ORS 732.592
Recovery from parent corporation or holding company if domestic insurer ordered into liquidation or rehabilitation


(1)

If an order for liquidation or rehabilitation of a domestic insurer has been entered, the receiver appointed under the order may recover, on behalf of the insurer, from any parent corporation or holding company or person or affiliate who otherwise controlled the insurer, the amount of distributions, other than distributions of shares of the same class of stock, paid by the insurer on the insurer’s capital stock, or any payment in the form of a bonus, termination settlement or extraordinary lump sum salary adjustment made by the insurer or the insurer’s subsidiary to a director, officer or employee, when such a distribution or payment is made at any time during the 12 calendar months preceding the petition for liquidation, conservation or rehabilitation, as the case may be, subject to the limitations of subsections (2), (3) and (4) of this section.

(2)

A distribution to which subsection (1) of this section applies is not recoverable if the parent or affiliate shows that the distribution was lawful and reasonable when paid and that the insurer did not know and could not reasonably have known that the distribution might adversely affect the ability of the insurer to fulfill the insurer’s contractual obligations.

(3)

Any person who was a parent corporation or holding company or a person who otherwise controlled the insurer or affiliate at the time a distribution to which subsection (1) of this section applies was paid is liable in an amount that is not more than the amount of distributions or payments received by the person under subsection (1) of this section. Any person who otherwise controlled the insurer at the time such distributions were declared is liable up to the amount of distributions the person would have received if the distributions had been paid immediately. If two or more persons are liable with respect to the same distributions, the persons are jointly and severally liable.

(4)

The maximum amount recoverable under this section is the amount needed in excess of all other available assets of the impaired or insolvent insurer to pay the contractual obligations of the impaired or insolvent insurer and to reimburse any guaranty funds.

(5)

To the extent that any person liable under subsection (3) of this section is insolvent or otherwise fails to pay claims due from the person pursuant to subsection (3) of this section, the person’s parent corporation or holding company or other person who otherwise controlled the person liable under subsection (3) of this section when the distribution was paid are jointly and severally liable for any resulting deficiency in the amount recovered from the parent corporation or holding company or person who otherwise controlled the person liable under subsection (3) of this section.

(6)

If the director places an insurer under liquidation or rehabilitation as provided in ORS chapter 734 and the insurer engages in transactions within an insurance holding company system as provided in ORS 732.574 (Standards for transactions within holding company), the director retains authority over the insurer’s operations and over transactions in which the insurer engages within an insurance holding company system of which the insurer is a member. [1993 c.447 §54; 1995 c.638 §6; 2017 c.479 §13]

Source: Section 732.592 — Recovery from parent corporation or holding company if domestic insurer ordered into liquidation or rehabilitation, https://www.­oregonlegislature.­gov/bills_laws/ors/ors732.­html.

