OAR 836-014-0035: Registration of Legal Expense Organization

A legal expense organization may not transact business in this state unless the organization holds a valid certificate of registration. An organization may apply for registration with the Director by submitting to the Director the following documents: (1) A completed registration application. The registration application must be on the form prescribed by the Director. (2) A statement designating a registered agent and a registered office. The statement must be on the form prescribed by the Director. The requirement under this section is in addition to the filing requirements of other law regarding designation of a registered office and registered agent in the State of Oregon for service of process, notice and demand. (3) A list of its sales and marketing representatives. The names of the sales and marketing representatives must be submitted on the form prescribed by the Director in OAR 836-014-0030. (4) A Financial Statement. The statement must follow the form prescribed by the Director in OAR 836-014-0015 and comply with 836-014-0015, except for the filing date. (5) Copies of the following forms and related schedules used or to be used by the organization: (a) The provider agreement forms used or to be used in this state; (b) The membership agreement forms delivered or issued or to be delivered or issued in this state; (c) The legal expense plan forms delivered or issued or to be delivered or issued in this state; (d) The schedule of rates charged or to be charged members in this state for each type of agreement or plan. (6) A marketing plan for conducting legal expense plan business in this state. The plan must include the following: (a) The geographical area in which business is intended to be done in the first five years; (b) The types of plans intended to be written in the first five years, including specification whether and to what extend indemnity rather than service benefits are to be provided; (c) The proposed marketing methods; (d) Data affirmatively demonstrating the anticipated income and expenses of the organization in the first five years, including, without limitation, the projected expenditures for legal services and the projected source of funds to make up any anticipated deficits. Except as provided in this subsection, the data must b documented and verified by an actuary or a person who has the background for the practice of actuarial science. If, however, the applicant legal expense organization provides or will provide service rather than indemnity benefits, the documentation and verification may be made instead by an executive employee of the applicant who has at least four years of experience in the design, pricing and administration of legal expense or similar plans. The executive employee must also document and certify in the application that the applicant has provider agreements in force, subject to issuance of a certificate of registration, adequate to provide the covered legal services throughout the geographic area in which business is intended to be done. The Director may require the applicant to furnish, in support of its application, publicly available data regarding the costs and benefits of comparable plans in this state and elsewhere. (7) Evidence of the deposit or surety bond required by ORS 750.685 and in accordance with OAR 836-014-0020 or 836-014-0025. (8) A statement of the incorporators, directors and officers, which provides the names of all incorporators and proposed directors and officers of the legal service organization, and all of their addresses and occupations for the preceding five years. (9) A certified copy of the articles and by-laws, partnership agreement, or the association agreement and association by-laws. (10) A copy of all contracts with principals including a copy of all agreements relating to the legal service organization to which any incorporator or proposed director or officer is a party. (11) A statement of the amount and sources of the funds available for organization expenses and the proposed arrangements for reimbursement and compensation of incorporators or other persons. (12) A statement of compensation of all principals and all corporate officers and directors, or partners, or other principal as it relates to the applicant's operation as a legal service organization. [ED. NOTE: Forms referenced are available from the agency.]