REPRESENTATIVES G. Smith, Wolpert, Stapleton, Flowers, Schmidt, Coates, Schaffer, Seitz, Sferra, Niehaus, Olman

To amend sections 111.15, 119.01, 1121.01, 1121.11,

1

1121.18, 1155.01, 1155.091, 1155.16, 1163.01,

2

1163.121, 1163.20, 1321.09, 1321.55, 1321.76,

3

1322.06, 1322.061, 1707.092, 1707.11, 1707.12,

4

1707.141, 1707.15, 1707.151, 1707.161, 1707.17,

5

1707.20, 1707.40, 1707.44, 1733.01, 1733.32,

6

1733.327, 1751.19, 3901.36, 3901.44, 3901.48,

7

3901.70, 3901.83, 3903.11, 3903.72, 3903.83,

8

3903.88, 3905.492, 3905.50, 3999.36, and 4727.18,

9

to enact sections 1181.25, 1707.201, and 3901.045

10

of the Revised Code, and to repeal section 1322.06

11

of the Revised Code, as amended by this act, on May

12

2, 2002, relative to the circumstances under which

13

the Department of Insurance and the Divisions of

14

Financial Institutions and Securities may share

15

confidential documents and information with, and

16

receive such documents and information from, other

17

specified regulators and officials, or otherwise

18

disclose these documents and information, and to

19

modifications of the Securities Law with respect to

20

investment advisers, application for a securities

21

dealer's license, license renewals and fees, parity

22

rules, notice filings, and consent to service of

23

process.

24

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

Section 1. That sections 111.15, 119.01, 1121.01, 1121.11,	25
1121.18, 1155.01, 1155.091, 1155.16, 1163.01, 1163.121, 1163.20,	26
1321.09, 1321.55, 1321.76, 1322.06, 1322.061, 1707.092, 1707.11,	27
1707.12, 1707.141, 1707.15, 1707.151, 1707.161, 1707.17, 1707.20,	28
1707.40, 1707.44, 1733.01, 1733.32, 1733.327, 1751.19, 3901.36,	29
3901.44, 3901.48, 3901.70, 3901.83, 3903.11, 3903.72, 3903.83,	30
3903.88, 3905.492, 3905.50, 3999.36, and 4727.18 be amended and	31
sections 1181.25, 1707.201, and 3901.045 of the Revised Code be	32
enacted to read as follows:	33

Sec. 111.15.  (A) As used in this section:

34

(1) "Rule" includes any rule, regulation, bylaw, or standard	35
having a general and uniform operation adopted by an agency under	36
the authority of the laws governing the agency; any appendix to a	37
rule; and any internal management rule. "Rule" does not include	38
any guideline adopted pursuant to section 3301.0714 of the Revised	39
Code, any order respecting the duties of employees, any finding,	40
any determination of a question of law or fact in a matter	41
presented to an agency, or any rule promulgated pursuant to	42
Chapter 119., section 4141.14, division (C)(1) or (2) of section	43
5117.02, or section 5703.14 of the Revised Code. "Rule" includes	44
any amendment or rescission of a rule.	45

(2) "Agency" means any governmental entity of the state and	46
includes, but is not limited to, any board, department, division,	47
commission, bureau, society, council, institution, state college	48
or university, community college district, technical college	49
district, or state community college. "Agency" does not include	50
the general assembly, the controlling board, the adjutant	51
general's department, or any court.	52

(3) "Internal management rule" means any rule, regulation,	53
bylaw, or standard governing the day-to-day staff procedures and	54
operations within an agency.	55

(4) "Substantive revision" has the same meaning as in	56
division (J) of section 119.01 of the Revised Code.	57

(B)(1) Any rule, other than a rule of an emergency nature,	58
adopted by any agency pursuant to this section shall be effective	59
on the tenth day after the day on which the rule in final form and	60
in compliance with division (B)(3) of this section is filed as	61
follows:	62

(a) The rule shall be filed in electronic form with both the	63
secretary of state and the director of the legislative service	64
commission;	65

(b) The rule shall be filed in electronic form with the	66
joint committee on agency rule review. Division (B)(1)(b) of this	67
section does not apply to any rule to which division (D) of this	68
section does not apply.	69

An agency that adopts or amends a rule that is subject to	70
division (D) of this section shall assign a review date to the	71
rule that is not later than five years after its effective date.	72
If no review date is assigned to a rule, or if a review date	73
assigned to a rule exceeds the five-year maximum, the review date	74
for the rule is five years after its effective date. A rule with	75
a review date is subject to review under section 119.032 of the	76
Revised Code. This paragraph does not apply to a rule of a state	77
college or university, community college district, technical	78
college district, or state community college.	79

If all filings are not completed on the same day, the rule	80
shall be effective on the tenth day after the day on which the	81
latest filing is completed. If an agency in adopting a rule	82
designates an effective date that is later than the effective date	83
provided for by division (B)(1) of this section, the rule if filed	84
as required by such division shall become effective on the later	85
date designated by the agency.	86

Any rule that is required to be filed under division (B)(1)	87
of this section is also subject to division (D) of this section if	88
not exempted by division (D)(1), (2), (3), (4), (5), (6), (7), or	89
(8) of this section.	90

(2) A rule of an emergency nature necessary for the	91
immediate preservation of the public peace, health, or safety	92
shall state the reasons for the necessity. The emergency rule, in	93
final form and in compliance with division (B)(3) of this section,	94
shall be filed in electronic form with the secretary of state, the	95
director of the legislative service commission, and the joint	96
committee on agency rule review. The emergency rule is effective	97
immediately upon completion of the latest filing, except that if	98
the agency in adopting the emergency rule designates an effective	99
date, or date and time of day, that is later than the effective	100
date and time provided for by division (B)(2) of this section, the	101
emergency rule if filed as required by such division shall become	102
effective at the later date, or later date and time of day,	103
designated by the agency.	104

An emergency rule becomes invalid at the end of the ninetieth	105
day it is in effect. Prior to that date, the agency may file the	106
emergency rule as a nonemergency rule in compliance with division	107
(B)(1) of this section. The agency may not refile the emergency	108
rule in compliance with division (B)(2) of this section so that,	109
upon the emergency rule becoming invalid under such division, the	110
emergency rule will continue in effect without interruption for	111
another ninety-day period.	112

