Effective: March 7, 1983
Latest Legislation: House Bill 830 - 114th General Assembly
(A) Whenever the superintendent of insurance has reasonable cause to believe, and determines, after a hearing held under division (E) of this section, that any domestic insurer has committed or engaged in, or is about to commit or engage in, any act, practice, or transaction that would subject it to delinquency proceedings under sections 3903.01 to 3903.59 of the Revised Code, he may make and serve upon the insurer and any other persons involved, such orders as are reasonably necessary to correct, eliminate, or remedy such conduct, condition, or ground.
(B) If upon examination or at any other time, the superintendent has reasonable cause to believe that any domestic insurer is in such condition as to render the continuance of its business hazardous to the public or to holders of its policies or certificates of insurance, or if such domestic insurer gives its consent, then the superintendent shall upon his determination do both of the following:
(1) Notify the insurer of the determination;
(2) Furnish to the insurer a written list of the superintendent's requirements to abate the determination.
(C) If the superintendent makes a determination to supervise an insurer subject to an order under division (A) or (B) of this section, he shall notify the insurer that it is under the supervision of the superintendent. During the period of supervision, the superintendent may appoint a supervisor to supervise the insurer. The order appointing a supervisor shall direct the supervisor to enforce orders issued under division (A) or (B) of this section and may also require that the insurer may not do any of the following, during the period of supervision, without the prior approval of the superintendent or his supervisor :
(1) Dispose of, convey, or encumber any of its assets or its business in force;
(2) Withdraw from any of its bank accounts;
(3) Lend any of its funds;
(4) Invest any of its funds;
(5) Transfer any of its property;
(6) Incur any debt, obligation, or liability;
(7) Merge or consolidate with another company;
(8) Enter into any new reinsurance contract or treaty.
(D) Any insurer subject to an order under this section shall comply with the lawful requirements of the superintendent and, if placed under supervision, shall have sixty days from the date the supervision order is served within which to comply with the requirements of the superintendent. In the event of the insurer's failure to comply within such time, the superintendent may commence proceedings under section 3903.12 or 3903.17 of the Revised Code to have a rehabilitator or liquidator appointed, or extend the period of supervision.
(E) The notice of hearing under division (A) of this section and any order issued pursuant to that division shall be served upon the insurer. The notice of hearing shall state the time and place of hearing, and the conduct, condition, or ground upon which the superintendent would base his order. Unless mutually agreed between the superintendent and the insurer, the hearing shall occur not less than ten days nor more than thirty days after notice is served and shall be either in Franklin county or in some other place convenient to the parties to be designated by the superintendent. The superintendent shall hold all hearings under division (A) of this section privately unless the insurer requests a public hearing, in which case the hearing shall be public.
(F)(1) Any insurer subject to an order under division (B) of this section may request a hearing to review that order. Such a hearing shall be held as provided in division (E) of this section, but the request for a hearing shall not stay the effect of the order.
(2) If the superintendent issues an order under division (B) of this section, the insurer may, at any time, waive a superintendent's hearing and apply for immediate judicial relief by means of any appropriate judicial remedy without first exhausting administrative remedies.
(G) During the period of supervision, the insurer may request the superintendent to review an action taken or proposed to be taken by the supervisor, specifying wherein the action complained of is believed not to be in the best interest of the insurer.
(H) If the superintendent has reasonable cause to believe that a supervision order issued under this section has been violated, he may, unless the order is stayed by a court of competent jurisdiction, request the attorney general to commence and prosecute any appropriate action or proceeding in the name of the state against the person to recover a civil penalty not to exceed ten thousand dollars.
(I) Upon complaint or motion of the superintendent, the court of common pleas may issue a temporary restraining order, a preliminary injunction, a permanent injunction, or such other orders as the court considers necessary and proper to enforce a supervision order.
(J) In the event that any person, subject to sections 3903.01 to 3903.59 of the Revised Code, including those persons described in division (A) of section 3903.06 of the Revised Code, knowingly violates any valid order of the superintendent issued under the provisions of this section and, as a result of such violation, the net worth of the insurer is reduced or the insurer suffers loss it would not otherwise have suffered, the person is personally liable to the insurer for the amount of any such reduction or loss. The superintendent or supervisor may bring an action on behalf of the insurer in the court of common pleas to recover the amount of the reduction or loss together with any costs.
(K) Without regard to the status of any proceeding instituted under this section, the superintendent may at any time commence proceedings under section 3903.12 or 3903.17 of the Revised Code to have a rehabilitator or liquidator appointed.
Structure Ohio Revised Code
Chapter 3903 | Reserve Valuation; Rehabilitation and Liquidation
Section 3903.01 | Reserve Valuation - Rehabilitation and Liquidation Definitions.
Section 3903.02 | Citing of Act - Purpose of Act.
Section 3903.03 | Application of Sections.
Section 3903.04 | Jurisdiction.
Section 3903.05 | Temporary Restraining Orders - Injunctions.
Section 3903.06 | Duty of Persons Exercising Control to Cooperate With Superintendent.
Section 3903.07 | Responsibilities of Superintendent and Deputies.
Section 3903.08 | Effect on Pending Proceedings.
Section 3903.09 | Correction Orders Issued by Superintendent.
