SENATOR Nein

To amend sections 1101.01, 1121.11, 1121.18, 1151.01,

1

1155.091, 1155.16, 1161.01, 1163.121, 1163.20,

2

1321.09, 1321.55, 1321.76, 1322.06, 1707.12,

3

1733.01, 1733.32, 1733.327, 1751.19, 3901.36,

4

3901.44, 3901.48, 3901.70, 3901.83, 3903.11,

5

3903.72, 3903.83, 3903.88, 3905.492, 3905.50,

6

3999.36, and 4727.18 and to enact sections 1181.25

7

and 3901.045 of the Revised Code relative to the

8

circumstances under which the Department of

9

Insurance and the Division of Financial

10

Institutions may share confidential documents and

11

information with, and receive such documents and

12

information from, other specified regulators and

13

officials, or otherwise disclose these documents

14

and information.

15

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That sections 1101.01, 1121.11, 1121.18, 1151.01,	16
1155.091, 1155.16, 1161.01, 1163.121, 1163.20, 1321.09, 1321.55,	17
1321.76, 1322.06, 1707.12, 1733.01, 1733.32, 1733.327, 1751.19,	18
3901.36, 3901.44, 3901.48, 3901.70, 3901.83, 3903.11, 3903.72,	19
3903.83, 3903.88, 3905.492, 3905.50, 3999.36, and 4727.18 be	20
amended and sections 1181.25 and 3901.045 of the Revised Code be	21
enacted to read as follows:	22

Sec. 1101.01.  As used in Chapters 1101. to 1127. of the	23
Revised Code, unless the context requires otherwise:	24

(A) "Affiliate" has the same meaning as in division (A)(1)	25
of section 1109.53 of the Revised Code and includes a subsidiary	26
of a bank.	27

(B) "Bank" means a corporation that solicits, receives, or	28
accepts money or its equivalent for deposit as a business, whether	29
the deposit is made by check or is evidenced by a certificate of	30
deposit, passbook, note, receipt, ledger card, or otherwise.	31
"Bank" also includes a state bank or a corporation doing business	32
as a bank or savings bank under authority granted by the bank	33
regulatory authority of another state of the United States or	34
another country, but does not include a savings association,	35
savings bank, or credit union.	36

(C) "Banking office" means an office or other place at which	37
a bank receives money or its equivalent from the public for	38
deposit and conducts a general banking business. "Banking office"	39
does not include any of the following:	40

(1) Any location at which a bank receives, but does not	41
accept, cash or other items for subsequent deposit, such as by	42
mail or armored car service or at a lock box or night depository;	43

(2) Any structure located within five hundred yards of a	44
banking office and operated as an extension of the services of the	45
banking office;	46

(3) Any automated teller machine or other money transmission	47
device owned, leased, or operated by a bank;	48

(4) Any facility located within the geographical limits of a	49
military installation at which a bank only accepts deposits and	50
cashes checks;	51

(5) Any location at which a bank takes and processes	52
applications for loans and may disburse loan proceeds, but does	53
not accept deposits;	54

(6) Any location at which a bank is engaged solely in	55
providing administrative support services for its own operations	56
or for other depository institutions.	57

(D) "Branch" means a banking office that is not also the	58
bank's principal place of business consistent with its articles of	59
incorporation or articles of association.	60

(E) "Capital" means the sum of a bank's:

61

(1) Paid-in capital and surplus relating to common stock;

62

(2) To the extent permitted by the superintendent of	63
financial institutions, paid-in capital and surplus relating to	64
preferred stock;	65

(3) Undivided profits; and

66

(4) To the extent permitted by the superintendent the	67
proceeds of the sale of debt securities and other assets and	68
reserves.	69

(F) "Control" has the same meaning as in division (H) of	70
section 1109.53 of the Revised Code.	71

(G) "Controlling shareholder" means a person who, directly	72
or indirectly, controls a bank.	73

(H) "Debt securities" means obligations issued by a bank the	74
holders of which, in the event of the insolvency or liquidation of	75
the bank, are subordinated in right of payment to the bank's	76
depositors and general creditors.	77

(I) "Federal savings association" means a federal savings	78
and loan association or a federal savings bank doing business	79
under authority granted by the office of thrift supervision.	80

(J) "Financial institution regulatory authority" includes a	81
regulator of a business activity in which a bank or trust company	82
is engaged, to the extent that the regulator has jurisdiction over	83
a bank or trust company engaged in that business activity.	84

(K) "National bank" means a bank doing business under	85
authority granted by the comptroller of the currency.	86

(K)(L) "Net income" means all income realized or earned less	87
all expenses realized or accrued.	88

(L)(M) "Paid-in capital" means the aggregate par value of	89
all of a bank's outstanding shares of all classes.	90

(M)(N) "Reorganization" means a consolidation, merger, or	91
transfer of assets and liabilities pursuant to Chapter 1115. of	92
the Revised Code.	93

(N)(O) "Savings association" means a savings and loan	94
association doing business under authority granted by the	95
superintendent of financial institutions pursuant to Chapter 1151.	96
of the Revised Code, a savings and loan association doing business	97
under authority granted by the regulatory authority of another	98
state, or a federal savings association.	99

(O)(P) "Savings bank" means a savings bank doing business	100
under authority granted by the superintendent of financial	101
institutions pursuant to Chapter 1161. of the Revised Code or a	102
savings bank doing business under authority granted by the	103
regulatory authority of another state.	104

(P)(Q) "State bank" means a bank doing business under	105
authority granted by the superintendent of financial institutions.	106

(Q)(R) "Subsidiary" has the same meaning as in section	107
1109.53 of the Revised Code.	108

(R)(S) "Surplus" means the total of amounts paid for shares	109
in excess of their respective par values, amounts contributed	110
other than for shares, and amounts transferred from undivided	111
profits, less amounts transferred to stated capital.	112

(S)(T) "Trust company" means a corporation qualified and	113
licensed under section 1111.06 of the Revised Code to solicit or	114
engage in trust business in this state, or a person that is	115
required by Chapter 1111. of the Revised Code to be a corporation	116
qualified and licensed under section 1111.06 of the Revised Code	117
to solicit or engage in trust business in this state.	118

(T)(U) "Undivided profits" means the cumulative	119
undistributed amount of a bank's net income not otherwise	120
allocated.	121

Sec. 1121.11.  (A) In administering Chapters 1101. to 1127.	122
of the Revised Code and fulfilling the duties imposed by those	123
chapters, including the duty imposed by section 1121.10 of the	124
Revised Code, the superintendent of financial institutions may do	125
any of the following:	126

(1) Participate with financial institution regulatory	127
authorities of this and other states, the United States, and other	128
countries in any of the following:	129

(a) Programs for alternate examinations of the records and	130
affairs of banks and trust companies over which they have	131
concurrent jurisdiction;	132

(b) Joint or concurrent examinations of the records and	133
affairs of banks and trust companies over which they have	134
concurrent jurisdiction;	135

(c) Coordinated examinations of the records and affairs of	136
banks and trust companies over which they have collective	137
jurisdiction.	138

(2) Conduct, participate in, or coordinate independent,	139
concurrent, joint, or coordinated examinations of the records and	140
affairs of banks and trust companies and otherwise act on behalf	141
of financial institution regulatory authorities of this and other	142
states, the United States, and other countries having jurisdiction	143
over the banks and trust companies;	144

(3) Rely on information leading to, arising from, or	145
obtained in the course of examinations conducted by financial	146
institution regulatory authorities of this and other states, the	147
United States, and other countries when both of the following	148
apply:	149

(a) Pursuant to agreement and applicable law, the	150
superintendent may receive and use the information leading to,	151
arising from, or obtained in the course of the other regulatory	152
authorities' examinations in administering Chapters 1101. to 1127.	153
of the Revised Code and acting under the authority of those	154
chapters;	155

(b) In the superintendent's judgment the other regulatory	156
authorities' personnel, practices, and authority warrant the	157
superintendent's reliance.	158

(4) Authorize financial institution regulatory authorities	159
of this and other states, the United States, and other countries	160
to receive and use information leading to, arising from, or	161
obtained in the course of examinations conducted by the division	162
of financial institutions in the same manner and for the purposes	163
they could use information leading to, arising from, or obtained	164
in the course of their own examinations when both of the following	165
apply:	166

(a) Pursuant to applicable law, information leading to,	167
arising from, or obtained in the course of examinations the other	168
regulatory authorities conduct is protected from general	169
disclosure and may only be disclosed for purposes similar to those	170
provided in section 1121.18 of the Revised Code, which are	171
principally regulatory in nature, for disclosure of information	172
leading to, arising from, or obtained in the course of	173
examinations conducted by the division;	174

(b) Pursuant to agreement and applicable law, information	175
leading to, arising from, or obtained in the course of	176
examinations conducted by the division will, in the other	177
regulatory authorities' possession or the possession of any	178
persons to whom the other regulatory authorities disclosed the	179
information as a part of examinations of those persons, be	180
protected from disclosure to the same extent as information	181
leading to, arising from, or obtained in the course of those	182
regulatory authorities' examinations.	183

(5) Rely on the actions of financial institution regulatory	184
authorities of this and other states, the United States, or other	185
countries, or participate with them jointly, in responding to	186
violations of law, unsafe or unsound practices, breaches of	187
fiduciary duty, or other regulatory concerns affecting banks and	188
trust companies over which they have concurrent jurisdiction when	189
the other regulatory authorities have adequate personnel,	190
practices, and authority to warrant the reliance;	191

(6) Implement other cooperative arrangements with financial	192
institution regulatory authorities of this and other states, the	193
United States, and other countries consistent with safety and	194
soundness.	195

(B) No person shall use any reliance by the superintendent,	196
in whole or in part, on financial institution regulatory	197
authorities of this or other states, the United States, or other	198
countries in accordance with division (A) of this section to	199
support any assertion of either of the following:	200

(1) Failure of the superintendent or division to properly	201
administer Chapters 1101. to 1127. of the Revised Code or fulfill	202
the duties imposed by those chapters;	203

(2) Disagreement by the superintendent or division with any	204
action taken by financial institution regulatory authorities of	205
this or other states, the United States, or other countries.	206

(C) In conducting, participating in, or coordinating	207
independent, concurrent, joint, or coordinated examinations of the	208
records and affairs of banks and trust companies, the	209
superintendent may purchase services from financial institution	210
regulatory authorities of this and other states, the United	211
States, and other countries, including services provided by	212
employees of other financial institution regulatory authorities in	213
their capacities as employees of other financial institution	214
regulatory authorities. The purchase of services from one or more	215
financial institution regulatory authorities of this and other	216
states, the United States, or other countries is the purchase of	217
services from a sole source provider and is not the employment of	218
any financial institution regulatory authority or any of its	219
employees.	220

The authority to purchase services pursuant to this division	221
does not impair the superintendent's authority to purchase	222
services from any other source.	223

(D) For purposes of this section, a bank or trust company is	224
engaged in a business activity, and a regulator of that business	225
activity has jurisdiction over the bank or trust company, whether	226
the bank or trust company conducts the activity directly or a	227
subsidiary or affiliate of the bank or trust company conducts the	228
activity.	229

Sec. 1121.18.  (A) Information leading to, arising from, or	230
obtained in the course of the examination of a bank or any	231
examination conducted pursuant to the authority of section 1121.10	232
or 1121.11 of the Revised Code is privileged and confidential. No	233
person, including any person to whom the information is disclosed	234
under the authority of this section, shall disclose information	235
leading to, arising from, or obtained in the course of an	236
examination, except as specifically provided in this section.	237

(B) The superintendent of financial institutions and the	238
superintendent's agents and employees may disclose information	239
leading to, arising from, or obtained in the course of an	240
examination conducted pursuant to section 1121.10 or 1121.11 of	241
the Revised Code as follows:	242

(1) To the governor, director of commerce, or deputy	243
director of commerce to enable them to act in the interests of the	244
public;	245

(2) To the banking commission to enable the commission to	246
effectively advise the superintendent and take action on any	247
matter the superintendent presents to the commission;	248

(3) To financial institution regulatory authorities of this	249
and other states, the United States, and other countries to assist	250
them in their regulatory duties;	251

(4) To the directors, officers, agents, and parent company	252
of the bank or other person examined to assist them in conducting	253
the business of the bank or other person examined in a safe and	254
sound manner and in compliance with law;	255

(5) To law enforcement authorities conducting criminal	256
investigations.	257

(C)(1) Information leading to, arising from, or obtained in	258
the course of an examination of a bank or other person pursuant to	259
section 1121.10 or 1121.11 of the Revised Code shall not be	260
discoverable from any source, and shall not be introduced into	261
evidence, except in the following circumstances:	262

(a) In connection with criminal proceedings;

263

(b) When, in the opinion of the superintendent, it is	264
appropriate with regard to enforcement actions taken and decisions	265
made by the superintendent under the authority of Chapters 1101.	266
to 1127. of the Revised Code regarding a bank, trust company, or	267
other person;	268

(c) When litigation has been initiated by the superintendent	269
in furtherance of the powers, duties, and obligations imposed upon	270
the superintendent by Chapters 1101. to 1127. of the Revised Code;	271

(d) When authorized by agreements between the superintendent	272
and financial institution regulatory authorities of this and other	273
states, the United States, and other countries authorized by	274
section 1121.11 of the Revised Code;	275

(e) When and in the manner authorized in section 1181.25 of	276
the Revised Code.	277

(2) The discovery of information leading to, arising from,	278
or obtained in the course of an examination pursuant to division	279
(C)(1)(b), (c), or (d) of this section shall be limited to	280
information that directly relates to the bank, trust company,	281
regulated person, or other person who is the subject of the	282
enforcement action, decision, or litigation.	283

(D) A report of an examination conducted pursuant to section	284
1121.10 or 1121.11 of the Revised Code is the property of the	285
division of financial institutions. Under no circumstances may	286
the bank or other person examined, its directors, officers,	287
employees, agents, regulated persons, or contractors, or any	288
person having knowledge or possession of a report of examination,	289
or any of its contents, disclose or make public in any manner the	290
report of examination or its contents. The authority provided in	291
division (B)(4) of this section for use of examination information	292
to assist in conducting the business of the bank or other person	293
examined in a safe and sound manner and in compliance with law	294
shall not be construed to authorize disclosure of a report of	295
examination or any of its contents in conducting business with the	296
examined bank's or person's customers, creditors, or shareholders,	297
or with other persons.	298

(E) Whoever violates this section shall be removed from	299
office, shall be liable, with the violator's bonder in damages to	300
the person injured by the disclosure of information, and is guilty	301
of a felony of the fourth degree.	302

Sec. 1151.01.  In sections of the Revised Code making	303
reference to savings and loan associations and to the division of	304
savings and loan associations or the division of financial	305
institutions:	306

(A) "Savings and loan association" means a corporation	307
organized for the purpose of raising money to be loaned to its	308
members or to others; "building and loan association" and "savings	309
association" may be used interchangeably with and shall for all	310
purposes have the same meaning as "savings and loan association";	311
and "division of building and loan associations" and "division of	312
savings and loan associations" may be used interchangeably with	313
and shall for all purposes have the same meaning as "division of	314
financial institutions."	315

(B) "Controlling person" means any person or entity which,	316
either directly or indirectly, or acting in concert with one or	317
more other persons or entities, owns, controls, or holds with	318
power to vote, or holds proxies representing, fifteen per cent or	319
more of the voting shares or rights of a savings and loan	320
association or controls in any manner the election or appointment	321
of a majority of the directors of an association. However, a	322
director of an association will not be deemed to be a controlling	323
person of such association based upon the director's voting, or	324
acting in concert with other directors in voting, proxies obtained	325
in connection with a solicitation of proxies or obtained from	326
savings account holders and borrowers if such proxies are voted as	327
directed by a majority of the entire board of directors of the	328
association, or of a committee of such directors if such	329
committee's composition and authority are controlled by a majority	330
vote of the entire board and if its authority is revocable by such	331
a majority.	332

(C) "Domestic association" means a savings and loan	333
association organized under the laws of this state or a savings	334
association chartered under the laws of the United States, the	335
home office of which is located within this state.	336

(D) "Foreign savings association" means a savings and loan	337
association that is chartered under the laws of another state.	338

(E) "Foreign federal association" means a savings	339
association chartered under the laws of the United States, the	340
home office of which is located in another state.	341

(F) "Another state" means any state of the United States	342
other than this state, and includes the District of Columbia and	343
any other territory, insular possession, or political subdivision	344
of the United States.	345

(G) "Banking office" means an office or other place at which	346
a savings association receives money or its equivalent from the	347
public for deposit and conducts the general business of a savings	348
association. "Banking office" does not include any of the	349
following:	350

(1) Any location at which a savings association receives,	351
but does not accept, cash or other items for subsequent deposit,	352
such as by mail or armored car service or at a lock box or night	353
depository;	354

(2) Any structure located within five hundred yards of a	355
banking office and operated as an extension of the services of the	356
banking office;	357

(3) Any remote service unit or automated teller machine	358
owned, leased, or operated by a savings association;	359

(4) Any facility located within the geographical limits of a	360
military installation at which a savings association only accepts	361
deposits and cashes checks;	362

(5) Any location at which a savings association takes and	363
processes applications for loans and from which it may disburse	364
loan proceeds, but does not accept deposits;	365

(6) Any location at which a savings association is engaged	366
solely in providing administrative support services for its own	367
operations or for other financial institutions.	368

(H) "Branch" means a banking office that is not also the	369
savings association's principal office consistent with its	370
articles of incorporation.	371

(I) "Superintendent," "superintendent of building and loan	372
associations," or "superintendent of savings and loan	373
associations" means the superintendent of the division of	374
financial institutions of this state. Whenever the division or	375
superintendent of savings and loan associations or building and	376
loan associations is referred to or designated in any statute,	377
rule, contract, or other document, the reference or designation	378
shall be deemed to refer to the division or superintendent of	379
financial institutions, as the case may be.	380

(J) "Savings bank" means a savings bank doing business under	381
authority granted by the superintendent pursuant to Chapter 1161.	382
of the Revised Code or under the regulatory authority of another	383
state.	384

(K) "Bank" has the same meaning as in section 1101.01 of the	385
Revised Code.	386

(L) "Financial institution regulatory authority" includes a	387
regulator of a business activity in which a savings and loan	388
association is engaged, to the extent that the regulator has	389
jurisdiction over a savings and loan association engaged in that	390
business activity.	391

Sec. 1155.091.  (A) In administering Chapters 1151. to 1157.	392
of the Revised Code and fulfilling the duties imposed by those	393
chapters, including the duty imposed by section 1151.09 of the	394
Revised Code, the superintendent of financial institutions may do	395
any of the following:	396

