(1) In lieu of the trust account required by ORS § 744.083, a resident insurance producer may keep a certificate of deposit from an institution insured by the federal government or an instrumentality thereof if the resident insurance producer has an average monthly balance of premium funds received and held for the last 12 months of at least $2 million. A resident insurance producer who keeps a certificate of deposit shall have satisfactory evidence of the certificate available at all times for inspection by the Director of the Department of Consumer and Business Services.

Ask an insurance law question, get an answer ASAP!
Click here to chat with a lawyer about your rights.

(2) A certificate of deposit authorized under subsection (1) of this section shall be for an amount at least equal to the average monthly balance of premium funds received and held by the resident insurance producer for the last 12 months. Nothing in this subsection requires that the required amount of the certificate of deposit be calculated, or the amount changed, more often than once a month.

(3) The director may adopt rules specifying what constitutes satisfactory evidence for purposes of subsection (1) of this section.

(4) Authorization to use a certificate of deposit may be revoked by the director at any time upon a determination that the resident insurance producer has failed to comply with the provisions of this section or rules adopted under subsection (3) of this section. Upon revocation, the resident insurance producer shall comply immediately with the provisions of ORS § 744.083. [Formerly 744.227; 2003 c.364 § 23]

[1967 c.359 § 533; 1971 c.231 § 28; 1977 c.174 § 1; 1977 c.820 § 1; 1979 c.501 § 4; 1981 c.817 § 1; 1983 c.76 § 5; 1989 c.701 § 29; 1991 c.810 § 8; 1993 c.447 § 85; 1995 c.334 § 1; repealed by 2001 c.191 § 61]