Or. Admin. Code § 836-043-0155

Current through Register Vol. 63, No. 12, December 1, 2024

Section 836-043-0155 - Test Audit Standards

(1) An insurer that fails to achieve the Minimum Standard of the Test Audit Performance for six consecutive quarters shall meet with the director, or the director' designated representative, to provide a detailed explanation of the remedial measures the insurer is taking to restore overall audit proficiency to an acceptable level. An insurer meets the Minimum Standard when the insurer satisfies the requirement that the number of premium differences in excess of $500 or two percent of the insured's standard premium, whichever is greater, must not exceed the critical number shown in the Table of Minimum Standards Exhibit 2.

(2) If an insurer still fails to achieve the Minimum Standard following presentation of remedial measures to the director, as required in section (1) of this rule, the director may impose a penalty, including possible suspension of the insurer's certificate of authority.

(3) For the purposes of this rule, only policies that exceed $5,000 in annual standard premium after test audit will be used to determine whether an insurer achieves the Minimum Standard.

Or. Admin. Code § 836-043-0155

ID 1-1988, f. & cert. ef. 1-20-88; ID 11-1994, f. 12-19-94, cert. ef. 1-1-95; ID 7-1997(Temp), f. & cert. ef. 5-30-97; ID 18-1997, f. 11-25-97, cert. ef. 11-26-97; ID 13-2012, f. 7-16-12, cert. ef. 1-1-13; ID 5-2019, amend filed 04/19/2019, effective 7/1/2019

Exhibits referenced are available from the agency.

Statutory/Other Authority: ORS 731.244 & 737.318

Statutes/Other Implemented: ORS 737.318