(1) Participate with financial institution regulatory	397
authorities of this and other states, the United States, and other	398
countries in any of the following:	399

(a) Programs for alternate examinations of the records and	400
affairs of savings and loan associations over which they have	401
concurrent jurisdiction;	402

(b) Joint or concurrent examinations of the records and	403
affairs of savings and loan associations over which they have	404
concurrent jurisdiction;	405

(c) Coordinated examinations of the records and affairs of	406
savings and loan associations over which they have collective	407
jurisdiction.	408

(2) Conduct, participate in, or coordinate independent,	409
concurrent, joint, or coordinated examinations of the records and	410
affairs of savings and loan associations and otherwise act on	411
behalf of financial institution regulatory authorities of this and	412
other states, the United States, and other countries having	413
jurisdiction over the savings and loan associations;	414

(3) Rely on information leading to, arising from, or	415
obtained in the course of examinations conducted by financial	416
institution regulatory authorities of this and other states, the	417
United States, and other countries when both of the following	418
apply:	419

(a) Pursuant to agreement and applicable law, the	420
superintendent may receive and use the information leading to,	421
arising from, or obtained in the course of the other regulatory	422
authorities' examinations in administering Chapters 1151. to 1157.	423
of the Revised Code and acting under the authority of those	424
chapters;	425

(b) In the superintendent's judgment the other regulatory	426
authorities' personnel, practices, and authority warrant the	427
superintendent's reliance.	428

(4) Authorize financial institution regulatory authorities	429
of this and other states, the United States, and other countries	430
to receive and use information leading to, arising from, or	431
obtained in the course of examinations conducted by the division	432
of financial institutions in the same manner and for the purposes	433
they could use information leading to, arising from, or obtained	434
in the course of their own examinations when both of the following	435
apply:	436

(a) Pursuant to applicable law, information leading to,	437
arising from, or obtained in the course of examinations the other	438
regulatory authorities conduct is protected from general	439
disclosure and may only be disclosed for purposes similar to those	440
provided in section 1155.16 of the Revised Code, which are	441
principally regulatory in nature, for disclosure of information	442
leading to, arising from, or obtained in the course of	443
examinations conducted by the division;	444

(b) Pursuant to agreement and applicable law, information	445
leading to, arising from, or obtained in the course of	446
examinations conducted by the division will, in the other	447
regulatory authorities' possession or the possession of any	448
persons to whom the other regulatory authorities disclosed the	449
information as a part of examinations of those persons, be	450
protected from disclosure to the same extent as information	451
leading to, arising from, or obtained in the course of those	452
regulatory authorities' examinations.	453

(5) Rely on the actions of financial institution regulatory	454
authorities of this and other states, the United States, or other	455
countries, or participate with them jointly, in responding to	456
violations of law, unsafe or unsound practices, breaches of	457
fiduciary duty, or other regulatory concerns affecting savings and	458
loan associations over which they have concurrent jurisdiction	459
when the other regulatory authorities have adequate personnel,	460
practices, and authority to warrant the reliance;	461

(6) Implement other cooperative arrangements with financial	462
institution regulatory authorities of this and other states, the	463
United States, and other countries consistent with safety and	464
soundness.	465

(B) No person shall use any reliance by the superintendent,	466
in whole or in part, on financial institution regulatory	467
authorities of this or other states, the United States, or other	468
countries in accordance with division (A) of this section to	469
support any assertion of either of the following:	470

(1) Failure of the superintendent or division to properly	471
administer Chapters 1151. to 1157. of the Revised Code or fulfill	472
the duties imposed by those chapters;	473

(2) Disagreement by the superintendent or division with any	474
action taken by financial institution regulatory authorities of	475
this or other states, the United States, or other countries.	476

(C) In conducting, participating in, or coordinating	477
independent, concurrent, joint, or coordinated examinations of the	478
records and affairs of savings and loan associations, the	479
superintendent may purchase services from financial institution	480
regulatory authorities of this and other states, the United	481
States, and other countries, including services provided by	482
employees of other financial institution regulatory authorities.	483
The purchase of services from one or more financial institution	484
regulatory authorities of this and other states, the United	485
States, and other countries is the purchase of services from a	486
sole source provider and is not the employment of any financial	487
institution regulatory authority or any of its employees.	488

The authority to purchase services pursuant to this division	489
does not impair the superintendent's authority to purchase	490
services from any other source.	491

(D) For purposes of this section, a savings and loan	492
association is engaged in a business activity, and a regulator of	493
that business activity has jurisdiction over the savings and loan	494
association, whether the savings and loan association conducts the	495
activity directly or a subsidiary or affiliate of the savings and	496
loan association conducts the activity.	497

Sec. 1155.16.  (A)(1) Except as provided in division (B) of	498
this section, the superintendent of savings and loan associations,	499
the superintendent's agents, and employees shall keep privileged	500
and confidential the examination reports, information obtained in	501
an examination, or any other information obtained by reason of	502
their official position. This section does not prevent the	503
superintendent from properly releasing to or exchanging	504
information relating to a savings and loan association, or its	505
affairs, with the governor, the director of commerce, the deputy	506
director of commerce, or representatives of state or federal	507
financial institution regulatory agencies or governmental	508
authorities, or prevent such release by the association or its	509
officers or directors, in the conduct of the business of the	510
association.	511

(2) Any person who receives privileged and confidential	512
examination reports or other information under the authority of	513
this section is also subject to the requirements of this section	514
and such person, knowing that such examination reports or	515
information are privileged and confidential, shall not purposely	516
divulge such reports or information in any manner.	517

(3) If the superintendent, an agent of the superintendent, or	518
an employee of the superintendent purposely makes, or causes to be	519
made, any false statements or reports regarding the affairs or	520
condition of a savings and loan association, the act constitutes	521
falsification under section 2921.13 of the Revised Code.	522

(B) Examination reports, information obtained in an	523
examination, and any other information obtained by reason of the	524
official position of the division of savings and loan associations	525
shall not be discoverable from any source, and shall not be	526
introduced into evidence, except in the following situations:	527

(1) In connection with criminal proceedings;

528

(2) When, in the opinion of the superintendent, it is	529
necessary for the superintendent or for the agents or employees of	530
the superintendent to take enforcement action under Chapter 1151.,	531
1153., 1155., or 1157. of the Revised Code regarding the affairs	532
of the savings and loan association examined;	533

(3) When litigation has been initiated by the superintendent	534
in furtherance of the powers, duties, and obligations imposed upon	535
the superintendent by Chapter 1151., 1153., 1155., or 1157. of the	536
Revised Code;	537

(4) When authorized by agreements between the	538
superintendent and financial institution regulatory authorities of	539
this and other states, the United States, and other countries	540
authorized by section 1155.091 of the Revised Code;	541

(5) When and in the manner authorized in section 1181.25 of	542
the Revised Code.	543

(C) The discovery of examination reports and other related	544
material pursuant to divisions (B)(2) and (3) of this section	545
shall be limited to information that directly relates to the	546
association that is the subject of the enforcement action or the	547
litigation.	548

(D)(1) No person shall fail to comply with division (A)(1),	549
(2), or (3) of this section.	550

(2) Whoever violates division (D)(1) of this section is	551
guilty of a felony of the fourth degree.	552

Sec. 1161.01.  (A) In sections of the Revised Code making	553
reference to savings banks and to the division of savings banks or	554
the division of financial institutions:	555

(1) "Savings bank" means a corporation that has its home	556
office located in this state, that is organized for the purposes	557
of receiving deposits and raising money to be loaned to its	558
members or to others, and that maintains at least sixty per cent	559
of its total assets in the housing-related and other investments	560
set forth in section 7701(a)(19)(C) of the "Internal Revenue Code	561
of 1986," 100 Stat. 2085, 26 U.S.C.A. 1, as amended. "Savings	562
bank" does not include banks, savings and loan associations, or	563
credit unions.	564

(2) "Foreign savings bank" means a savings bank organized	565
under the laws of another state, the home office of which is	566
located outside this state.	567

(3) "Controlling person" means any person or entity which,	568
either directly or indirectly, or acting in concert with one or	569
more other persons or entities, owns, controls, or holds with	570
power to vote, or holds proxies representing, fifteen per cent or	571
more of the voting shares or rights of a savings bank or controls	572
in any manner the election or appointment of a majority of the	573
directors of a savings bank. However, a director of a savings	574
bank is not deemed to be a controlling person of the savings bank	575
based upon the director's voting, or acting in concert with other	576
directors in voting, proxies obtained in connection with a	577
solicitation of proxies or obtained from savings account holders	578
and borrowers if such proxies are voted as directed by a majority	579
of the entire board of directors of the savings bank, or of a	580
committee of the directors if the committee's composition and	581
authority are controlled by a majority vote of the entire board	582
and if its authority is revocable by such a majority.	583

(4) "Division of savings banks" may be used interchangeably	584
with, and for all purposes has the same meaning as, "division of	585
financial institutions."	586

(5) "Another state" means any state of the United States	587
other than this state, and includes the District of Columbia and	588
any other territory, insular possession, or political subdivision	589
of the United States.	590

(6) "Banking office" means an office or other place at which	591
a savings bank receives money or its equivalent from the public	592
for deposit and conducts the general business of a savings bank.	593
"Banking office" does not include any of the following:	594

(a) Any location at which a savings bank receives, but does	595
not accept, cash or other items for subsequent deposit, such as by	596
mail or armored car service or at a lock box or night depository;	597

(b) Any structure located within five hundred yards of a	598
banking office and operated as an extension of the services of the	599
banking office;	600

(c) Any remote service unit or automated teller machine	601
owned, leased, or operated by a savings bank;	602

(d) Any facility located within the geographical limits of a	603
military installation at which a savings bank only accepts	604
deposits and cashes checks;	605

(e) Any location at which a savings bank takes and processes	606
applications for loans and from which it may disburse loan	607
proceeds, but does not accept deposits;	608

(f) Any location at which a savings bank is engaged solely	609
in providing administrative services for its own operations or for	610
other financial institutions.	611

(7) "Branch" means a banking office that is not also the	612
savings bank's principal office consistent with its articles of	613
incorporation.	614

(8) "Superintendent" or "superintendent of savings banks"	615
means the superintendent of the division of financial institutions	616
of this state. Whenever the division or superintendent of savings	617
banks is referred to or designated in any statute, rule, contract,	618
or other document, the reference or designation shall be deemed to	619
refer to the division or superintendent of financial institutions,	620
as the case may be.	621

(9) "Savings and loan association" means a domestic	622
association, a foreign savings association, or a foreign federal	623
association, as defined in section 1151.01 of the Revised Code.	624

(10) "Bank" has the same meaning as in section 1101.01 of	625
the Revised Code.	626

(11) "Financial institution regulatory authority" includes a	627
regulator of a business activity in which a savings bank is	628
engaged, to the extent that the regulator has jurisdiction over a	629
savings bank engaged in that business activity.	630

(B) For purposes of any chapter of the Revised Code, except	631
Chapters 1101., 1103., 1105., 1107., 1109., 1111., 1113., 1115.,	632
1117., 1119., 1121., 1123., 1125., 1127., 1133., 1151., 1153.,	633
1155., 1157., 1161., 1163., 1165., and 1181. of the Revised Code,	634
"building and loan association," "savings and loan association,"	635
or "financial institution" includes a savings bank as defined in	636
section 1161.01 of the Revised Code, unless the context clearly	637
requires otherwise.	638

Sec. 1163.121.  (A) In administering Chapters 1161. to 1165.	639
of the Revised Code and fulfilling the duties imposed by those	640
chapters, including the duty imposed by section 1163.12 of the	641
Revised Code, the superintendent of financial institutions may do	642
any of the following:	643

(1) Participate with financial institution regulatory	644
authorities of this and other states, the United States, and other	645
countries in any of the following:	646

(a) Programs for alternate examinations of the records and	647
affairs of savings banks over which they have concurrent	648
jurisdiction;	649

(b) Joint or concurrent examinations of the records and	650
affairs of savings banks over which they have concurrent	651
jurisdiction;	652

(c) Coordinated examinations of the records and affairs of	653
savings banks over which they have collective jurisdiction.	654

(2) Conduct, participate in, or coordinate independent,	655
concurrent, joint, or coordinated examinations of the records and	656
affairs of savings banks and otherwise act on behalf of financial	657
institution regulatory authorities of this and other states, the	658
United States, and other countries having jurisdiction over the	659
savings banks;	660

(3) Rely on information leading to, arising from, or	661
obtained in the course of examinations conducted by financial	662
institution regulatory authorities of this and other states, the	663
United States, and other countries when both of the following	664
apply:	665

(a) Pursuant to agreement and applicable law, the	666
superintendent may receive and use the information leading to,	667
arising from, or obtained in the course of the other regulatory	668
authorities' examinations in administering Chapters 1161. to 1165.	669
of the Revised Code and acting under the authority of those	670
chapters;	671

(b) In the superintendent's judgment the other regulatory	672
authorities' personnel, practices, and authority warrant the	673
superintendent's reliance.	674

(4) Authorize financial institution regulatory authorities	675
of this and other states, the United States, and other countries	676
to receive and use information leading to, arising from, or	677
obtained in the course of examinations conducted by the division	678
of financial institutions in the same manner and for the purposes	679
they could use information leading to, arising from, or obtained	680
in the course of their own examinations when both of the following	681
apply:	682

(a) Pursuant to applicable law, information leading to,	683
arising from, or obtained in the course of examinations the other	684
regulatory authorities conduct is protected from general	685
disclosure and may only be disclosed for purposes similar to those	686
provided in section 1163.20 of the Revised Code, which are	687
principally regulatory in nature, for disclosure of information	688
leading to, arising from, or obtained in the course of	689
examinations conducted by the division;	690

(b) Pursuant to agreement and applicable law, information	691
leading to, arising from, or obtained in the course of	692
examinations conducted by the division will, in the other	693
regulatory authorities' possession or the possession of any	694
persons to whom the other regulatory authorities disclosed the	695
information as a part of examinations of those persons, be	696
protected from disclosure to the same extent as information	697
leading to, arising from, or obtained in the course of those	698
regulatory authorities' examinations.	699

(5) Rely on the actions of financial institution regulatory	700
authorities of this and other states, the United States, or other	701
countries, or participate with them jointly, in responding to	702
violations of law, unsafe or unsound practices, breaches of	703
fiduciary duty, or other regulatory concerns affecting savings	704
banks over which they have concurrent jurisdiction when the other	705
regulatory authorities have adequate personnel, practices, and	706
authority to warrant the reliance;	707

(6) Implement other cooperative arrangements with financial	708
institution regulatory authorities of this and other states, the	709
United States, and other countries consistent with safety and	710
soundness.	711

(B) No person shall use any reliance by the superintendent,	712
in whole or in part, on financial institution regulatory	713
authorities of this or other states, the United States, or other	714
countries in accordance with division (A) of this section to	715
support any assertion of either of the following:	716

(1) Failure of the superintendent or division to properly	717
administer Chapters 1161. to 1165. of the Revised Code or fulfill	718
the duties imposed by those chapters;	719

(2) Disagreement by the superintendent or division with any	720
action taken by financial institution regulatory authorities of	721
this or other states, the United States, or other countries.	722

(C) In conducting, participating in, or coordinating	723
independent, concurrent, joint, or coordinated examinations of the	724
records and affairs of savings banks, the superintendent may	725
purchase services from financial institution regulatory	726
authorities of this and other states, the United States, and other	727
countries, including services provided by employees of other	728
financial institution regulatory authorities. The purchase of	729
services from one or more financial institution regulatory	730
authorities of this and other states, the United States, and	731
other countries is the purchase of services from a sole source	732
provider and is not the employment of any financial institution	733
regulatory authority or any of its employees.	734

The authority to purchase services pursuant to this division	735
does not impair the superintendent's authority to purchase	736
services from any other source.	737

(D) For purposes of this section, a savings bank is engaged	738
in a business activity, and a regulator of that business activity	739
has jurisdiction over the savings bank, whether the savings bank	740
conducts the activity directly or a subsidiary or affiliate of the	741
savings bank conducts the activity.	742

Sec. 1163.20.  (A)(1) Except as provided in division (B) of	743
this section, the superintendent of savings banks, his agents, and	744
employees shall keep privileged and confidential the examination	745
reports, information obtained in an examination, or any other	746
information obtained by reason of their official position. This	747
section does not prevent the superintendent from properly	748
releasing to or exchanging information relating to a savings bank,	749
or its affairs, with the governor, the director of commerce, the	750
deputy director of commerce, or representatives of state or	751
federal financial institution regulatory agencies or governmental	752
authorities, or prevent such release by the savings bank or its	753
officers or directors, in the conduct of the business of the	754
savings bank.	755

(2) Any person who receives privileged and confidential	756
examination reports or other information under the authority of	757
this section also is subject to the requirements of this section.	758
No person, knowing that the examination reports or information are	759
privileged and confidential, shall purposely divulge the reports	760
or information in any manner.	761

(3) Neither the superintendent, nor any agent or employee of	762
the superintendent, shall purposely make, or cause to be made, any	763
false statements or reports regarding the affairs or condition of	764
a savings bank.	765

(B) Examination reports, information obtained in an	766
examination, and any other information obtained by reason of the	767
official position of the division of savings banks shall not be	768
discoverable from any source, and shall not be introduced into	769
evidence, except in the following situations:	770

(1) In connection with criminal proceedings;

771

(2) When, in the opinion of the superintendent, it is	772
necessary for the superintendent, his agents, or employees to take	773
enforcement action under this chapter or Chapter 1161. or 1165. of	774
the Revised Code regarding the affairs of the savings bank	775
examined;	776

(3) When litigation has been initiated by the superintendent	777
in furtherance of the powers, duties, and obligations imposed upon	778
the superintendent by this chapter or Chapter 1161. or 1165. of	779
the Revised Code;	780

(4) When authorized by agreements between the	781
superintendent and financial institution regulatory authorities of	782
this and other states, the United States, and other countries	783
authorized by section 1163.121 of the Revised Code;	784

(5) When and in the manner authorized in section 1181.25 of	785
the Revised Code.	786

(C) The discovery of examination reports and other related	787
material pursuant to divisions (B)(2) and (3) of this section	788
shall be limited to information that directly relates to the	789
savings bank which is the subject of the enforcement action or the	790
litigation.	791

(D)(1) No person shall fail to comply with division (A)(1),	792
(2), or (3) of this section.	793

(2) Whoever violates division (D)(1) of this section is	794
guilty of a felony of the fourth degree.	795

