Current through Register Vol. 63, No. 9, September 1, 2024
(1) Materiality. No acquisitions or
dispositions of assets need be reported pursuant to OAR
836-011-0440 if the acquisitions
or dispositions are not material. For purposes of
836-011-0430 to
836-011-0460, a material
acquisition (or the aggregate of any series of related acquisitions during any
30-day period) or disposition (or the aggregate of any series of related
dispositions during any 30-day period) is one that is non-recurring and not in
the ordinary course of business and involves more than five percent of the
reporting insurer's total allowed assets as reported in its most recent
statutory statement filed with the insurance department of the insurer's state
of domicile.
(2) Scope. OAR
836-011-0430 to
836-011-0460 apply to the
following asset acquisitions and asset dispositions:
(a) Asset acquisitions subject to OAR
836-011-0430 to
836-011-0460 include every
purchase, lease, exchange, merger, consolidation, succession or other
acquisition other than the construction or development of real property by or
for the reporting insurer or the acquisition of materials for such
purpose.
(b) Asset dispositions
subject to OAR 836-011-0430 to
836-011-0460 include every sale,
lease, exchange, merger, consolidation, mortgage, hypothecation, assignment
(whether for the benefit of creditors or otherwise), abandonment, destruction
or other disposition.
(3) Information to be reported:
(a) The following information is required to
be disclosed in any report of a material acquisition or disposition of assets:
(A) Date of the transaction;
(B) Manner of acquisition or
disposition;
(C) Description of the
assets involved;
(D) Nature and
amount of the consideration given or received;
(E) Purpose of, or reason for, the
transaction;
(F) Manner by which
the amount of consideration was determined;
(G) Gain or loss recognized or realized as a
result of the transaction; and
(H)
Name or names of the person or persons from whom the assets were acquired or to
whom they were disposed.
(b) An insurer is required to report material
acquisitions and dispositions on a non-consolidated basis unless the insurer is
part of a consolidated group of insurers that utilizes a pooling arrangement or
100 percent reinsurance agreement that affects the solvency and integrity of
the insurer's reserves and the insurer ceded substantially all of its direct
and assumed business to the pool. An insurer is deemed to have ceded
substantially all of its direct and assumed business to a pool if the insurer
has less than $1,000,000 total direct plus assumed written premiums during a
calendar year that are not subject to a pooling arrangement and the net income
of the business not subject to the pooling arrangement represents less than
five percent of the insurer's capital and surplus.
Stat. Auth.: ORS
731.244 & ORS
731.574
Stats. Implemented: ORS
731.574 & ORS
733.210