(3) An agency shall file a rule under division (B)(1) or (2)	113
of this section in compliance with the following standards and	114
procedures:	115

(a) The rule shall be numbered in accordance with the	116
numbering system devised by the director for the Ohio	117
administrative code.	118

(b) The rule shall be prepared and submitted in compliance	119
with the rules of the legislative service commission.	120

(c) The rule shall clearly state the date on which it is to	121
be effective and the date on which it will expire, if known.	122

(d) Each rule that amends or rescinds another rule shall	123
clearly refer to the rule that is amended or rescinded. Each	124
amendment shall fully restate the rule as amended.	125

If the director of the legislative service commission or the	126
director's designee gives an agency notice pursuant to section	127
103.05 of the Revised Code that a rule filed by the agency is not	128
in compliance with the rules of the legislative service	129
commission, the agency shall within thirty days after receipt of	130
the notice conform the rule to the rules of the commission as	131
directed in the notice.	132

(C) All rules filed pursuant to divisions (B)(1)(a) and (2)	133
of this section shall be recorded by the secretary of state and	134
the director under the title of the agency adopting the rule and	135
shall be numbered according to the numbering system devised by the	136
director. The secretary of state and the director shall preserve	137
the rules in an accessible manner. Each such rule shall be a	138
public record open to public inspection and may be transmitted to	139
any law publishing company that wishes to reproduce it.	140

(D) At least sixty-five days before a board, commission,	141
department, division, or bureau of the government of the state	142
files a rule under division (B)(1) of this section, it shall file	143
the full text of the proposed rule in electronic form with the	144
joint committee on agency rule review, and the proposed rule is	145
subject to legislative review and invalidation under division (I)	146
of section 119.03 of the Revised Code. If a state board,	147
commission, department, division, or bureau makes a substantive	148
revision in a proposed rule after it is filed with the joint	149
committee, the state board, commission, department, division, or	150
bureau shall promptly file the full text of the proposed rule in	151
its revised form in electronic form with the joint committee. The	152
latest version of a proposed rule as filed with the joint	153
committee supersedes each earlier version of the text of the same	154
proposed rule. Except as provided in division (F) of this	155
section, a state board, commission, department, division, or	156
bureau shall also file the rule summary and fiscal analysis	157
prepared under section 121.24 or 127.18 of the Revised Code, or	158
both, in electronic form along with a proposed rule, and along	159
with a proposed rule in revised form, that is filed under this	160
division.	161

As used in this division, "commission" includes the public	162
utilities commission when adopting rules under a federal or state	163
statute.	164

This division does not apply to any of the following:

165

(1) A proposed rule of an emergency nature;

166

(2) A rule proposed under section 1121.05, 1121.06, 1155.18,	167
1707.201, 1733.412, 4123.29, 4123.34, 4123.341, 4123.342, 4123.40,	168
4123.411, 4123.44, or 4123.442 of the Revised Code;	169

(3) A rule proposed by an agency other than a board,	170
commission, department, division, or bureau of the government of	171
the state;	172

(4) A proposed internal management rule of a board,	173
commission, department, division, or bureau of the government of	174
the state;	175

(5) Any proposed rule that must be adopted verbatim by an	176
agency pursuant to federal law or rule, to become effective within	177
sixty days of adoption, in order to continue the operation of a	178
federally reimbursed program in this state, so long as the	179
proposed rule contains both of the following:	180

(a) A statement that it is proposed for the purpose of	181
complying with a federal law or rule;	182

(b) A citation to the federal law or rule that requires	183
verbatim compliance.	184

(6) An initial rule proposed by the director of health to	185
impose safety standards, quality-of-care standards, and	186
quality-of-care data reporting requirements with respect to a	187
health service specified in section 3702.11 of the Revised Code,	188
or an initial rule proposed by the director to impose quality	189
standards on a facility listed in division (A)(4) of section	190
3702.30 of the Revised Code, if section 3702.12 of the Revised	191
Code requires that the rule be adopted under this section;	192

(7) A rule of the state lottery commission pertaining to	193
instant game rules.	194

If a rule is exempt from legislative review under division	195
(D)(5) of this section, and if the federal law or rule pursuant to	196
which the rule was adopted expires, is repealed or rescinded, or	197
otherwise terminates, the rule is thereafter subject to	198
legislative review under division (D) of this section.	199

(E) Whenever a state board, commission, department,	200
division, or bureau files a proposed rule or a proposed rule in	201
revised form under division (D) of this section, it shall also	202
file the full text of the same proposed rule or proposed rule in	203
revised form in electronic form with the secretary of state and	204
the director of the legislative service commission. Except as	205
provided in division (F) of this section, a state board,	206
commission, department, division, or bureau shall file the rule	207
summary and fiscal analysis prepared under section 121.24 or	208
127.18 of the Revised Code, or both, in electronic form along with	209
a proposed rule or proposed rule in revised form that is filed	210
with the secretary of state or the director of the legislative	211
service commission.	212

(F) Except as otherwise provided in this division, the	213
auditor of state or the auditor of state's designee is not	214
required to file a rule summary and fiscal analysis along with a	215
proposed rule, or proposed rule in revised form, that the auditor	216
of state proposes under section 117.12, 117.19, 117.38, or 117.43	217
of the Revised Code and files under division (D) or (E) of this	218
section. If, however, the auditor of state or the designee	219
prepares a rule summary and fiscal analysis of the original	220
version of such a proposed rule for purposes of complying with	221
section 121.24 of the Revised Code, the auditor of state or	222
designee shall file the rule summary and fiscal analysis in	223
electronic form along with the original version of the proposed	224
rule filed under division (D) or (E) of this section.	225

Sec. 119.01.  As used in sections 119.01 to 119.13 of the	226
Revised Code:	227

(A)(1) "Agency" means, except as limited by this division,	228
any official, board, or commission having authority to promulgate	229
rules or make adjudications in the civil service commission, the	230
division of liquor control, the department of taxation, the	231
industrial commission, the bureau of workers' compensation, the	232
functions of any administrative or executive officer, department,	233
division, bureau, board, or commission of the government of the	234
state specifically made subject to sections 119.01 to 119.13 of	235
the Revised Code, and the licensing functions of any	236
administrative or executive officer, department, division, bureau,	237
board, or commission of the government of the state having the	238
authority or responsibility of issuing, suspending, revoking, or	239
canceling licenses.	240