Sec. 1181.25. The superintendent of financial institutions	796
may introduce into evidence or disclose, or authorize to be	797
introduced into evidence or disclosed, information that, under	798
sections 1121.18, 1155.16, 1163.20, 1321.09, 1321.55, 1322.06,	799
1733.32, 1733.327, and 4727.18 of the Revised Code, is privileged,	800
confidential, or otherwise not public information or a public	801
record, provided that the superintendent acts only as provided in	802
those sections or in the following circumstances:	803

(A) When in the opinion of the superintendent, it is	804
appropriate with regard to any enforcement actions taken and	805
decisions made by the superintendent under Chapters 1315., 1321.,	806
1322., 1733., 4712., 4727., and 4728. of the Revised Code or Title	807
XI of the Revised Code;	808

(B) When litigation has been initiated by the	809
superintendent in furtherance of the powers, duties, and	810
obligations imposed upon the superintendent by Chapters 1315.,	811
1321., 1322., 1733., 4712., 4727., and 4728. of the Revised Code	812
or Title XI of the Revised Code;	813

(C) When in the opinion of the superintendent, it is	814
appropriate with regard to enforcement actions taken or decisions	815
made by other financial institution regulators to whom the	816
superintendent has provided the information pursuant to authority	817
in Chapters 1315., 1321., 1322., 1733., 4712., 4727., and 4728. of	818
the Revised Code or Title XI of the Revised Code.	819

Sec. 1321.09. (A) Every licensee shall keep and use in the	820
licensee's business such books, accounts, and records as will	821
enable the division of financial institutions to determine whether	822
the licensee is complying with sections 1321.01 to 1321.19 of the	823
Revised Code and with the orders and rules made by the division	824
under those sections. Every licensee shall preserve such books,	825
accounts, and records for at least two years after making the	826
final entry on any loan recorded therein. Accounting systems	827
maintained in whole or in part by mechanical or electronic data	828
processing methods that provide information equivalent to that	829
otherwise required are acceptable for this purpose.	830

As required by the superintendent of financial institutions,	831
every licensee each year shall file a report with the division	832
giving such relevant information concerning the business and	833
operations, during the preceding calendar year, of each licensed	834
place of business conducted by the licensee within the state. If	835
a licensee has more than one place of business within this state	836
it is optional with the licensee to furnish the report for each	837
location, or a composite report for all locations. Such report	838
shall be made under oath in the form prescribed by the division,	839
which shall make and publish annually an analysis and	840
recapitulation of such reports. Such licensee reports are not	841
public records and shall only be used by the division for the	842
purpose of enforcing sections 1321.01 to 1321.19 of the Revised	843
Code or any rules or orders made in compliance with those	844
sections. Such licensee reports may be introduced into evidence or	845
disclosed when and in the manner authorized in section 1181.25 of	846
the Revised Code, or in connection with criminal proceedings.	847

This section does not prevent the division from releasing to	848
or exchanging with other financial institution regulatory	849
authorities information relating to licensees.	850

(B) For purposes of this section, "financial institution	851
regulatory authority" includes a regulator of a business activity	852
in which a licensee is engaged, to the extent that the regulator	853
has jurisdiction over a licensee engaged in that business	854
activity. A licensee is engaged in a business activity, and a	855
regulator of that business activity has jurisdiction over the	856
licensee, whether the licensee conducts the activity directly or a	857
subsidiary or affiliate of the licensee conducts the activity.	858

Sec. 1321.55.  (A) Every registrant shall keep records	859
pertaining to loans made under sections 1321.51 to 1321.60 of the	860
Revised Code. Such records shall be segregated from records	861
pertaining to transactions that are not subject to these sections	862
of the Revised Code. Every registrant shall preserve records	863
pertaining to loans made under sections 1321.51 to 1321.60 of the	864
Revised Code for at least two years after making the final entry	865
on such records. Accounting systems maintained in whole or in	866
part by mechanical or electronic data processing methods that	867
provide information equivalent to that otherwise required are	868
acceptable for this purpose. At least once each eighteen-month	869
cycle, the division of financial institutions shall make or cause	870
to be made an examination of records pertaining to loans made	871
under sections 1321.51 to 1321.60 of the Revised Code, for the	872
purpose of determining whether the registrant is complying with	873
these sections and of verifying the registrant's annual report.	874

(B)(1) As required by the superintendent of financial	875
institutions, each registrant shall file with the division each	876
year a report under oath or affirmation, on forms supplied by the	877
division, concerning the business and operations for the preceding	878
calendar year. Whenever a registrant operates two or more	879
registered offices or whenever two or more affiliated registrants	880
operate registered offices, then a composite report of the group	881
of registered offices may be filed in lieu of individual reports.	882

(2) The division shall publish annually an analysis of the	883
information required under division (B)(1) of this section, but	884
the individual reports shall not be public records and shall not	885
be open to public inspection.	886

(C) All information obtained by the superintendent or the	887
superintendent's deputies, examiners, assistants, agents, or	888
clerks by reason of their official position, including information	889
obtained by such persons from the annual report of a registrant or	890
in the course of examining a registrant or investigating an	891
applicant for a certificate, is privileged and confidential. All	892
such information shall remain privileged and confidential for all	893
purposes except when it is necessary for the superintendent and	894
the superintendent's deputies, examiners, assistants, agents, or	895
clerks to take official action regarding the affairs of the	896
registrant or in connection with criminal proceedings. Such	897
information may also be introduced into evidence or disclosed when	898
and in the manner authorized in section 1181.25 of the Revised	899
Code.	900

(D) No person is in violation of sections 1321.51 to 1321.60	901
of the Revised Code for any act taken or omission made in reliance	902
on a written notice, interpretation, or examination report from	903
the superintendent.	904

(E) This section does not prevent the division from	905
releasing to or exchanging with other financial institution	906
regulatory authorities information relating to registrants.	907

(F) For purposes of this section, "financial institution	908
regulatory authority" includes a regulator of a business activity	909
in which a registrant is engaged, to the extent that the regulator	910
has jurisdiction over a registrant engaged in that business	911
activity. A registrant is engaged in a business activity, and a	912
regulator of that business activity has jurisdiction over the	913
registrant, whether the registrant conducts the activity directly	914
or a subsidiary or affiliate of the registrant conducts the	915
activity.	916

Sec. 1321.76.  (A) Each licensee shall keep records of its	917
insurance premium finance transactions conducted under sections	918
1321.71 to 1321.83 of the Revised Code. Such records shall be	919
maintained separately from any records pertaining to transactions	920
that are not subject to those sections. Each licensee shall	921
preserve its records pertaining to insurance premium finance	922
transactions conducted under sections 1321.71 to 1321.83 of the	923
Revised Code for at least two years after the final entry on such	924
records. Preservation of records by means of accounting systems	925
maintained in whole or in part by mechanical or electronic data	926
processing methods constitutes compliance with this division.	927

The division of financial institutions for purposes of	928
determining whether a licensee is complying with sections 1321.71	929
to 1321.83 of the Revised Code, may make or cause to be made an	930
examination of records pertaining to insurance premium finance	931
transactions conducted under those sections.	932

(B) If a licensee's books, records, data, and other	933
documents are located outside this state, the licensee shall, upon	934
the request of the superintendent of financial institutions,	935
deposit with the division an amount equal to the estimated costs,	936
as determined by the superintendent, of an examination of the	937
licensee conducted outside this state. After the actual costs of	938
the examination have been determined and itemized by the division,	939
the division shall return to the licensee any amount it had	940
deposited in excess of the actual costs.	941

(C) All information obtained by the superintendent or the	942
superintendent's deputies, examiners, assistants, agents, or	943
clerks by reason of their official position, including information	944
obtained by such persons in the course of examining a licensee or	945
investigating an applicant for a license, is privileged and	946
confidential. All such information shall remain privileged and	947
confidential for all purposes except when, in the opinion of the	948
superintendent, it is necessary for the superintendent and the	949
superintendent's deputies, examiners, assistants, agents, or	950
clerks to take official action in administering and enforcing	951
sections 1321.71 to 1321.83 of the Revised Code or in connection	952
with criminal proceedings. Such information may also be introduced	953
into evidence or disclosed when and in the manner authorized in	954
section 1181.25 of the Revised Code.	955

(D) This section does not prevent the division from	956
releasing to or exchanging with other financial institution	957
regulatory authorities information relating to licensees.	958

(E) For purposes of this section, "financial institution	959
regulatory authority" includes a regulator of a business activity	960
in which a licensee is engaged, to the extent that the regulator	961
has jurisdiction over a licensee engaged in that business	962
activity. A licensee is engaged in a business activity, and a	963
regulator of that business activity has jurisdiction over the	964
licensee, whether the licensee conducts the activity directly or a	965
subsidiary or affiliate of the licensee conducts the activity.	966

Sec. 1322.06.  (A) As often as the superintendent of	967
financial institutions considers it necessary, the superintendent	968
may examine the registrant's records pertaining to business	969
transacted pursuant to sections 1322.01 to 1322.12 of the Revised	970
Code.	971

(B) A registrant shall maintain records pertaining to	972
business transacted pursuant to sections 1322.01 to 1322.12 of the	973
Revised Code for two years or more after the final entry on such	974
records. No registrant shall fail to comply with this division.	975

(C) All information obtained by the superintendent or the	976
superintendent's deputies, examiners, assistants, agents, or	977
clerks by reason of their official position, including information	978
obtained by such persons in the course of examining a registrant	979
or investigating an applicant for a certificate of registration,	980
is privileged and confidential. All such information shall remain	981
privileged and confidential for all purposes except when it is	982
necessary for the superintendent and the superintendent's	983
deputies, examiners, assistants, agents, or clerks to take	984
official action regarding the affairs of the registrant or in	985
connection with criminal proceedings. Such information may also be	986
introduced into evidence or disclosed when and in the manner	987
authorized in section 1181.25 of the Revised Code.	988

(D) This section does not prevent the division from	989
releasing to or exchanging with other financial institution	990
regulatory authorities information relating to registrants.	991

(E) For purposes of this section, "financial institution	992
regulatory authority" includes a regulator of a business activity	993
in which a registrant is engaged, to the extent that the regulator	994
has jurisdiction over a registrant engaged in that business	995
activity. A registrant is engaged in a business activity, and a	996
regulator of that business activity has jurisdiction over the	997
registrant, whether the registrant conducts the activity directly	998
or a subsidiary or affiliate of the registrant conducts the	999
activity.	1000

Sec. 1707.12.  (A) All applications and other papers filed	1001
with the division of securities shall be open to inspection at all	1002
reasonable times, except for unreasonable or improper purposes.	1003

(B) Information obtained by the division through any	1004
investigation shall be retained by the division and shall not be	1005
available to inspection by persons other than those having a	1006
direct economic interest in the information or the transaction	1007
under investigation, or by a law enforcement officer pursuant to	1008
the duties of his officelaw enforcement agencies, state agencies,	1009
federal agencies, and other entities as set forth by rules adopted	1010
by the division.	1011

(C) Confidential law enforcement investigatory records and	1012
trial preparation records of the division of securities or any	1013
other law enforcement or administrative agency which are in the	1014
possession of the division of securities shall in no event be	1015
available to inspection by other than law enforcement agencies,	1016
state agencies, federal agencies, and other entities as set forth	1017
by rules adopted by the division.	1018

(D) All public records shall be prepared and made available	1019
promptly to any member of the general public at all reasonable	1020
times for inspection. Upon request, the custodian of public	1021
records shall make copies of the records available at cost, within	1022
a reasonable period of time. To facilitate public access, the	1023
division shall maintain public records in such a manner that they	1024
can be made available pursuant to this section.	1025

(E) No employee or representative of the division or the	1026
department of commerce shall be required to testify concerning any	1027
document or record subject to division (B) or (C) of this section,	1028
except as set forth by rules adopted by the division.	1029

(F) As used in this section:

1030

(1) "Confidential law enforcement investigatory record"	1031
means any record that pertains to a law enforcement matter of a	1032
criminal, quasi-criminal, civil, or administrative nature,	1033
provided that release of the record would create a high	1034
probability of disclosure of any of the following:	1035

(a) The identity of a suspect who has not been charged with	1036
the offense to which the record pertains, or of an information	1037
source or witness to whom confidentiality reasonably has been	1038
promised;	1039

(b) Information provided by an information source or witness	1040
to whom confidentiality reasonably has been promised, which	1041
information reasonably would tend to disclose histhe identity of	1042
the information source or witness;	1043

(c) Specific confidential investigatory techniques or	1044
procedures or specific investigatory work product.	1045

(2) "Trial preparation record" means any record that	1046
contains information that is specifically compiled in reasonable	1047
anticipation of, or in defense of, a criminal, quasi-criminal,	1048
civil, or administrative action or proceeding, including, but not	1049
limited to, the independent thought processes and personal trial	1050
preparation of an attorney and division personnel, their notes,	1051
diaries, and memoranda.	1052

Sec. 1733.01.  As used in this chapter, unless the context	1053
otherwise requires:	1054

(A) "Credit union" means a corporation organized and	1055
qualified as such under this chapter. In addition to the powers	1056
enumerated in this chapter and unless restricted in this chapter,	1057
every credit union has the general powers conferred upon	1058
corporations by Chapter 1701. of the Revised Code. A credit union	1059
is a nonprofit cooperative financial institution and as such is	1060
organized and operates for the mutual benefit and general welfare	1061
of its members with the earnings, savings, benefits, or services	1062
of the credit union being distributed to its members as patron	1063
savers and borrowers and not to its members as individuals.	1064

(B) "Corporate credit union" means a credit union,	1065
eligibility for membership in which is being a credit union	1066
qualified to do business in this state. Such credit union shall	1067
use the term "corporate" in its official name.	1068

(C) "Foreign credit union" means a credit union formed under	1069
the laws of another state which are substantially similar to this	1070
chapter.	1071

(D) "Member" means a person who is a member of a credit	1072
union.	1073

(E) "Association member" means any member of a credit union	1074
other than a credit union or an individual member.	1075

(F) "Voting member" means an association member or an	1076
individual member who is qualified to vote as provided by law, the	1077
articles, or the regulations.	1078

(G) "Person" includes, without limitation, an individual, a	1079
corporation, an unincorporated society or association, or any	1080
other organization of individuals.	1081

(H) "Articles" includes original articles of incorporation,	1082
agreements of merger, amended articles, and amendments to any of	1083
these.	1084

(I) "Regulations" includes the code of regulations of a	1085
credit union and any amendments thereto or an amended code of	1086
regulations and any amendments thereto.	1087

(J) Persons having a "common bond of association" include	1088
those persons and their families.	1089

(K) "Membership share" means a share of the credit union,	1090
the subscription to which shall be a prerequisite for membership	1091
in the credit union.	1092

(L) "Share account" means an account established for a	1093
member for which no share certificates are issued but which are	1094
included in the registry of shares, which includes all	1095
transactions of the credit union pertaining to such shares.	1096

(M) "Undivided earnings" consist of all accumulated net	1097
earnings and reserves required under division (B) of section	1098
1733.31 of the Revised Code.	1099

(N) "State" means the United States, any state, territory,	1100
insular possession, or other political subdivision of the United	1101
States, including the District of Columbia.	1102

(O) An "emergency" exists when an emergency exists for other	1103
corporations as the same is defined and described in section	1104
1701.01 of the Revised Code.	1105

(P) "Superintendent of credit unions" means the "division of	1106
financial institutions" or the "superintendent of the division of	1107
financial institutions of this state"; and whenever the context	1108
requires it, may be read as "director of commerce" or as "chief of	1109
the division of financial institutions." Whenever the division or	1110
superintendent of credit unions is referred to or designated in	1111
any statute, rule, contract, or other document, the reference or	1112
designation shall be deemed to refer to the division or	1113
superintendent of financial institutions, as the case may be.	1114

(Q) "Outside auditor" means an accountant who is licensed to	1115
practice as a certified public accountant or public accountant by	1116
this state, and who is retained by a credit union to audit its	1117
accounts, but who is not otherwise employed by the credit union.	1118

(R) "Regulated individual" means a director, committee	1119
member, officer, or employee of a credit union.	1120

(S) "Financial institution regulatory authority" includes a	1121
regulator of business activity in which a credit union is engaged,	1122
to the extent that the regulator has jurisdiction over a credit	1123
union engaged in that business activity.	1124

Sec. 1733.32.  (A)(1) The superintendent of financial	1125
institutions shall see that the laws relating to credit unions are	1126
executed and enforced.	1127

(2) The deputy superintendent for credit unions shall be the	1128
principal supervisor of credit unions. In that position the	1129
deputy superintendent for credit unions shall, notwithstanding	1130
division (A)(3) of this section, be responsible for conducting	1131
examinations and preparing examination reports under that	1132
division. In addition, the deputy superintendent for credit	1133
unions shall, notwithstanding sections 1733.191, 1733.41,	1134
1733.411, and 1733.412 of the Revised Code, have the authority to	1135
adopt rules in accordance with those sections, and,	1136
notwithstanding section 1733.05 of the Revised Code, shall have	1137
the authority to approve issues and matters pertaining to fields	1138
of membership. In performing or exercising any of the	1139
examination, rule-making, or other regulatory functions, powers,	1140
or duties vested by division (A)(2) of this section in the deputy	1141
superintendent for credit unions, the deputy superintendent for	1142
credit unions shall be subject to the control of the	1143
superintendent of financial institutions.	1144

(3) The superintendent shall develop and implement a system	1145
for evaluating the safety and soundness of credit unions and for	1146
determining when examinations and supervisory actions are	1147
necessary. Credit unions shall be subject to periodic	1148
examinations, as specified in rules adopted by the superintendent,	1149
and their books, records, and accounts shall be open to the	1150
inspection of the superintendent at all times. For the purpose of	1151
such examination or inspection, the superintendent may subpoena	1152
witnesses, administer oaths, receive testimony, and order the	1153
submission of documents.	1154

(B) Every credit union shall prepare and submit, on forms	1155
provided by the superintendent, a financial report to the	1156
superintendent showing its assets and liabilities whenever	1157
requested to do so by the superintendent. Every financial report	1158
shall be verified by the oaths of the two principal officers in	1159
charge of the affairs of the credit union at the time of such	1160
verification and shall be submitted to the superintendent within	1161
thirty days after the superintendent requests the financial	1162
report.	1163

(C) An annual financial report of the affairs and business	1164
of the credit union, showing its condition as of the thirty-first	1165
day of December unless otherwise authorized by the superintendent,	1166
shall be filed with the superintendent not later than the date	1167
authorized in the rules adopted by the superintendent.	1168

