OAR 436-085-0015: Premium Assessment; Determination of Assessable Premium: Insurers

(1) For the purpose of these rules, "direct earned premium," as used in ORS 656.612 means "assessable earned premium." (2) Assessable earned premium must be calculated by making the following modifications to earned premium: (a) Subtracting exempted earned premium. The amount of exempted earned premium subtracted must be determined on a direct basis prior to reinsurance transactions; and (b) Adding large deductible premium credits or modifications. (3) Earned premium must be calculated in the same manner as direct premiums earned, as reported on Statutory Page 14 (Business in the State of Oregon), column 2, line 16 of the insurer’s annual statement under OAR 836-011-0000. Earned premium: (a) Excludes reinsurance accepted and is without deduction of reinsurance ceded; (b) Excludes large deductible credits or modifications; (c) Includes experience rating, premium discounts, retrospective rating, audit premiums, foreign terrorism premiums, domestic terrorism and catastrophic premiums, and other individual risk rating adjustments; and (d) Excludes deposit premiums.