Ohio Administrative Code
Title 3901 - Department of Insurance
Chapter 3901-11 - Captive Insurance Companies
Section 3901-11-02 - Additional capital and surplus required

Universal Citation: OH Admin Code 3901-11-02

Current through all regulations passed and filed through September 16, 2024

(A) Purpose

The purpose of this rule is to establish the procedure for the superintendent of insurance to require additional capital and surplus of a captive insurance company pursuant to section 3964.05 of the Revised Code.

(B) Authority

This rule is promulgated pursuant to the authority vested in the superintendent under section 3964.21 of the Revised Code.

(C) Basis of determination

(1) In determining whether to require a captive insurance company to increase its capital and surplus, the superintendent of insurance shall take into consideration the following:
(a) The type of risks insured by the captive insurance company;

(b) The volume of coverage being written by the captive insurance company; and

(c) The general business environment and economic conditions.

(2) In making a determination to require a captive insurance company to increase its capital and surplus, the superintendent of insurance may rely on:
(a) Reports and analysis prepared by or for the national association of insurance commissioners;

(b) Economic forecasts prepared by the federal reserve banks, the United States department of treasury, and other federal and state governmental or quasi-governmental entities;

(c) Economic and business reports prepared by private bank economists and private insurance industry rating agencies;

(d) The expert opinion of professionals, such as actuaries, certified public accountants, and economists, engaged by the superintendent of insurance to analyze the financial condition of a captive insurance company; and

(e) Any other information that the superintendent of insurance finds relevant.

(D) Notice to captive insurance company

The superintendent of insurance shall provide written notice of any determination to require an increase of the capital and surplus of a captive insurance company, which shall include:

(1) The reason for the required increase of the capital and surplus;

(2) The amount of the increase of the capital and surplus; and

(3) The date by which the captive insurance company shall achieve the additional required capital and surplus.

(E) Severability If any paragraph, term or provision of this rule is adjudged invalid for any reason, the judgment shall not affect, impair or invalidate any other paragraph, term or provision of this rule, but the remaining paragraphs, terms and provisions shall be and continue in full force and effect.

Effective: 12/21/2014
Five Year Review (FYR) Dates: 08/26/2019
Promulgated Under: 119.03
Statutory Authority: 3901.041, 3964.21
Rule Amplifies: 3964.05

Disclaimer: These regulations may not be the most recent version. Ohio may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.