(D) If a financial report or an annual financial report is	1169
not filed with the superintendent in accordance with division (B)	1170
or (C) of this section, the superintendent may do both of the	1171
following:	1172

(1) Assess a fine, determined by rule adopted by the	1173
superintendent, for each day the report is in arrears;	1174

(2) If the superintendent gives written notice to the	1175
president of the credit union of the superintendent's intention to	1176
do so, issue an order revoking the credit union's articles of	1177
incorporation and appointing a liquidating agent to liquidate the	1178
credit union in accordance with section 1733.37 of the Revised	1179
Code.	1180

(E)(1) Except as provided in division (E)(2) of this	1181
section, each credit union doing business in this state shall	1182
remit, semiannually and within fifteen days after billing, to the	1183
treasurer of state, a supervisory fee in an amount determined by	1184
the superintendent and confirmed by the credit union council. The	1185
supervisory fee described in division (E)(1) of this section shall	1186
be based on a percentage of the gross assets of the credit union	1187
as shown by its last annual financial report filed with the	1188
superintendent in accordance with division (C) of this section.	1189
The minimum supervisory fee shall be determined by the	1190
superintendent and confirmed by the credit union council.	1191

(2) Each corporate credit union doing business in this state	1192
shall remit, semiannually and within fifteen days after billing,	1193
to the treasurer of state, a supervisory fee determined by rule	1194
adopted by the superintendent and confirmed by the credit union	1195
council. The aggregate annual amount of the fee shall not exceed	1196
the annual operating fee that the national credit union	1197
administration charges a federally chartered credit union pursuant	1198
to the "Federal Credit Union Act," 84 Stat. 994 (1970), 12	1199
U.S.C.A. 1751.	1200

(3) The superintendent annually shall present to the credit	1201
union council for confirmation the supervisory fees to be billed	1202
credit unions and corporate credit unions pursuant to division (E)	1203
of this section.	1204

(4) If any supervisory fee is not remitted in accordance	1205
with division (E)(1) or (2) of this section, the superintendent	1206
may assess a fine, determined by rule adopted by the	1207
superintendent, for each day that each fee is in arrears.	1208

(5)(a) Subject to division (E)(5)(b) of this section, the	1209
total amount of each semiannual billing to all credit unions and	1210
corporate credit unions combined shall equal one-half of the	1211
appropriation made by the main operating appropriation act,	1212
including any modifications made by the controlling board, to the	1213
division of financial institutions for the regulation of credit	1214
unions for the fiscal year in which the billings occur, except	1215
that the superintendent, in determining the supervisory fees, may	1216
take into consideration any funds lapsed from the appropriation	1217
made in the previous fiscal year.	1218

(b) If during the period between the credit union council's	1219
confirmation of supervisory fees and when supervisory fees	1220
described in this section are collected, the credit union council	1221
determines additional money is required to adequately fund the	1222
operations of the division of financial institutions for that	1223
fiscal year, the credit union council may, by the affirmative vote	1224
of five of its members, increase the supervisory fees billed. The	1225
superintendent promptly shall notify each credit union and	1226
corporate credit union of the increased supervisory fees, and each	1227
credit union or corporate credit union shall pay the increased	1228
supervisory fees billed by the superintendent.	1229

(6) The fees or fines collected pursuant to this section	1230
shall be credited to the credit unions fund created in section	1231
1733.321 of the Revised Code.	1232

(F) A report of such examination shall be forwarded to the	1233
president of each credit union after the completion of the	1234
examination. Such report may contain comments relative to the	1235
management of the affairs of the credit union and also as to the	1236
general condition of its assets. Within thirty days of the	1237
receipt of such report, a meeting of the directors shall be called	1238
to consider matters contained in the report, and the president	1239
shall notify the superintendent of any action taken at such	1240
meeting.	1241

(G)(1) The superintendent shall furnish reports of	1242
examinations or other appropriate information to any organization	1243
referred to in section 1733.041 of the Revised Code when requested	1244
by such organization and authorized by the credit union. The	1245
superintendent may charge a fee for such reports and other	1246
information as may be established by rules adopted by the	1247
superintendent.	1248

(2) A report of examination furnished pursuant to division	1249
(G)(1) of this section is the property of the division of credit	1250
unions and may be used by the examined credit union only in the	1251
conduct of its business. Under no circumstances may the credit	1252
union, its current or former directors, officers, employees,	1253
agents, shareholders, participants in the conduct of its affairs,	1254
or their agents disclose or make public, in any manner, a report	1255
of examination or its contents.	1256

(H) Except as provided in this division, information	1257
obtained by the superintendent of credit unions and the	1258
superintendent's employees as a result of or arising out of the	1259
examination or independent audit of a credit union, from required	1260
reports, or because of their official position, shall be	1261
confidential. Such information may be disclosed only in	1262
connection with criminal proceedings or, subject to section	1263
1733.327 of the Revised Code, when it is necessary for the	1264
superintendent to take official action pursuant to Chapter 1733.	1265
of the Revised Code and the rules adopted thereunder regarding the	1266
affairs of the credit union examined. Such information may also be	1267
introduced into evidence or disclosed when and in the manner	1268
authorized in section 1181.25 of the Revised Code. This division	1269
does not prevent the superintendent from properly exchanging	1270
information relating to an examined credit union pursuant to	1271
division (F) or (G) of this section or with officials of properly	1272
authorized state or federal supervisoryfinancial institution	1273
regulatory authorities or with any insurer recognized under	1274
section 1733.041 or any surety recognized under section 1733.23 of	1275
the Revised Code. This division also does not prevent the	1276
superintendent from disclosing information contained in the	1277
financial reports or annual financial reports described in	1278
division (B) or (C) of this section to recognized credit union	1279
trade associations.	1280

(I) For purposes of this section, a credit union is engaged	1281
in a business activity, and a regulator of that business activity	1282
has jurisdiction over the credit union, whether the credit union	1283
conducts the activity directly or a subsidiary or affiliate of the	1284
credit union conducts the activity.	1285

Sec. 1733.327.  (A) All conferences and administrative	1286
proceedings under sections 1733.324 and 1733.325 of the Revised	1287
Code, the fact of their actual or anticipated occurrence, and all	1288
notices, agreements, hearings, orders, records, evidence,	1289
transcripts, and other writings, happenings, or things pertaining	1290
to those conferences or proceedings, shall be kept confidential as	1291
among the superintendent of credit unions, the director of	1292
commerce, the deputy director of financial institutions, the	1293
governor, the credit union or regulated individual who is party to	1294
the conference or proceedings, witnesses in the conference or	1295
proceedings, and other persons specifically designated by the	1296
superintendent or director. In designating specific persons who	1297
may be present or acquire knowledge of matters made confidential	1298
by this division, the superintendent and director shall not	1299
exclude attorneys or other suitable representatives of the credit	1300
union, or of any regulated individual, who is party to the	1301
conference or proceedings. If the conference or proceedings apply	1302
to a regulated individual, the superintendent and director shall	1303
not exclude suitable representatives of the credit union of which	1304
such regulated individual is an officer, director, or employee.	1305

(B) Division (A) of this section ceases to apply upon the	1306
occurrence of any of the following:	1307

(1) An action is brought to recover a forfeiture for the	1308
violation of an agreement concluded, or a final or summary	1309
cease-and-desist order issued, under section 1733.324 or 1733.325	1310
of the Revised Code. A forfeiture, in the absence of such an	1311
action for recovery, does not waive division (A) of this section	1312
except insofar as the forfeiture must be reflected or reported in	1313
the financial records or reports of the credit union or regulated	1314
individual.	1315

(2) Information made confidential by division (A) of this	1316
section is needed as evidence in a criminal proceeding; in	1317
proceedings under section 1733.37 of the Revised Code; or in the	1318
work of a committee of the general assembly;.	1319

(3) The superintendent furnishes information made	1320
confidential by division (A) of this section to the applicable	1321
insurer recognized under section 1733.041 of the Revised Code.	1322

(4) The superintendent furnishes information made	1323
confidential by division (A) of this section to financial	1324
institution regulatory authorities as authorized in section	1325
1733.32 of the Revised Code.	1326

(5) Information made confidential by division (A) of this	1327
section is disclosed when and in the manner authorized in section	1328
1181.25 of the Revised Code.	1329

(C) No officer or employee of the division of credit unions,	1330
of the department of commerce or any of its other divisions, or of	1331
the governor's office shall violate division (A) of this section.	1332

Sec. 1751.19.  (A) A health insuring corporation shall	1333
establish and maintain a complaint system that has been approved	1334
by the superintendent of insurance to provide adequate and	1335
reasonable procedures for the expeditious resolution of written	1336
complaints initiated by subscribers or enrollees concerning any	1337
matter relating to services provided, directly or indirectly, by	1338
the health insuring corporation, including, but not limited to,	1339
complaints regarding cancellations or nonrenewals of coverage.	1340
Complaints regarding a health insuring corporation's decision to	1341
deny, reduce, or terminate coverage for health care services are	1342
subject to section 1751.83 of the Revised Code.	1343

(B) A health insuring corporation shall provide a timely	1344
written response to each written complaint it receives.	1345

(C)(1) Copies of complaints and responses, including medical	1346
records related to those complaints, shall be available to the	1347
superintendent and the director of health for inspection for three	1348
years. Any document or information provided to the superintendent	1349
pursuant to this division that contains a medical record is	1350
confidential, and is not a public record subject to section 149.43	1351
of the Revised Code.	1352

(2) Notwithstanding division (C)(1) of this section, the	1353
superintendent may share documents and information that contain a	1354
medical record in connection with the investigation or prosecution	1355
of any illegal or criminal activity with the chief deputy	1356
rehabilitator, the chief deputy liquidator, other deputy	1357
rehabilitators and liquidators, and any other person employed by,	1358
or acting on behalf of, the superintendent pursuant to Chapter	1359
3901. or 3903. of the Revised Code, with other local, state,	1360
federal, and international regulatory and law enforcement	1361
agencies, with local, state, and federal prosecutors, and with the	1362
national association of insurance commissioners and its affiliates	1363
and subsidiaries, provided that the recipient agrees to maintain	1364
the confidential or privileged status of the confidential or	1365
privileged document or information and has authority to do so.	1366

(3) Nothing in this section shall prohibit the superintendent	1367
from receiving documents and information in accordance with	1368
section 3901.045 of the Revised Code.	1369

(4) The superintendent may enter into agreements governing	1370
the sharing and use of documents and information consistent with	1371
the requirements of this section.	1372

(5) No waiver of any applicable privilege or claim of	1373
confidentiality in the documents and information described in	1374
division (C)(1) of this section occurs as a result of sharing or	1375
receiving documents and information as authorized in divisions	1376
(C)(2) and (3) of this section.	1377

(D) A health insuring corporation shall establish and	1378
maintain a procedure to accept complaints over the telephone or in	1379
person. These complaints are not subject to the reporting	1380
requirement under division (C) of section 1751.32 of the Revised	1381
Code.	1382

(E) A health insuring corporation may comply with this	1383
section and section 1751.83 of the Revised Code by establishing	1384
one system for receiving and reviewing complaints and requests for	1385
internal review from enrollees and subscribers if the system meets	1386
the requirements of both sections.	1387

Sec. 3901.045. (A) The superintendent of insurance may	1388
receive documents and information, including otherwise	1389
confidential or privileged documents and information, from local,	1390
state, federal, and international regulatory and law enforcement	1391
agencies, from local, state, and federal prosecutors, and from the	1392
national association of insurance commissioners and its affiliates	1393
and subsidiaries, provided that the superintendent maintains as	1394
confidential or privileged any document or information received	1395
with notice or the understanding that the document or information	1396
is confidential or privileged under the laws of the jurisdiction	1397
that is the source of the document or information.	1398

(B) The superintendent may also receive documents and	1399
information, including otherwise confidential or privileged	1400
documents and information, from the chief deputy rehabilitator,	1401
the chief deputy liquidator, other deputy rehabilitators and	1402
liquidators, and from any other person employed by, or acting on	1403
behalf of, the superintendent pursuant to Chapter 3901. or 3903.	1404
of the Revised Code, provided that the superintendent maintains as	1405
confidential or privileged any document or information received	1406
with the notice or understanding that the document or information	1407
is confidential or privileged, except that the superintendent may	1408
share and disclose such a document or information when authorized	1409
by other sections of the Revised Code.	1410

(C) The superintendent has the authority to maintain as	1411
confidential or privileged the documents and information received	1412
pursuant to this section.	1413

(D) The superintendent's authority to receive documents and	1414
information under this section, from the persons and subject to	1415
the conditions listed in this section, is not limited in any way	1416
by section 1751.19, 3901.36, 3901.44, 3901.48, 3901.70, 3901.83,	1417
3903.11, 3903.72, 3903.88, 3905.492, 3905.50, or 3999.36 of the	1418
Revised Code.	1419

Sec. 3901.36. (A) All information, documents, and copies	1420
thereof obtained by or disclosed to the superintendent of	1421
insurance or any other person in the course of an examination or	1422
investigation made pursuant to section 3901.35 of the Revised Code	1423
and all information reported pursuant to section 3901.33 of the	1424
Revised Code shall be given confidential and privileged treatment	1425
and shall not be subject to subpoena or be made public by the	1426
superintendent or any other person, except to insurance regulatory	1427
authorities of other states, without the prior written consent of	1428
the insurer to which it pertains, unless the superintendent, after	1429
giving the insurer and its affiliates who would be affected	1430
thereby notice and opportunity to be heard, determines that the	1431
interests of policyholders, shareholders, or the public will be	1432
served by the publication thereof, in which event he may publish	1433
all or any part thereof in such manner as he considers	1434
appropriate.	1435

(B) Notwithstanding division (A) of this section, the	1436
superintendent may do any of the following:	1437

(1) Disclose documents and information that are the subject	1438
of this section upon obtaining prior written consent from the	1439
insurer to which the documents and information pertain;	1440

(2) Disclose documents and information that are the subject	1441
of this section in such a manner as the superintendent considers	1442
appropriate, after giving the insurer and its affiliates notice	1443
and an opportunity to be heard in accordance with Chapter 119. of	1444
the Revised Code, if the superintendent determines that the	1445
interests of policyholders, shareholders, or the public will be	1446
served by the disclosure;	1447

(3) Share documents and information that are the subject of	1448
this section with the chief deputy rehabilitator, the chief deputy	1449
liquidator, other deputy rehabilitators and liquidators, and any	1450
other person employed by, or acting on behalf of, the	1451
superintendent pursuant to Chapter 3901. or 3903. of the Revised	1452
Code, with other local, state, federal, and international	1453
regulatory and law enforcement agencies, with local, state, and	1454
federal prosecutors, and with the national association of	1455
insurance commissioners and its affiliates and subsidiaries,	1456
provided that the recipient agrees to maintain the confidential or	1457
privileged status of the confidential or privileged document or	1458
information and has authority to do so;	1459

(4) Disclose documents and information that are the subject	1460
of this section in the furtherance of any regulatory or legal	1461
action brought by or on behalf of the superintendent or the state,	1462
resulting from the exercise of the superintendent's official	1463
duties.	1464

(C) Notwithstanding divisions (A) and (B) of this section,	1465
the superintendent may authorize the national association of	1466
insurance commissioners and its affiliates and subsidiaries by	1467
agreement to share confidential or privileged documents or	1468
information received pursuant to division (B)(3) of this section	1469
with local, state, federal, and international regulatory and law	1470
enforcement agencies and with local, state, and federal	1471
prosecutors, provided that the recipient agrees to maintain the	1472
confidential or privileged status of the confidential or	1473
privileged document or information and has authority to do so.	1474

(D) Notwithstanding divisions (A) and (B) of this section,	1475
the chief deputy rehabilitator, the chief deputy liquidator, and	1476
other deputy rehabilitators and liquidators may disclose documents	1477
and information that are the subject of this section in the	1478
furtherance of any regulatory or legal action resulting from the	1479
exercise of the superintendent's official duties.	1480

(E) Nothing in this section shall prohibit the	1481
superintendent from receiving documents and information in	1482
accordance with section 3901.045 of the Revised Code.	1483

(F) The superintendent may enter into agreements governing	1484
the sharing and use of documents and information consistent with	1485
the requirements of this section.	1486

(G)(1) No waiver of any applicable privilege or claim of	1487
confidentiality in the documents and information described in this	1488
section shall occur as a result of sharing or receiving documents	1489
and information as authorized in divisions (B)(3), (C), and (E) of	1490
this section.	1491

(2) The disclosure of a document or information in	1492
connection with a regulatory or legal action pursuant to divisions	1493
(B)(4) and (D) of this section does not prohibit an insurer or any	1494
other person from taking steps to limit the dissemination of the	1495
document or information to persons not involved in or the subject	1496
of the regulatory or legal action on the basis of any recognized	1497
privilege arising under any other section of the Revised Code or	1498
the common law.	1499

Sec. 3901.44.  (A) As used in this section, "insurance fraud	1500
investigation" means any investigation conducted by the	1501
superintendent of insurance or a designee of the superintendent	1502
that relates to a fraudulent insurance act as defined in section	1503
3999.31 of the Revised Code.	1504

(B) All papers, documents, reports, and evidence in the	1505
possession of the superintendent or the superintendent's designee	1506
that pertain to an insurance fraud investigation are confidential	1507
law enforcement investigatory records under section 149.43 of the	1508
Revised Code. Notwithstanding such section, the superintendent	1509
shall not prohibit public inspection of such records that pertain	1510
to an insurance fraud investigation after the expiration of all	1511
federal and state statutes of limitations applicable to the	1512
particular offense to which the papers, documents, reports, and	1513
evidence relate.	1514

(C) All papers, documents, reports, and evidence in the	1515
possession of the superintendent that do not pertain to such an	1516
insurance fraud investigation are public records under section	1517
149.43 of the Revised Code, and are not by such possession alone	1518
confidential law enforcement investigatory records.	1519

(D) All papers, documents, reports, and evidence in the	1520
possession of the superintendent or the superintendent's designee	1521
that pertain to such an insurance fraud investigation are not	1522
subject to subpoena in civil actions by any court of this state	1523
until opened for public inspection by the superintendent in	1524
accordance with division (B) of this section or with section	1525
149.43 of the Revised Code, unless the superintendent or the	1526
superintendent's designee consents, or until after reasonable	1527
notice to the superintendent and opportunity for hearing, the	1528
court determines the superintendent would not be hindered	1529
unnecessarily by such subpoena.	1530

(E) Notwithstanding divisions (B), (C), and (D) of this	1531
section, the superintendent may do either of the following:	1532

