Ohio Code 3964.02 – Authorized lines of insurance
(A) A captive insurance company may apply for authority to insure only the following lines of insurance:
Terms Used In Ohio Code 3964.02
- Affiliated company: means any company in the same corporate system as a parent, or a member organization by virtue of common ownership, control, operation, or management. See Ohio Code 3964.01
- Captive insurance company: includes any protected cell captive insurance company formed or licensed under the provisions of this chapter. See Ohio Code 3964.01
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Indemnification: In general, a collateral contract or assurance under which one person agrees to secure another person against either anticipated financial losses or potential adverse legal consequences. Source: FDIC
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Parent: means a corporation, limited liability company, partnership, other entity, or individual that directly or indirectly owns, controls, or holds, with power to vote, more than fifty per cent of either of the following:
(1) Securities of a captive insurance company, organized as a stock corporation;
(2) Membership interests of a captive insurance company organized as a nonprofit corporation or a limited liability company. See Ohio Code 3964.01
- Person: includes an individual, corporation, business trust, estate, trust, partnership, and association. See Ohio Code 1.59
- state: means the state of Ohio. See Ohio Code 1.59
- Superintendent: means the superintendent of the department of insurance. See Ohio Code 3964.01
(1) Commercial multiple peril;
(2) Ocean marine;
(3) Inland marine;
(4) Medical malpractice;
(5) Workers’ compensation, to the extent permitted by law, but only for the purpose of indemnification of a self-insuring employer pursuant to division (B)(1) of section 4123.82 of the Revised Code;
(6) Commercial auto liability;
(7) Commercial auto physical damage;
(8) Fidelity;
(9) Notwithstanding division (C) of this section, a special purpose financial captive may apply to provide reinsurance of life insurance risks of an Ohio domiciled parent or an affiliated company that is authorized to transact the business of life insurance in this state;
(10) Except as provided in division (C)(2) of this section, any other line which the superintendent, at the superintendent’s sole discretion, permits.
(B) A captive insurance company may purchase reinsurance coverage for any risk that a captive insurance company is permitted to write directly.
(C)(1) A captive insurance company shall not issue, offer, or present insurance policies or certificates, evidence of coverage, or any other similar documentation, to any person other than its parent or affiliated companies.
(2) A captive insurance company shall not do either of the following:
(a) Insure or reinsure any personal lines, as defined in division (B) of section 3905.06 of the Revised Code;
(b) Insure, offer, or enter a three-party agreement under which the captive agrees to pay a parent or affiliate, agrees to make complete, or become responsible for an obligation in response to the default, acts, or omissions of a third party, the parent, or an affiliate.
(D) A captive insurance company may reinsure any risks insured by its parent or an affiliated company, as approved by the superintendent.