Ohio Insurance Deptartment amends financial regulation-related rules

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The Ohio Department of Insurance recently filed revisions to several rules that could impact property and casualty insurance companies.

The rules deal with solvency surveillance, acquisition or mergers, reinsurance terms and other items related to the ODI’s financial regulation of insurers, according to information from the Ohio Insurance Institute and the National Association of Mutual Insurance Companies. A public hearing on these rules will be held on Jan. 24 at 10 a.m. at the ODI.

Amended Rules

Rule 3901-1-50 – Annual audited financial reports – facilitates the department’s surveillance of the financial condition of insurers by requiring an annual audit of the financial statements reporting the financial condition and the results of operations of insurers.

Rule 3901-3-01 – Approval of acquisition of control of or merger with a domestic insurer – establishes the content of and form to be used in the application for approval of the proposed acquisition of control of or merger with a domestic insurer.

Rule 3901-3-02 – Regulation under insurance holding company act – interprets certain terms, establish standards, and promulgates forms to be adhered to in the regulation and registration of insurers authorized to do business in Ohio.

Rule 3901-3-03 – Transactions subject to prior notice – establishes the form and content an insurer must use in order to give notice of a proposed transaction under section 3901.341 of the Revised Code. Section 3901.341 says that an insurer must submit certain transactions with persons in its holding company system to superintendent for prior review and also provide notice to the superintendent of investment in the corporation exceeding 10% of voting securities.

Rule 3901-3-04 – Hazardous financial condition standards – facilitates the ODI’s surveillance of the financial condition of insurers by setting standards which the superintendent may use for identifying insurers whose condition is hazardous to the public or to holders of their policies or certificates of insurance.

Rule 3901-3-07 – Credit for life reinsurance agreements – establishes accounting requirements for reinsurance ceded.

Rule 3901-3-09- Requirements for domestic insurers to employ reinsurance intermediaries, establishes minimum contractual terms between domestic insurers, domestic reinsurers and reinsurance intermediaries. This rule also establishes standards for business assumed by domestic reinsurers through reinsurance intermediaries as reported in their annual statement.

Rule 3901-3-17 – Mortality tables for use in determining reserve liabilities – provides new annuity mortality tables for use in determining reserve liabilities for annuities.

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