68th OREGON LEGISLATIVE ASSEMBLY--1995 Regular Session


                            Enrolled

                         House Bill 3279

Sponsored by COMMITTEE ON COMMERCE (at the request of Farmers
  Insurance)


                     CHAPTER ................


                             AN ACT


Relating to investments by insurers; amending ORS 733.620.

Be It Enacted by the People of the State of Oregon:

  **************************** SECTION 1. ORS 733.620 is amended
to read:
  733.620. (1) Funds of an insurer may be invested in stocks
(including trust certificates) of solvent corporations organized
and carrying on a business under the laws of a sovereign as
follows:
  (a) Preferred or guaranteed stocks if the corporation is not in
default or arrears as to any preferred or guaranteed dividend and
has continuously and regularly paid such dividends during the
preceding three years or has paid cash dividends for five years
on common stock.
  (b) Common stocks  { + as provided in paragraph (c) of this
subsection + } if:
  (A) The obligations and preferred stock, if any, of such
corporation are eligible for investment under ORS 733.510 to
733.780; { +  and + }
    { - (B) Cash dividends on such common stock have been paid
during each of five years preceding the date of acquisition;
and - }
    { - (C) - }  { +  (B) + } The stock is registered on a
national securities exchange regulated under the Securities
Exchange Act, or if of a type not commonly so registered is
regularly traded on a broad national or regional basis.
   { +  (c) Notwithstanding ORS 733.780 (1), not more than 25
percent of admitted assets may be in common stocks that have not
paid a cash dividend during each of the five years preceding the
date of acquisition. + }
  (2) An insurer shall not invest so as to own or control more
than five percent of the voting power outstanding of a
corporation, nor shall it invest in the obligations or stocks of
a corporation if the insurer, directors, trustees and officers
own or control, or as a result thereof shall own and control, in
the aggregate more than 50 percent of the voting power.
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Passed by House April 18, 1995


      ...........................................................
                                             Chief Clerk of House

      ...........................................................
                                                 Speaker of House

Passed by Senate May 17, 1995


      ...........................................................
                                              President of Senate














































Enrolled House Bill 3279                                   Page 2





Received by Governor:

......M.,............., 1995

Approved:

......M.,............., 1995


      ...........................................................
                                                         Governor

Filed by Office of Secretary of State:

......M.,............., 1995


      ...........................................................
                                               Secretary of State









































Enrolled House Bill 3279                                   Page 3