Except as otherwise provided in division (I) of this section,	241
sections 119.01 to 119.13 of the Revised Code do not apply to the	242
public utilities commission. Sections 119.01 to 119.13 of the	243
Revised Code do not apply to the utility radiological safety	244
board; to the controlling board; to actions of the superintendent	245
of financial institutions and the superintendent of insurance in	246
the taking possession of, and rehabilitation or liquidation of,	247
the business and property of banks, savings and loan associations,	248
savings banks, credit unions, insurance companies, associations,	249
reciprocal fraternal benefit societies, and bond investment	250
companies; to any taken by the division of securities under	251
section 1707.201 of the Revised Code; or to any action that may be	252
taken by the superintendent of financial institutions under	253
section 1113.03, 1121.05, 1121.06, 1121.10, 1125.09, 1125.12,	254
1125.18, 1155.18, 1157.01, 1157.02, 1157.10, 1163.22, 1165.01,	255
1165.02, 1165.10, 1733.35, 1733.361, 1733.37, 1733.412, or 1761.03	256
of the Revised Code.	257

Sections 119.01 to 119.13 of the Revised Code do not apply to	258
actions of the industrial commission or the bureau of workers'	259
compensation under sections 4123.01 to 4123.94 of the Revised Code	260
with respect to all matters of adjudication, and to the actions of	261
the industrial commission and bureau of workers' compensation	262
under division (D) of section 4121.32 and sections 4123.29,	263
4123.34, 4123.341, 4123.342, 4123.40, 4123.411, 4123.44, 4123.442,	264
and divisions (B), (C), and (E) of section 4131.14 of the Revised	265
Code.	266

(2) "Agency" also means any official or work unit having	267
authority to promulgate rules or make adjudications in the	268
department of job and family services, but only with respect to	269
both of the following:	270

(a) The adoption, amendment, or rescission of rules that	271
section 5101.09 of the Revised Code requires be adopted in	272
accordance with this chapter;	273

(b) The issuance, suspension, revocation, or cancellation of	274
licenses.	275

(B) "License" means any license, permit, certificate,	276
commission, or charter issued by any agency. "License" does not	277
include any arrangement whereby a person, institution, or entity	278
furnishes medicaid services under a provider agreement with the	279
department of job and family services pursuant to Title XIX of the	280
"Social Security Act," 49 Stat. 620 (1935), 42 U.S.C. 301, as	281
amended.	282

(C) "Rule" means any rule, regulation, or standard, having a	283
general and uniform operation, adopted, promulgated, and enforced	284
by any agency under the authority of the laws governing such	285
agency, and includes any appendix to a rule. "Rule" does not	286
include any internal management rule of an agency unless the	287
internal management rule affects private rights and does not	288
include any guideline adopted pursuant to section 3301.0714 of the	289
Revised Code.	290

(D) "Adjudication" means the determination by the highest or	291
ultimate authority of an agency of the rights, duties, privileges,	292
benefits, or legal relationships of a specified person, but does	293
not include the issuance of a license in response to an	294
application with respect to which no question is raised, nor other	295
acts of a ministerial nature.	296

(E) "Hearing" means a public hearing by any agency in	297
compliance with procedural safeguards afforded by sections 119.01	298
to 119.13 of the Revised Code.	299

(F) "Person" means a person, firm, corporation, association,	300
or partnership.	301

(G) "Party" means the person whose interests are the subject	302
of an adjudication by an agency.	303

(H) "Appeal" means the procedure by which a person,	304
aggrieved by a finding, decision, order, or adjudication of any	305
agency, invokes the jurisdiction of a court.	306

(I) "Rule-making agency" means any board, commission,	307
department, division, or bureau of the government of the state	308
that is required to file proposed rules, amendments, or	309
rescissions under division (D) of section 111.15 of the Revised	310
Code and any agency that is required to file proposed rules,	311
amendments, or rescissions under divisions (B) and (H) of section	312
119.03 of the Revised Code. "Rule-making agency" includes the	313
public utilities commission. "Rule-making agency" does not	314
include any state-supported college or university.	315

(J) "Substantive revision" means any addition to,	316
elimination from, or other change in a rule, an amendment of a	317
rule, or a rescission of a rule, whether of a substantive or	318
procedural nature, that changes any of the following:	319

(1) That which the rule, amendment, or rescission permits,	320
authorizes, regulates, requires, prohibits, penalizes, rewards, or	321
otherwise affects;	322

(2) The scope or application of the rule, amendment, or	323
rescission.	324

(K) "Internal management rule" means any rule, regulation,	325
or standard governing the day-to-day staff procedures and	326
operations within an agency.	327

Sec. 1121.01.  As used in this chapter:

328

(A) "Financial institution regulatory authority" includes a	329
regulator of a business activity in which a bank or trust company	330
is engaged, or has applied to engage in, to the extent that the	331
regulator has jurisdiction over a bank or trust company engaged in	332
that business activity. A bank or trust company is engaged in a	333
business activity, and a regulator of that business activity has	334
jurisdiction over the bank or trust company, whether the bank or	335
trust company conducts the activity directly or a subsidiary or	336
affiliate of the bank or trust company conducts the activity.	337

(B) "Regulated person" means any of the following:

338

(1) A director, officer, or employee of or agent for a bank	339
or trust company or a controlling shareholder of a state bank,	340
foreign bank, or trust company;	341

(2) A person who is required to obtain, but has not yet	342
obtained, the consent of the superintendent of financial	343
institutions to acquire control of a bank pursuant to section	344
1115.06 of the Revised Code;	345

(3) A person participating in the conduct of the affairs of	346
a bank or trust company.	347

(B)(C) "Participating in the conduct of the affairs of a	348
bank or trust company" means either making decisions or, directly	349
or indirectly, taking actions that are management or policymaking	350
in nature and generally within the scope of authority of the	351
bank's or trust company's board of directors or executive	352
officers. Whether a person is or was participating in the conduct	353
of the affairs of a bank or trust company is an issue of fact, and	354
not to be determined solely on the basis of the person's title,	355
contract, or indicia of employment or independent contractor	356
status.	357

