reglab/statecodes huggingface dataset:
2023 Ohio Revised Code › Title 39 | Insurance › Chapter 3964 | Captive Insurance Companies › Section 3964.02 | Authorized Lines of Insurance.

Effective:
September 17, 2014
Latest Legislation:
House Bill 117 - 130th General Assembly
(A) A captive insurance company may apply for authority to insure only the following lines of insurance:
(1) Commercial multiple peril;
(2) Ocean marine;
(3) Inland marine;
(4) Medical malpractice;
(5) Workers' compensation, to the extent permitted by law, but only for the purpose of indemnification of a self-insuring employer pursuant to division (B)(1) of section 4123.82 of the Revised Code;
(6) Commercial auto liability;
(7) Commercial auto physical damage;
(8) Fidelity;
(9) Notwithstanding division (C) of this section, a special purpose financial captive may apply to provide reinsurance of life insurance risks of an Ohio domiciled parent or an affiliated company that is authorized to transact the business of life insurance in this state;
(10) Except as provided in division (C)(2) of this section, any other line which the superintendent, at the superintendent's sole discretion, permits.
(B) A captive insurance company may purchase reinsurance coverage for any risk that a captive insurance company is permitted to write directly.
(C)(1) A captive insurance company shall not issue, offer, or present insurance policies or certificates, evidence of coverage, or any other similar documentation, to any person other than its parent or affiliated companies.
(2) A captive insurance company shall not do either of the following:
(a) Insure or reinsure any personal lines, as defined in division (B) of section 3905.06 of the Revised Code;
(b) Insure, offer, or enter a three-party agreement under which the captive agrees to pay a parent or affiliate, agrees to make complete, or become responsible for an obligation in response to the default, acts, or omissions of a third party, the parent, or an affiliate.
(D) A captive insurance company may reinsure any risks insured by its parent or an affiliated company, as approved by the superintendent.
2023 Ohio Revised Code › Title 39 | Insurance › Chapter 3964 | Captive Insurance Companies › Section 3964.04 | Name.

Effective:
September 17, 2014
Latest Legislation:
House Bill 117 - 130th General Assembly
No captive insurance company shall adopt a name that is the same, deceptively similar, or likely to be confused with, or mistaken for, any other existing business name registered in this state. The name under which a captive insurance company engages in business must contain the word "captive."
2023 Ohio Revised Code › Title 39 | Insurance › Chapter 3964 | Captive Insurance Companies › Section 3964.05 | Capital Requirements.

Effective:
September 17, 2014
Latest Legislation:
House Bill 117 - 130th General Assembly
(A) No captive insurance company shall be issued a license unless it possesses and maintains minimum unimpaired, paid-in total capital and surplus as follows:
(1) Not less than two hundred fifty thousand dollars;
(2) In the case of a protected cell captive insurance company, not less than five hundred thousand dollars.
(B) The superintendent may prescribe additional capital and surplus based upon the type, volume, and nature of insurance business transacted.
(C) Capital and surplus may be in the form of any of the following:
(1) Cash;
(2) Marketable securities, as approved by the superintendent;
(3) For a captive insurance company other than a special purpose financial captive insurance company, irrevocable, unconditional, and automatically renewable letters of credit that are issued or confirmed by a qualified United States financial institution.
(D) For purposes of division (C)(3) of this section, a United States financial institution is qualified if all of the following apply:
(1) It is organized under, or, in the case of the United States branch or agency office of a foreign banking organization, is chartered under the laws of the United States or any state thereof.
(2) It is regulated, supervised, and examined by federal or state officials that have regulatory authority over banks and trust companies.
(3) The superintendent has determined that it meets such standards of financial condition and standing as are necessary and appropriate for purposes of ensuring that its letters of credit will be of a quality that is acceptable to the superintendent, in the superintendent's sole discretion.
2023 Ohio Revised Code › Title 39 | Insurance › Chapter 3964 | Captive Insurance Companies › Section 3964.06 | Extraordinary Distributions.

