Effective: September 4, 2014
Latest Legislation: Senate Bill 140 - 130th General Assembly
(A) This section shall apply on and after the operative date of the valuation manual.
(B) Every company with an outstanding life insurance contract, accident and health insurance contract, or deposit-type contract in this state that is subject to rules adopted by the superintendent shall annually submit the opinion of an appointed actuary as to whether the reserves and related actuarial items held in support of the policies and contracts are computed appropriately, are based on assumptions that satisfy contractual provisions, are consistent with prior reported amounts, and comply with applicable laws of this state. The valuation manual shall prescribe the specifics of this opinion.
(C) Every company with an outstanding life insurance contract, accident and health insurance contract, or deposit-type contract in this state that is subject to rules adopted by the superintendent, except as exempted in the valuation manual, shall also annually include in the opinion required by division (B) of this section, an opinion of the same appointed actuary as to whether the reserves and related actuarial items held in support of the policies and contracts specified in the valuation manual, when considered in light of the assets held by the company with respect to the reserves and related actuarial items, including the investment earnings on the assets and the considerations anticipated to be received and retained under the policies and contracts, make adequate provision for the company's obligations under the policies and contracts, including the benefits under and expenses associated with the policies and contracts.
(D) Each opinion required by divisions (B) and (C) of this section shall be governed by the following provisions:
(1) The opinion shall be in form and substance as specified in the valuation manual and acceptable to the superintendent.
(2) The opinion shall be submitted with the annual statement reflecting the valuation of such reserve liabilities for each year ending on or after the operative date of the valuation manual.
(3) The opinion shall apply to all policies and contracts subject to division (C) of this section, plus other actuarial liabilities as may be specified in the valuation manual.
(4) The opinion shall be based on standards adopted from time to time by the actuarial standards board or its successor, and on such additional standards as may be prescribed in the valuation manual.
(5) In the case of an opinion required to be submitted by a foreign or alien company, the superintendent may accept the opinion filed by that company with the insurance supervisory official of another state if the superintendent determines that the opinion reasonably meets the requirements applicable to a company domiciled in this state.
(6) Except in cases of fraud or willful misconduct, the appointed actuary shall not be liable for damages to any person, other than the insurance company and the superintendent, for any act, error, omission, decision, or conduct with respect to the appointed actuary's opinion.
(7) Disciplinary action by the superintendent against the company or the appointed actuary shall be defined in rules adopted by the superintendent.
(E) In addition to the requirements specified in division (D) of this section, each opinion required by division (C) of this section shall be governed by the following provisions:
(1) A memorandum, in form and substance as specified in the valuation manual, and acceptable to the superintendent, shall be prepared to support each actuarial opinion.
(2) If the insurance company fails to provide a supporting memorandum at the request of the superintendent within a period specified in the valuation manual or the superintendent determines that the supporting memorandum provided by the insurance company fails to meet the standards prescribed by the valuation manual or is otherwise unacceptable to the superintendent, the superintendent may engage a qualified actuary at the expense of the company to review the opinion and the basis for the opinion and prepare the supporting memorandum required by the superintendent.
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.