Sec. 1121.11.  (A) In administering Chapters 1101. to 1127.	358
of the Revised Code and fulfilling the duties imposed by those	359
chapters, including the duty imposed by section 1121.10 of the	360
Revised Code, the superintendent of financial institutions may do	361
any of the following:	362

(1) Participate with financial institution regulatory	363
authorities of this and other states, the United States, and other	364
countries in any of the following:	365

(a) Programs for alternate examinations of the records and	366
affairs of banks and trust companies over which they have	367
concurrent jurisdiction;	368

(b) Joint or concurrent examinations of the records and	369
affairs of banks and trust companies over which they have	370
concurrent jurisdiction;	371

(c) Coordinated examinations of the records and affairs of	372
banks and trust companies over which they have collective	373
jurisdiction.	374

(2) Conduct, participate in, or coordinate independent,	375
concurrent, joint, or coordinated examinations of the records and	376
affairs of banks and trust companies and otherwise act on behalf	377
of financial institution regulatory authorities of this and other	378
states, the United States, and other countries having jurisdiction	379
over the banks and trust companies;	380

(3) Rely on information leading to, arising from, or	381
obtained in the course of examinations conducted by financial	382
institution regulatory authorities of this and other states, the	383
United States, and other countries when both of the following	384
apply:	385

(a) Pursuant to agreement and applicable law, the	386
superintendent may receive and use the information leading to,	387
arising from, or obtained in the course of the other regulatory	388
authorities' examinations in administering Chapters 1101. to 1127.	389
of the Revised Code and acting under the authority of those	390
chapters;	391

(b) In the superintendent's judgment the other regulatory	392
authorities' personnel, practices, and authority warrant the	393
superintendent's reliance.	394

(4) Authorize financial institution regulatory authorities	395
of this and other states, the United States, and other countries	396
to receive and use information leading to, arising from, or	397
obtained in the course of examinations conducted by the division	398
of financial institutions in the same manner and for the purposes	399
they could use information leading to, arising from, or obtained	400
in the course of their own examinations when both of the following	401
apply:	402

(a) Pursuant to applicable law, information leading to,	403
arising from, or obtained in the course of examinations the other	404
regulatory authorities conduct is protected from general	405
disclosure and may only be disclosed for purposes similar to those	406
provided in section 1121.18 of the Revised Code, which are	407
principally regulatory in nature, for disclosure of information	408
leading to, arising from, or obtained in the course of	409
examinations conducted by the division;	410

(b) Pursuant to agreement and applicable law, information	411
leading to, arising from, or obtained in the course of	412
examinations conducted by the division will, in the other	413
regulatory authorities' possession or the possession of any	414
persons to whom the other regulatory authorities disclosed the	415
information as a part of examinations of those persons, be	416
protected from disclosure to the same extent as information	417
leading to, arising from, or obtained in the course of those	418
regulatory authorities' examinations.	419

(5) Rely on the actions of financial institution regulatory	420
authorities of this and other states, the United States, or other	421
countries, or participate with them jointly, in responding to	422
violations of law, unsafe or unsound practices, breaches of	423
fiduciary duty, or other regulatory concerns affecting banks and	424
trust companies over which they have concurrent jurisdiction when	425
the other regulatory authorities have adequate personnel,	426
practices, and authority to warrant the reliance;	427

(6) Implement other cooperative arrangements with financial	428
institution regulatory authorities of this and other states, the	429
United States, and other countries consistent with safety and	430
soundness.	431

(B) No person shall use any reliance by the superintendent,	432
in whole or in part, on financial institution regulatory	433
authorities of this or other states, the United States, or other	434
countries in accordance with division (A) of this section to	435
support any assertion of either of the following:	436

(1) Failure of the superintendent or division to properly	437
administer Chapters 1101. to 1127. of the Revised Code or fulfill	438
the duties imposed by those chapters;	439

(2) Disagreement by the superintendent or division with any	440
action taken by financial institution regulatory authorities of	441
this or other states, the United States, or other countries.	442

(C) In conducting, participating in, or coordinating	443
independent, concurrent, joint, or coordinated examinations of the	444
records and affairs of banks and trust companies, the	445
superintendent may purchase services from financial institution	446
regulatory authorities of this and other states, the United	447
States, and other countries, including services provided by	448
employees of other financial institution regulatory authorities in	449
their capacities as employees of other financial institution	450
regulatory authorities. The purchase of services from one or more	451
financial institution regulatory authorities of this and other	452
states, the United States, or other countries is the purchase of	453
services from a sole source provider and is not the employment of	454
any financial institution regulatory authority or any of its	455
employees.	456

The authority to purchase services pursuant to this division	457
does not impair the superintendent's authority to purchase	458
services from any other source.	459

Sec. 1121.18.  (A) Information leading to, arising from, or	460
obtained in the course of the examination of a bank or any	461
examination conducted pursuant to the authority of section 1121.10	462
or 1121.11 of the Revised Code is privileged and confidential. No	463
person, including any person to whom the information is disclosed	464
under the authority of this section, shall disclose information	465
leading to, arising from, or obtained in the course of an	466
examination, except as specifically provided in this section.	467

(B) The superintendent of financial institutions and the	468
superintendent's agents and employees may disclose information	469
leading to, arising from, or obtained in the course of an	470
examination conducted pursuant to section 1121.10 or 1121.11 of	471
the Revised Code as follows:	472

(1) To the governor, director of commerce, or deputy	473
director of commerce to enable them to act in the interests of the	474
public;	475

(2) To the banking commission to enable the commission to	476
effectively advise the superintendent and take action on any	477
matter the superintendent presents to the commission;	478

(3) To financial institution regulatory authorities of this	479
and other states, the United States, and other countries to assist	480
them in their regulatory duties;	481

(4) To the directors, officers, agents, and parent company	482
of the bank or other person examined to assist them in conducting	483
the business of the bank or other person examined in a safe and	484
sound manner and in compliance with law;	485

