OAR 836-027-0320: Authorization by Board of Directors

Before a domestic insurer enters into a securities lending transaction, the board of directors of the domestic insurer must adopt a written plan that specifies the guidelines and objectives to be followed with respect to securities lending transactions, including the following: (1) An assessment that securities lending transactions, including the guidelines relating thereto, are appropriate for the business conducted by the insurer and are consistent with ORS 733.510(4). (2) An assessment of the insurer’s technical investment and administrative capabilities and expertise to engage in securities lending transactions. (3) A description of how cash received will be invested or used for general corporate purposes of the insurer. (4) Operational procedures to manage securities lending transactions and borrower default risk and the use of acceptable collateral in a manner that reflects the liquidity needs of securities lending transactions. (5) The extent to which the domestic insurer may engage in securities lending transactions.