The Oregon Insurance Guaranty Association:
(1)Shall pay covered claims that exist at the time, or that arise within 30 days after, a member insurer has been determined to be insolvent, subject to the following limits and exceptions:
(a)The association’s obligation to pay a covered claim that arises from the insolvency of a member insurer between September 9, 1971, and December 31, 2024, is only the amount of the covered claim that is less than $300,000.
(b)The association’s obligation to pay a covered claim that arises from the insolvency of a member insurer on or after January 1, 2025, may not exceed $600,000.
(c)Notwithstanding the limitations set forth in paragraphs (a) and (b) of this subsection, the association shall pay the full amount of any covered claim that arises out of a wo
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The Oregon Insurance Guaranty Association:
(1) Shall pay covered claims that exist at the time, or that arise within 30 days after, a member insurer has been determined to be insolvent, subject to the following limits and exceptions:
(a) The association’s obligation to pay a covered claim that arises from the insolvency of a member insurer between September 9, 1971, and December 31, 2024, is only the amount of the covered claim that is less than $300,000.
(b) The association’s obligation to pay a covered claim that arises from the insolvency of a member insurer on or after January 1, 2025, may not exceed $600,000.
(c) Notwithstanding the limitations set forth in paragraphs (a) and (b) of this subsection, the association shall pay the full amount of any covered claim that arises out of a workers’ compensation policy, less any amount the Workers’ Benefit Fund pays on the covered claim under ORS chapter 656.
(d) The association is not obligated to pay:
(A) Any amount that exceeds the obligation of the insolvent member insurer under the policy from which the claim arises;
(B) A claim that arises after the policy expires or after the insured cancels or replaces the policy; or
(C) More than $600,000 in the aggregate for any claim, including any first-party or third-party claim, that arises out of or is related to a single incident or occurrence that is covered under a cybersecurity insurance policy or endorsement, regardless of the number of claims made or the number of claimants.
(2) Is the insurer to the extent of the association’s obligations on covered claims, with all of the rights, duties and obligations the insolvent member insurer would have had if the insolvent member insurer had not become insolvent.
(3) Shall assess member insurers the amounts necessary to pay the expenses the association incurs in meeting the association’s obligations and exercising the association’s duties and powers under ORS 734.510 to 734.710. The assessments of each member insurer must be in the proportion that the net direct written premiums of the member insurer for the preceding calendar year bears to the net direct written premiums of all member insurers for the preceding calendar year, but may not exceed in any one year two percent of the member insurer’s net direct written premiums for the preceding calendar year. Each member insurer must be notified of an assessment not later than the 30th day before the day the assessment is due. If the funds of the association do not provide in any one year an amount sufficient to pay the obligations and expenses of the association, the funds available must be prorated among the obligations and expenses, and the unpaid portions must be paid as soon thereafter as funds become available. If an assessment would cause a member insurer’s financial statement to reflect amounts of capital or surplus less than the minimum amounts required for a certificate of authority by any jurisdiction in which the member insurer is authorized to transact insurance, the association may exempt from or defer payment of the assessment, in whole or in part, by the member insurer. However, if the member insurer is a controlled insurer, the association, in making determinations regarding the exemption or deferral of assessments, shall treat all dividends paid during the three calendar years immediately preceding the year in which the assessment is made as assets of the insurer just as if such dividends had not been paid. Each member insurer designated as a servicing facility may set off against any assessment authorized payments made on covered claims and expenses the member insurer incurred in paying covered claims in the member insurer’s capacity as a servicing facility.
(4) Shall investigate claims brought against the association and adjust, compromise, defend, settle and pay covered claims to the extent of the association’s obligation.
(5) Shall review settlements, releases and judgments to which the insolvent member insurer or the insolvent member insurer’s insureds were parties to determine the extent to which such settlements, releases and judgments may be properly contested. The association’s obligation to defend an insolvent member insurer’s insured ceases when the association tenders or pays an amount that is equal to the lesser of the statutory limit that applies to the covered claim or the policy limit that applies to the covered claim.
(6) Shall reimburse servicing facilities and employees of the association for obligations and expenses the servicing facilities and employees incurred and paid in the handling of claims on behalf of the association.
(7) Shall pay all other expenses the association incurs in carrying out ORS 734.510 to 734.710.