(5) To law enforcement authorities conducting criminal	486
investigations.	487

(C)(1) Information leading to, arising from, or obtained in	488
the course of an examination of a bank or other person pursuant to	489
section 1121.10 or 1121.11 of the Revised Code shall not be	490
discoverable from any source, and shall not be introduced into	491
evidence, except in the following circumstances:	492

(a) In connection with criminal proceedings;

493

(b) When, in the opinion of the superintendent, it is	494
appropriate with regard to enforcement actions taken and decisions	495
made by the superintendent under the authority of Chapters 1101.	496
to 1127. of the Revised Code regarding a bank, trust company, or	497
other person;	498

(c) When litigation has been initiated by the superintendent	499
in furtherance of the powers, duties, and obligations imposed upon	500
the superintendent by Chapters 1101. to 1127. of the Revised Code;	501

(d) When authorized by agreements between the superintendent	502
and financial institution regulatory authorities of this and other	503
states, the United States, and other countries authorized by	504
section 1121.11 of the Revised Code;	505

(e) When and in the manner authorized in section 1181.25 of	506
the Revised Code.	507

(2) The discovery of information leading to, arising from,	508
or obtained in the course of an examination pursuant to division	509
(C)(1)(b), (c), or (d) of this section shall be limited to	510
information that directly relates to the bank, trust company,	511
regulated person, or other person who is the subject of the	512
enforcement action, decision, or litigation.	513

(D) A report of an examination conducted pursuant to section	514
1121.10 or 1121.11 of the Revised Code is the property of the	515
division of financial institutions. Under no circumstances may	516
the bank or other person examined, its directors, officers,	517
employees, agents, regulated persons, or contractors, or any	518
person having knowledge or possession of a report of examination,	519
or any of its contents, disclose or make public in any manner the	520
report of examination or its contents. The authority provided in	521
division (B)(4) of this section for use of examination information	522
to assist in conducting the business of the bank or other person	523
examined in a safe and sound manner and in compliance with law	524
shall not be construed to authorize disclosure of a report of	525
examination or any of its contents in conducting business with the	526
examined bank's or person's customers, creditors, or shareholders,	527
or with other persons.	528

(E) Whoever violates this section shall be removed from	529
office, shall be liable, with the violator's bonder in damages to	530
the person injured by the disclosure of information, and is guilty	531
of a felony of the fourth degree.	532

Sec. 1155.01.  As used in sections 1155.01 to 1155.20 of the	533
Revised Code:	534

(A) "Controlling person" means any person or entity which,	535
either directly or indirectly, or acting in concert with one or	536
more other persons or entities, owns, controls, or holds with	537
power to vote, or holds proxies representing, fifteen per cent or	538
more of the voting shares or rights of a savings and loan	539
association, or controls in any manner the election or appointment	540
of a majority of the directors of an association. However, a	541
director of an association will not be deemed to be a controlling	542
person of such association based upon histhe director's voting,	543
or acting in concert with other directors in voting, proxies	544
obtained in connection with an annual solicitation of proxies or	545
obtained from savings account holders and borrowers if such	546
proxies are voted as directed by a majority of the entire board of	547
directors of the association, or of a committee of such directors	548
if such committee's composition and authority are controlled by a	549
majority vote of the entire board and if its authority is	550
revocable by such a majority.	551

(B) "Independent auditor" means an accountant who is licensed	552
to practice as a certified public accountant or public accountant	553
by this state, and who is employed or otherwise retained by a	554
savings and loan association to audit its accounts. An independent	555
auditor may not be an employee of the association, its	556
subsidiaries, or holding company affiliates.	557

(C) "Outside director" means a director of a savings and loan	558
association who is not an officer or employee of the association,	559
an independent auditor of the association, an attorney of the	560
association, or any other person having a fiduciary relationship,	561
other than that of being a director, with the association.	562

(D) "Holding company affiliate" means a savings and loan	563
holding company of which the savings and loan association is a	564
subsidiary and any other subsidiary of such holding company other	565
than a subsidiary of such association.	566

(E) "Financial institution regulatory authority" includes a	567
regulator of a business activity in which a savings and loan	568
association is engaged, or has applied to engage in, to the extent	569
that the regulator has jurisdiction over a savings and loan	570
association engaged in that business activity. A savings and loan	571
association is engaged in a business activity, and a regulator of	572
that business activity has jurisdiction over the savings and loan	573
association, whether the savings and loan association conducts the	574
activity directly or a subsidiary or affiliate of the savings and	575
loan association conducts the activity.	576

Sec. 1155.091.  (A) In administering Chapters 1151. to 1157.	577
of the Revised Code and fulfilling the duties imposed by those	578
chapters, including the duty imposed by section 1151.09 of the	579
Revised Code, the superintendent of financial institutions may do	580
any of the following:	581

(1) Participate with financial institution regulatory	582
authorities of this and other states, the United States, and other	583
countries in any of the following:	584

(a) Programs for alternate examinations of the records and	585
affairs of savings and loan associations over which they have	586
concurrent jurisdiction;	587

(b) Joint or concurrent examinations of the records and	588
affairs of savings and loan associations over which they have	589
concurrent jurisdiction;	590

(c) Coordinated examinations of the records and affairs of	591
savings and loan associations over which they have collective	592
jurisdiction.	593

(2) Conduct, participate in, or coordinate independent,	594
concurrent, joint, or coordinated examinations of the records and	595
affairs of savings and loan associations and otherwise act on	596
behalf of financial institution regulatory authorities of this and	597
other states, the United States, and other countries having	598
jurisdiction over the savings and loan associations;	599

(3) Rely on information leading to, arising from, or	600
obtained in the course of examinations conducted by financial	601
institution regulatory authorities of this and other states, the	602
United States, and other countries when both of the following	603
apply:	604

(a) Pursuant to agreement and applicable law, the	605
superintendent may receive and use the information leading to,	606
arising from, or obtained in the course of the other regulatory	607
authorities' examinations in administering Chapters 1151. to 1157.	608
of the Revised Code and acting under the authority of those	609
chapters;	610

(b) In the superintendent's judgment the other regulatory	611
authorities' personnel, practices, and authority warrant the	612
superintendent's reliance.	613