732.005
Application of private corporation law
732.015
Permit to organize insurer required
732.025
Application for permit to organize stock insurer
732.035
Application for permit to organize insurer without capital stock
732.045
Investigation of applications to organize insurers
732.055
Approval or disapproval of application for permit
732.065
Reporting of changes in information in application
732.075
Revoking or suspending permit to organize insurer
732.085
Incorporators
732.095
Articles of incorporation
732.105
Filing articles of incorporation and surety bond, letter of credit or deposit
732.115
Approval of articles, documents and bond, letter of credit or deposit
732.125
Registration of securities subsequent to issuance of organization permit and certificate of incorporation
732.135
Soliciting subscriptions and applications
732.145
Stipulations required in subscriptions and applications
732.155
Organization to be completed within two years
732.165
Liability of directors and incorporators
732.175
Liability for acting as corporate insurer without authority
732.205
General powers of insurers
732.210
Assertion of lack of capacity or power
732.215
Management contracts prohibited
732.220
Exclusive agency contracts
732.225
Impairment of required capitalization prohibited
732.230
Order to cure impairment
732.235
Voluntary dissolution of insurer
732.240
Trusts of life insurance proceeds
732.245
Home office
732.250
Continuity of management in event of national emergency
732.305
Board of directors
732.320
Supporting documents for expenditures
732.325
Certain transactions and compensation between insurers and directors, trustees, officers, agents or employees prohibited
732.405
Authorized shares
732.410
Right to acquire own shares
732.415
Stock insurer’s proxies
732.420
“Equity security” defined
732.425
Application of insider trading regulation
732.430
Filing statement of security ownership with director
732.435
Suit to recover insider profits
732.440
Prohibited sales of securities
732.445
Establishing or maintaining primary or secondary market in securities
732.450
Arbitrage transactions exempt
732.455
Rules
732.460
Annual report to shareholders or members
732.465
Members of domestic mutual insurers
732.470
Voting rights of members of mutual insurer
732.475
Members’ meetings and procedures of domestic mutual and reciprocal insurers
732.480
Copy of bylaws of domestic mutual insurer to be provided to director
732.517
Purpose of ORS 732.517 to 732.546
732.518
Definitions for ORS 732.517 to 732.546
732.521
Activities that are prohibited unless specified procedures followed
732.523
Procedure for acquiring controlling interest of capital stock
732.526
Hearing on proposed activity
732.527
Approval of acquisition by chief insurance regulatory officials of two or more jurisdictions
732.528
Approval of proposed activity
732.529
Procedures following approval by director of proposed activity
732.531
Acquisition of assets or insurance of mutual or reciprocal insurers
732.533
Statement of acquisition
732.536
Compliance with foreign or alien laws
732.537
Application of ORS 732.527, 732.539, 732.542 and 732.544 to change of control of insurer
732.538
Effect of merger or consolidation
732.539
Notification of acquisition
732.541
Jurisdiction over person obtaining or attempting to obtain control
732.542
Monopoly or substantial diminishment of competition
732.544
Director’s order
732.546
Severability
732.547
Remedies for violation of ORS 732.517 to 732.546
732.548
Definitions for ORS 732.517 to 732.596
732.549
Subsidiaries
732.551
Registration of insurer members of holding company systems
732.552
Registration statement
732.553
Certain information not required to be disclosed
732.554
Changes in registration information
732.556
Requirement that certain persons provide information to insurers
732.558
Termination of registration by director
732.562
Consolidated registration
732.564
Registration for affiliated insurers
732.566
Exemption from ORS 732.517 to 732.596 by director
732.567
Presumption of control
732.568
Disclaimer of affiliation
732.569
Annual enterprise risk report
732.571
Supervisory college for domestic insurer
732.572
Rulemaking authority for ORS 732.517 to 732.596
732.574
Standards for transactions within holding company
732.576
Dividends and distributions
732.578
Liability of officers and directors of insurer that is subject to registration
732.582
Determination of reasonableness and adequacy of capital and surplus
732.584
Examinations
732.586
Confidentiality of information
732.588
Supervision, rehabilitation or liquidation
732.592
Recovery from parent corporation or holding company if domestic insurer ordered into liquidation or rehabilitation
732.594
Director’s determination or acknowledgment of appropriate group-wide supervisor for internationally active insurance group
732.596
Request by insurance holding company system for determination or acknowledgement of group-wide supervisor
732.600
Definitions for ORS 732.600 to 732.630
732.602
Intent of ORS 732.600 to 732.630
732.604
Permissible actions of domestic mutual insurer
732.606
Plan for conversion or reorganization
732.608
Waiver of requirements of ORS 732.606
732.610
Contents of plan
732.611
Eligible member of domestic mutual insurer or mutual holding company
732.612
Consideration for membership interest in converting or reorganizing mutual insurer
732.614
Effect of conversion
732.616
Reorganization involving organization of stock holding company
732.618
Reorganization involving organization of mutual holding company
732.620
Status of mutual holding company as corporation
732.622
Restructuring of mutual holding company
732.624
Approval by Director of Department of Consumer and Business Services of mutual holding company restructuring plan
732.626
Plan review and approval
732.628
Limitations on ownership of shares in companies resulting from conversion, reorganization or restructuring
732.630
Dissenters’ rights
732.650
Definitions
732.653
Scope
732.656
Risk management framework
732.659
Own risk and solvency assessment in accordance with manual
732.662
Own risk and solvency summary report
732.666
Exemptions
732.669
Documentation and supporting information
732.672
Confidentiality
732.680
Submission of corporate governance annual disclosure
732.683
Discretion as to form and content of responses to inquiries in corporate governance annual disclosure
732.686
Maintenance of confidentiality and privilege
732.689
Retention of consultant to assist director’s review of corporate governance annual disclosure
732.810
Definitions for ORS 732.810 to 732.814
732.811
Application of ORS 732.810 to 732.814
732.812
Filing of financial statements
732.813
Notice to prospective insured
732.814
Authority of director over controlling producer and controlled insurer
732.820
Interstate Insurance Product Regulation Compact
732.825
State member of Interstate Insurance Product Regulation Commission
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