(1) Share documents, reports, and evidence that are the	1533
subject of this section with the chief deputy rehabilitator, the	1534
chief deputy liquidator, other deputy rehabilitators and	1535
liquidators, and any other person employed by, or acting on behalf	1536
of, the superintendent pursuant to Chapter 3901. or 3903. of the	1537
Revised Code, with other local, state, federal, and international	1538
regulatory and law enforcement agencies, with local, state, and	1539
federal prosecutors, with the national association of insurance	1540
commissioners and its affiliates and subsidiaries, with insurers,	1541
and with investigators hired by insurers, provided that the	1542
recipient agrees to maintain the confidential or privileged status	1543
of the confidential or privileged document, report, or evidence	1544
and has authority to do so;	1545

(2) Disclose documents, reports, and evidence that are the	1546
subject of this section in the furtherance of any regulatory or	1547
legal action brought by or on behalf of the superintendent or the	1548
state, resulting from the exercise of the superintendent's	1549
official duties.	1550

(F) Notwithstanding divisions (B), (C), (D), and (E) of this	1551
section, the superintendent may authorize the national association	1552
of insurance commissioners and its affiliates and subsidiaries by	1553
agreement to share confidential or privileged documents, reports,	1554
and evidence received pursuant to division (E)(1) of this section	1555
with local, state, federal, and international regulatory and law	1556
enforcement agencies and with local, state, and federal	1557
prosecutors, provided that the recipient agrees to maintain the	1558
confidential or privileged status of the confidential or	1559
privileged document, report, or evidence and has authority to do	1560
so.	1561

(G) Notwithstanding divisions (B), (C), (D), and (E) of this	1562
section, the chief deputy rehabilitator, the chief deputy	1563
liquidator, and other deputy rehabilitators and liquidators may	1564
disclose documents, reports, and evidence that are the subject of	1565
this section in the furtherance of any regulatory or legal action	1566
resulting from the exercise of the superintendent's official	1567
duties.	1568

(H) Nothing in this section shall prohibit the	1569
superintendent from receiving documents, reports, and evidence in	1570
accordance with section 3901.045 of the Revised Code.	1571

(I) The superintendent may enter into agreements governing	1572
the sharing and use of documents, reports, and evidence consistent	1573
with the requirements of this section.	1574

(J)(1) No waiver of any applicable privilege or claim of	1575
confidentiality in the documents, reports, and evidence described	1576
in this section shall occur as a result of sharing or receiving	1577
documents, reports, and evidence as authorized in divisions	1578
(E)(1), (F), and (H) of this section.	1579

(2) The disclosure of a document, report, or evidence in	1580
connection with a regulatory or legal action pursuant to divisions	1581
(E)(2) and (G) of this section does not prohibit an insurer or any	1582
other person from taking steps to limit the dissemination of the	1583
document, report, or evidence to persons not involved in or the	1584
subject of the regulatory or legal action on the basis of any	1585
recognized privilege arising under any other section of the	1586
Revised Code or the common law.	1587

(K) The superintendent and the superintendent's designee are	1588
not subject to subpoena in civil actions by any court of this	1589
state to testify concerning any matter of which they have	1590
knowledge pursuant to a pending insurance fraud investigation by	1591
the superintendent.	1592

Sec. 3901.48.  (A) The original work papers of a certified	1593
public accountant performing an audit of an insurance company or	1594
health insuring corporation doing business in this state that is	1595
required by rule or by any section of the Revised Code to file an	1596
audited financial report with the superintendent of insurance	1597
shall remain the property of the certified public accountant. Any	1598
copies of these work papers voluntarily given to the	1599
superintendent shall be the property of the superintendent. The	1600
original work papers or any copies of them, whether in possession	1601
of the certified public accountant or the department of insurance,	1602
are confidential and privileged and are not a public record as	1603
defined in section 149.43 of the Revised Code. The original work	1604
papers and any copies of them are not subject to subpoena and	1605
shall not be made public by the superintendent or any other	1606
person. However, the original work papers and any copies of them	1607
may be released by the superintendent to the insurance regulatory	1608
authority of any other state if that authority agrees to maintain	1609
the confidentiality of the work papers or copies and if the work	1610
papers and copies are not public records under the laws of that	1611
state.	1612

(B) The work papers of the superintendent or of the person	1613
appointed by the superintendent, resulting from the conduct of an	1614
examination made pursuant to section 3901.07 of the Revised Code	1615
or from the conduct of a financial analysis of any entity subject	1616
to examination by the superintendent, including but not limited to	1617
any insurance company, health insuring corporation, fraternal	1618
benefit society, or multiple employer welfare arrangement, are	1619
confidential and privileged and are not a public record as defined	1620
in section 149.43 of the Revised Code. The original work papers	1621
and any copies of them are not subject to subpoena and shall not	1622
be made public by the superintendent or any other person. However,	1623
the original work papers and any copies of them may be released by	1624
the superintendent to the insurance regulatory authority of any	1625
other state if that authority agrees to maintain the	1626
confidentiality of the work papers or copies and if the work	1627
papers and copies are not public records under the laws of that	1628
state.	1629

(C) The work papers of the superintendent or of any person	1630
appointed by the superintendent, resulting from the conduct of a	1631
performance regulation examination made pursuant to authority	1632
granted under section 3901.011 of the Revised Code, are	1633
confidential and privileged and are not a public record as defined	1634
in section 149.43 of the Revised Code. The original work papers	1635
and any copies of them are not subject to subpoena and shall not	1636
be made public by the superintendent or any other person. However,	1637
the original work papers and any copies of them may be released by	1638
the superintendent to the insurance regulatory authority of any	1639
other state if that authority agrees to maintain the	1640
confidentiality of the work papers or copies and if the work	1641
papers and copies are not public records under the laws of that	1642
state.	1643

(D) Notwithstanding divisions (A), (B), and (C) of this	1644
section, the superintendent may do either of the following:	1645

(1) Share work papers that are the subject of this section	1646
with the chief deputy rehabilitator, the chief deputy liquidator,	1647
other deputy rehabilitators and liquidators, and any other person	1648
employed by, or acting on behalf of, the superintendent pursuant	1649
to Chapter 3901. or 3903. of the Revised Code, with other local,	1650
state, federal, and international regulatory and law enforcement	1651
agencies, with local, state, and federal prosecutors, and with the	1652
national association of insurance commissioners and its affiliates	1653
and subsidiaries, provided that the recipient agrees to maintain	1654
the confidential or privileged status of the confidential or	1655
privileged work paper and has authority to do so;	1656

(2) Disclose work papers that are the subject of this	1657
section in the furtherance of any regulatory or legal action	1658
brought by or on behalf of the superintendent or the state,	1659
resulting from the exercise of the superintendent's official	1660
duties.	1661

(E) Notwithstanding divisions (A), (B), (C), and (D) of this	1662
section, the superintendent may authorize the national association	1663
of insurance commissioners and its affiliates and subsidiaries by	1664
agreement to share confidential or privileged work papers received	1665
pursuant to division (D)(1) of this section with local, state,	1666
federal, and international regulatory and law enforcement agencies	1667
and with local, state, and federal prosecutors, provided that the	1668
recipient agrees to maintain the confidential or privileged status	1669
of the confidential or privileged work paper and has authority to	1670
do so.	1671

(F) Notwithstanding divisions (A), (B), (C), and (D) of this	1672
section, the chief deputy rehabilitator, the chief deputy	1673
liquidator, and other deputy rehabilitators and liquidators may	1674
disclose work papers that are the subject of this section in	1675
furtherance of any regulatory or legal action resulting from the	1676
exercise of the superintendent's official duties.	1677

(G) Nothing in this section shall prohibit the	1678
superintendent from receiving work papers in accordance with	1679
section 3901.045 of the Revised Code.	1680

(H) The superintendent may enter into agreements governing	1681
the sharing and use of work papers consistent with the	1682
requirements of this section.	1683

(I)(1) No waiver of any applicable privilege or claim of	1684
confidentiality in the work papers, or copies thereof, that are	1685
the subject of this section shall occur as a result of sharing or	1686
receiving work papers as authorized in divisions (D)(1), (E), and	1687
(G) of this section.	1688

(2) The disclosure of work papers in connection with a	1689
regulatory or legal action pursuant to divisions (D)(2) and (F) of	1690
this section does not prohibit an insurer or any other person from	1691
taking steps to limit the dissemination of the work papers to	1692
persons not involved in or the subject of the regulatory or legal	1693
action on the basis of any recognized privilege arising under any	1694
other section of the Revised Code or the common law.	1695

Sec. 3901.70.  (A) Each report obtained by or disclosed to	1696
the superintendent of insurance pursuant to sections 3901.67 to	1697
3901.70 of the Revised Code is confidential and privileged and is	1698
not subject to subpoena. Except as provided in divisionsdivision	1699
(B) and (C) of this section, the report shall not be made public	1700
by the superintendent, the national association of insurance	1701
commissioners, or any other persons.	1702

(B) A report may be provided by the superintendent to the	1703
insurance regulatory authority of another state or to the national	1704
association of insurance commissioners without first obtaining the	1705
written consent of the insurer to which it pertains.	1706

(C) The superintendent, after conducting a hearing in	1707
accordance with Chapter 119. of the Revised Code, may determine	1708
that the interest of policyholders, shareholders, or the public	1709
will be served by the publication of the report and may publish	1710
all or any part of the report in such manner as the superintendent	1711
may consider appropriate.Notwithstanding division (A) of this	1712
section, the superintendent may do any of the following:	1713

(1) Disclose a report that is the subject of this section	1714
upon obtaining a prior written consent from the insurer to which	1715
the report pertains;	1716

(2) Share a report that is the subject of this section with	1717
the chief deputy rehabilitator, the chief deputy liquidator,	1718
other deputy rehabilitators and liquidators, and any other person	1719
employed by, or acting on behalf of, the superintendent pursuant	1720
to Chapter 3901. or 3903. of the Revised Code, with other local,	1721
state, federal, and international regulatory and law enforcement	1722
agencies, with local, state, and federal prosecutors, and with the	1723
national association of insurance commissioners and its affiliates	1724
and subsidiaries, provided that the recipient agrees to maintain	1725
the confidential or privileged status of the confidential or	1726
privileged report and has authority to do so;	1727

(3) Disclose a report that is the subject of this section in	1728
the furtherance of any regulatory or legal action brought by or on	1729
behalf of the superintendent or the state, resulting from the	1730
exercise of the superintendent's official duties;	1731

(4) Disclose or publish all or any part of a report that is	1732
the subject of this section in such a manner as the superintendent	1733
considers appropriate after conducting a hearing in accordance	1734
with Chapter 119. of the Revised Code and determining that the	1735
interests of policyholders, shareholders, or the public will be	1736
served by the disclosure or publication of the report.	1737

(C) Notwithstanding divisions (A) and (B) of this section,	1738
the superintendent may authorize the national association of	1739
insurance commissioners and its affiliates and subsidiaries by	1740
agreement to share confidential or privileged reports received	1741
pursuant to division (B)(2) of this section with local, state,	1742
federal, and international regulatory and law enforcement agencies	1743
and with local, state, and federal prosecutors, provided that the	1744
recipient agrees to maintain the confidential or privileged status	1745
of the confidential or privileged report and has authority to do	1746
so.	1747

(D) Notwithstanding divisions (A) and (B) of this section,	1748
the chief deputy rehabilitator, the chief deputy liquidator, and	1749
other deputy rehabilitators and liquidators may disclose a report	1750
that is the subject of this section in the furtherance of any	1751
regulatory or legal action resulting from the exercise of the	1752
superintendent's official duties.	1753

(E) Nothing in this section shall prohibit the	1754
superintendent from receiving reports in accordance with section	1755
3901.045 of the Revised Code.	1756

(F) The superintendent may enter into agreements governing	1757
the sharing, use, and disclosure of reports consistent with the	1758
requirements of this section.	1759

(G)(1) No waiver of any applicable privilege or claim of	1760
confidentiality in the reports that are the subject of this	1761
section shall occur as a result of sharing or receiving reports as	1762
authorized in divisions (B)(2), (C), and (E) of this section.	1763

(2) The disclosure of a report in connection with a	1764
regulatory or legal action pursuant to divisions (B)(3) and (D) of	1765
this section does not prohibit an insurer or any other person from	1766
taking steps to limit the dissemination of the report to persons	1767
not involved in or the subject of the regulatory or legal action	1768
on the basis of any recognized privilege arising under any other	1769
section of the Revised Code or the common law.	1770

Sec. 3901.83. (A) When a record containing information	1771
pertaining to the medical history, diagnosis, prognosis, or	1772
medical condition of an enrollee of a health insuring corporation,	1773
insured of an insurer, or plan member of a public employee benefit	1774
plan is provided to the superintendent of insurance for any reason	1775
under sections 1751.77 to 1751.88, 3923.66 to 3923.70, or 3923.75	1776
to 3923.79 of the Revised Code, regardless of the source, the	1777
superintendent shall maintain the confidentiality of the record.	1778
The record in the superintendent's possession is not a public	1779
record under section 149.43 of the Revised Code, except to the	1780
extent that information from the record is used in preparing	1781
reports under section 3901.82 of the Revised Code.	1782

(B) Notwithstanding division (A) of this section, the	1783
superintendent may share a record that is the subject of this	1784
section in connection with the investigation or proecution of any	1785
illegal or criminal activity with the chief deputy rehabilitator,	1786
the chief deputy liquidator, other deputy rehabilitators and	1787
liquidators, and any other person employed by, or acting on behalf	1788
of, the superintendent pursuant to Chapter 3901. or 3903. of the	1789
Revised Code, with other local, state, federal, and international	1790
regulatory and law enforcement agencies, with local, state, and	1791
federal prosecutors, and with the national association of	1792
insurance commissioners and its affiliates and subsidiaries,	1793
provided that the recipient agrees to maintain the confidential or	1794
privileged status of the confidential or privileged record and has	1795
authority to do so.	1796

(C) Nothing in this section shall prohibit the	1797
superintendent from receiving records in accordance with section	1798
3901.045 of the Revised Code.	1799

(D) The superintendent may enter into agreements governing	1800
the sharing and use of records consistent with the requirements of	1801
this section.	1802

(E) No waiver of any applicable privilege or claim of	1803
confidentiality in the records that are the subject of this	1804
section shall occur as a result of sharing or receiving records as	1805
authorized in divisions (B) and (C) of this section.	1806

Sec. 3903.11. (A) In all proceedings and judicial reviews	1807
thereof under sections 3903.09 and 3903.10 of the Revised Code,	1808
all records of the insurer, other documents, and all department of	1809
insurance files and court records and papers, so far as they	1810
pertain to or are a part of the record of the proceedings, shall	1811
be and remain confidential and privileged except as is necessary	1812
to enforce compliance with those sections, unless and until the	1813
court of common pleas, after hearing arguments from the parties in	1814
chambers, shall order otherwise, or unless the insurer requests in	1815
writing that the matter be made public. Until such court order or	1816
such request from the insurer, all papers filed with the clerk of	1817
the court shall be held by the clerk in a confidential file.	1818

(B) Notwithstanding division (A) of this section, the	1819
superintendent may do either of the following:	1820

(1) Share the documents and information that are the subject	1821
of this section with the chief deputy rehabilitator, the chief	1822
deputy liquidator, other deputy rehabilitators and liquidators,	1823
and any other person employed by, or acting on behalf of, the	1824
superintendent pursuant to Chapter 3901. or 3903. of the Revised	1825
Code, with other local, state, federal, and international	1826
regulatory and law enforcement agencies, with local, state, and	1827
federal prosecutors, and with the national association of	1828
insurance commissioners and its affiliates and subsidiaries,	1829
provided that the recipient agrees to maintain the confidential or	1830
privileged status of the confidential or privileged document or	1831
information and has authority to do so;	1832

(2) Disclose documents and information that are the subject	1833
of this section in the furtherance of any regulatory or legal	1834
action brought by or on behalf of the superintendent or the state,	1835
resulting from the exercise of the superintendent's official	1836
duties.	1837

(C) Notwithstanding divisions (A) and (B) of this section,	1838
the superintendent may authorize the national association of	1839
insurance commissioners and its affiliates and subsidiaries by	1840
agreement to share confidential or privileged documents or	1841
information received pursuant to division (B)(1) of this section	1842
with local, state, federal, and international regulatory and law	1843
enforcement agencies and with local, state, and federal	1844
prosecutors, provided that the recipient agrees to maintain the	1845
confidential or privileged status of the confidential or	1846
privileged document or information and has authority to do so.	1847

(D) Notwithstanding divisions (A) and (B) of this section,	1848
the chief deputy rehabilitator, the chief deputy liquidator, and	1849
other deputy rehabilitators and liquidators may disclose documents	1850
and information that are the subject of this section in the	1851
furtherance of any regulatory or legal action resulting from the	1852
exercise of the superintendent's official duties.	1853

(E) Nothing in this section shall prohibit the	1854
superintendent from receiving documents or information in	1855
accordance with section 3901.045 of the Revised Code.	1856

(F) The superintendent may enter into agreements governing	1857
the sharing and use of documents and information consistent with	1858
the requirements of this section.	1859

(G)(1) No waiver of any applicable privilege or claim of	1860
confidentiality in the documents and information described in this	1861
section shall occur as a result of sharing or receiving documents	1862
and information as authorized in divisions (B)(1), (C), and (E) of	1863
this section.	1864

(2) The disclosure of documents or information in connection	1865
with a regulatory or legal action pursuant to divisions (B)(2) and	1866
(D) of this section does not prohibit an insurer or any other	1867
person from taking steps to limit the dissemination of the	1868
document or information to persons not involved in or the subject	1869
of the regulatory or legal action on the basis of any recognized	1870
privilege arising under any other section of the Revised Code or	1871
the common law.	1872

Sec. 3903.72.  (A) The superintendent of insurance shall	1873
annually value, or cause to be valued, the reserve liabilities,	1874
referred to in this section as reserves, for all outstanding life	1875
insurance policies and annuity and pure endowment contracts of	1876
every life insurance company doing business in this state. The	1877
superintendent may certify the amount of such reserves, specifying	1878
the mortality tables, rates of interest, and net level premium	1879
method and other methods used to calculate reserves. In	1880
calculating reserves, the superintendent may use group methods and	1881
approximate averages for fractions of a year or otherwise. The	1882
valuation of the reserves of a company organized under the laws of	1883
a foreign government shall be limited to its United States	1884
business.	1885

In lieu of a valuation of the reserves of a foreign company,	1886
the superintendent may accept the valuation made, or caused to be	1887
made, by the insurance supervisory official of any state or other	1888
jurisdiction when such valuation complies with the minimum	1889
standards required by this section, provided such official accepts	1890
the certificate of valuation of the superintendent when such	1891
certificate states that the valuation was made in a specified	1892
manner and when such valuation complies with the minimum standards	1893
required by the law of that state or jurisdiction.	1894

