Upon determining that an employer has qualified as a self-insured employer under ORS 656.407 (Qualifications of insured employers), the Director of the Department of Consumer and Business Services shall issue a certificate to that effect to the employer.
Coverage of a self-insured employer is effective on the date of certification unless a later date is specified in the certificate.
Two or more entities may not be included in the certification of one employer unless in each entity the same person, or group of persons, or corporation owns a majority interest. If an entity owns a majority interest in another entity which in turn owns the majority interest in another entity, all entities so related may be combined regardless of the number of entities in succession. If more than one entity is included in the certification of one employer, each entity included is jointly and severally liable for any compensation and other amounts due the Department of Consumer and Business Services under this chapter by any entity included in the certification.
In the term “majority interest,” as used in this section, “majority” means more than 50 percent.
If an entity other than a partnership:
Has issued voting stock, “majority interest” means a majority of the issued voting stock;
Has not issued voting stock, “majority interest” means a majority of the members; or
Has not issued voting stock and has no members, “majority interest” means a majority of the board of directors or comparable governing body.
If the entity is a partnership, majority interest must be determined in accordance with the participation of each general partner in the profits of the partnership.(7)(a) Notwithstanding any other provision of this section, the director may certify five or more subject employers as a self-insured employer group, which is an employer for purposes of this chapter, if:
The director determines that the employers as a group meet the insurance coverage retention and combined net worth requirements adopted by the director by rule;
The director finds that the grouping is likely to improve accident prevention and claims handling for the employer;
Each employer executes and files with the designated entity a written agreement, in such form as the director may prescribe, in which:
The employer agrees to be jointly and severally liable for the payment of any compensation and other amounts due to the Department of Consumer and Business Services under this chapter incurred by a member of the group; or
A self-insured employer must have excess insurance coverage appropriate for the employer’s potential liability under this chapter with an insurer authorized to do business in this state. A self-insured employer certified prior to November 1, 1981, must have excess insurance coverage appropriate for the employer’s potential liability under this chapter either with an insurer authorized to do business in this state or with any other insurer from whom such insurance can be obtained pursuant to ORS 744.305 to 744.405 (1985 Replacement Part). Evidence of such coverage must be submitted at the time application is made for self-insured certification in the form of an insurance binder providing the appropriate coverage effective the date of certification. The policy providing such coverage must be filed with the director not later than 30 days after the date the coverage is effective. Any changes in the insurer or the coverage must be filed with the department not later than 30 days after the effective date of the change. With respect to such coverage:
Notwithstanding subsection (8) of this section, a public utility with assets of more than $500 million may obtain excess insurance coverage from an eligible surplus lines insurer. As used in this subsection, “public utility” has the meaning given that term in ORS 757.005 (Definition of public utility). [1975 c.556 §33; 1979 c.845 §1; 1981 c.535 §38; 1983 c.816 §9; 1985 c.739 §6; 1987 c.94 §107; 1987 c.800 §1; 1987 c.884 §58; 1989 c.602 §1; 1993 c.817 §2; 1999 c.280 §1; 2003 c.170 §6; 2005 c.189 §1; 2014 c.48 §4; 2017 c.118 §1]