Ohio Revised Code Chapter 3903 - Reserve Valuation; Rehabilitation And Liquidation

• Section 3903.01 - Reserve Valuation - Rehabilitation And Liquidation Definitions.
  As used in sections 3903.01 to 3903.59 of the Revised Code: (A) "Admitted assets" means investment in assets which will be admitted by the...
• Section 3903.02 - Citing Of Act - Purpose Of Act.
  (A) Sections 3903.01 to 3903.59 of the Revised Code may be cited as "the insurers supervision, rehabilitation, and liquidation act." (B) Sections 3903.01 to...
• Section 3903.03 - Application Of Sections.
  The proceedings authorized by sections 3903.01 to 3903.59 of the Revised Code may be applied to any one or more of the following: (A)...
• Section 3903.04 - Jurisdiction.
  (A) No delinquency proceeding shall be commenced under this chapter by anyone other than the superintendent of insurance of this state. No court has...
• Section 3903.05 - Temporary Restraining Orders - Injunctions.
  (A) Upon complaint or motion of any receiver, conservator, rehabilitator, or liquidator appointed in a proceeding under sections 3903.01 to 3903.59 of the Revised...
• Section 3903.06 - Duty Of Persons Exercising Control To Cooperate With Superintendent.
  (A) Any officer, manager, director, trustee, owner, employee, or agent of any insurer, or any other persons with authority over or in charge of...
• Section 3903.07 - Responsibilities Of Superintendent And Deputies.
  (A) In any proceeding under sections 3903.01 to 3903.59 of the Revised Code, the superintendent of insurance and his deputies are responsible on their...
• Section 3903.08 - Effect On Pending Proceedings.
  Every proceeding to rehabilitate or liquidate an insurer commenced under the laws in effect before the effective date of sections 3903.01 to 3903.59 of...
• Section 3903.09 - Correction Orders Issued By Superintendent.
  (A) Whenever the superintendent of insurance has reasonable cause to believe, and determines, after a hearing held under division (E) of this section, that...
• Section 3903.10 - Complaint - Court May Issue Ex Parte Seizure Or Other Order.
  (A) The superintendent of insurance may file in the court of common pleas a complaint alleging, with respect to a domestic insurer all of...
• Section 3903.11 - Confidentiality Of Information - Exceptions.
  (A) In all proceedings and judicial reviews thereof under sections 3903.09 and 3903.10 of the Revised Code, all records of the insurer, other documents,...
• Section 3903.12 - Grounds For Rehabilitation Order.
  The superintendent of insurance may file a complaint in the court of common pleas for an order authorizing him to rehabilitate a domestic insurer...
• Section 3903.13 - Rehabilitation Orders.
  (A) An order to rehabilitate the business of a domestic insurer, or an alien insurer domiciled in this state, shall appoint the superintendent of...
• Section 3903.14 - Employment Of Special Deputies.
  (A) The superintendent of insurance as rehabilitator may appoint one or more special deputies, who shall have all the powers and responsibilities of the...
• Section 3903.15 - Stay Of Actions - Statute Of Limitations - Standing.
  (A) Any court in this state, before which any action or proceeding in which the insurer is a party or is obligated to defend...
• Section 3903.16 - Motion For Order Of Liquidation - Order Terminating Rehabilitation Of Insurer.
  (A) Whenever the superintendent of insurance believes rehabilitation of an insurer would substantially increase the risk of loss to creditors, policyholders, or the public,...
• Section 3903.17 - Basis For Liquidation Order.
  The superintendent of insurance may file a complaint in the court of common pleas for an order directing him to liquidate a domestic insurer...
• Section 3903.18 - Liquidation Orders.
  (A) An order to liquidate the business of a domestic insurer shall appoint the superintendent of insurance and his successors in office as liquidator...
• Section 3903.19 - Effect Of Liquidation Order On Policies.
  (A) All policies, other than life or health insurance or annuities, in effect at the time of issuance of an order of liquidation shall...
• Section 3903.20 - Dissolution Of Corporate Existence.
  The superintendent of insurance may file a motion for an order dissolving the corporate existence of a domestic insurer or the United States branch...
• Section 3903.21 - Liquidator - Powers And Duties.
  (A) The liquidator may do any of the following: (1) Appoint one or more special deputies to act for him under sections 3903.01 to...
• Section 3903.22 - Notice Of Liquidation Order.
  (A) Unless the court otherwise directs, the liquidator shall give or cause to be given notice of the liquidation order as soon as possible...