A company, which adopts a standard of valuation producing	1895
aggregate reserves greater than those required by this section,	1896
may adopt a lower standard of valuation with the approval of the	1897
superintendent, but not lower than the minimum provided by this	1898
section. However, the holding of additional reserves previously	1899
determined by a qualified actuary to be necessary for the actuary	1900
to render the opinions required by divisions (B)(1) and (2) of	1901
this section shall not be deemed to be the adoption of a higher	1902
standard of valuation.	1903

(B)(1) Every life insurance company doing business in this	1904
state shall annually submit to the superintendent the opinion of a	1905
qualified actuary as to whether the reserves and related actuarial	1906
items held in support of the policies and contracts specified by	1907
rule by the superintendent are computed appropriately, are based	1908
on assumptions that satisfy contractual provisions, and are	1909
consistent with prior reported amounts. The opinion shall be	1910
submitted no later than March 1, 1996, and no later than the first	1911
day of March of each year thereafter. The superintendent shall	1912
adopt rules establishing the form and content of this opinion, and	1913
may require the life insurance company to supply information in	1914
addition to that contained in the actuarial opinion.	1915

As used in this section, a "qualified actuary" means a person	1916
who is a member in good standing of the American academy of	1917
actuaries and who meets the requirements set by rule by the	1918
superintendent.	1919

(2)(a) Every life insurance company, except as exempted by	1920
rule adopted by the superintendent, shall also include in the	1921
annual opinion required by division (B)(1) of this section an	1922
opinion of the same qualified actuary as to whether the reserves	1923
and related actuarial items held in support of the policies and	1924
contracts specified by rule by the superintendent, when considered	1925
in light of the assets held by the company with respect to the	1926
reserves and related actuarial items, including, but not limited	1927
to, the investment earnings on the assets and the considerations	1928
anticipated to be received and retained under the policies and	1929
contracts, make adequate provision for the company's obligations	1930
under the policies and contracts, including, but not limited to,	1931
the benefits under and the expenses associated with the policies	1932
and contracts.	1933

(b) The superintendent may provide by rule for a transition	1934
period for establishing any higher reserves that the qualified	1935
actuary may consider necessary to render the opinion required by	1936
division (B) of this section.	1937

(c) Each opinion required by division (B) of this section	1938
shall be supported by a memorandum prepared in form and content as	1939
specified by rule by the superintendent.	1940

(d) If a life insurance company fails to provide a	1941
supporting memorandum within the period of time specified by rule	1942
by the superintendent, or if the superintendent determines that a	1943
supporting memorandum fails to meet the standards set out in the	1944
rule, or is otherwise unacceptable to the superintendent, the	1945
superintendent may employ, at the expense of the insurance	1946
company, a qualified actuary to review the opinion and the basis	1947
for the opinion and prepare such supporting memorandum as is	1948
required by the superintendent.	1949

(3) Every opinion required by division (B) of this section	1950
is governed by the following:	1951

(a) The opinion shall be submitted with the annual statement	1952
reflecting the valuation of the reserve liabilities.	1953

(b) The opinion shall apply to all business in force	1954
including individual and group health insurance plans.	1955

(c) The opinion shall be based on standards adopted from	1956
time to time by the actuarial standards board of the American	1957
academy of actuaries and on such additional standards as the	1958
superintendent may prescribe by rule.	1959

(d) In the case of an opinion required to be submitted by a	1960
foreign or alien life insurance company, the superintendent may	1961
accept the opinion filed by that company with the insurance	1962
regulatory authority of another state if the superintendent	1963
determines that the opinion reasonably meets the requirements	1964
applicable to a company domiciled in this state.	1965

(e) Except in cases of fraud or willful misconduct, the	1966
qualified actuary is not liable for damages in any civil action to	1967
any person, other than the insurance company and the	1968
superintendent, for any act, error, omission, decision, or conduct	1969
with respect to the actuary's opinion.	1970

(f) The superintendent shall establish by rule penalties for	1971
an insurance company's or qualified actuary's failure to comply	1972
with this section.	1973

(g) The superintendent shall keep as confidential and	1974
privileged any memorandum received in support of a qualified	1975
actuary's opinion and also any other material provided by the	1976
insurance company to the superintendent in connection with the	1977
opinion. The memorandum and other materials shall not be made	1978
public, and shall not be subject to subpoena other than for the	1979
purpose of defending an action required by this section or rules	1980
adopted under this section. However, the memorandum and other	1981
materials may be released by the superintendent with the written	1982
consent of the company, and may be released to the American	1983
academy of actuaries upon the superintendent's receipt of a	1984
request from the academy stating that the memorandum and other	1985
materials are required for the purpose of professional	1986
disciplinary proceedings. A request from the American academy of	1987
actuaries shall set forth the procedures to be used by the academy	1988
for preserving the confidentiality of the memorandum and other	1989
materials, which procedures shall be satisfactory to the	1990
superintendent prior to the superintendent's release of the	1991
memorandum and other materials. Ifif any portion of a	1992
confidential and privileged memorandum is cited by the company in	1993
its marketing, is cited before any governmental agency other than	1994
a state insurance regulatory authority, or is released by the	1995
company to the news media, the entire memorandum shall no longer	1996
be confidential and privileged.	1997

(h) Notwithstanding division (B)(3)(g) of this section, the	1998
superintendent may do any of the following:	1999

(i) Disclose memoranda and other materials described in this	2000
section upon obtaining prior written consent from the insurer to	2001
which the memorandum or other materials pertain;	2002

(ii) Disclose memoranda and other materials described in	2003
this section to the American academy of actuaries upon receipt of	2004
a written request from the academy stating that a memorandum or	2005
other material is required for the purpose of professional	2006
disciplinary proceedings. A request from the American academy of	2007
actuaries shall set forth the procedures to be used by the academy	2008
for preserving the confidential and privileged status of the	2009
memorandum or other material. If the procedures set forth are not	2010
satisfactory to the superintendent, the superintendent shall not	2011
release the memorandum or other material to the academy.	2012

(iii) Share memoranda and other materials described in this	2013
section with the chief deputy rehabilitator, the chief deputy	2014
liquidator, other deputy rehabilitators and liquidators, and any	2015
other person employed by, or acting on behalf of, the	2016
superintendent pursuant to Chapter 3901. or 3903. of the Revised	2017
Code, with other local, state, federal, and international	2018
regulatory and law enforcement agencies, with local, state, and	2019
federal prosecutors, and with the national association of	2020
insurance commissioners and its affiliates and subsidiaries,	2021
provided that the recipient agrees to maintain the confidential or	2022
privileged status of any confidential or privileged memorandum or	2023
other material and has authority to do so;	2024

(iv) Disclose memoranda and other materials described in	2025
this section in the furtherance of any regulatory or legal action	2026
brought by or on behalf of the superintendent or the state,	2027
resulting from the exercise of the superintendent's official	2028
duties.	2029

(i) Notwithstanding divisions (B)(3)(g) and (h) of this	2030
section, the superintendent may authorize the national association	2031
of insurance commissioners and its affiliates and subsidiaries by	2032
agreement to share confidential or privileged memoranda and other	2033
material received pursuant to division (B)(3)(h)(iii) of this	2034
section with local, state, federal, and international regulatory	2035
and law enforcement agencies and with local, state, and federal	2036
prosecutors, provided that the recipient agrees to maintain the	2037
confidential or privileged status of the confidential or	2038
privileged memorandum or other material and has authority to do	2039
so.	2040

(j) Notwithstanding divisions (B)(3)(g) and (h) of this	2041
section, the chief deputy rehabilitator, the chief deputy	2042
liquidator, and other deputy rehabilitators and liquidators may	2043
disclose memoranda and other material described in this section in	2044
the furtherance of any regulatory or legal action resulting from	2045
the exercise of the superintendent's official duties.	2046

(k) Nothing in this section shall prohibit the	2047
superintendent from receiving memoranda and other material in	2048
accordance with section 3901.045 of the Revised Code.	2049

(l) The superintendent may enter into agreements governing	2050
the sharing and use of memoranda and materials consistent with the	2051
requirements of this section.	2052

(m)(i) No waiver of any applicable privilege or claim of	2053
confidentiality in the memoranda and materials described in this	2054
section shall occur as a result of sharing or receiving memoranda	2055
and material as authorized in divisions (B)(3)(h)(ii) and (iii),	2056
(B)(3)(i), and (B)(3)(k) of this section.	2057

(ii) The disclosure of any memorandum or material in	2058
connection with a regulatory or legal action pursuant to divisions	2059
(B)(3)(h)(iv) and (B)(3)(j) of this section does not prohibit an	2060
insurer or any other person from taking steps to limit the	2061
dissemination of the memorandum or material to persons not	2062
involved in or the subject of the regulatory or legal action on	2063
the basis of any recognized privilege arising under any other	2064
section of the Revised Code or the common law.	2065

(C) Except in the case of policies and contracts to which	2066
division (D) of this section applies, the minimum standard for the	2067
valuation of reserves shall be the method set forth in section	2068
3915.04 of the Revised Code, using four per cent interest and the	2069
American experience table of mortality; provided that in no event	2070
shall a company's aggregate reserves for policies and contracts	2071
which guarantee nonforfeiture benefits be less than the aggregate	2072
reserves calculated in accordance with the standard used in	2073
calculating nonforfeiture benefits for such policies and	2074
contracts.	2075

Reserves for such policies and contracts may be calculated	2076
according to standards which produce aggregate reserves greater	2077
than the minimum reserves required by this division.	2078

(D) This division applies to all life insurance policies and	2079
annuity and pure endowment contracts issued on and after November	2080
5, 1959, or each earlier date not before July 17, 1947, elected by	2081
the company for one or more of such policies or contracts as the	2082
date on which it would comply with the provisions of the	2083
nonforfeiture law for life insurance provided in section 3915.07	2084
of the Revised Code or with the provisions of this division. The	2085
minimum standard for the valuation of all such policies and	2086
contracts shall be the commissioners reserve valuation method	2087
defined in division (E), (F), (H), or (K) of this section and the	2088
following tables and interest rates:	2089

(1) For ordinary life insurance policies, excluding	2090
disability and accidental death benefits, issued on the standard	2091
basis:	2092

(a) On and after November 5, 1959, or an earlier date, not	2093
before July 17, 1947, specified in a written notice by the company	2094
to the superintendent of its election to use this table and before	2095
division (D)(1)(b) of this section became operative for subsequent	2096
policy issues, the commissioners 1941 standard ordinary mortality	2097
table and three and one-half per cent interest;	2098

(b) On and after January 1, 1966, or an earlier date, not	2099
before November 5, 1959, specified in a written notice by the	2100
company to the superintendent of its election to use this table	2101
and before division (D)(1)(c) of this section becomes operative	2102
for subsequent policy issues, the commissioners 1958 standard	2103
ordinary mortality table and three and one-half per cent interest	2104
before January 1, 1975; four per cent interest on and after	2105
January 1, 1975 and before January 1, 1979; and four and one-half	2106
per cent interest on and after January 1, 1979; provided that	2107
modified premiums and present values for female risks may be	2108
calculated at an age three years younger than the actual age of	2109
the insured for policies issued before January 1, 1979, and at an	2110
age six years younger for policies issued on and after January 1,	2111
1979.	2112

(c) On and after January 1, 1989, or an earlier date, not	2113
before January 1, 1983, specified in a written notice by the	2114
company to the superintendent of its election to use this table,	2115
the commissioners 1980 standard ordinary mortality table and the	2116
applicable valuation interest rate as defined in section 3903.721	2117
of the Revised Code. The company may elect to use the	2118
commissioners 1980 standard ordinary mortality table with ten-year	2119
select mortality factors for any specified plan of life insurance.	2120
The superintendent may approve the use of any ordinary mortality	2121
table adopted after 1980 by the national association of insurance	2122
commissioners for determining the minimum standard for the	2123
valuation of such policies.	2124

(2) For industrial life insurance policies, excluding	2125
disability and accidental death benefits, issued on the standard	2126
basis:	2127

(a) On and after November 5, 1959, or an earlier date, not	2128
before July 17, 1947, specified in a written notice by the company	2129
to the superintendent of its election to use this table and before	2130
division (D)(2)(b) of this section became operative for subsequent	2131
policy issues, the 1941 standard industrial mortality table and	2132
three and one-half per cent interest;	2133

(b) On and after January 1, 1968, or an earlier date, not	2134
before September 2, 1963, specified in a written notice by the	2135
company to the superintendent of its election to use this table,	2136
the commissioners 1961 standard industrial mortality table and	2137
three and one-half per cent interest before January 1, 1975; four	2138
per cent interest on and after January 1, 1975 and before January	2139
1, 1979; four and one-half per cent interest on and after January	2140
1, 1979 and before January 1, 1989, or before an earlier date, not	2141
before January 1, 1983, specified in a written notice by the	2142
company to the superintendent of its election to issue such	2143
policies pursuant to the provisions of the nonforfeiture law for	2144
life insurance provided in section 3915.071 of the Revised Code.	2145
On and after January 1, 1989, or such earlier date, the interest	2146
rate to be used in calculating the minimum reserve for such	2147
policies is the applicable valuation interest rate as defined in	2148
section 3903.721 of the Revised Code. The superintendent may	2149
approve the use of any industrial mortality table adopted after	2150
1980 by the national association of insurance commissioners for	2151
determining the minimum standard for the valuation of such	2152
policies.	2153

(3) For all individual annuity and pure endowment contracts,	2154
excluding disability and accidental death benefits, issued:	2155

(a) On and after November 5, 1959, or an earlier date, not	2156
before July 17, 1947, as of which the company elected to comply	2157
with this division (D)(3)(a) and before division (D)(3)(b) of this	2158
section became operative for subsequent contract issues, the 1937	2159
standard annuity mortality table, or, at the option of the	2160
company, the annuity mortality table for 1949, ultimate, or any	2161
modification of either table approved by the superintendent and	2162
three and one-half per cent interest;	2163

(b) On and after January 1, 1979, or an earlier date, not	2164
before January 1, 1975, specified by the company in a written	2165
notice to the superintendent of its election to use this table,	2166
the 1971 individual annuity mortality table or any modification of	2167
that table approved by the superintendent and four per cent	2168
interest on and after January 1, 1975 and before January 1, 1979;	2169
four and one-half per cent interest on and after January 1, 1979,	2170
and before January 1, 1983; and the valuation interest rate as	2171
defined in section 3903.721 of the Revised Code on and after	2172
January 1, 1983, except that on and after January 1, 1975, and	2173
before January 1, 1979, the interest rate is six per cent for	2174
single premium immediate contracts and on and after January 1,	2175
1979, and before January 1, 1983, the interest rate is five and	2176
one-half per cent for single premium deferred contracts and seven	2177
and one-half per cent for single premium immediate contracts. The	2178
superintendent may approve the use of any individual annuity	2179
mortality table adopted after 1980 by the national association of	2180
insurance commissioners, either as adopted or as modified by the	2181
superintendent, for determining the minimum standard for the	2182
valuation of such contracts.	2183

(4) For all annuity and pure endowment contracts, excluding	2184
disability and accidental death benefits, purchased under group	2185
annuity and pure endowment contracts:	2186

(a) On and after November 5, 1959, or an earlier date, not	2187
before July 17, 1947, as of which the company elected to comply	2188
with this division (D)(4)(a) and before division (D)(4)(b) of this	2189
section became operative for subsequent contract purchases, the	2190
group annuity mortality table for 1951, any modification of this	2191
table approved by the superintendent, or either of the tables, or	2192
modification of either of them, specified in division (D)(3)(a) of	2193
this section for individual annuity and pure endowment contracts	2194
and three and one-half per cent interest;	2195

(b) On and after January 1, 1979, or an earlier date, not	2196
before January 1, 1975, specified by the company in a written	2197
notice to the superintendent of its election to use this table,	2198
the 1971 group annuity mortality table, or any modification of	2199
that table approved by the superintendent, and six per cent	2200
interest on and after January 1, 1975, and before January 1, 1979;	2201
seven and one-half per cent interest on and after January 1, 1979,	2202
and before January 1, 1983, and the valuation interest rate as	2203
defined in section 3903.721 of the Revised Code on and after	2204
January 1, 1983. The superintendent may approve the use of any	2205
group annuity mortality table adopted after 1980 by the national	2206
association of insurance commissioners, either as adopted or as	2207
modified by the superintendent, for determining the minimum	2208
standard for the valuation of such contracts.	2209

(5) For total and permanent disability benefits in or	2210
supplementary to ordinary policies and contracts issued:	2211

(a) On and after July 17, 1947, and before January 1, 1961,	2212
the class (3) disability table (1926) and three and one-half per	2213
cent interest. This table, for active lives, shall be combined	2214
with a mortality table permitted for calculating the reserves for	2215
life insurance policies.	2216

(b) On and after January 1, 1961, the tables of period 2	2217
disablement rates and the 1930 to 1950 termination rates of the	2218
1952 disability study of the society of actuaries, with due regard	2219
for the type of benefit; except that a company may, at its option,	2220
use the class (3) disability table (1926) for policies and	2221
contracts issued on and after January 1, 1961, and before January	2222
1, 1966. Any such table, for active lives, shall be combined with	2223
a mortality table permitted for calculating the reserves for life	2224
insurance policies. The interest rate to be used in calculating	2225
minimum reserves for such benefits may not exceed the applicable	2226
rate specified in division (D)(1) of this section for ordinary	2227
life insurance policies. The superintendent may approve the use	2228
of any table of disablement rates and termination rates adopted	2229
after 1980 by the national association of insurance commissioners	2230
for determining the minimum standard for the valuation of such	2231
total and permanent benefits.	2232

(6) For accidental death benefits in or supplementary to	2233
policies issued:	2234

(a) On and after July 17, 1947, and before January 1, 1961,	2235
the inter-company double indemnity mortality table and three and	2236
one-half per cent interest. This table shall be combined with a	2237
mortality table permitted for calculating the reserves for life	2238
insurance policies.	2239

(b) On and after January 1, 1961, the 1959 accidental death	2240
benefits table; except that a company may, at its option, use the	2241
inter-company double indemnity mortality table for policies issued	2242
on and after January 1, 1961, and before January 1, 1966. Either	2243
table shall be combined with a mortality table permitted for	2244
calculating the reserves for life insurance policies. The	2245
interest rate to be used in calculating the minimum reserves for	2246
such benefits may not exceed the applicable rate specified in	2247
division (D)(1) of this section for ordinary life insurance	2248
policies. The superintendent may approve the use of any	2249
accidental death benefits table adopted after 1980 by the national	2250
association of insurance commissioners for determining the minimum	2251
standard for the valuation of such accidental death benefits.	2252