(4) Authorize financial institution regulatory authorities	614
of this and other states, the United States, and other countries	615
to receive and use information leading to, arising from, or	616
obtained in the course of examinations conducted by the division	617
of financial institutions in the same manner and for the purposes	618
they could use information leading to, arising from, or obtained	619
in the course of their own examinations when both of the following	620
apply:	621

(a) Pursuant to applicable law, information leading to,	622
arising from, or obtained in the course of examinations the other	623
regulatory authorities conduct is protected from general	624
disclosure and may only be disclosed for purposes similar to those	625
provided in section 1155.16 of the Revised Code, which are	626
principally regulatory in nature, for disclosure of information	627
leading to, arising from, or obtained in the course of	628
examinations conducted by the division;	629

(b) Pursuant to agreement and applicable law, information	630
leading to, arising from, or obtained in the course of	631
examinations conducted by the division will, in the other	632
regulatory authorities' possession or the possession of any	633
persons to whom the other regulatory authorities disclosed the	634
information as a part of examinations of those persons, be	635
protected from disclosure to the same extent as information	636
leading to, arising from, or obtained in the course of those	637
regulatory authorities' examinations.	638

(5) Rely on the actions of financial institution regulatory	639
authorities of this and other states, the United States, or other	640
countries, or participate with them jointly, in responding to	641
violations of law, unsafe or unsound practices, breaches of	642
fiduciary duty, or other regulatory concerns affecting savings and	643
loan associations over which they have concurrent jurisdiction	644
when the other regulatory authorities have adequate personnel,	645
practices, and authority to warrant the reliance;	646

(6) Implement other cooperative arrangements with financial	647
institution regulatory authorities of this and other states, the	648
United States, and other countries consistent with safety and	649
soundness.	650

(B) No person shall use any reliance by the superintendent,	651
in whole or in part, on financial institution regulatory	652
authorities of this or other states, the United States, or other	653
countries in accordance with division (A) of this section to	654
support any assertion of either of the following:	655

(1) Failure of the superintendent or division to properly	656
administer Chapters 1151. to 1157. of the Revised Code or fulfill	657
the duties imposed by those chapters;	658

(2) Disagreement by the superintendent or division with any	659
action taken by financial institution regulatory authorities of	660
this or other states, the United States, or other countries.	661

(C) In conducting, participating in, or coordinating	662
independent, concurrent, joint, or coordinated examinations of the	663
records and affairs of savings and loan associations, the	664
superintendent may purchase services from financial institution	665
regulatory authorities of this and other states, the United	666
States, and other countries, including services provided by	667
employees of other financial institution regulatory authorities.	668
The purchase of services from one or more financial institution	669
regulatory authorities of this and other states, the United	670
States, and other countries is the purchase of services from a	671
sole source provider and is not the employment of any financial	672
institution regulatory authority or any of its employees.	673

The authority to purchase services pursuant to this division	674
does not impair the superintendent's authority to purchase	675
services from any other source.	676

Sec. 1155.16.  (A)(1) Except as provided in division (B) of	677
this section, the superintendent of savings and loan associations	678
financial institutions, the superintendent's agents, and employees	679
shall keep privileged and confidential the examination reports,	680
information obtained in an examination, or any other information	681
obtained by reason of their official position. This section does	682
not prevent the superintendent from properly releasing to or	683
exchanging information relating to a savings and loan association,	684
or its affairs, with the governor, the director of commerce, the	685
deputy director of commerce, or representatives of state or	686
federal financial institution regulatory agencies or governmental	687
authorities, or prevent such release by the association or its	688
officers or directors, in the conduct of the business of the	689
association.	690

(2) Any person who receives privileged and confidential	691
examination reports or other information under the authority of	692
this section is also subject to the requirements of this section	693
and such person, knowing that such examination reports or	694
information are privileged and confidential, shall not purposely	695
divulge such reports or information in any manner.	696

(3) If the superintendent, an agent of the superintendent, or	697
an employee of the superintendent purposely makes, or causes to be	698
made, any false statements or reports regarding the affairs or	699
condition of a savings and loan association, the act constitutes	700
falsification under section 2921.13 of the Revised Code.	701

(B) Examination reports, information obtained in an	702
examination, and any other information obtained by reason of the	703
official position of the division of savings and loan associations	704
financial institutions shall not be discoverable from any source,	705
and shall not be introduced into evidence, except in the following	706
situations:	707

(1) In connection with criminal proceedings;

708

(2) When, in the opinion of the superintendent, it is	709
necessary for the superintendent or for the agents or employees of	710
the superintendent to take enforcement action under Chapter 1151.,	711
1153., 1155., or 1157. of the Revised Code regarding the affairs	712
of the savings and loan association examined;	713

(3) When litigation has been initiated by the superintendent	714
in furtherance of the powers, duties, and obligations imposed upon	715
the superintendent by Chapter 1151., 1153., 1155., or 1157. of the	716
Revised Code;	717

(4) When authorized by agreements between the	718
superintendent and financial institution regulatory authorities of	719
this and other states, the United States, and other countries	720
authorized by section 1155.091 of the Revised Code;	721

(5) When and in the manner authorized in section 1181.25 of	722
the Revised Code.	723

(C) The discovery of examination reports and other related	724
material pursuant to divisions (B)(2) and (3) of this section	725
shall be limited to information that directly relates to the	726
association that is the subject of the enforcement action or the	727
litigation.	728

(D)(1) No person shall fail to comply with division (A)(1),	729
(2), or (3) of this section.	730

(2) Whoever violates division (D)(1) of this section is	731
guilty of a felony of the fourth degree.	732

Sec. 1163.01.  As used in this chapter:

733

(A) "Controlling person" means any person or entity which,	734
either directly or indirectly, or acting in concert with one or	735
more other persons or entities, owns, controls, or holds with	736
power to vote, or holds proxies representing, fifteen per cent or	737
more of the voting shares or rights of a savings bank, or controls	738
in any manner the election or appointment of a majority of the	739
directors of a savings bank. However, a director of a savings	740
bank is not deemed to be a controlling person of the savings bank	741
based upon histhe director's voting, or acting in concert with	742
other directors in voting, proxies obtained in connection with an	743
annual solicitation of proxies or obtained from savings account	744
holders and borrowers if the proxies are voted as directed by a	745
majority of the entire board of directors of the savings bank, or	746
of a committee of the directors if the committee's composition and	747
authority are controlled by a majority vote of the entire board	748
and if its authority is revocable by such a majority.	749

