(a) Directing the authority to rehabilitate a coordinated care organization on one or more of the following grounds:

(A) The coordinated care organization is impaired.

(B) The coordinated care organization has failed to submit its books, papers, accounts or affairs for the reasonable inspection and examination by the authority.

(C) Without first obtaining the written consent of the authority, the coordinated care organization has by contract of reinsurance, or otherwise, transferred or attempted to transfer substantially its entire property or business, or has entered into any transaction the effect of which is to merge, consolidate or reinsure substantially its entire property or business in or with the property or business of any other person, without first having complied with rules adopted pursuant to ORS 415.011 (2)(i).

(D) The coordinated care organization is in such condition that its further transaction of business would be hazardous to its members, creditors, the state or the public.

(E) The coordinated care organization has violated its articles of incorporation, its bylaws, any law of the state or any order of the authority.

(F) Any person who has executive authority in the coordinated care organization, whether an officer, manager, general agent, member of the governing board or trustee, employee or other person, has refused to be examined under oath by the authority concerning its affairs, whether in this state or elsewhere, and after reasonable notice of the fact, the coordinated care organization has not promptly and effectively terminated the employment and status of the person and all influence of the person on management.

(G) The coordinated care organization or its property has been or is the subject of an application for the appointment of a receiver, trustee, custodian, conservator or sequestrator or similar fiduciary of the coordinated care organization or of its property other than as authorized under ORS 415.012 to 415.430 and rules adopted pursuant to ORS 415.011, and the appointment has been made or is imminent, and the appointment might deprive the courts of this state of jurisdiction or might prejudice orderly delinquency proceedings.

(H) The coordinated care organization has consented to the order by a vote of a majority of its governing board.

(I) The coordinated care organization has failed to pay any obligation to any state or any subdivision of the state.

(J) The coordinated care organization has failed to pay a binding final judgment rendered against it by the later of:

(i) Sixty days after the judgment became final;

(ii) Sixty days after the time for taking an appeal expired; or

(iii) Sixty days after the dismissal of an appeal before final determination.

(K) There is reasonable cause to believe that there has been embezzlement from the coordinated care organization, wrongful sequestration or diversion of the coordinated care organization’s assets, forgery or fraud affecting the coordinated care organization or other illegal conduct in, by or with respect to the coordinated care organization that if established would endanger assets in an amount threatening the solvency of the coordinated care organization.

(L) The coordinated care organization has failed to remove a person who has executive authority in the coordinated care organization, whether an officer, manager, general agent, member of the governing board, trustee, employee or other person, if the person has been found by the authority to be dishonest or untrustworthy in a way affecting the coordinated care organization’s business.

(M) Control of the coordinated care organization, whether by stock ownership or otherwise, and whether direct or indirect, is in a person or persons who have been found by the authority to be untrustworthy.

(N) The coordinated care organization has failed to file reports or financial data required by statute or by rule within the time allowed by law or within any additional time allowed by the authority.

(b) Authorizing the authority to seize all or part of the property, books, accounts and other records of a coordinated care organization as well as the premises where health services are provided or administrative functions for a coordinated care organization are housed.

(c) Enjoining the coordinated care organization from disposing of its property and transacting business except as allowed by written consent of the authority.

(2) The authority must include all of the following in the petition under subsection (1) of this section:

(a) An allegation that one or more grounds exist that would justify a court order for a rehabilitation or liquidation proceeding against the coordinated care organization.

(b) An allegation that the interests of members of the coordinated care organization, creditors of the coordinated care organization or the public will be endangered by delay.

(c) The contents of the order that the authority requests the court to issue. [2019 c.478 §27]