Ohio Revised Code
Chapter 3903 | Reserve Valuation; Rehabilitation and Liquidation
Section 3903.14 | Employment of Special Deputies.

Effective: September 29, 2013
Latest Legislation: House Bill 59 - 130th General Assembly
(A) The superintendent of insurance as rehabilitator may appoint one or more special deputies, who shall have all the powers and responsibilities of the rehabilitator granted under this section, and the superintendent may employ such clerks and assistants as considered necessary. The compensation of the special deputies, clerks, and assistants and all expenses of taking possession of the insurer and of conducting the proceedings shall be fixed by the superintendent, with the approval of the court and shall be paid out of the funds or assets of the insurer. The persons appointed under this section shall serve at the pleasure of the superintendent. In the event that the property of the insurer does not contain sufficient cash or liquid assets to defray the costs incurred, the superintendent may advance the costs so incurred out of any appropriation for the maintenance of the department of insurance. Any amounts so advanced for expenses of administration shall be repaid to the superintendent for the use of the department out of the first available money of the insurer.
(B) The rehabilitator may take such action as the rehabilitator considers necessary or appropriate to reform and revitalize the insurer. The rehabilitator shall have all the powers of the directors, officers, and managers, whose authority shall be suspended, except as they are redelegated by the rehabilitator. The rehabilitator shall have full power to direct and manage, to hire and discharge employees subject to any contract rights they may have, and to deal with the property and business of the insurer.
(C) If it appears to the rehabilitator that there has been criminal or tortious conduct, or breach of any contractual or fiduciary obligation detrimental to the insurer by any officer, manager, agent, director, trustee, broker, employee, or other person, the rehabilitator may pursue all appropriate legal remedies on behalf of the insurer.
(D) If the rehabilitator determines that reorganization, consolidation, conversion, reinsurance, merger, or other transformation of the insurer is appropriate, the rehabilitator shall prepare a plan to effect such changes. Upon application of the rehabilitator for approval of the plan, and after such notice and hearings as the court may prescribe, the court may either approve or disapprove the plan proposed, or may modify it and approve it as modified. Any plan approved under this section shall be, in the judgment of the court, fair and equitable to all parties concerned. If the plan is approved, the rehabilitator shall carry out the plan. In the case of a life insurer, the plan proposed may include the imposition of liens upon the policies of the company, if all rights of shareholders are first relinquished. A plan for a life insurer may also propose imposition of a moratorium upon loan and cash surrender rights under policies, for such period and to such an extent as may be necessary.
(E) In the case of a medicaid health insuring corporation that has posted a bond or deposited securities in accordance with section 1751.271 of the Revised Code, the plan proposed under division (D) of this section may include the use of the proceeds of the bond or securities to first pay the claims of contracted providers for covered health care services provided to medicaid recipients, then next to pay other claimants with any remaining funds, consistent with the priorities set forth in sections 3903.421 and 3903.42 of the Revised Code.
(F) The rehabilitator shall have the power under sections 3903.26 and 3903.27 of the Revised Code to avoid fraudulent transfers.
(G) As used in this section:
(1) "Contracted provider" means a provider with a contract with a medicaid health insuring corporation to provide covered health care services to medicaid recipients.
(2) "Medicaid recipient" means a person enrolled in the medicaid program.

Structure Ohio Revised Code

Ohio Revised Code

Title 39 | Insurance

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 3903.34 | Proposal to Disburse Assets to Guaranty Associations - Contents - Application for Approval.

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.

Section 3903.93 | Rules.

Section 3903.99 | Penalty.