Effective:
September 17, 2014
Latest Legislation:
House Bill 117 - 130th General Assembly
(A) No captive insurance company shall pay any extraordinary dividend or make any other extraordinary distribution to its shareholders or members other than in accordance with this section. The declaration of an extraordinary dividend or distribution shall be conditional and shall confer no rights upon shareholders or members until thirty days after the superintendent has received notice of the declaration thereof and has not, within the thirty-day period, disapproved the dividend or distribution, unless the superintendent approves the dividend or distribution within the thirty-day period.
(B) Prior to paying any dividend or distribution, the insurance company shall notify the superintendent on a form provided by the superintendent for informational purposes within five business days following its declaration of any dividend or distribution and at least ten calendar days prior to payment of such dividend or distribution. Such a ten-calendar-day period is to begin on the date that the superintendent receives the notice.
(C)(1) For the purposes of this section, an extraordinary dividend or distribution includes any dividend or distribution of cash or other property, whose fair market value, together with that of other dividends or distributions made within the preceding twelve months, exceeds the greater of ten per cent of the insurance company's surplus as regards policy holders as of the thirty-first day of December immediately preceding, or the net income of the insurance company for the twelve-month period ending the thirty-first day of December immediately preceding.
(2) Pro rata distributions of any class of the insurance company's own securities shall not be considered an extraordinary distribution under division (C)(1) of this section.
(D) Any dividend or distribution paid from a source other than earned surplus shall be considered an extraordinary dividend or extraordinary distribution.
(E) In no instance shall any extraordinary dividend or distribution be permitted by a captive insurance company if such dividend or distribution results in a decrease of the unimpaired, total capital and surplus of the captive insurance company below the limits prescribed in section 3964.05 of the Revised Code.
(F) For the purposes of this section, "earned surplus" means an amount equal to an insurance company's unassigned funds as set forth in its most recent financial statement submitted to the superintendent, including net unrealized capital gains and losses or revaluation of assets.
2023 Ohio Revised Code › Title 39 | Insurance › Chapter 3964 | Captive Insurance Companies › Section 3964.08 | Examination, Evaluation, and Monitoring.

Effective:
September 17, 2014
Latest Legislation:
House Bill 117 - 130th General Assembly
(A) Captive insurance companies shall be examined, evaluated, and monitored pursuant to section 3901.07 of the Revised Code.
(B) All examination reports, preliminary examination reports or results, working papers, recorded information, documents and copies thereof produced by, obtained by, or disclosed to the superintendent or any other person in the course of an examination made under this section are confidential and are not subject to subpoena and may not be made public by the superintendent or an employee or agent of the superintendent without the written consent of the company, except to the extent provided in this section. However, nothing in this section shall prevent the superintendent from using such information in the furtherance of the superintendent's regulatory authority under this chapter.
(C) The superintendent may, in the superintendent's sole discretion, share documents that are the subject of this section with the chief deputy rehabilitator, the chief deputy liquidator, other deputy rehabilitators and liquidators, and any other person employed by, or acting on behalf of, the superintendent pursuant to Chapter 3901. or 3903. of the Revised Code, with other local, state, federal, and international regulatory and law enforcement agencies, with local, state, and federal prosecutors, and with the national association of insurance commissioners and its affiliates and subsidiaries provided that the recipient agrees to maintain the confidential or privileged status of the confidential or privileged work paper and has authority to do so.
2023 Ohio Revised Code › Title 39 | Insurance › Chapter 3964 | Captive Insurance Companies › Section 3964.09 | Suspension or Revocation of License.

Effective:
September 17, 2014
Latest Legislation:
House Bill 117 - 130th General Assembly
The superintendent may suspend or revoke the license of a captive insurance company, in accordance with Chapter 119. of the Revised Code, for any of the following reasons:
(A) Insolvency or impairment of capital or surplus;
(B) Failure to meet the requirements of section 3964.05 of the Revised Code;
(C) Refusal or failure to submit an annual report, as required by section 3964.07 of the Revised Code, or any other report or statement required by law or by lawful order of the superintendent;
(D) Failure to comply with the provisions of its own articles, bylaws, code of regulations, or other organizational documents;
(E) Failure to submit to, or pay the cost of, examination, or any legal obligation related to examination, as required by this chapter;
(F) Use of practices that, although not otherwise specifically prohibited by law, are determined by the superintendent to render its operation detrimental or its condition unsound with respect to the public or to its policyholders;
(G) Failure to otherwise comply with the laws of this state.
2023 Ohio Revised Code › Title 39 | Insurance › Chapter 3964 | Captive Insurance Companies › Section 3964.10 | Investments.

Effective:
September 17, 2014
Latest Legislation:
House Bill 117 - 130th General Assembly
(A) The board of directors of a captive insurance company shall determine appropriate investments for the company. With respect to all of the insurance company's investments, the board of directors shall exercise the judgment and care, under the circumstances then prevailing, that a person of reasonable prudence, discretion, and intelligence might exercise in the management of a like enterprise, that person not having an intent to speculate, but having regard for the permanent disposition of the person's funds, considering the probable income as well as the probable safety of the person's capital.
(B)(1) Investments shall be of sufficient value, liquidity, and diversity to assure the captive insurance company's ability to meet its outstanding obligations, based on reasonable estimations of new business production for current lines of business. A copy of the investment policy adopted by the board of directors shall be filed with the superintendent.
(2) If the superintendent determines that a board of directors of a captive insurance company has failed to comply with the requirements of division (B)(1) of this section, the company shall be notified in writing that it is required to file a schedule of its proposed investments with the superintendent.
(C)(1) No captive insurance company may make a loan to, or an investment in, its parent company or affiliates without prior written approval of the superintendent.
(2) Any such loan or investment shall be evidenced by documentation approved by the superintendent.
(3) Loans that violate the minimum capital and surplus funds requirements of section 3964.05 of the Revised Code are prohibited.
2023 Ohio Revised Code › Title 39 | Insurance › Chapter 3964 | Captive Insurance Companies › Section 3964.12 | Affiliation With Insolvency Fund Prohibited.

