ORS 732.569: Annual enterprise risk report; contents; group capital calculation; filing deadlines and responsibility; exemptions; NAIC liquidity stress framework; requirements; rules.

(1) Every insurer that must register with the Director of the Department of Consumer and Business Services under ORS 732.551 shall file an enterprise risk report each year. The enterprise risk report must identify, to the best of the insurer’s knowledge and belief, the material risks within the insurance holding company system of which the insurer is a part that could pose enterprise risk to the insurer. The insurer shall file the enterprise risk report with the chief insurance regulatory official in the state that the director determines is the lead state for the insurance holding company system of which the insurer is a part. The director shall make the determination in accordance with procedures the director adopts by rule after considering procedures set forth in a Financial Analysis Handbook that the National Association of Insurance Commissioners has adopted. (2)(a) Except as provided in paragraph (b) of this subsection, and under the direction of the chief insurance regulatory official described in subsection (1) of this section, the person that has ultimate control of an insurer that is subject to registration under ORS 732.551 each year shall file a group capital calculation with the chief insurance regulatory official, together with the registration. The chief insurance regulatory official may permit a person other than the person that has ultimate control of the insurer to file the group capital calculation. (b) An insurance holding company system need not file a group capital calculation with the chief insurance regulatory official if the insurance holding company system: (A) Has within the insurance holding company system only one insurer that writes insurance only with the insurer’s domestic state and does not assume business from any other insurer; (B) Must perform a group capital calculation specified by the United States Federal Reserve Board, except that the insurance holding company system must file a group capital calculation with the chief insurance regulatory official if the board refuses a request for the group capital calculation under the terms of an information sharing agreement in effect at the time of the chief insurance regulatory official’s request; (C) Has a group-wide supervisor that is located outside the United States but within a reciprocal jurisdiction described in ORS 731.520 that recognizes the regulatory approach of this state toward group supervision and group capital; or (D) Provides to the lead state, directly or indirectly through the group-wide supervisor, information that the group-wide supervisor: (i) Determines will meet the requirements for accreditation under the National Association of Insurance Commissioners’ financial standards and accreditation program and is sufficient to allow the lead state to comply with the group supervision approach detailed in a Financial Analysis Handbook that the National Association of Insurance Commissioners has adopted; and (ii) Recognizes and accepts, in accordance with criteria the director specifies by rule or order, as the worldwide group capital assessment for United States insurance groups that operate within the group-wide supervisor’s jurisdiction, if the group-wide supervisor is located outside the United States and not in a reciprocal jurisdiction as described in ORS 731.520. (3) Notwithstanding the provisions of subsection (2)(b)(C) and (D) of this section, the chief insurance regulatory official described in subsection (1) of this section shall require an insurance holding company system that is based outside the United States to provide a group capital calculation for the insurance holding company system’s operations within the United States if the chief insurance regulatory official determines, after any necessary consultation with other supervisors or officials, that having the group capital calculation is appropriate for the purposes of prudential oversight and monitoring the solvency of the insurance holding company system or for ensuring the competitiveness of the insurance marketplace. (4) Notwithstanding the provisions of subsection (2)(b) of this section, the chief insurance regulatory official described in subsection (1) of this section may exempt a person that has ultimate control of an insurer from the requirement to file a group capital calculation or may accept a limited group capital calculation or report in accordance with criteria the chief insurance regulatory official specifies by rule or order. (5) If the chief insurance regulatory official described in subsection (1) of this section determines that an insurance holding company system no longer qualifies for an exemption from the requirement to file a group capital calculation, the insurance holding company system shall file the group capital calculation as provided in subsection (2)(a) of this section unless the chief insurance regulatory official extends the time for filing for reasonable grounds shown. (6) The person that has ultimate control of an insurer that is subject to registration under ORS 732.551 and that during any data year meets the scope criteria for the NAIC liquidity stress test framework shall, concurrently with registration, conduct for that data year a test in accordance with the NAIC liquidity stress test framework and file the results of the test with the chief insurance regulatory official described in subsection (1) of this section. (7)(a) The NAIC liquidity stress test framework must: (A) Include scope criteria that apply to a specific data year; and (B) Be reviewed at least once each year by the National Association of Insurance Commissioners’ financial stability task force, or a successor. (b) A performance of, and filing of results from, a specific year’s liquidity stress test must comply with the NAIC liquidity stress test framework’s instructions and reporting templates for that year and any determinations of the chief insurance regulatory official described in subsection (1) of this section, in consultation with the financial stability task force or a successor, that are provided within the framework. (c) A change to the NAIC liquidity stress test framework or to the data year to which the scope criteria apply is effective on January 1 of the year following the year in which the change occurs. (8)(a) For the purposes of the requirements described in subsection (6) of this section: (A) An insurer meets the scope criteria for a data year if the insurer meets at least one criterion of the scope criteria, except that the chief insurance regulatory official described in subsection (1) of this section, in consultation with the financial stability task force or a successor, may determine that the insurer need not conduct the test or file the results of the test. (B) An insurer shall perform a test and file the results of the test in accordance with the instructions and templates included within the NAIC liquidity stress test framework for the applicable data year. (b) An insurer need not conduct a test or file the results of the test if the insurer does not meet any of the scope criteria for a data year, except that the chief insurance regulatory official, in consultation with the financial stability task force or a successor, may require the insurer to conduct the test and file the results of the test despite not meeting the scope criteria for the data year. [2013 c.370 §10; 2025 c.174 §3]