(7) For group life insurance, life insurance issued on the	2253
substandard basis and all other special benefits, such tables as	2254
may be approved by the superintendent and interest not to exceed	2255
the applicable rate used in division (D)(1) of this section for	2256
ordinary life insurance policies.	2257

(E) This division defines the commissioners reserve	2258
valuation method for all policies, riders, and supplemental policy	2259
provisions, with life insurance or endowment benefits, or both,	2260
providing for uniform amounts of life insurance and requiring	2261
uniform premiums. Reserves for such policies, riders, and	2262
provisions, except as otherwise provided in divisions (F) and (K)	2263
of this section, shall be the excess, if any, of the present value	2264
on the valuation date of the future guaranteed benefits over the	2265
present value on that date of the future modified net premiums.	2266
The modified net premium is a uniform percentage of each contract	2267
premium specified for the guaranteed benefits such that the	2268
present value, at the date of issue, of all modified net premiums	2269
shall be equal to the present value, on the date of issue, of the	2270
future guaranteed benefits plus the excess of division (E)(1) over	2271
division (E)(2) of this section, as follows:	2272

(1) A net level annual premium equal to the present value,	2273
at the date of issue, of such benefits provided for after the	2274
first policy year, divided by the present value, at the date of	2275
issue, of an annuity of one per annum payable on the first and	2276
each subsequent anniversary of the policy on which a premium falls	2277
due; provided that such net level annual premium shall not exceed	2278
the net level annual premium on the nineteen-year premium whole	2279
life plan for insurance of the same amount at an age one year	2280
higher than the age at issue of the policy.	2281

(2) A net one-year term premium for such benefits provided	2282
for in the first policy year.	2283

(F) This division defines the commissioners reserve	2284
valuation method for all life insurance policies issued on or	2285
after January 1, 1989, that have a first year premium in excess of	2286
the premium for the second policy year and for which excess no	2287
comparable benefit is provided in the first year and that provide	2288
either an endowment benefit or cash surrender value, or both, in	2289
an amount greater than the excess. Reserves for such policies	2290
before the assumed ending date shall be the greater of the amount	2291
calculated in accordance with division (E) of this section and the	2292
reserve calculated in accordance with that division but with the	2293
following changes:	2294

(1) The value defined in division (E)(1) of this section	2295
shall be reduced by fifteen per cent of the amount of such excess	2296
first-year premium;	2297

(2) All present values of benefits and premiums shall be	2298
determined without reference to premiums and benefits provided for	2299
by the policy after the assumed ending date;	2300

(3) The policy shall be assumed to mature on the assumed	2301
ending date in the amount of its endowment benefits and cash	2302
surrender value. The assumed ending date is the first policy	2303
anniversary on which the sum of any endowment benefit and any cash	2304
surrender value then available is greater than such excess	2305
first-year premium.	2306

On and after the assumed ending date, the reserve for such	2307
policies shall be calculated in accordance with division (E) of	2308
this section.	2309

(G) Reserves according to the commissioners reserve	2310
valuation method for:	2311

(1) All policies, riders, and supplemental policy provisions	2312
providing varying amounts of life insurance or requiring payment	2313
of varying premiums;	2314

(2) Group annuity and pure endowment contracts purchased	2315
under a retirement plan or plan of deferred compensation,	2316
established or maintained by an employer, including a partnership	2317
or sole proprietorship, or by an employee organization, or by	2318
both, other than a plan providing individual retirement accounts	2319
or individual retirement annuities under section 408 of the	2320
Internal Revenue Code of 1954, as amended;	2321

(3) Disability and accidental death benefits in all policies	2322
and contracts; and	2323

(4) All other benefits, except life insurance and endowment	2324
benefits in life insurance policies and benefits provided by all	2325
other annuity and pure endowment contracts, shall be calculated by	2326
a method consistent with the principles of division (E) of this	2327
section.	2328

Extra premiums charged because of impairments or special	2329
hazards shall be disregarded in determining modified net premiums.	2330

(H) This division defines the commissioners annuity reserve	2331
valuation method for all annuity and pure endowment contracts	2332
other than group annuity and pure endowment contracts purchased	2333
under a retirement plan or plan of deferred compensation,	2334
established or maintained by an employer, including a partnership	2335
or sole proprietorship, or by an employee organization, or by	2336
both, other than a plan providing individual retirement accounts	2337
or individual retirement annuities under section 408 of the	2338
Internal Revenue Code of 1954, as amended.	2339

Reserves for benefits under such contracts, excluding	2340
disability and accidental death benefits, shall be the greatest of	2341
the respective excesses of the present values, at the date of	2342
valuation, of the future guaranteed benefits, including guaranteed	2343
nonforfeiture benefits, provided for by such contract at the end	2344
of each respective contract year, over the present value, at the	2345
date of valuation, of any future valuation considerations derived	2346
from future gross considerations required by the terms of the	2347
contract that become payable prior to the end of each such	2348
respective contract year. The future guaranteed benefits shall be	2349
determined by using the mortality table, if any, and the interest	2350
rate, or rates, specified in such contracts for determining	2351
guaranteed benefits. The valuation considerations are the	2352
portions of the respective gross considerations applied under the	2353
terms of such contracts to determine nonforfeiture values.	2354

(I) In no event shall a company's aggregate reserves for all	2355
life insurance policies, to which division (D) of this section	2356
applies, excluding disability and accidental death benefits, be	2357
less than the aggregate reserves calculated in accordance with the	2358
method set forth in divisions (E), (F), (G), (K), and (L) of this	2359
section and the mortality table or tables and rate or rates of	2360
interest used in calculating nonforfeiture benefits for such	2361
policies.	2362

In no event shall the aggregate reserves for all policies,	2363
contracts, and benefits be less than the aggregate reserves	2364
determined by the qualified actuary to be necessary to render the	2365
opinion required by division (B) of this section.	2366

(J) Reserves for any category of policies, contracts, or	2367
benefits as established by the superintendent may be calculated,	2368
at the option of the company, according to any standards which	2369
produce aggregate reserves for such category greater than those	2370
calculated according to the minimum standards provided in this	2371
section, but the rate or rates of interest used for policies and	2372
contracts, other than annuity and pure endowment contracts, shall	2373
not be higher than the corresponding rate or rates of interest	2374
used in calculating any nonforfeiture benefits provided for in	2375
such standards.	2376

(K) If in any contract year the valuation net premium	2377
calculated by the method used in calculating the reserve for a	2378
policy or contract but using the minimum valuation standards of	2379
mortality and rate of interest is more than the gross premium for	2380
such policy or contract, the minimum reserve required for such	2381
policy or contract shall be the greater of either the reserve	2382
calculated according to the mortality table, rate of interest, and	2383
method actually used for such policy or contract, or the reserve	2384
calculated by such method but using the minimum valuation	2385
standards of mortality and rate of interest and replacing the	2386
valuation net premium by the actual gross premium in each contract	2387
year for which the valuation net premium exceeds the actual gross	2388
premium. The minimum valuation standards of mortality and rate of	2389
interest referred to in this division are those required by	2390
division (D) of this section.	2391

For the purposes of this division, the minimum reserve for	2392
any policy to which the provisions of division (F) of this section	2393
apply shall be calculated as if the method used in calculating the	2394
reserve for such policy were the method defined in division (E) of	2395
this section. The minimum reserve for such policy shall be the	2396
greater of the reserve calculated in accordance with division (F)	2397
of this section and in accordance with this division.	2398

(L) Methods for determining the reserves for plans of life	2399
insurance or annuity which are of such a nature that minimum	2400
reserves cannot be determined by the methods described in this	2401
section shall be promulgated by rule adopted by the	2402
superintendent. The reserves to be held under such plans must be	2403
appropriate in relation to the benefits and the pattern of	2404
premiums for each plan and must be computed by methods which are	2405
consistent with the principles of this section. This division	2406
applies to any plan of life insurance which provides for future	2407
premium determination, the amounts of which are to be determined	2408
by the company on the basis of an estimate of future experience	2409
made at the time of any such determination.	2410

(M) The superintendent shall adopt rules specifying minimum	2411
reserve standards for the valuation of individual and group health	2412
plans.	2413

Sec. 3903.83.  (A) For purposes of sections 3903.81 to	2414
3903.93 of the Revised Code, a "company action level event" is any	2415
of the following events:	2416

(1) A domestic or foreign insurer's filing of an RBC report	2417
that indicates that the insurer's total adjusted capital is	2418
greater than or equal to its regulatory action level RBC but less	2419
than its company action level RBC;	2420

(2) A life or health insurer's filing of an RBC report that	2421
indicates that the insurer's total adjusted capital is greater	2422
than or equal to its company action level RBC but less than the	2423
product of 2.5 and its authorized control level RBC, and that	2424
indicates a negative trend;	2425

(3) The notification by the superintendent of insurance to	2426
an insurer of an adjustment to the insurer's RBC report, which	2427
adjusted RBC report shows the insurer's total adjusted capital	2428
within the range described in either division (A)(1) or (2) of	2429
this section, provided that the insurer does not challenge the	2430
adjusted RBC report under section 3903.87 of the Revised Code;	2431

(4) The superintendent's notification to an insurer,	2432
following the hearing required under section 3903.87 of the	2433
Revised Code, that the superintendent has rejected the insurer's	2434
challenge to an adjusted RBC report showing the insurer's total	2435
adjusted capital within the range described in either division	2436
(A)(1) or (2) of this section.	2437

(B) In the case of a company action level event, the insurer	2438
shall prepare and submit to the superintendent an RBC plan that	2439
shall:	2440

(1) Identify the conditions that contributed to the company	2441
action level event;	2442

(2) Contain proposals of corrective actions that the insurer	2443
intends to take to eliminate the conditions leading to the company	2444
action level event;	2445

(3) Provide projections of the insurer's financial results	2446
in the current year and at least the four succeeding years, both	2447
in the absence of the proposed corrective actions and giving	2448
effect to the proposed corrective actions. The projections shall	2449
include projections of statutory operating income, net income,	2450
capital, and surplus. Projections for both new and renewal	2451
business may include separate projections for each major line of	2452
business, and may separately identify each significant income,	2453
expense, and benefit component of the projection.	2454

(4) Identify the key assumptions impacting the insurer's	2455
projections made pursuant to division (B)(3) of this section, and	2456
describe the sensitivity of the projections to the assumptions;	2457

(5) Identify the quality of, and problems associated with,	2458
the insurer's business, including, but not limited to, its assets,	2459
anticipated business growth and associated surplus strain,	2460
extraordinary exposure to risk, mix of business, and use of	2461
reinsurance.	2462

(C) The RBC plan shall be submitted within forty-five days	2463
after a company action level event. However, if an insurer has	2464
challenged an adjusted RBC report pursuant to section 3903.87 of	2465
the Revised Code, the RBC plan need not be submitted until after	2466
the hearing required under section 3903.87 of the Revised Code. If	2467
the superintendent rejects the insurer's challenge, the RBC plan	2468
shall be submitted within forty-five days after the	2469
superintendent's notification to the insurer of the rejection of	2470
the challenge.	2471

(D)(1) Within sixty days after an insurer submits an RBC	2472
plan to the superintendent, the superintendent shall either	2473
require the insurer to implement the RBC plan or shall notify the	2474
insurer that the RBC plan is unsatisfactory in the judgment of the	2475
superintendent. If the superintendent has determined that the RBC	2476
plan is unsatisfactory, the notification to the insurer shall set	2477
forth the reasons for the determination, and may set forth	2478
proposed revisions that will render the RBC plan satisfactory in	2479
the judgment of the superintendent. Upon such notification from	2480
the superintendent, the insurer shall prepare and submit a revised	2481
RBC plan, which may incorporate by reference any revisions	2482
proposed by the superintendent.	2483

(2) If an insurer challenges, under section 3903.87 of the	2484
Revised Code, a notification from the Superintendent that the	2485
insurer's RBC plan or a revised RBC plan is unsatisfactory,	2486
submission of a revised RBC plan need not be made unless the	2487
superintendent rejects the insurer's challenge following the	2488
hearing required by section 3903.87 of the Revised Code and then	2489
notifies the insurer of this rejection.	2490

(3) An insurer shall submit a revised RBC plan to the	2491
superintendent within forty-five days after receiving notification	2492
from the superintendent that its RBC plan is unsatisfactory, or,	2493
that its challenge to a notification made under division (D)(1) of	2494
this section has been rejected, as applicable.	2495

(E) Notwithstanding division (D) of this section, if the	2496
superintendent notifies an insurer that its RBC plan or revised	2497
RBC plan is unsatisfactory, the superintendent may, at the	2498
superintendent's discretion, but subject to the insurer's right to	2499
a hearing under section 3903.87 of the Revised Code, specify in	2500
the notification that the notification constitutes a regulatory	2501
action level event.	2502

(F) Every domestic insurer that submits an RBC plan or	2503
revised RBC plan to the superintendent shall file a copy of the	2504
RBC plan or revised RBC plan with the insurance regulatory	2505
authority of every state in which the insurer is authorized to do	2506
business upon receiving the insurance regulatory authority's	2507
written request for a copy of the plan, if the state has a	2508
confidentiality law with provisions substantially similar to those	2509
set forth in divisions (A) and (B) of section 3903.88 of the	2510
Revised Code. The insurer shall file the copy in that state no	2511
later than the later of:	2512

(1) Fifteen days after receiving the request for a copy of	2513
the plan;	2514

(2) The date on which the RBC plan or revised RBC plan is	2515
filed pursuant to division (C) or (D) of this section.	2516

Sec. 3903.88.  (A) The superintendent of insurance shall	2517
keep all of the following confidential:	2518

(1) An RBC report, to the extent that information contained	2519
in the report is not required to be included in an annual	2520
statement available to the public;	2521

(2) An RBC plan;

2522

(3) The results of, or a report on, an examination or	2523
analysis conducted pursuant to division (B)(2) of section 3903.84	2524
of the Revised Code, and a corrective order issued pursuant to	2525
division (B)(3) of section 3903.84 of the Revised Code.	2526

(B) The plans, reports, information, and orders described in	2527
division (A) of this section shallare confidential and privileged	2528
and not be subject to subpoena, except for use by the	2529
superintendent in accordance with the insurance laws of this	2530
state.	2531

(C) Notwithstanding divisions (A) and (B) of this section,	2532
the superintendent may do any of the following:	2533

(1) Use the plans, reports, information, and orders that are	2534
the subject of this section in accordance with the insurance laws	2535
of this state;	2536

(2) Share the plans, reports, information, and orders that	2537
are the subject of this section with the chief deputy	2538
rehabilitator, the chief deputy liquidator, other deputy	2539
rehabilitators and liquidators, and any other person employed by,	2540
or acting on behalf of, the superintendent pursuant to Chapter	2541
3901. or 3903. of the Revised Code, with other local, state,	2542
federal, and international regulatory and law enforcement	2543
agencies, with local, state, and federal prosecutors, and with the	2544
national association of insurance commissioners and its affiliates	2545
and subsidiaries, provided that the recipient agrees to maintain	2546
the confidential or privileged status of the confidential or	2547
privileged plan, report, information, or order and has authority	2548
to do so;	2549

(3) Disclose plans, reports, information, and orders that	2550
are the subject of this section in the furtherance of any	2551
regulatory or legal action brought by or on behalf of the	2552
superintendent or the state, resulting from the exercise of the	2553
superintendent's official duties.	2554

(D) Notwithstanding divisions (A), (B), and (C) of this	2555
section, the superintendent may authorize the national association	2556
of insurance commissioners and its affiliates and subsidiaries by	2557
agreement to share confidential or privileged plans, reports,	2558
information, and orders received pursuant to division (C)(2) of	2559
this section with local, state, federal, and international	2560
regulatory and law enforcement agencies and with local, state, and	2561
federal prosecutors, provided that the recipient agrees to	2562
maintain the confidential or privileged status of the confidential	2563
or privileged plan, report, information, or order and has	2564
authority to do so.	2565

(E) Notwithstanding divisions (A), (B), and (C) of this	2566
section, the chief deputy rehabilitator, the chief deputy	2567
liquidator, and other deputy rehabilitators and liquidators may	2568
disclose plans, reports, information, and orders that are the	2569
subject of this section in the furtherance of any regulatory or	2570
legal action resulting from the exercise of the superintendent's	2571
official duties.	2572

(F) Nothing in this section shall prohibit the	2573
superintendent from receiving plans, reports, information, and	2574
orders in accordance with section 3901.045 of the Revised Code.	2575

(G) The superintendent may enter into agreements governing	2576
the sharing and use of plans, reports, information, and orders	2577
consistent with the requirements of this section.	2578

(H)(1) No waiver of any applicable privilege or claim of	2579
confidentiality in the plans, reports, information, and orders	2580
that are the subject of this section shall occur as a result of	2581
sharing or receiving plans, reports, information, and orders as	2582
authorized in divisions (C)(2), (D), and (F) of this section.	2583

(2) The disclosure of a plan, report, information, or order	2584
in connection with a regulatory or legal action pursuant to	2585
divisions (C)(3) and (E) of this section does not prohibit an	2586
insurer or any other person from taking steps to limit the	2587
dissemination of the plan, report, information, or order to	2588
persons not involved in or the subject of the regulatory or legal	2589
action on the basis of any recognized privilege arising under any	2590
other section of the Revised Code or the common law.	2591

(I) The comparison of an insurer's total adjusted capital to	2592
any of its RBC levels shall not be used to rank insurers.	2593

(D)(J) RBC instructions, RBC reports, adjusted RBC reports,	2594
RBC plans, and revised RBC plans, shall not be used by the	2595
superintendent for ratemaking, considered or introduced as	2596
evidence in any rate proceeding, or used by the superintendent to	2597
calculate or derive any elements of an appropriate premium level	2598
or rate of return for any line of insurance that an insurer or any	2599
affiliate is authorized to write.	2600

(E)(K) Except as otherwise required under Title XXXIX of the	2601
Revised Code, it is an unfair and deceptive act or practice in the	2602
business of insurance for any person, as defined in division (A)	2603
of section 3901.19 of the Revised Code, to make, publish,	2604
disseminate, circulate, or place before the public, or to cause,	2605
directly or indirectly, to be made, published, disseminated,	2606
circulated, or placed before the public, in a newspaper, magazine,	2607
or other publication, in the form of a notice, circular, pamphlet,	2608
letter, or poster, or over any radio or television station, or in	2609
any other manner, an advertisement, announcement, or statement,	2610
written or oral, that contains an assertion, representation, or	2611
statement, regarding the RBC levels of any insurer or any	2612
component derived in the calculation of the RBC levels.	2613