• Section 3903.23 - [Repealed].
  Effective Date: 03-07-1983
• Section 3903.24 - Civil Action Against Liquidator Or Insurer.
  (A) Upon entry of an order appointing a liquidator of a domestic insurer or of an alien insurer domiciled in this state, no civil...
• Section 3903.25 - Duplicate List Of Insurer's Assets.
  (A) As soon as practicable after the liquidation order but not later than one hundred twenty days thereafter, the liquidator shall prepare in duplicate...
• Section 3903.26 - Transfers And Obligations Incurred One Year Prior To Proceeding.
  (A) Every transfer made or suffered and every obligation incurred by an insurer within one year prior to the filing of a successful complaint...
• Section 3903.27 - Transfers Made After Filing Of Complaint.
  (A) After a complaint for rehabilitation or liquidation has been filed, a transfer of any of the real property of the insurer made to...
• Section 3903.28 - Preferences.
  (A) (1) A preference is a transfer of any of the property of an insurer or of an interest in the property of an...
• Section 3903.29 - Allowance Of Claims.
  (A) No claims of a creditor who has received or acquired a preference, lien, conveyance, transfer, assignment, or encumbrance, voidable under sections 3903.01 to...
• Section 3903.30 - Allowance Of Setoffs And Counterclaims.
  (A) Mutual debts or mutual credits between the insurer and another person in connection with any action or proceeding under sections 3903.01 to 3903.59...
• Section 3903.301 - Protection Of Rights.
  (A) Notwithstanding any other provision under sections 3903.01 to 3903.59 of the Revised Code, no person shall be stayed or prohibited from exercising any...
• Section 3903.31 - Report Of Liquidator To Court.
  (A) As soon as practicable but not more than two years from the date of an order of liquidation under section 3903.18 of the...
• Section 3903.32 - Reducing Recovery From Reinsurer.
  The amount recoverable by the liquidator from reinsurers shall not be reduced as a result of delinquency proceedings, regardless of any provision in the...
• Section 3903.33 - Payment Of Unpaid Earned Premiums.
  (A) An agent, broker, premium finance company, or any other person, other than the insured, responsible for the payment of a premium is obligated...
• Section 3903.34 - Proposal To Disburse Assets To Guaranty Associations - Contents - Application For Approval.
  (A) Within one hundred twenty days of a final determination of insolvency of an insurer by a court of this state, the liquidator shall...
• Section 3903.35 - Proof Of Claims To Be Filed With Liquidator.
  (A) Proof of all claims shall be filed with the liquidator in the form required by section 3903.36 of the Revised Code on or...
• Section 3903.36 - Proof Of Claim Contents.
  (A) Proof of claim shall consist of a statement signed by the claimant that includes all of the following that are applicable: (1) The...
• Section 3903.37 - Contingent Claims- Absolute Claims.
  (A) The claim of a third party which is contingent only on his first obtaining a judgment against the insured shall be considered and...
• Section 3903.38 - Third Party-party Claims.
  (A) Whenever any third party asserts a cause of action against an insured of an insurer in liquidation, the third party may file a...
• Section 3903.39 - Written Notice Of Denial Of Claim.
  (A) When a claim is denied in whole or in part by the liquidator, written notice of the determination shall be given to the...
• Section 3903.40 - Claims Secured By Undertaking Of Another Person.
  Whenever a creditor whose claim against an insurer is secured, in whole or in part, by the undertaking of another person, fails to prove...
• Section 3903.41 - Methods Of Determining Value Of Security Held By Secured Creditor.
  (A) The value of any security held by a secured creditor shall be determined in one of the following ways, as the court may...
• Section 3903.42 - Priority Of Distribution Of Claims.
  The priority of distribution of claims from the insurer's estate shall be in accordance with the order in which each class of claims is...
• Section 3903.421 - Medicaid Health Insuring Corporation Bond And Securities.
  (A) Notwithstanding section 3903.42 of the Revised Code, both of the following apply to medicaid health insuring corporation performance bonds and securities: (1) Proceeds...
• Section 3903.43 - Review And Investigation Of Claims.
  (A) The liquidator shall review all claims duly filed in the liquidation and shall make such further investigation as he considers necessary. He may...
• Section 3903.44 - Court Payment Of Distributions.
  Under the direction of the court, the liquidator shall pay distributions in a manner that will assure the proper recognition of priorities and a...
• Section 3903.45 - Distribution Of Unclaimed And Withheld Funds.