Effective:
September 17, 2014
Latest Legislation:
House Bill 117 - 130th General Assembly
No captive insurance company shall be permitted to join or contribute financially to any plan, pool, association, or guaranty or insolvency fund in this state, nor shall any captive insurance company, or any insured or affiliate thereof, receive any benefit from any such plan, pool, association, or guaranty or insolvency fund for claims arising out of the operations of the captive insurance company.
2023 Ohio Revised Code › Title 39 | Insurance › Chapter 3964 | Captive Insurance Companies › Section 3964.13 | Fees.

Effective:
October 3, 2023
Latest Legislation:
House Bill 33 - 135th General Assembly
(A)(1) Not later than the second day of March of each year, a captive insurance company shall pay to the superintendent of insurance a fee computed in accordance with both of the following:
(a) 0.35 per cent on its net direct premiums;
(b) 0.15 per cent on revenue from assumed reinsurance premiums.
(2) The annual minimum aggregate fee to be paid by a captive insurance company calculated under this division shall be seven thousand five hundred dollars. The annual maximum aggregate fee to be paid by a captive insurance company calculated under this division shall be two hundred fifty thousand dollars.
(B) The fee on reinsurance premiums set forth under division (A)(1)(b) of this section shall not be levied on premiums for risks or portions of risks that are subject to the fee under division (A)(1)(a) of this section.
(C) A captive insurance company shall not pay any reinsurance fee pursuant to division (A)(1)(b) of this section on revenue related to the receipt of assets by the captive insurance company in exchange for the assumption of loss reserves and other liabilities of another insurance company that is under common ownership and control with the captive insurance company, if the transaction is part of a plan to discontinue the operation of the other insurance company and the intent of the exchange is to renew or maintain such business with the captive insurance company.
(D)(1) The fee imposed in division (A) of this section shall be calculated on an annual basis, notwithstanding policies, contracts, insurance, or contracts of reinsurance issued on a multi-year basis.
(2) In the case of multi-year policies or contracts, the premium shall be prorated for purposes of determining the fee required under division (A) of this section.
(E) All fees collected under this section shall be deposited into the state treasury to the credit of the department of insurance operating fund.
Last updated October 3, 2023 at 12:33 PM
2023 Ohio Revised Code › Title 39 | Insurance › Chapter 3964 | Captive Insurance Companies › Section 3964.14 | Applicable Law.

Effective:
September 17, 2014
Latest Legislation:
House Bill 117 - 130th General Assembly
(A) Except as provided in this chapter, captive insurance companies shall be governed by this chapter and are exempt from all other provisions of the insurance laws of this state. No insurance law of this state shall apply to captive insurance companies unless captive insurance companies are expressly designated as being subject to the law or, with respect to a line of authority granted to a captive insurance company pursuant to division (A)(10) of section 3964.02 of the Revised Code, as required in the articles, bylaws, code of regulations, or other organizational documents as approved by the superintendent.
(B) Except as otherwise provided in this chapter, sections 3903.01 to 3903.59 of the Revised Code shall apply to captive insurance companies.
2023 Ohio Revised Code › Title 39 | Insurance › Chapter 3964 | Captive Insurance Companies › Section 3964.15 | Captive Insurance Regulation and Supervision Fund.

Effective:
October 3, 2023
Latest Legislation:
House Bill 33 - 135th General Assembly
(A) The superintendent may charge captive insurance companies for any of the following expenses incurred in carrying out this chapter:
(1) The entire compensation for each day, or portion thereof, worked by all personnel, including those who are not employees of the department of insurance, in any of the following capacities:
(a) The conduct of an examination, calculated at the rates provided in the financial condition examiners' handbook published by the national association of insurance commissioners;
(b) The review and analysis of a company's annual report submitted pursuant to section 3964.07 of the Revised Code, and any interim financial statements and examination reports or related documents of captive insurance companies in this state;
(c) The ongoing evaluation and monitoring of the financial affairs of captive insurance companies;
(d) The determination and review of the premium franchise fee liability of a captive insurance company;
(e) The training and continuing education costs of examiners and analysts.
(2) Travel and living expenses of all personnel, including those who are not employees of the department of insurance, directly engaged in the conduct of an examination calculated at rates not to exceed the rates provided in the financial condition examiners' handbook published by the national association of insurance commissioners;
(3) All other incidental expenses incurred by or on behalf of such personnel in the conduct of such examination;
(4) An allocated share of all expenses not described in division (A)(1), (2), or (3) of this section, but that are necessarily incurred in carrying out the duties of the superintendent under this chapter, including the expenses of direct overhead and support staff for the examiners and persons appointed or employed pursuant to section 3964.08 of the Revised Code.
(B) All amounts collected by the superintendent under division (A) of this section shall be deposited into the state treasury to the credit of the department of insurance operating fund.
(C) As used in this section, "examination" means the examination required under section 3964.08 of the Revised Code.
Last updated October 3, 2023 at 12:34 PM
2023 Ohio Revised Code › Title 39 | Insurance › Chapter 3964 | Captive Insurance Companies › Section 3964.171 | Shares.

