OAR 836-027-0180: Adequacy of Surplus

The factors set forth in ORS 731.554, as referred to in 732.582, for the purpose of determining the reasonableness and adequacy of the insurer’s capital and surplus, are not intended to be an exhaustive list. In determining the adequacy and reasonableness of an insurer’s capital and surplus, no single factor is necessarily controlling. Instead, the Director shall consider the net effect of all of such factors and also other factors bearing on the financial condition of the insurer. In comparing the capital and surplus maintained by other insurers, the Director shall consider the extent to which each of such factors varies from insurer to insurer. In determining the quality and liquidity of investments in subsidiaries, the Director shall consider the individual subsidiary and may discount or disallow its valuation to the extent that the individual investments so warrant.