Oregon Surplus Lines Laws
Oregon insurance laws are found principally in Chapters 731 through 752 of the Oregon Revised Statutes. They may be accessed via web search at Oregon Revised Statutes. Comprehensive information on insurance in Oregon can be found on the Division of Financial Regulation website. The surplus lines statutes are paragraphs 735.400 - 735.495 and may be accessed at Oregon Surplus Lines Law.
The principal requirements of the surplus lines producer for writing surplus lines in Oregon are:
- The producer must hold a current Oregon license authorizing placement of surplus lines business.
- The producer must confirm that a diligent search has been made of admitted carriers actually writing the coverage and that it was not possible to place the coverage with an admitted carrier.
- The producer must determine that the carrier meets the minimum financial requirements established by the statutes on the date insurance is placed.
- The producer must advise the insured that the coverage is being placed with a non-admitted carrier and is not covered by the Oregon Insurance Guaranty Association in the event of insolvency. A statement declaring this must be affixed prominently to the policy.
- The producer must file pertinent information related to the placement with the Surplus Line Association of Oregon and remit the accumulated taxes and charges on placements. Specifics of filing forms and applicable tax rates may be found in the section "Filing Procedures" at the left of this screen.
Oregon Insurer Qualification
Oregon statutes place the sole responsibility for qualification of surplus lines insurers on the surplus lines producer. At the time of placement, the producer must confirm that the insurer meets the minimum statutory requirements. Annually, insurers desiring to write surplus lines insurance in Oregon submit copies of their financial statements to the Oregon Division of Financial Regulation. While the Division does not rule on the acceptability of an insurer, it will declare an insurer ineligible if that financial statement does not indicate compliance with the minimum statutory requirements. Alien insurers currently on the list published quarterly by the IID of the NAIC are automatically eligible in Oregon. There is no "white" list of Oregon insurers indicating those eligible for surplus lines placements, as each producer bears the responsibility for qualifying the insurer at the time of each placement. The Association does provide a list of insurers that it believes met the financial requirements on the date of their last annual reports and will probably not be found ineligible by the State. This list in no way signifies that the Association or the State of Oregon is in any way representing that these insurers are qualified to accept the insurance. The "Insurer Listing" may be found under the "Resources" tab at the top of this page.