Effective:
September 17, 2014
Latest Legislation:
House Bill 117 - 130th General Assembly
(A) A protected cell captive insurance company may create and issue shares in one or more classes for one or more protected cells.
(1) The proceeds of the issue of shares for a specific protected cell shall be included in the assets of that protected cell.
(2) The proceeds of the issue of shares that are not for a specific protected cell shall be included in the protected cell captive insurance company's general assets.
(B) A protected cell captive insurance company may pay a dividend on protected cell or protected cell captive insurance company shares of any class, regardless of whether a dividend is declared on any other class of shares of a protected cell or any other shares of the protected cell captive insurance company. Such payment is subject to section 3964.06 of the Revised Code.
(C) Dividends may be paid on protected cell shares only from the cell assets of the protected cell that issued the shares and must otherwise be made in accordance with the rights of such shares and in accordance with section 3964.06 of the Revised Code.
2023 Ohio Revised Code › Title 39 | Insurance › Chapter 3964 | Captive Insurance Companies › Section 3964.172 | Transfer of Assets.

Effective:
September 17, 2014
Latest Legislation:
House Bill 117 - 130th General Assembly
(A) No sale, exchange, or other transfer of assets may be made by a protected cell captive insurance company between or among any of its protected cells without the written consent of the participants of the protected cell and the superintendent.
(B)(1) No sale, exchange, transfer of assets, or distribution may be made from a protected cell to any person without the superintendent's prior written approval.
(2) The superintendent shall not give approval if the sale, exchange, transfer, or distribution would result in the insolvency or impairment of the protected cell in question.
2023 Ohio Revised Code › Title 39 | Insurance › Chapter 3964 | Captive Insurance Companies › Section 3964.173 | Status of Owners and Participants.

Effective:
September 17, 2014
Latest Legislation:
House Bill 117 - 130th General Assembly
(A) The owners of a protected cell captive insurance company, shall not, by virtue of being owners of the protected cell captive insurance company, be the owners or participants of any protected cell of the protected cell captive insurance company.
(B) The participants of a protected cell shall not, by virtue of being such participants, be the owners of the protected cell captive insurance company or participants or owners of any other protected cell of the protected cell captive insurance company.
(C) No participant contract shall take effect without the superintendent's prior written approval.
(D) The addition of a new protected cell, or the withdrawal or other transfer of any participant from any existing protected cell, shall constitute a change in the strategic business plan of that protected cell captive insurance company, requiring the superintendent's prior written approval.
(E) A protected cell captive insurance company shall, in addition to keeping a register of its owners or participants, keep a register of the participants of each of its protected cells.
2023 Ohio Revised Code › Title 39 | Insurance › Chapter 3964 | Captive Insurance Companies › Section 3964.175 | Liability for Penalty.

Effective:
September 17, 2014
Latest Legislation:
House Bill 117 - 130th General Assembly
If a protected cell captive insurance company is liable for any penalty, under this chapter or otherwise, due to an act or the failure to act of a protected cell or an officer or director of a protected cell, then both of the following apply:
(A) The penalty shall only be met by the protected cell captive insurance company from the cell assets of the protected cell responsible.
(B) The penalty shall not be enforceable in any way against any other assets of the protected cell captive insurance company or assets of any other protected cell.
2023 Ohio Revised Code › Title 39 | Insurance › Chapter 3964 | Captive Insurance Companies › Section 3964.176 | Duties of Directors.

Effective:
September 17, 2014
Latest Legislation:
House Bill 117 - 130th General Assembly
The directors of a protected cell captive insurance company shall establish and maintain, or cause to be established and maintained, procedures to do all of the following:
(A) Segregate cell assets and liabilities separate and separately identifiable from general assets and liabilities;
(B) Segregate cell assets and liabilities of each protected cell separate and separately identifiable from cell assets and liabilities of any other protected cell;
(C) Apportion or transfer, where relevant, assets and liabilities between protected cells or between protected cells and the general assets and liabilities of the protected cell captive insurance company.
2023 Ohio Revised Code › Title 39 | Insurance › Chapter 3964 | Captive Insurance Companies › Section 3964.178 | Conversion of Captive Insurance Company to Protected Cell Captive Insurance Company.