  (A) All unclaimed funds subject to distribution remaining in the liquidator's hands when he is ready to apply to the court for discharge, including...
• Section 3903.46 - Discharge Of Liquidator.
  (A) When all assets justifying the expense of collection and distribution have been collected and distributed under sections 3903.01 to 3903.59 of the Revised...
• Section 3903.47 - Motion To Reopen Proceedings.
  After the liquidation proceeding has been terminated and the liquidator discharged, the superintendent of insurance or other interested party may at any time file...
• Section 3903.48 - Court To Direct Retention Or Destruction Of Insurer's Records.
  Whenever it shall appear to the superintendent of insurance that the records of any insurer in process of liquidation or completely liquidated are no...
• Section 3903.49 - Audit Of Books Of Proceeding.
  The court may cause audits to be made of the books of the superintendent of insurance relating to any proceeding established under sections 3903.01...
• Section 3903.50 - Order Appointing Conservator.
  (A) If a domiciliary liquidator has not been appointed, the superintendent of insurance may file a complaint in the court of common pleas for...
• Section 3903.51 - Order Directing Liquidation.
  (A) If no domiciliary liquidator has been appointed, the superintendent of insurance may file a complaint in the court of common pleas for an...
• Section 3903.52 - Power Of Domiciliary Liquidator.
  (A) The domiciliary liquidator of an insurer domiciled in a reciprocal state shall, except as to special deposits and security on secured claims under...
• Section 3903.53 - Appointing Ancillary Receiver.
  (A) If a domiciliary liquidator has been appointed for an insurer not domiciled in this state, the superintendent of insurance may file a complaint...
• Section 3903.54 - Discretion Of Superintendent To Commence Proceedings.
  The superintendent of insurance in his sole discretion may commence proceedings under sections 3903.09 to 3903.11 of the Revised Code at the request of...
• Section 3903.55 - Foreign Claimants.
  (A) In a liquidation proceeding begun in this state against an insurer domiciled in this state, claimants residing in foreign countries or in states...
• Section 3903.56 - Ohio Residents Claiming Against Foreign Insurers.
  (A) In a liquidation proceeding in a reciprocal state against an insurer domiciled in that state, claimants against the insurer who reside within this...
• Section 3903.57 - Attachment, Garnishment Or Execution Proceedings Blocked.
  During the pendency in this or any other state of a liquidation proceeding, whether called by that name or not, no action or proceeding...
• Section 3903.58 - Distribution Order Among Claimants From Reciprocal States.
  (A) In a liquidation proceeding in this state involving one or more reciprocal states, the order of distribution of the domiciliary state shall control...
• Section 3903.59 - Failure To Transfer Assets To Ohio Liquidator By Ancillary Receiver.
  If an ancillary receiver in another state or foreign country, whether called by that name or not, fails to transfer to the domiciliary liquidator...
• Section 3903.71 - Unsound Company, Suspension Of Authority To Do Business.
  If it appears to the superintendent of insurance upon satisfactory evidence that the affairs of an insurance company, partnership, association, or reciprocal insurance exchange,...
• Section 3903.72 - Definitions For Sections To 11.
  (A) The definitions provided in division (B) of this section shall apply after the operative date of the valuation manual. (B) As used in...
• Section 3903.721 - Valuation Of Reserves.
  (A) (1) The superintendent shall annually value, or cause to be valued, the reserve liabilities, referred to as reserves, for all outstanding life insurance...
• Section 3903.7210 - Submission Of Prescribed Data.
  A company shall submit mortality, morbidity, policyholder behavior, or expense experience and other data as prescribed in the valuation manual for policies it has...
• Section 3903.7211 - Confidential Information.
  (A) As used in this section: (1) "Confidential information" means all of the following: (a) A memorandum in support of an opinion submitted under...
• Section 3903.722 - Submission Of Data Prior To Operative Date Of Valuation Manual.
  (A) This section shall apply prior to the operative date of the valuation manual. (B) Every life insurance company doing business in this state...
• Section 3903.723 - Minimum Standards For The Valuation Of Policies.
  (A) Using the mortality, morbidity, and interest rates as provided in divisions (B) to (H) of this section and in sections 3903.724, 3903.725, and...
• Section 3903.724 - Determination Of Valuation Interest Rate.
  (A) This section shall determine the calendar year statutory valuation interest rates (VIR) used in determining the minimum standard for the valuation of all...
• Section 3903.725 - Valuation For Individual Annuity And Pure Endowment Contracts.
