(1) Funds of an insurer may be invested in a manner not expressly prohibited under ORS § 732.325 and 733.780, provided such investments are made in the exercise of the judgment and care under the circumstances then prevailing which investors of prudence, discretion and intelligence exercise in the management of their own affairs not in regard to speculation but in regard to the permanent disposition of their funds, considering the probable income as well as the probable safety of their capital.

Terms Used In Oregon Statutes 733.670

  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
  • Oath: A promise to tell the truth.

(2) Funds invested under this section shall not exceed the lesser of seven and one-half percent of the insurer’s assets or the excess of the insurer’s assets over all liabilities and required capitalization.

(3) If the Director of the Department of Consumer and Business Services has reason to believe that loans or investments made pursuant to this section are not adequately secured or are not yielding an income the director may direct the insurer to report under oath the amount of such loans or investments, the security therefor and its market value. [Formerly 738.305; 1979 c.846 § 2; 1989 c.425 § 4a]

 

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