Effective:
September 17, 2014
Latest Legislation:
House Bill 117 - 130th General Assembly
(A) A captive insurance company may amend its organizational document to become a protected cell captive insurance company.
(B) The amendment of the organizational document of a captive insurance company to become a protected cell captive insurance company shall require approval by both of the following:
(1) Holders of two-thirds of the outstanding shares or ownership interests of the captive insurance company, unless a greater amount is required by the organizational document of the captive insurance company;
(2) All the creditors of the captive insurance company.
(C) Notwithstanding division (B)(2) of this section, if the consent of all the creditors of the captive insurance company cannot be obtained, the amendment may be approved by the superintendent if the superintendent is satisfied that no creditor will be materially prejudiced by the amendment.
(D) A protected cell captive insurance company may amend its organizational document to cease to be a protected cell captive insurance company.
(E) The amendment of an organizational document of a protected cell captive insurance company to cease to be a protected cell captive insurance company shall require approval by all of the following:
(1) The superintendent;
(2) Holders of two-thirds of the outstanding shares or ownership interests of the protected cell captive insurance company, unless a greater amount is required by the organizational document of the protected cell captive insurance company;
(3) Two-thirds of the participants of each protected cell;
(4) All the creditors of the protected cell captive insurance company and its protected cells.
(F) Notwithstanding division (E)(4) of this section, if the consent of all the creditors of the captive insurance company and its protected cells cannot be obtained, the amendment may be approved by the superintendent upon being satisfied that no creditor will be materially prejudiced by the amendment.
(G)(1) If a captive insurance company or protected cell captive insurance company seeks to change its status in accordance with this section, the captive insurance company or protected cell captive insurance company shall deliver both of the following to the superintendent:
(a) A copy of the amendment to its name;
(b) Evidence satisfactory to the superintendent that the requirements of division (B) or (E) of this section have been met.
(2) If the documents required under division (G)(1) of this section are provided, the superintendent shall issue a license that is appropriate to the amended status of the company.
(H) If a company changes its status in accordance with this section, the change of status shall take effect when the superintendent issues a new license.
2023 Ohio Revised Code › Title 39 | Insurance › Chapter 3964 | Captive Insurance Companies › Section 3964.1710 | Incorporation of Other Insurance Companies as Captive Cell; Approval of Superintendent.

Effective:
September 17, 2014
Latest Legislation:
House Bill 117 - 130th General Assembly
(A) Any insurance company organized under Chapter 3925. of the Revised Code, and any captive insurance company that is not a protected cell captive insurance company, may become a protected cell of a protected cell captive insurance company, with the approval of the superintendent.
(B)(1) A protected cell of a protected cell captive insurance company may apply to the superintendent to be incorporated as an insurance company, including a captive insurance company subject to the requirements of this chapter, independent from the protected cell captive insurance company of which it is currently a part.
(2) If a protected cell is licensed as an independent insurance company, then all of the following apply:
(a) All property and rights to which the protected cell was entitled immediately before its licensure as a new entity shall remain the property and rights of the new entity.
(b) The protected cell shall remain subject to all criminal and civil liabilities and all contracts, debts, and other obligations to which the protected cell was subject immediately before its licensure as a new entity.
(c) All contracts, debts, and other obligations of the protected cell shall remain the contracts, debts, and other obligations of the new entity.
(d) All actions and other legal proceedings that, immediately before the licensure of the protected cell as a new entity, were pending by or against the protected cell may be continued by or against the new entity.
(C) An application made under division (B) of this section shall be approved by two-thirds of the participants of the protected cell or, if the protected cell has more than one class of participants, two-thirds of each class of participant, unless the organizational document of the protected cell requires a greater percentage.
(D)(1) If a protected cell makes an application under division (B) of this section, any participant of the protected cell who objects to the protected cell being incorporated as an independent insurance company may petition the superintendent for an order denying the application on the grounds that the incorporation, or the terms of the incorporation, unfairly prejudice the interests of the participant.
(2) Such a petition shall be made within thirty days after an application has been made under division (B) of this section.
(E) The operation of division (B)(2) of this section shall not be regarded as any of the following:
(1) A breach of contract;
(2) A breach of any contractual provision prohibiting, restricting, or regulating the assignment or transfer of rights or liabilities;
(3) Giving rise to any remedy by a party to a contract or other instrument as an event of default under the contract or other instrument or as causing or permitting the termination of any contract, other instrument, obligation, or relationship.
2023 Ohio Revised Code › Title 39 | Insurance › Chapter 3964 | Captive Insurance Companies › Section 3964.193 | Confidentiality of Information.

Effective:
September 17, 2014
Latest Legislation:
House Bill 117 - 130th General Assembly
(A) Except as otherwise provided in this section, documents and information submitted by a company pursuant to sections 3964.19 to 3964.194 of the Revised Code are not subject to section 149.43 of the Revised Code, and are confidential, and may not be disclosed by the superintendent or any employee of the department of insurance without the written consent of the company.
(B) Such documents and information may be discoverable in a civil action in which the company filing the material is a party upon a finding by a court of competent jurisdiction that the information sought is relevant and necessary to the case, and the information sought is unavailable from other, nonconfidential sources.
(C) The superintendent may, at the superintendent's sole discretion, share documents that are the subject of this section with the chief deputy rehabilitator, the chief deputy liquidator, other deputy rehabilitators and liquidators, and any other person employed by, or acting on behalf of, the superintendent pursuant to Chapter 3901. or 3903. of the Revised Code, with other local, state, federal, and international regulatory and law enforcement agencies, with local, state, and federal prosecutors, and with the national association of insurance commissioners and its affiliates and subsidiaries provided that the recipient agrees to maintain the confidential or privileged status of the confidential or privileged work paper and has authority to do so.
2023 Ohio Revised Code › Title 39 | Insurance › Chapter 3964 | Captive Insurance Companies › Section 3964.194 | Counterparties; Credit for Reinsurance Ceded to Special Purpose Financial Captive Insurance Company That Is a Subsidiary or Affiliate of the Counterparty.

