ORS 731.418
Grounds for suspension or revocation of certificate of authority
(1)
The Director of the Department of Consumer and Business Services may refuse to continue or may suspend or revoke an insurer’s certificate of authority if the director finds after a hearing that:(a)
The insurer has violated or failed to comply with any lawful order of the director, or any provision of the Insurance Code other than those for which suspension or revocation is mandatory.(b)
The insurer is in unsound condition, or in such condition or using such methods and practices in the conduct of its business, as to render its further transaction of insurance in this state hazardous or injurious to its policyholders or to the public.(c)
The insurer has failed, after written request by the director, to remove or discharge an officer or director who has been convicted in any jurisdiction of an offense which, if committed in this state, constitutes a misdemeanor involving moral turpitude or a felony, or is punishable by death or imprisonment under the laws of the United States, in any of which cases the record of the conviction shall be conclusive evidence.(d)
The insurer is affiliated with and under the same general management, interlocking directorate or ownership as another insurer that transacts direct insurance in this state without having a certificate of authority therefor, except as permitted under the Insurance Code.(e)
The insurer or an affiliate or holding company of the insurer refuses to be examined or any director, officer, employee or representative of the insurer, affiliate or holding company refuses to submit to examination relative to the affairs of the insurer, or to produce its accounts, records, and files for examination when required by the director or an examiner of the Department of Consumer and Business Services, or refuse to perform any legal obligation relative to the examination.(f)
The insurer has failed to pay any final judgment rendered against it in this state upon any policy, bond, recognizance or undertaking issued or guaranteed by it, within 30 days after the judgment became final, or within 30 days after time for taking an appeal has expired, or within 30 days after dismissal of an appeal before final determination, whichever date is the later.(g)
The insurer fails to comply with ORS 742.534 (Reimbursement of other insurers paying benefits) (1).(h)
The insurer has failed to comply with ORS 476.270 (Insurance company reports of suspicious fires) (1), (2) or (3) or 654.097 (Consultative services required) (1).(2)
Without advance notice or a hearing thereon, the director may suspend immediately the certificate of authority of any insurer as to which proceedings for receivership, conservatorship, rehabilitation, or other delinquency proceedings, have been commenced in any state by the public insurance supervisory official of such state. [1967 c.359 §89; 1971 c.321 §17; 1971 c.523 §10; 1975 c.585 §4; 1981 c.701 §3; 1993 c.447 §7]
Source:
Section 731.418 — Grounds for suspension or revocation of certificate of authority, https://www.oregonlegislature.gov/bills_laws/ors/ors731.html.
Law Review Citations
8 WLJ 83 (1972)
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