- Oregon does not maintain an active list of approved surplus lines insurers (see Other Comments section #1).
- Oregon does have a Surplus Lines Association (see Other Comments section #2).
- Oregon does not have an Export List.
- Oregon does not have an industrial insured exemption. Oregon has adopted the NRRA exempt commercial purchaser exemption but has eased some of the requirements (see Appendix C) to qualify as such a purchaser (ORS 735.405(6)).
- Surplus lines tax: 2% payable by broker, and an additional 0.3% fire marshal tax payable by broker (applicable to all surplus lines premiums), plus $15 flat stamping fee applicable for each new or renewal (not endorsement) transaction (see Other Comments section #4).
- Oregon has not affiliated with any existing compact but Director of the Dept. of Consumer and Business Services is authorized under Departmental Bulletin to enter into a compact or otherwise establish procedures with other states. (HB 2679). At present, Oregon is keeping 100% of the surplus lines premium tax when the policy covers an Oregon home state insured.
Eligibility and Filing Requirements (All Insurers):
Annual Statement/Report: in U.S. dollars (affidavit of filing with NAIC acceptable for foreign insurers).
Eligibility and Filing Requirements (Alien Insurers Only):
Trust Fund: $5.4 million; or listed on the NAIC Quarterly List of Alien Insurers as of the date of placement of the policy.
Eligibility and Filing Requirements (Foreign Insurers Only):
- Certificate of Good Standing from domicile state.
- Capital and Surplus: $15,000,000.
- Annual Statement instructions: For a foreign insurer to maintain surplus lines eligibility in Oregon, either a surplus lines licensee or the insurer must file the insurer’s annual statement by June 30 each year. There is no annual statement filing fee. The annual statement can be filed electronically with the NAIC. The insurer also must file a hard copy of the signed jurat page in Oregon as proof of filing. The signed jurat page may be sent to:Lynette Hadley, Lead Tax Analyst
Financial Regulation Section
Oregon Insurance Division -4
P.O. Box 14480
Salem, OR 97309-0405
350 Winter St. NE
Salem, OR 97301-3883
Types of Insurance Exempted from Surplus Lines Regulation:
Wet marine and transportation insurance, reinsurance, life, health, annuities cannot be written as surplus lines. The following risks are exempt from surplus lines tax: 1) Federal government entities; 2) Federal chartered credit unions; and 3) Insurance policies purchased by Native American tribes or tribal member covering exposures located on Indian reservation.
Other Comments or Requirements:
- The Oregon Surplus Lines Association at www.oregonsla.org does maintain a list of eligible surplus lines insurers in Oregon for informational purposes only, not for approval status.Oregon is a “broker responsible” state and therefore surplus lines eligibility status for both foreign and alien insurers is based on the broker’s determination that the insurer is acceptable.See http://www.oregonsla.org/resources/insurer-listing.See “Insurer List” tab for a list of nonadmitted insurers who have provided a certified copy of their current annual statements to the state of Oregon as required by ORS 735.415 (1)(c), indicating compliance with the minimum requirements of ORS 735.415(1)(c) as of the date of the statement.
- Contact information for the Oregon Surplus Lines Association is as follows:
Surplus Lines Association of Oregon
7360 SW Hunziker Street, Suite 105
Portland, OR 97223-2305
Tel.: (503) 718-6700
Fax.: (503) 718-6702
- Each insurance policy or certificate of insurance negotiated, placed or procured by the surplus line licensee must bear the name of the licensee and the following legend in bold type:“This insurance was procured and developed under the Oregon surplus lines laws. It is NOT covered by the provisions of ORS 734.510 to 734.710 relating to the Oregon Insurance Guaranty Association. If the insurer issuing this insurance becomes insolvent, the Oregon Insurance Guaranty Association has no obligation to pay claims under this insurance.”
- The Surplus Line Association of Oregon makes available to any interested party a “tax calculator” which enables interested parties to easily determine the taxes and charges applicable to a proposed transaction. The “tax calculator” may be assessed at the Association’s website: www.oregonsla.org. Please note that both state and federally chartered credit unions are exempt from the surplus lines tax.
- Foreign and alien insurers writing wet (ocean) marine business in Oregon are required to complete and file an “Ocean Marine Tax Report” by June 15 of each year and pay a special ocean marine tax. This tax is based on 5% of the company’s average underwriting for such business written in Oregon over a 3 year period. The forms are available on the Oregon Insurance Division website: www.insurance.oregon.gov.
- Oregon allows surplus lines insurers to provide auto coverage under the financial responsibility provisions.
- The OR Insurance Commissioner may accept foreign insurers on a case by case basis who do not meet the minimum capital requirements but in no event may the Commissioner make an affirmative finding of acceptability when the surplus is less than $4.5 million.