Effective:
September 17, 2014
Latest Legislation:
House Bill 117 - 130th General Assembly
(A) Notwithstanding any other section of the Revised Code, a counterparty may take credit for reinsurance ceded to a special purpose financial captive insurance company that is a subsidiary or affiliate of the counterparty, if assets valued using the basis of accounting applicable to the special purpose financial captive insurance company under division (E) of section 3964.03 of the Revised Code at least equal to the reserves as determined under the basis elected under division (E) of section 3964.03 of the Revised Code for the reinsurance are held directly by the ceding counterparty or in trust on behalf of the ceding counterparty, as security for payment of the obligations under the reinsurance contract with the reinsuring special purpose financial captive insurance company.
(B) Such funds shall be held in compliance with the requirements of section 3901.63 of the Revised Code.
(C) An Ohio domiciled counterparty in recording its investment in a special purpose financial captive insurance company domiciled in this state, shall value the investment using the special purpose financial captive insurance company's underlying audited statutory equity reflecting the reserves established pursuant to division (E) of section 3964.03 of the Revised Code.
(D) Notwithstanding any other provision of the Revised Code that would otherwise apply, any change in surplus that may be recognized by any Ohio domiciled ceding counterparty pursuant to this chapter may be recognized in such ceding counterparty's calculation of its investment in a United States insurance subsidiary, controlled and affiliated entity investment, or any of its Ohio domiciled parents' calculations of their investment in a United Stated insurance subsidiary, controlled, and affiliated entities.
2023 Ohio Revised Code › Title 39 | Insurance › Chapter 3964 | Captive Insurance Companies › Section 3964.20 | Foreign Companies.

Effective:
September 17, 2014
Latest Legislation:
House Bill 117 - 130th General Assembly
A captive insurance company organized under the laws of another state or jurisdiction may become a domestic captive insurance company pursuant to section 3913.40 of the Revised Code after complying with all the requirements of this chapter relative to the organization and formation of a domestic captive insurance company.
2023 Ohio Revised Code › Title 39 | Insurance › Chapter 3965 | Cybersecurity Requirements for Insurance Companies › Section 3965.03 | Investigation of Events.

Effective:
March 20, 2019
Latest Legislation:
Senate Bill 273 - 132nd General Assembly
(A) If a licensee learns that a cybersecurity event has or may have occurred, the licensee or an outside vendor or service provider designated to act on behalf of the licensee shall conduct a prompt investigation.
(B) During the investigation, the licensee or an outside vendor or service provider designated to act on behalf of the licensee shall, at a minimum, do as much of the following as possible:
(1) Determine whether a cybersecurity event has occurred;
(2) Assess the nature and scope of the cybersecurity event;
(3) Identify any nonpublic information that may have been involved in the cybersecurity event;
(4) Perform or oversee reasonable measures to restore the security of the information systems compromised in the cybersecurity event in order to prevent further unauthorized acquisition, release, or use of nonpublic information in the licensee's possession, custody, or control.
(C) If the licensee learns that a cybersecurity event has or may have occurred in a system maintained by a third-party service provider, the licensee shall take the actions described in division (B) of this section or make reasonable efforts to confirm and document that the third-party service provider has taken those actions.
(D) The licensee shall maintain records concerning all cybersecurity events for a period of at least five years from the date of the cybersecurity event and shall produce those records upon demand of the superintendent of insurance.
2023 Ohio Revised Code › Title 39 | Insurance › Chapter 3965 | Cybersecurity Requirements for Insurance Companies › Section 3965.05 | Powers of Superintendent.

Effective:
March 20, 2019
Latest Legislation:
Senate Bill 273 - 132nd General Assembly
(A) The superintendent of insurance shall have power to examine and investigate into the affairs of any licensee to determine whether the licensee has been or is engaged in any conduct in violation of this chapter. This power is in addition to the powers that the superintendent has under Title XXXIX and Chapters 1739. and 1751. of the Revised Code.
(B) Whenever the superintendent has reason to believe that a licensee has been or is engaged in conduct in this state that violates this chapter, the superintendent may take any necessary or appropriate action to enforce the provisions of this chapter.
2023 Ohio Revised Code › Title 39 | Insurance › Chapter 3965 | Cybersecurity Requirements for Insurance Companies › Section 3965.07 | Exemptions.

