OAR 436-050-0015
Suspension and Revocation of Authorization to Issue Workers’ Compensation Insurance Policies
(1)
General. The director may suspend or revoke an insurer’s authorization to issue or renew workers’ compensation insurance policies upon a determination that:(a)
The insurer has failed to comply with its obligations under any workers’ compensation policy; or(b)
The insurer has failed to comply with ORS chapter 656, OAR chapter 436, or the orders of the director.(2)
Show-cause hearings. The director will not suspend or revoke an insurer’s authorization to issue or renew workers’ compensation insurance policies until the insurer has been given notice and the opportunity to be heard through an informal show-cause hearing with the director.(a)
During the show-cause hearing, the insurer will be provided an opportunity to:(A)
Present evidence regarding any proposed orders by the director to suspend or revoke the insurer’s authorization to issue or renew workers’ compensation insurance policies; and(B)
Give reason why the insurer should be permitted to continue to issue and renew workers’ compensation insurance policies.(b)
Following the show-cause hearing, the director may rescind a proposed order of suspension or revocation if the insurer establishes to the director’s satisfaction its ability and commitment to comply with ORS chapter 656 and OAR chapter 436.(3)
Suspension of authorization to issue workers’ compensation insurance policies. If the director suspends an insurer’s authorization to issue workers’ compensation insurance policies:(a)
The suspension may be in effect for a period of up to 18 months;(b)
The suspended insurer may continue to serve existing accounts and renew any existing policy, unless there is a cancellation or nonrenewal of the policy during the period of suspension; and(c)
The director may audit the performance of the insurer during the period of suspension, and:(A)
If the insurer is in compliance, the director may lift the suspension; or(B)
If the insurer is not in compliance, and the suspension has been in effect for at least 12 months, the director may revoke the insurer’s authorization to renew or issue workers’ compensation insurance policies.(4)
Revocation of authorization to issue workers’ compensation insurance policies. If the director revokes an insurer’s authorization to issue or renew workers’ compensation insurance policies:(a)
The insurer may serve an existing account only until the policy is canceled or until the next renewal date, whichever first occurs; and(b)
The insurer may petition the director to restore the insurer’s authorization by submitting a plan demonstrating its ability and commitment to comply with ORS chapter 656, OAR chapter 436, and the orders of the director.(5)
Appeal and revision of orders of suspension or revocation. Any proposed and final orders of suspension or revocation issued under this rule is a preliminary order subject to revision by the director, and may be appealed under OAR 436-050-0008 (Requests for Hearings or Administrative Review).
Source:
Rule 436-050-0015 — Suspension and Revocation of Authorization to Issue Workers’ Compensation Insurance Policies, https://secure.sos.state.or.us/oard/view.action?ruleNumber=436-050-0015
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