Section 3903.10 | Complaint - Court May Issue Ex Parte Seizure or Other Order.
Section 3903.11 | Confidentiality of Information - Exceptions.
Section 3903.12 | Grounds for Rehabilitation Order.
Section 3903.13 | Rehabilitation Orders.
Section 3903.14 | Employment of Special Deputies.
Section 3903.15 | Stay of Actions - Statute of Limitations - Standing.
Section 3903.16 | Motion for Order of Liquidation - Order Terminating Rehabilitation of Insurer.
Section 3903.17 | Basis for Liquidation Order.
Section 3903.18 | Liquidation Orders.
Section 3903.19 | Effect of Liquidation Order on Policies.
Section 3903.20 | Dissolution of Corporate Existence.
Section 3903.21 | Liquidator - Powers and Duties.
Section 3903.22 | Notice of Liquidation Order.
Section 3903.24 | Civil Action Against Liquidator or Insurer.
Section 3903.25 | Duplicate List of Insurer's Assets.
Section 3903.26 | Transfers and Obligations Incurred One Year Prior to Proceeding.
Section 3903.27 | Transfers Made After Filing of Complaint.
Section 3903.28 | Preferences.
Section 3903.29 | Allowance of Claims.
Section 3903.30 | Allowance of Setoffs and Counterclaims.
Section 3903.301 | Protection of Rights.
Section 3903.31 | Report of Liquidator to Court.
Section 3903.32 | Reducing Recovery From Reinsurer.
Section 3903.33 | Payment of Unpaid Earned Premiums.
Section 3903.35 | Proof of Claims to Be Filed With Liquidator.
Section 3903.36 | Proof of Claim Contents.
Section 3903.37 | Contingent Claims- Absolute Claims.
Section 3903.38 | Third Party-Party Claims.
Section 3903.39 | Written Notice of Denial of Claim.
Section 3903.40 | Claims Secured by Undertaking of Another Person.
Section 3903.41 | Methods of Determining Value of Security Held by Secured Creditor.
Section 3903.42 | Priority of Distribution of Claims.
Section 3903.421 | Medicaid Health Insuring Corporation Bond and Securities.
Section 3903.43 | Review and Investigation of Claims.
Section 3903.44 | Court Payment of Distributions.
Section 3903.45 | Distribution of Unclaimed and Withheld Funds.
Section 3903.46 | Discharge of Liquidator.
Section 3903.47 | Motion to Reopen Proceedings.
Section 3903.48 | Court to Direct Retention or Destruction of Insurer's Records.
Section 3903.49 | Audit of Books of Proceeding.
Section 3903.50 | Order Appointing Conservator.
Section 3903.51 | Order Directing Liquidation.
Section 3903.52 | Power of Domiciliary Liquidator.
Section 3903.53 | Appointing Ancillary Receiver.
Section 3903.54 | Discretion of Superintendent to Commence Proceedings.
Section 3903.55 | Foreign Claimants.
Section 3903.56 | Ohio Residents Claiming Against Foreign Insurers.
Section 3903.57 | Attachment, Garnishment or Execution Proceedings Blocked.
Section 3903.58 | Distribution Order Among Claimants From Reciprocal States.
Section 3903.59 | Failure to Transfer Assets to Ohio Liquidator by Ancillary Receiver.
Section 3903.71 | Unsound Company, Suspension of Authority to Do Business.
Section 3903.72 | Definitions for Sections 3903.72 to 3903.7211.
Section 3903.721 | Valuation of Reserves.
Section 3903.722 | Submission of Data Prior to Operative Date of Valuation Manual.
Section 3903.723 | Minimum Standards for the Valuation of Policies.
Section 3903.724 | Determination of Valuation Interest Rate.
Section 3903.725 | Valuation for Individual Annuity and Pure Endowment Contracts.
Section 3903.726 | Submissions Prior to Operative Date of Valuation Manual.
Section 3903.727 | Valuation for Accident and Health Insurance Contracts.
Section 3903.728 | Policies Issued on or After the Operative Date of the Valuation Manual.
Section 3903.729 | Established Reserves; Principle-Based Valuation.
Section 3903.7210 | Submission of Prescribed Data.
Section 3903.7211 | Confidential Information.
Section 3903.73 | Deposit of Securities With Treasurer of State.
Section 3903.74 | Sale and Distribution of Securities of Defaulting Companies.
Section 3903.75 | Notice to Claimants.
Section 3903.76 | Court Procedure.
Section 3903.77 | Property and Casualty Insurance Reporting Requirements.
Section 3903.81 | Risk-Based Capital for Insurers Model Act Definitions.
Section 3903.82 | Annual Report.
Section 3903.83 | Duty to Submit Plan.
Section 3903.84 | Regulatory Action Level Event Duties of Superintendent and Insurer.
Section 3903.85 | Authorized Control Level Event Duties of Superintendent and Insurer.
Section 3903.86 | Mandatory Control Level Event Duties of Superintendent and Insurer.
Section 3903.87 | Right to Request Hearing.
Section 3903.88 | Confidential Information.
Section 3903.89 | Effectiveness of Notice.
Section 3903.90 | Annual Report by Foreign Insurer.
Section 3903.91 | Regulatory Officials - Immunity.
Section 3903.92 | Requirements for Exempting Insurer From Sections.