Effective:
March 20, 2019
Latest Legislation:
Senate Bill 273 - 132nd General Assembly
(A) A licensee is exempt from the requirements of section 3965.02 of the Revised Code if it meets any of the following criteria:
(1) The licensee has fewer than twenty employees.
(2) The licensee has less than five million dollars in gross annual revenue.
(3) The licensee has less than ten million dollars in assets, measured at the end of the licensee's fiscal year.
(B)(1) A licensee subject to and in compliance with the privacy and security rules of 45 C.F.R. Parts 160 and 164 shall be deemed to meet the requirements of this chapter, except those pertaining to notification under section 3965.04 of the Revised Code. The licensee shall submit a written statement to the superintendent certifying its compliance with 45 C.F.R. Parts 160 and 164. The information furnished by a licensee pursuant to section 3965.04 of the Revised Code shall be confidential in accordance with section 3965.06 of the Revised Code.
Each licensee shall maintain for examination by the superintendent all records, schedules, and data supporting the certificate of compliance for a period of five years. To the extent an insurer has identified areas, systems, or processes that require material improvement, updating, or redesign, the insurer shall document the identification and the remedial efforts planned and underway to address such areas, systems, or processes. Such documentation shall be available for inspection by the department.
(2) Notwithstanding any other provision of this chapter, a licensee subject to HIPAA shall comply with the requirements of any subsequent amendments to HIPAA in the timeframe established in the applicable amendments to HIPAA.
(C) An employee, agent, representative, independent contractor, or designee of a licensee, who is also a licensee, is exempt from section 3965.02 of the Revised Code and need not develop its own information security program to the extent that the employee, agent, representative, independent contractor, or designee is covered by the information security program of the other licensee.
(D) If a licensee ceases to qualify for an exemption, the licensee shall have one hundred eighty days after the date it ceases to qualify to comply with this chapter.
2023 Ohio Revised Code › Title 39 | Insurance › Chapter 3965 | Cybersecurity Requirements for Insurance Companies › Section 3965.08 | Affirmative Defense.

Effective:
March 20, 2019
Latest Legislation:
Senate Bill 273 - 132nd General Assembly
(A) A licensee that satisfies the provisions of this chapter shall be entitled to an affirmative defense to any cause of action sounding in tort that is brought under the laws of this state or in the courts of this state and that alleges that the failure to implement reasonable information security controls resulted in a data breach concerning nonpublic information.
(B) The affirmative defenses permitted under this section shall not limit any other affirmative defenses available to a licensee.
2023 Ohio Revised Code › Title 39 | Insurance › Chapter 3965 | Cybersecurity Requirements for Insurance Companies › Section 3965.09 | Applicability and Scope of Chapter.

Effective:
March 20, 2019
Latest Legislation:
Senate Bill 273 - 132nd General Assembly
Notwithstanding any other provision of law, the provisions of this chapter and any rules adopted pursuant to this chapter constitute the exclusive state standards and requirements applicable to licensees regarding cybersecurity events, the security of nonpublic information, data security, investigation of cybersecurity events, and notification to the superintendent of cybersecurity events.
2023 Ohio Revised Code › Title 39 | Insurance › Chapter 3965 | Cybersecurity Requirements for Insurance Companies › Section 3965.10 | Adoption of Rules.

Effective:
March 20, 2019
Latest Legislation:
Senate Bill 273 - 132nd General Assembly
The superintendent of insurance, pursuant to Chapter 119. of the Revised Code, may adopt rules as necessary to carry out the provisions of this chapter.
2023 Ohio Revised Code › Title 39 | Insurance › Chapter 3999 | Crimes Relating to Insurance › Section 3999.02 | False Statement by Medical Examiner of Insurance Company.

Effective:
October 1, 1953
Latest Legislation:
House Bill 1 - 100th General Assembly
No medical examiner for a life insurance company or for an applicant for insurance therein shall knowingly make a false statement or report to such company or to an officer thereof concerning the health or physical condition of an applicant for insurance, or other matter or thing affecting the granting of such insurance.
2023 Ohio Revised Code › Title 39 | Insurance › Chapter 3999 | Crimes Relating to Insurance › Section 3999.03 | Life Insurance - Official or Agent Issuing Fraudulent Policies.

Effective:
October 1, 1953
Latest Legislation:
House Bill 1 - 100th General Assembly
No trustee, officer, agent, or employee of a corporation, company, or association organized to transact the business of life or accident or life and accident insurance on the assessment plan shall knowingly insure a person, or permit him to be insured without that person's knowledge or consent, or insure a fictitious person, a person over sixty-five or under fifteen years of age, or a sickly or infirm person.
No physician or other person shall knowingly aid or abet any person in effecting insurance described in this section, or in effecting insurance of his own life.
2023 Ohio Revised Code › Title 39 | Insurance › Chapter 3999 | Crimes Relating to Insurance › Section 3999.04 | Changing Life Insurance Policy.

Effective:
October 1, 1953
Latest Legislation:
House Bill 1 - 100th General Assembly
No life insurance company doing business in this state, or an agent thereof, shall make a contract of insurance, or an agreement as to such contract, other than is plainly expressed in the policy issued thereon.
2023 Ohio Revised Code › Title 39 | Insurance › Chapter 3999 | Crimes Relating to Insurance › Section 3999.05 | Rebates and Other Inducements From Life Insurance Companies.

