Or. Rev. Stat. § 734.510 (2026)

      734.510 Definitions for ORS 734.510 to 734.710. As used in ORS 734.510 to 734.710, unless the context requires otherwise:

      (1) “Association” means the Oregon Insurance Guaranty Association created by ORS 734.550.

      (2) “Board” means the board of directors of the association.

      (3) “Controlled insurer” means an insurer 70 percent or more of whose stock is owned by a corporation, or by two or more corporations that are under common ownership.

      (4)(a) “Covered claim” means an unpaid claim, including a claim for unearned premiums and a claim by the Workers’ Benefit Fund for payments made under ORS chapter 656, that arises out of and is within the coverage and limits of an insurance policy to which ORS 734.510 to 734.710 apply and which is in force at the time of the occurrence giving rise to the unpaid claim, made by a person insured under the policy or by a person suffering injury or damage for which a person insured under the policy is legally liable, if:

      (A) The insurer issuing the policy becomes an insolvent insurer after September 9, 1971; and

      (B) The claimant or insured is a resident of this state at the time of the occurrence giving rise to the unpaid claim, or the property for which the claim arises is permanently located in this state.

      (b) “Covered claim” does not include:

      (A) Any amount in excess of the applicable limits of liability provided by an insurance policy to which ORS 734.510 to 734.710 apply;

      (B) Any amount due any reinsurer, insurer, insurance pool or underwriting association as subrogated recoveries or otherwise;

      (C) Any amount due to a state or to the federal government, except for a claim by the Workers’ Benefit Fund under this section;

      (D) A claim filed with the association after the final date set by the court for the filing of claims against the liquidator or receiver of an insolvent insurer, except for a claim that arises out of a workers’ compensation policy that is subject to ORS chapter 656; or

      (E) Any first party claim by an insured whose net worth exceeds $25 million on December 31 of the year next preceding the date the insurer becomes an insolvent insurer, provided that an insured’s net worth on such date is deemed to include the aggregate net worth of the insured and all of the insured’s subsidiaries as calculated on a consolidated basis.

      (5) “Cybersecurity insurance” means direct insurance that is not otherwise excluded under ORS 734.540 from the application of ORS 734.510 to 734.710 and that:

      (a) Involves first-party and third-party coverage in a policy or endorsement;

      (b) Is written on a direct, admitted basis; and

      (c) Covers losses and loss mitigation that arise out of or are related to:

      (A) A breach of security, as defined in ORS 646A.602;

      (B) An unauthorized intrusion into a network or security system;

      (C) Identity theft;

      (D) The presence, and the effects or results, of a computer virus or ransomware;

      (E) Cyber extortion; or

      (F) Risks and exposures that are similar or related to the risks or exposures described in subparagraphs (A) to (E) of this paragraph.

      (6) “Dividend” means any payment made to the stockholders of a controlled insurer, which payment is directly related to ownership of the stock.

      (7) “Incident or occurrence” means:

      (a) One proximate, uninterrupted or continuing cause that results in an injury or damage, even if:

      (A) The damage or injury consists of separable components or affects different items; and

      (B) More than one claim or claimant results from the cause.

      (b) A single cause or condition, exposure to which over a period of years results in continuous, indivisible injury or damage.

      (8) “Insolvent insurer” means a member insurer:

      (a) Authorized to transact insurance in this state either at the time the policy was issued or at the time of the occurrence giving rise to the unpaid claim;

      (b) Against which a final order of liquidation, with a finding of insolvency, has been entered by a court of competent jurisdiction in the insurer’s domicile after September 9, 1971; and

      (c) With respect to which no order, judgment or finding relating to the insolvency of the insurer, whether preliminary or temporary in nature or otherwise, has been issued by a court of competent jurisdiction or by any insurance commissioner, insurance department or similar official or body prior to September 9, 1971, or which was in fact insolvent prior to September 9, 1971, and such de facto insolvency was or should have been known by the chief insurance regulatory official of the insurer’s domicile.

      (9) “Member insurer” means an insurer, including a reciprocal insurer, authorized to transact insurance in this state that writes any kind of insurance to which ORS 734.510 to 734.710 apply.

      (10)(a) “Net direct written premiums” means direct gross premiums written in this state on insurance policies to which ORS 734.510 to 734.710 apply, less return premiums thereon and dividends paid or credited to policyholders on such direct business.

      (b) “Net direct written premiums” does not include premiums on contracts between insurers or reinsurers.

      (11) “Novation” means a transaction in which one insurer’s or entity’s existing policy obligation, or a claim, becomes the direct obligation of another insurer or entity with the policyholder’s express consent, or consent implied from the circumstances, from the notice provided to the policyholder or from the conduct of the parties, at which point the policyholder releases the insurer or entity from the existing policy obligation or claim.

      (12) “Plan” means the plan of operation of the association established pursuant to ORS 734.590. [1971 c.616 §5; 1977 c.793 §8; 2001 c.974 §1; 2003 c.576 §556; 2025 c.20 §3]