upon the faithful performance of which such other deposit was conditioned.

(3) Deposits made by insurers and reinsurers in this state under ORS § 731.628 shall be held for the payment of compensation benefits to workers employed by insured employers other than those insured with the State Accident Insurance Fund Corporation to whom the insurer has issued a workers’ compensation insurance policy under ORS Chapter 656. Deposits made by insurers and reinsurers under ORS § 731.628 also shall be held to reimburse the Department of Consumer and Business Services, subject to approval by the Director of the Department of Consumer and Business Services, for costs incurred by the department in processing workers’ compensation claims of insurers which have been placed in liquidation, receivership, rehabilitation or other such status for the orderly conservation or distribution of assets, pursuant to the laws of this state or any other state.

(4) A deposit made in this state by a domestic insurer transacting insurance in another jurisdiction, and as required by the laws of such jurisdiction, shall be held for the purpose or purposes required by such laws.

(5) Deposits of foreign and alien insurers required pursuant to ORS § 731.854 shall be held for such purposes as are required by such law, and as specified by the director’s order by which the deposit is required.

(6) Deposits of domestic reciprocal insurers required pursuant to ORS § 731.632 shall be held for the benefit of subscribers wherever located. [1967 c.359 § 113; 1971 c.231 § 12; 1977 c.793 § 6; 1981 c.854 § 57; 1987 c.236 § 1; 1989 c.700 § 2; 2007 c.241 § 26]

 

  Previous section
Next section  
 Deposits Contents