Effective:
October 1, 1953
Latest Legislation:
House Bill 1 - 100th General Assembly
No life insurance company doing business in this state, or an officer, agent, solicitor, or representative thereof, shall pay, allow, or give, or offer to pay, allow, or give, directly or indirectly, as an inducement to insurance, a rebate of the premium payable on a policy, or a special favor or advantage in the dividends or other benefits to accrue thereon, or a paid employment or contract for services of any kind, or any valuable consideration or inducement not specified in the policy of insurance, or give, sell, or purchase, or offer to give, sell, or purchase, as an inducement for insurance, any stocks, bonds, or securities of an insurance company or other corporation, association, or partnership, or any dividends or profits to accrue thereon, or anything of value not specified in the policy.
2023 Ohio Revised Code › Title 39 | Insurance › Chapter 3999 | Crimes Relating to Insurance › Section 3999.07 | Sale or Assignment of Premium Note Before Delivery of Policy.

Effective:
October 1, 1953
Latest Legislation:
House Bill 1 - 100th General Assembly
No person, having accepted a premium note in payment of the purchase price of a policy of insurance, shall sell or assign such note prior to the delivery and acceptance of such policy.
2023 Ohio Revised Code › Title 39 | Insurance › Chapter 3999 | Crimes Relating to Insurance › Section 3999.08 | Misrepresentations in Soliciting Insurance.

Effective:
October 1, 1953
Latest Legislation:
House Bill 1 - 100th General Assembly
No person for himself or as an officer, director, agent, solicitor, or representative of any insurance company, except fire insurance companies or associations or fraternal benefit societies, doing business in this state, shall issue, circulate, or cause or permit to be issued or circulated any estimate, illustration, circular, or statement of any sort misrepresenting the terms of the policy issued or to be issued by such company or the benefits or advantages promised thereby or the dividends or shares or surplus to be received thereon. No person shall use any name or title of any policy or class of policies misrepresenting the true nature thereof, or make, circulate, use, or cause to be made, circulated, or used, any illustration, circular, or statement, whether written or oral, misrepresenting the terms of any policy issued by any such corporation, or the benefits or advantages promised thereby, or any misleading estimate of the dividends or shares of surplus to be received therefrom. No person shall make any misleading representations or incomplete comparison of policies or certificates of insurance to any person insured in any such corporation for the purpose of inducing or tending to induce such person to lapse, forfeit, or surrender his said insurance. Fines collected for violations of this section shall be paid to the county treasurer for the use of the schools as provided in sections 3315.31 and 3315.32 of the Revised Code.
Upon any such conviction the superintendent of insurance shall revoke, for not more than one year, the license of the person, firm, corporation, or association so offending. The superintendent, when he is of the opinion that any company or association writing life insurance in this state, on any plan, is knowingly permitting any of its agents to violate this section, shall give such company or association reasonable notice of a hearing upon the charge of knowingly permitting this section to be violated, and if he finds said company or association guilty of the offense, he shall revoke its license.
2023 Ohio Revised Code › Title 39 | Insurance › Chapter 3999 | Crimes Relating to Insurance › Section 3999.09 | False or Malicious Statements About Insurance Company.

Effective:
October 1, 1953
Latest Legislation:
House Bill 1 - 100th General Assembly
No company doing business in this state, or any officer, director, clerk, employee, or agent thereof, shall make, orally or otherwise, publish, print, distribute, or circulate, or cause the same to be done, or aid, abet, or encourage the making, printing, publishing, distributing, or circulating of, any pamphlet, circular, article, literature, or statement of any kind which is defamatory of any insurance company doing business in this state, or which contains any false and malicious criticism or false and malicious statement calculated to injure such company in its reputation or business. No officer, director, clerk, employee, or agent of any company shall violate this section.
Last updated February 23, 2022 at 3:21 PM
2023 Ohio Revised Code › Title 39 | Insurance › Chapter 3999 | Crimes Relating to Insurance › Section 3999.10 | Misrepresentations in Advertisement by Insurance Company.

Effective:
October 1, 1953
Latest Legislation:
House Bill 1 - 100th General Assembly
No insurance company, corporation, or association authorized to transact business in this state, or an agent thereof, by advertisement in a newspaper, magazine, or periodical or by a sign, circular, card, policy of insurance, certificate, or renewal thereof, or otherwise, shall state or represent that funds or assets are in its possession, not actually possessed by it and available for the payment of losses and claims and held for the protection of its policyholders or creditors, or advertise a subscribed capital not actually paid up in cash.
2023 Ohio Revised Code › Title 39 | Insurance › Chapter 3999 | Crimes Relating to Insurance › Section 3999.11 | Advertisement at Variance With Verified Statement.

Effective:
October 1, 1953
Latest Legislation:
House Bill 1 - 100th General Assembly
No insurance company, corporation, or association authorized to transact business in this state shall purport to make known its financial standing by advertisement, public announcement, or by making or issuing a circular or card, which fails to correspond, in all the particulars which it so purports to make known, with the last preceding verified statement made by it to the insurance department of any state.