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These adopted and amended rules:

• Explain that the agency will charge a fee for the actual cost of a criminal records check, among the fees that apply to the issuance of licenses for insurance producers, adjusters and consultants. OAR 836-009-0007(4)(e);
• Provide consistent expiration time frames for producer, adjuster, and consultant licenses. OAR 836-009-0007(6);
• Clarify that the exemption to the adjuster licensing examination in ORS 744.535(2) applies only to non-resident adjuster licensing. OAR 836-071-0101(3);
• Designate crop insurance as a distinct class of insurance for the purpose of licensing crop adjusters, and that effective Feb. 1, 2011, to qualify as a crop adjuster, an applicant must pass – with an 80% minimum score – an examination given by the director. OAR 836-071-0113 & 0127;
• Require crop adjusters wishing to renew their licenses to furnish evidence of current Federal Crop Insurance Corporation certification. OAR 836-071-0130(2)(d);
• Update the name of the National Association of Securities Dealers (NASD), now the Financial Industry Regulatory Authority (FINRA). OAR 836-071-0185

This rulemaking proposes to adopt rules to fully implement chapter 711, Oregon Laws 2009 (Enrolled Senate Bill 973) enacted by the 2009 Legislative Assembly.  The legislation established statutory requirements related to the use and marketing of life settlement agreements in Oregon and expanded regulation of these agreements beyond the use of life settlement agreements by terminally ill policyholders.

These rules include clarification of the process for applying for a broker, provider and investment agent license and setting the fee for each application and for renewal of the licenses; clarification of reporting requirements; disclosure requirements; and notice requirements for life insurers.

This rulemaking amends temporary rules adopted December 22, 2009 to reflect changes necessary to correct an erroneous calculation of the effective date of federal legislation that the temporary rules adopted on December 22, 2009 were intended to implement.  Because eligibility dates and notice requirements are tied to the effective date of the federal legislation, it is necessary to amend the temporary rules to correctly align with the federal provisions, which provide a subsidy for Oregonians who continue their health insurance coverage in the state continuation program.

Oregonians who lose their jobs have two options to continue coverage under their group health plan. If their former employer has twenty or more workers, they are eligible under the Consolidated Omnibus Budget Reconciliation Act (COBRA). If their former employer has fewer than twenty workers, they are eligible under Oregon’s state continuation law. In February 2009, the federal economic stimulus package extended a 65 percent subsidy for up to nine months of coverage. Recognizing the need for changes to state law to allow Oregonians to obtain the full advantage of the federal subsidy, the Oregon Legislative Assembly enacted House Bill 2433, which extends the period of eligibility for state continuation coverage from six to nine months and allows the Director of the Department of Consumer and Business Services to adopt rules as necessary to allow Oregonians to take full advantage of the benefits provided by the federal law including additional extensions of the period of eligibility to match future extensions or changes in the federal subsidy or COBRA program.  On December 19, 2009, President Obama signed HR 3326, the Fiscal Year 2010 Defense Appropriations Act, which extends the COBRA benefits. This date was first mistakenly reported as December 21, 2009. These rules amend earlier-adopted provisions to implement House Bill 2433 to match extensions of the federal benefits included in HR 3326.  The federal act extends the eligibility period for the American Recovery and Reinvestment Act premium reduction for an additional two months (through February 28, 2010) and the maximum period for receiving the subsidy for an additional six months (from nine to 15 months).  These temporary rules make the same changes to the state continuation program allowing Oregonians enrolled in the state continuation plans to receive the maximum subsidy provided by the federal law.