Insurance Regulations (Law Ch. 1)

Question 1

Order

Answer 1

Oral or written action by a state or agency directed to one or more named persons outside the agency.

Question 2

Final Order

Answer 2

Expressed in writing issued by the director

Question 3

Cease-and-Desist

Answer 3

When a person engages in or is going to engage in a violation of the code. Allows a person to continue to doing business but orders them to stop the violation

Question 4

If a hearing is requested

Answer 4

It will be held within 30 days after the receipt of the request. At least 7 days prior notice is given.

Question 5

Hearings

Answer 5

The director may administer oaths and affirmation, subpoena witness, compel attendance, take evidence, require person being investigated to produce all relevant records.

Question 6

Penalties

Answer 6

Director may refuse to issue or renew a license. Suspend a license or revoke a license.

Question 7

Civil Penalty

Answer 7

(a Fine) against a licensee for a violation of the code, a rule or order of the director or a court judgment or decree.
$10,000 for a company
$1,000 for an individual
A second penalty of up to the amount by which the violator profited may be added.

Question 8

General Fund of the State Treasury

Answer 8

Civil Penalty payments are made to this association. If the order is not paid within 10 days of the end of the hearing, the court may make the penalty a lien on any property owned by the violator.

Question 9

Criminal Penalty

Answer 9

Any info known to be materially false or misleading.

Individual may be imprisoned in county jail for up to 1 year and fined $1,000.
A company may be fined up to $10,000

Question 10

Oregon Life and Health Insurance Guaranty (The Association)

Answer 10

Pays claims arising from individual or group life or health insurance policies

Question 11

The association will guarantee payment of benefits per life up to:

Answer 11

$300,000: in life insurance death benefits, disability insurance benefits and long term care insurance
$100,000: cash surrender value
$500,000: Health insurance benefits
$100,000: Present value annuity benefits

Question 12

Insolvent

Answer 12

When a court enters a final liquidation order with a finding of insolvency.

Question 13

Covered Claims

Answer 13

Unpaid claim against an insolvent insurer
Claim made by a local resident at the time of the occurrence
Claims related to property that is permanently located in OR