(B) "Independent auditor" means an accountant who is	750
licensed to practice as a certified public accountant or public	751
accountant by this state, and who is employed or otherwise	752
retained by a savings bank to audit its accounts. An independent	753
auditor may not be an employee of the savings bank, its	754
subsidiaries, or holding company affiliates.	755

(C) "Outside director" means a director of a savings bank	756
who is not an officer or employee of the savings bank, an	757
independent auditor of the savings bank, an attorney of the	758
savings bank, or any other person having a fiduciary relationship,	759
other than that of being a director, with the savings bank.	760

(D) "Holding company affiliate" means a bank holding company	761
or a savings and loan holding company of which the savings bank is	762
a subsidiary and any other subsidiary of the holding company other	763
than a subsidiary of the savings bank.	764

(E) "Financial institution regulatory authority" includes a	765
regulator of a business activity in which a savings bank is	766
engaged, or has applied to engage in, to the extent that the	767
regulator has jurisdiction over a savings bank engaged in that	768
business activity. A savings bank is engaged in a business	769
activity, and a regulator of that business activity has	770
jurisdiction over the savings bank, whether the savings bank	771
conducts the activity directly or a subsidiary or affiliate of the	772
savings bank conducts the activity.	773

Sec. 1163.121.  (A) In administering Chapters 1161. to 1165.	774
of the Revised Code and fulfilling the duties imposed by those	775
chapters, including the duty imposed by section 1163.12 of the	776
Revised Code, the superintendent of financial institutions may do	777
any of the following:	778

(1) Participate with financial institution regulatory	779
authorities of this and other states, the United States, and other	780
countries in any of the following:	781

(a) Programs for alternate examinations of the records and	782
affairs of savings banks over which they have concurrent	783
jurisdiction;	784

(b) Joint or concurrent examinations of the records and	785
affairs of savings banks over which they have concurrent	786
jurisdiction;	787

(c) Coordinated examinations of the records and affairs of	788
savings banks over which they have collective jurisdiction.	789

(2) Conduct, participate in, or coordinate independent,	790
concurrent, joint, or coordinated examinations of the records and	791
affairs of savings banks and otherwise act on behalf of financial	792
institution regulatory authorities of this and other states, the	793
United States, and other countries having jurisdiction over the	794
savings banks;	795

(3) Rely on information leading to, arising from, or	796
obtained in the course of examinations conducted by financial	797
institution regulatory authorities of this and other states, the	798
United States, and other countries when both of the following	799
apply:	800

(a) Pursuant to agreement and applicable law, the	801
superintendent may receive and use the information leading to,	802
arising from, or obtained in the course of the other regulatory	803
authorities' examinations in administering Chapters 1161. to 1165.	804
of the Revised Code and acting under the authority of those	805
chapters;	806

(b) In the superintendent's judgment the other regulatory	807
authorities' personnel, practices, and authority warrant the	808
superintendent's reliance.	809

(4) Authorize financial institution regulatory authorities	810
of this and other states, the United States, and other countries	811
to receive and use information leading to, arising from, or	812
obtained in the course of examinations conducted by the division	813
of financial institutions in the same manner and for the purposes	814
they could use information leading to, arising from, or obtained	815
in the course of their own examinations when both of the following	816
apply:	817

(a) Pursuant to applicable law, information leading to,	818
arising from, or obtained in the course of examinations the other	819
regulatory authorities conduct is protected from general	820
disclosure and may only be disclosed for purposes similar to those	821
provided in section 1163.20 of the Revised Code, which are	822
principally regulatory in nature, for disclosure of information	823
leading to, arising from, or obtained in the course of	824
examinations conducted by the division;	825

(b) Pursuant to agreement and applicable law, information	826
leading to, arising from, or obtained in the course of	827
examinations conducted by the division will, in the other	828
regulatory authorities' possession or the possession of any	829
persons to whom the other regulatory authorities disclosed the	830
information as a part of examinations of those persons, be	831
protected from disclosure to the same extent as information	832
leading to, arising from, or obtained in the course of those	833
regulatory authorities' examinations.	834

(5) Rely on the actions of financial institution regulatory	835
authorities of this and other states, the United States, or other	836
countries, or participate with them jointly, in responding to	837
violations of law, unsafe or unsound practices, breaches of	838
fiduciary duty, or other regulatory concerns affecting savings	839
banks over which they have concurrent jurisdiction when the other	840
regulatory authorities have adequate personnel, practices, and	841
authority to warrant the reliance;	842

(6) Implement other cooperative arrangements with financial	843
institution regulatory authorities of this and other states, the	844
United States, and other countries consistent with safety and	845
soundness.	846

(B) No person shall use any reliance by the superintendent,	847
in whole or in part, on financial institution regulatory	848
authorities of this or other states, the United States, or other	849
countries in accordance with division (A) of this section to	850
support any assertion of either of the following:	851

(1) Failure of the superintendent or division to properly	852
administer Chapters 1161. to 1165. of the Revised Code or fulfill	853
the duties imposed by those chapters;	854

(2) Disagreement by the superintendent or division with any	855
action taken by financial institution regulatory authorities of	856
this or other states, the United States, or other countries.	857

(C) In conducting, participating in, or coordinating	858
independent, concurrent, joint, or coordinated examinations of the	859
records and affairs of savings banks, the superintendent may	860
purchase services from financial institution regulatory	861
authorities of this and other states, the United States, and other	862
countries, including services provided by employees of other	863
financial institution regulatory authorities. The purchase of	864
services from one or more financial institution regulatory	865
authorities of this and other states, the United States, and	866
other countries is the purchase of services from a sole source	867
provider and is not the employment of any financial institution	868
regulatory authority or any of its employees.	869

The authority to purchase services pursuant to this division	870
does not impair the superintendent's authority to purchase	871
services from any other source.	872

