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.
Structure Ohio Revised Code
Chapter 3964 | Captive Insurance Companies
Section 3964.01 | Definitions.
Section 3964.02 | Authorized Lines of Insurance.
Section 3964.03 | Organization.
Section 3964.05 | Capital Requirements.
Section 3964.06 | Extraordinary Distributions.
Section 3964.07 | Annual Reports.
Section 3964.08 | Examination, Evaluation, and Monitoring.
Section 3964.09 | Suspension or Revocation of License.
Section 3964.10 | Investments.
Section 3964.11 | Rating Organizations; Affiliation Not Required.
Section 3964.12 | Affiliation With Insolvency Fund Prohibited.
Section 3964.14 | Applicable Law.
Section 3964.15 | Captive Insurance Regulation and Supervision Fund.
Section 3964.17 | Protected Cell Captive Insurance Company.
Section 3964.172 | Transfer of Assets.
Section 3964.173 | Status of Owners and Participants.
Section 3964.174 | Transactional Liability.
Section 3964.175 | Liability for Penalty.
Section 3964.176 | Duties of Directors.
Section 3964.177 | Agreements Between Company and Protected Cell; Requirements; Failure to Comply.
Section 3964.179 | Transfer of Protected Cells.
Section 3964.18 | Liquidation.
Section 3964.191 | Grounds for Rehabilitation or Liquidation.
Section 3964.193 | Confidentiality of Information.