Ohio Code 3921.32 – Liquidation
(A) Liquidation proceedings for a domestic fraternal benefit society shall be conducted consistent with the purposes of section 3903.02 of the Revised Code in a manner designed to conserve assets, limit liquidation expenses, and avoid any assessment of shares of a deficiency.
Terms Used In Ohio Code 3921.32
- Another: when used to designate the owner of property which is the subject of an offense, includes not only natural persons but also every other owner of property. See Ohio Code 1.02
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Certificate: means the document issued as written evidence of the benefit contract. See Ohio Code 3921.01
(B)(1) The liquidator shall attempt to transfer policies or certificates of the liquidating fraternal benefit society by way of assignment, assumption, or other means to another fraternal benefit society, whether domestic or foreign, or, if no fraternal benefit society will accept such a transfer, to another insurer. No fraternal benefit society shall be obligated to accept a transfer from a liquidating society.
(2) Upon the effective date of a transfer to an insurer that is not a fraternal benefit society and in consideration for the transfer, each member of the society and owner of a policy or certificate shall be deemed to agree to both of the following:
(a) That any terms of an insurance policy or certificate providing for the maintenance of the society’s solvency or subjecting the policy or certificate to the bylaws of the society are null and void;
(b) Such other changes determined by the liquidator to be necessary to effectuate the transfer.
The assuming insurer shall endorse the policy or certificate accordingly.
(3) Any transfer shall constitute a novation of the liquidating fraternal benefit society’s certificates effective upon the date of transfer.
Last updated January 31, 2023 at 5:41 PM