  For individual annuity and pure endowment contracts issued on or after January 1, 1989, and for annuities and pure endowments purchased on or after...
• Section 3903.726 - Submissions Prior To Operative Date Of Valuation Manual.
  (A) This section shall apply on and after the operative date of the valuation manual. (B) Every company with an outstanding life insurance contract,...
• Section 3903.727 - Valuation For Accident And Health Insurance Contracts.
  For accident and health insurance contracts issued on or after the operative date of the valuation manual, the standard prescribed in the valuation manual...
• Section 3903.728 - Policies Issued On Or After The Operative Date Of The Valuation Manual.
  (A) For policies issued on or after the operative date of the valuation manual, the standard prescribed in the valuation manual is the minimum...
• Section 3903.729 - Established Reserves; Principle-based Valuation.
  (A) A company shall establish reserves using a principle-based valuation that meets the following conditions for policies or contracts as specified in the valuation...
• Section 3903.73 - Deposit Of Securities With Treasurer Of State.
  All securities deposited with the superintendent of insurance shall be deposited by him with the treasurer of state, and the treasurer of state shall...
• Section 3903.74 - Sale And Distribution Of Securities Of Defaulting Companies.
  If any company, corporation, or association required by law to make a deposit with the superintendent of insurance, or other state officer, to secure...
• Section 3903.75 - Notice To Claimants.
  Upon the filing of the petition authorized by section 3903.74 of the Revised Code, the superintendent of insurance, or other officer, shall publish for...
• Section 3903.76 - Court Procedure.
  The clerk of court of common pleas of Franklin county shall forward a copy of the notice required by section 3903.75 of the Revised...
• Section 3903.77 - .
  (A) Every property and casualty insurance company doing business in this state, except as exempted by the superintendent of insurance, annually, shall cause to...
• Section 3903.81 - Risk-based Capital For Insurers Model Act Definitions.
  As used in sections 3903.81 to 3903.93 of the Revised Code: (A) "Adjusted RBC report" means an RBC report that has been adjusted by...
• Section 3903.82 - Annual Report.
  (A) Each domestic insurer shall, on or prior to the first day of March of every year, prepare and submit to the superintendent of...
• Section 3903.83 - Duty To Submit Plan.
  (A) For purposes of sections 3903.81 to 3903.93 of the Revised Code, a "company action level event" is any of the following events: (1)...
• Section 3903.84 - Regulatory Action Level Event Duties Of Superintendent And Insurer.
  (A) For purposes of sections 3903.81 to 3903.93 of the Revised Code, a "regulatory action level event" is any of the following events: (1)...
• Section 3903.85 - Authorized Control Level Event Duties Of Superintendent And Insurer.
  (A) For purposes of sections 3903.81 to 3903.93 of the Revised Code, an "authorized control level event" is any of the following events: (1)...
• Section 3903.86 - Mandatory Control Level Event Duties Of Superintendent And Insurer.
  (A) For purposes of sections 3903.81 to 3903.93 of the Revised Code, a "mandatory control level event" is any of the following events: (1)...
• Section 3903.87 - Right To Request Hearing.
  (A) An insurer has the right to a hearing upon receiving any of the following from the superintendent of insurance: (1) An adjusted RBC...
• Section 3903.88 - Confidential Information.
  (A) The superintendent of insurance shall keep all of the following confidential: (1) An RBC report, to the extent that information contained in the...
• Section 3903.89 - Effectiveness Of Notice.
  Unless otherwise provided, all notices sent to an insurer by the superintendent of insurance that may result in regulatory action under sections 3903.81 to...
• Section 3903.90 - Annual Report By Foreign Insurer.
  (A) Each foreign insurer shall submit to the superintendent of insurance, upon receiving the superintendent's written request, an RBC report for the calendar year...
• Section 3903.91 - Regulatory Officials - Immunity.
  There shall be no liability on the part of, and no cause of action shall arise against, the superintendent of insurance, or the department...
• Section 3903.92 - Requirements For Exempting Insurer From Sections.
  The superintendent may exempt any domestic property and casualty insurer from the application of sections 3903.81 to 3903.93 of the Revised Code, if the...
• Section 3903.93 - Rules.
  The superintendent may adopt rules in accordance with Chapter 119. of the Revised Code as are reasonably necessary for the implementation and operation of...
• Section 3903.99 - Penalty.
  Whoever violates division (B) or (C) of section 3903.06 of the Revised Code shall be fined not more than ten thousand dollars or imprisoned...

Last modified: October 10, 2016