(F)(L) If any materially false statement is published	2614
comparing an insurer's total adjusted capital to its RBC levels,	2615
or any inappropriate comparison of any other amount to any of the	2616
insurers' RBC levels is published, and the insurer is able to	2617
demonstrate to the superintendent with substantial proof the	2618
falsity of the statement or the inappropriateness of the	2619
comparison, then the insurer may publish with the superintendent's	2620
approval an announcement in a written publication to rebut the	2621
materially false statement or inappropriate comparison.	2622

Sec. 3905.492.  (A)(1) All records and other information	2623
obtained by the superintendent of insurance or the	2624
superintendent's deputies, examiners, assistants, or other	2625
employees, or agents relating to an investigation of an applicant	2626
for licensure under this chapter, or of an agent, solicitor,	2627
broker, or other person licensed under this chapter or Chapter	2628
3951., 3957., or 3959. of the Revised Code, are confidential and	2629
are not public records as defined in section 149.43 of the Revised	2630
Code until the applicant or licensee is provided notice and	2631
opportunity for hearing pursuant to Chapter 119. of the Revised	2632
Code with respect to such records or information. If no	2633
administrative action is initiated with respect to a particular	2634
matter about which the superintendent obtained records or other	2635
information as part of an investigation, all such records and	2636
information relating to that matter shall remain confidential for	2637
three years after the file on the matter is closed.	2638

(2) Division (A)(1) of this section applies only to	2639
investigations that could result in administrative action under	2640
Title XVII or XXXIX or Chapter 119. of the Revised Code.	2641

(B) The records and other information described in division	2642
(A) of this section shall remain confidential for all purposes	2643
except when it is appropriate for the superintendent and the	2644
superintendent's deputies, examiners, assistants, or other	2645
employees, or agents to take official action regarding the affairs	2646
of the applicant or licensee or in connection with actual or	2647
potential criminal proceedings.	2648

(C) Employees or agents of the department of insurance shall	2649
not be required by any court in this state to testify in a civil	2650
action, if such testimony concerns any matter related to records	2651
or any other information considered confidential under this	2652
section of which they have knowledge.	2653

(D) This section does not apply to any complaint or action	2654
under section 3905.04 of the Revised Code.Notwithstanding	2655
divisions (A) and (B) of this section, the superintendent may do	2656
either of the following:	2657

(1) Share records and other information that are the subject	2658
of this section with the chief deputy rehabilitator, the chief	2659
deputy liquidator, other deputy rehabilitators and liquidators,	2660
and any other person employed by, or acting on behalf of, the	2661
superintendent pursuant to Chapter 3901. or 3903. of the Revised	2662
Code, with other local, state, federal, and international	2663
regulatory and law enforcement agencies, with local, state, and	2664
federal prosecutors, and with the national association of	2665
insurance commissioners and its affiliates and subsidiaries,	2666
provided that the recipient agrees to maintain the confidential	2667
status of the confidential record or other information and has	2668
authority to do so;	2669

(2) Disclose records and other information that are the	2670
subject of this section in the furtherance of any regulatory or	2671
legal action brought by or on behalf of the superintendent or the	2672
state, resulting from the exercise of the superintendent's	2673
official duties.	2674

(D) Notwithstanding divisions (A), (B), and (C) of this	2675
section, the superintendent may authorize the national association	2676
of insurance commissioners and its affiliates and subsidiaries by	2677
agreement to share confidential records and other information	2678
received pursuant to division (C)(1) of this section with local,	2679
state, federal, and international regulatory and law enforcement	2680
agencies and with local, state, and federal prosecutors, provided	2681
that the recipient agrees to maintain the confidential status of	2682
the confidential record or other information and has authority to	2683
do so.	2684

(E) Notwithstanding divisions (A), (B), and (C) of this	2685
section, the chief deputy rehabilitator, the chief deputy	2686
liquidator, and other deputy rehabilitators and liquidators may	2687
disclose records and other information that are the subject of	2688
this section in the furtherance of any regulatory or legal action	2689
resulting from the exercise of the superintendent's official	2690
duties.	2691

(F) Nothing in this section shall prohibit the	2692
superintendent from receiving records and other information in	2693
accordance with section 3901.045 of the Revised Code.	2694

(G)(1) No waiver of any applicable privilege or claim of	2695
confidentiality in the records and other information that are the	2696
subject of this section shall occur as a result of sharing or	2697
receiving records or other information as authorized in divisions	2698
(C)(1), (D), and (F) of this section.	2699

(2) The disclosure of records or other information in	2700
connection with a regulatory or legal action pursuant to divisions	2701
(C)(2) and (E) of this section does not prohibit an insurer or any	2702
other person from taking steps to limit the dissemination of the	2703
record or other information to persons not involved in or the	2704
subject of the regulatory or legal action on the basis of any	2705
recognized privilege arising under any other section of the	2706
Revised Code or the common law.	2707

(H) Employees or agents of the department of insurance shall	2708
not be required by any court in this state to testify in a civil	2709
action, if the testimony concerns any matter related to records or	2710
other information considered confidential under this section of	2711
which they have knowledge.	2712

(I) This section does not apply to any complaint or action	2713
under section 3905.04 of the Revised Code.	2714

Sec. 3905.50.  (A)(1) Except as provided in division (A)(2)	2715
or (3) of this section, this section applies to every contract of	2716
agency between a property and casualty insurance company and an	2717
independent insurance agent, as defined in division (A) of section	2718
3905.47 of the Revised Code, which has been in effect for not less	2719
than two years.	2720

(2) This section does not apply to a contract of exclusive	2721
employment by, or an exclusive agency contract with, a single	2722
insurer or group of insurers under common ownership or control.	2723

(3) This section does not apply to an agent whose license	2724
has been suspended or revoked by the superintendent of insurance,	2725
an agent who has demonstrated gross incompetence, or an agent	2726
whose contract has been terminated for insolvency, abandonment,	2727
gross or willful misconduct, or failure to pay to the insurer, in	2728
accordance with the agency contract, moneys due to the insurer	2729
upon written demand of the insurer.	2730

(B) No insurer shall terminate an independent insurance	2731
agent contract of agency except by mutual agreement of the parties	2732
or upon one hundred eighty days' written notice to the independent	2733
insurance agent.	2734

(1) Such notice shall include specific reasons for the	2735
termination of the agent.	2736

(2) Such notice shall be sent by certified mail, return	2737
receipt requested, to the last known address of the agency.	2738

(C) During the one hundred eighty day notice period, an	2739
independent insurance agent shall not write or bind any new	2740
policies on behalf of an insurer without written approval from the	2741
insurer. However, during such period, an independent insurance	2742
agent, subject to the current underwriting rules, guidelines,	2743
commission rates, and practices of the insurer, may renew or	2744
effect any necessary changes or endorsements of outstanding	2745
policies of insurance that are in force prior to the date of	2746
receipt of the notice of termination.	2747

(D) None of the following constitutes an acceptable reason	2748
for the termination of a contract of agency:	2749

(1) Claims experience of the agent in a single year;

2750

(2) Claims experience due to catastrophiescatastrophes of	2751
nature covered by a policy;	2752

(3) Claims experience under uninsured and underinsured	2753
motorist coverages.	2754

(E) An agent aggrieved by the conduct of an insurer in its	2755
breach or termination of a contract of agency may file with the	2756
superintendent a request that the superintendent review the action	2757
to determine whether it is in accord with this section and the	2758
lawful provisions of the contract of agency and send a copy of the	2759
request to the insurer at the address of the office issuing the	2760
notice of termination. Upon receipt of such a request, an insurer	2761
shall promptly provide the independent insurance agent and	2762
superintendent with documentation in support of the insurer's	2763
stated reason for termination.	2764

(F) The superintendent shall promptly investigate the	2765
allegation. If the superintendent has reasonable cause to believe	2766
that this section or the lawful provisions of the contract of	2767
agency have been violated, hethe superintendent shall, within	2768
thirty days of receipt of a request for review, conduct an	2769
adjudication hearing subject to Chapter 119. of the Revised Code,	2770
held upon not less than ten days' written notice to the agent and	2771
the insurer. Pending a final order in the adjudication hearing,	2772
the superintendent may take such interim action as necessary to	2773
protect the parties or the public. During the pendency of the	2774
proceeding before the superintendent, the contract of agency	2775
subject to the proceeding continues in force and divison (C) of	2776
this section applies. The superintendent shall, within thirty	2777
days following such hearing, issue an order approving or	2778
disapproving the action of the insurer. All final orders and	2779
decisions of the superintendent are subject to judicial review as	2780
provided in Chapter 119. of the Revised Code.	2781

(G) An insurer shall not cancel or nonrenew any policy of	2782
insurance written through an agent upon the sole ground of the	2783
termination of the agency until the expiration of the policy term	2784
or the twelve-month period following the effective date of the	2785
termination of the contract of agency, whichever is earlier.	2786
However, during such period, an independent insurance agent may,	2787
subject to the current underwriting rules, guidelines, commission	2788
rates, and practices of the insurer, effect any necessary changes	2789
or endorsements to outstanding policies of insurance that are in	2790
force prior to the date of termination.	2791

This section does not abridge, restrict, or supersede the	2792
rights of an agent to the ownership of expirations provided for in	2793
any contract with an insurer.	2794

(H) Any information or documentation provided to an agent or	2795
the superintendent by an insurer under this section is	2796
confidential and shall be used by the superintendent only in the	2797
exercise of the proper functions authorized by this section. No	2798
insurer is liable for furnishing information or documentation in	2799
compliance with this section if the insurer acts without malice	2800
and in the reasonable belief that such information or	2801
documentation is warranted by this section.	2802

(I) Notwithstanding division (H) of this section, the	2803
superintendent may do either of the following:	2804

(1) Share the information or documentation that is the	2805
subject of this section with the chief deputy rehabilitator, the	2806
chief deputy liquidator, other deputy rehabilitators and	2807
liquidators, and any other person employed by, or acting on behalf	2808
of, the superintendent pursuant to Chapter 3901. or 3903. of the	2809
Revised Code, with other local, state, federal, and international	2810
regulatory and law enforcement agencies, with local, state, and	2811
federal prosecutors, and with the national association of	2812
insurance commissioners and its affiliates and subsidiaries,	2813
provided that the recipient agrees to maintain the confidential	2814
status of the confidential information or documentation and has	2815
authority to do so;	2816

(2) Disclose any information or documentation that is the	2817
subject of this section in the furtherance of any regulatory or	2818
legal action brought by or on behalf of the superintendent or the	2819
state, resulting from the exercise of the superintendent's	2820
official duties.	2821

(J) Notwithstanding divisions (H) and (I) of this section,	2822
the superintendent may authorize the national association of	2823
insurance commissioners and its affiliates and subsidiaries by	2824
agreement to share confidential information and documentation	2825
received pursuant to division (I)(1) of this section with local,	2826
state, federal, and international regulatory and law enforcement	2827
agencies and with local, state, and federal prosecutors, provided	2828
that the recipient agrees to maintain the confidential status of	2829
the confidential information or documentation and has authority to	2830
do so.	2831

(K) Notwithstanding divisions (H) and (I) of this section,	2832
the chief deputy rehabilitator, the chief deputy liquidator, and	2833
other deputy rehabilitators and liquidators may disclose	2834
information and documentation that is the subject of this section	2835
in the furtherance of any regulatory or legal action resulting	2836
from the exercise of the superintendent's official duties.	2837

(L) Nothing in this section shall prohibit the	2838
superintendent from receiving information and documentation in	2839
accordance with section 3901.045 of the Revised Code.	2840

(M) The superintendent may enter into agreements governing	2841
the sharing and use of information and documentation consistent	2842
with the requirements of this section.	2843

(N)(1) No waiver of any applicable privilege or claim of	2844
confidentiality in the information and documentation that is the	2845
subject of this section shall occur as a result of sharing or	2846
receiving information and documentation as authorized in divisions	2847
(I)(1), (J), and (L) of this section.	2848

(2) The disclosure of information or documentation in	2849
connection with a regulatory or legal action pursuant to divisions	2850
(I)(2) and (K) of this section does not prohibit an insurer or any	2851
other person from taking steps to limit the dissemination of the	2852
information or documentation to persons not involved in or the	2853
subject of the regulatory or legal action on the basis of any	2854
recognized privilege arising under any other section of the	2855
Revised Code or the common law.	2856

Sec. 3999.36.  (A) As used in this section and sections	2857
3999.37 and 3999.38 of the Revised Code:	2858

(1) "Insurer" means any person that is authorized to engage	2859
in the business of insurance in this state under Title XXXIX of	2860
the Revised Code, any health insuring corporation, or any other	2861
person engaging either directly or indirectly in this state in the	2862
business of insurance or entering into contracts substantially	2863
amounting to insurance under section 3905.42 of the Revised Code.	2864

(2) "Impaired" or "impairment" means a financial situation	2865
in which the insurer's assets are less than the sum of the	2866
insurer's minimum required capital, minimum required surplus, and	2867
all liabilities, as determined in accordance with the requirements	2868
for the preparation and filing of the insurer's annual financial	2869
statement.	2870

(3) "Chief executive officer" means the person, irrespective	2871
of the person's title, designated by the board of directors or	2872
trustees of an insurer as the person charged with the	2873
responsibility of administering and implementing the insurer's	2874
policies and procedures.	2875

(B) Whenever a chief executive officer of an insurer knows	2876
or has reason to know that the insurer is impaired, the chief	2877
executive officer shall provide written notice of the impairment	2878
to the superintendent of insurance and to each member of the board	2879
of directors or trustees of the insurer. The chief executive	2880
officer shall provide the notice as soon as reasonably possible,	2881
but no later than thirty days after the chief executive officer	2882
knows or has reason to know of the impairment. No chief executive	2883
officer shall fail to provide notice in compliance with this	2884
division.	2885

(C) The notice received by the superintendent under division	2886
(B) of this section is confidential and is not a public record	2887
under section 149.43 of the Revised Code.	2888

(D) Notwithstanding division (C) of this section, the	2889
superintendent may do any of the following:	2890

(1) Disclose the notice upon obtaining prior written consent	2891
from the insurer to which the notice pertains;	2892

(2) Share the notice that is the subject of this section	2893
with the chief deputy rehabilitator, the chief deputy liquidator,	2894
other deputy rehabilitators and liquidators, and any other person	2895
employed by, or acting on behalf of, the superintendent pursuant	2896
to Chapter 3901. or 3903. of the Revised Code, with other local,	2897
state, federal, and international regulatory and law enforcement	2898
agencies, with local, state, and federal prosecutors, and with the	2899
national association of insurance commissioners and its affiliates	2900
and subsidiaries, provided that the recipient agrees to maintain	2901
the confidential status of the notice and has authority to do so;	2902

(3) Disclose the notice in the furtherance of any regulatory	2903
or legal action brought by or on behalf of the superintendent or	2904
the state, resulting from the exercise of the superintendent's	2905
official duties.	2906

(E) Notwithstanding divisions (C) and (D) of this section,	2907
the superintendent may authorize the national association of	2908
insurance commissioners and its affiliates and subsidiaries by	2909
agreement to share confidential notices received pursuant to	2910
division (D)(2) of this section with local, state, federal, and	2911
international regulatory and law enforcement agencies and with	2912
local, state, and federal prosecutors, provided that the recipient	2913
agrees to maintain the confidential status of the notice and has	2914
authority to do so.	2915

(F) Notwithstanding divisions (C) and (D) of this section,	2916
the chief deputy rehabilitator, the chief deputy liquidator and	2917
other deputy rehabilitators and liquidators may disclose notices	2918
in the furtherance of any regulatory or legal action resulting	2919
from the exercise of the superintendent's official duties.	2920

(G) Nothing in this section shall prohibit the	2921
superintendent from receiving notices in accordance with section	2922
3901.045 of the Revised Code.	2923

(H) The superintendent may enter into agreements governing	2924
the sharing and use of notices consistent with the requirements of	2925
this section.	2926

(I)(1) No waiver of any applicable privilege or claim of	2927
confidentiality in the notices that are the subject of this	2928
section shall occur as a result of sharing or receiving notices as	2929
authorized in divisions (D)(2), (E), and (G) of this section.	2930

(2) The disclosure of a notice in connection with a	2931
regulatory or legal action pursuant to divisions (D)(3) and (F) of	2932
this section does not prohibit an insurer or any other person from	2933
taking steps to limit the dissemination of the notice to persons	2934
not involved in or the subject of the regulatory or legal action	2935
on the basis of any recognized privilege arising under any other	2936
section of the Revised Code or the common law.	2937

Sec. 4727.18.  (A) Except as otherwise provided in this	2938
division (C) of this section, any information arising from,	2939
obtained by, or contained in an investigation of a person licensed	2940
as a pawnbroker under this chapter performed by the superintendent	2941
of financial institutions is confidential information and is not a	2942
public record under section 149.43 of the Revised Code. The	2943
superintendent, however, may share investigation information with	2944
a law enforcement agency.	2945

(B) Except as otherwise provided in this division (C) of	2946
this section, any information arising from, obtained by, or	2947
contained in an investigation by the superintendent of any person	2948
the superintendent reasonably suspects has violated or is	2949
violating this chapter is confidential information and not a	2950
public record under section 149.43 of the Revised Code. The	2951
superintendent, however, may share investigation information with	2952
a law enforcement agency.	2953

(C) Information made confidential by division (A) or (B) of	2954
this section may only be disclosed, discovered, or introduced into	2955
evidence as follows:	2956

(1) To a law enforcement agency;

2957

(2) In connection with criminal proceedings;

2958

(3) In any action taken or litigation by or against the	2959
superintendent in connection with the powers, duties, and	2960
obligations imposed upon the superintendent by this chapter;	2961

(4) When and in the manner authorized in section 1181.25 of	2962
the Revised Code.	2963

Section 2. That existing sections 1101.01, 1121.11, 1121.18,	2964
1151.01, 1155.091, 1155.16, 1161.01, 1163.121, 1163.20, 1321.09,	2965
1321.55, 1321.76, 1322.06, 1707.12, 1733.01, 1733.32, 1733.327,	2966
1751.19, 3901.36, 3901.44, 3901.48, 3901.70, 3901.83, 3903.11,	2967
3903.72, 3903.83, 3903.88, 3905.492, 3905.50, 3999.36, and 4727.18	2968
of the Revised Code are hereby repealed.	2969