Sec. 1163.20.  (A)(1) Except as provided in division (B) of	873
this section, the superintendent of savings banksfinancial	874
institutions, his agents, and employees shall keep privileged and	875
confidential the examination reports, information obtained in an	876
examination, or any other information obtained by reason of their	877
official position. This section does not prevent the	878
superintendent from properly releasing to or exchanging	879
information relating to a savings bank, or its affairs, with the	880
governor, the director of commerce, the deputy director of	881
commerce, or representatives of state or federal financial	882
institution regulatory agencies or governmental authorities, or	883
prevent such release by the savings bank or its officers or	884
directors, in the conduct of the business of the savings bank.	885

(2) Any person who receives privileged and confidential	886
examination reports or other information under the authority of	887
this section also is subject to the requirements of this section.	888
No person, knowing that the examination reports or information are	889
privileged and confidential, shall purposely divulge the reports	890
or information in any manner.	891

(3) Neither the superintendent, nor any agent or employee of	892
the superintendent, shall purposely make, or cause to be made, any	893
false statements or reports regarding the affairs or condition of	894
a savings bank.	895

(B) Examination reports, information obtained in an	896
examination, and any other information obtained by reason of the	897
official position of the division of savings banksfinancial	898
institutions shall not be discoverable from any source, and shall	899
not be introduced into evidence, except in the following	900
situations:	901

(1) In connection with criminal proceedings;

902

(2) When, in the opinion of the superintendent, it is	903
necessary for the superintendent, his agents, or employees to take	904
enforcement action under this chapter or Chapter 1161. or 1165. of	905
the Revised Code regarding the affairs of the savings bank	906
examined;	907

(3) When litigation has been initiated by the superintendent	908
in furtherance of the powers, duties, and obligations imposed upon	909
the superintendent by this chapter or Chapter 1161. or 1165. of	910
the Revised Code;	911

(4) When authorized by agreements between the	912
superintendent and financial institution regulatory authorities of	913
this and other states, the United States, and other countries	914
authorized by section 1163.121 of the Revised Code;	915

(5) When and in the manner authorized in section 1181.25 of	916
the Revised Code.	917

(C) The discovery of examination reports and other related	918
material pursuant to divisions (B)(2) and (3) of this section	919
shall be limited to information that directly relates to the	920
savings bank which is the subject of the enforcement action or the	921
litigation.	922

(D)(1) No person shall fail to comply with division (A)(1),	923
(2), or (3) of this section.	924

(2) Whoever violates division (D)(1) of this section is	925
guilty of a felony of the fourth degree.	926

Sec. 1181.25. The superintendent of financial institutions	927
may introduce into evidence or disclose, or authorize to be	928
introduced into evidence or disclosed, information that, under	929
sections 1121.18, 1155.16, 1163.20, 1321.09, 1321.55, 1321.76,	930
1322.06, 1322.061, 1733.32, 1733.327, and 4727.18 of the Revised	931
Code, is privileged, confidential, or otherwise not public	932
information or a public record, provided that the superintendent	933
acts only as provided in those sections or in the following	934
circumstances:	935

(A) When in the opinion of the superintendent, it is	936
appropriate with regard to any enforcement actions taken and	937
decisions made by the superintendent under Chapters 1315., 1321.,	938
1322., 1733., 4712., 4727., and 4728. of the Revised Code or Title	939
XI of the Revised Code;	940

(B) When litigation has been initiated by the	941
superintendent in furtherance of the powers, duties, and	942
obligations imposed upon the superintendent by Chapters 1315.,	943
1321., 1322., 1733., 4712., 4727., and 4728. of the Revised Code	944
or Title XI of the Revised Code;	945

(C) When in the opinion of the superintendent, it is	946
appropriate with regard to enforcement actions taken or decisions	947
made by other financial institution regulatory authorities to whom	948
the superintendent has provided the information pursuant to	949
authority in Chapters 1315., 1321., 1322., 1733., 4712., 4727.,	950
and 4728. of the Revised Code or Title XI of the Revised Code.	951

Sec. 1321.09. (A) Every licensee shall keep and use in the	952
licensee's business such books, accounts, and records as will	953
enable the division of financial institutions to determine whether	954
the licensee is complying with sections 1321.01 to 1321.19 of the	955
Revised Code and with the orders and rules made by the division	956
under those sections. Every licensee shall preserve such books,	957
accounts, and records for at least two years after making the	958
final entry on any loan recorded therein. Accounting systems	959
maintained in whole or in part by mechanical or electronic data	960
processing methods that provide information equivalent to that	961
otherwise required are acceptable for this purpose.	962

As required by the superintendent of financial institutions,	963
every licensee each year shall file a report with the division	964
giving such relevant information concerning the business and	965
operations, during the preceding calendar year, of each licensed	966
place of business conducted by the licensee within the state. If	967
a licensee has more than one place of business within this state	968
it is optional with the licensee to furnish the report for each	969
location, or a composite report for all locations. Such report	970
shall be made under oath in the form prescribed by the division,	971
which shall make and publish annually an analysis and	972
recapitulation of such reports. Such licensee reports are not	973
public records and shall only be used by the division for the	974
purpose of enforcing sections 1321.01 to 1321.19 of the Revised	975
Code or any rules or orders made in compliance with those	976
sections. Such licensee reports may be introduced into evidence or	977
disclosed when and in the manner authorized in section 1181.25 of	978
the Revised Code, or in connection with criminal proceedings.	979

This section does not prevent the division from releasing to	980
or exchanging with other financial institution regulatory	981
authorities information relating to licensees.	982

(B) For purposes of this section, "financial institution	983
regulatory authority" includes a regulator of a business activity	984
in which a licensee is engaged, or has applied to engage in, to	985
the extent that the regulator has jurisdiction over a licensee	986
engaged in that business activity. A licensee is engaged in a	987
business activity, and a regulator of that business activity has	988
jurisdiction over the licensee, whether the licensee conducts the	989
activity directly or a subsidiary or affiliate of the licensee	990
conducts the activity.	991

Sec. 1321.55.  (A) Every registrant shall keep records	992
pertaining to loans made under sections 1321.51 to 1321.60 of the	993
Revised Code. Such records shall be segregated from records	994
pertaining to transactions that are not subject to these sections	995
of the Revised Code. Every registrant shall preserve records	996
pertaining to loans made under sections 1321.51 to 1321.60 of the	997
Revised Code for at least two years after making the final entry	998
on such records. Accounting systems maintained in whole or in	999
part by mechanical or electronic data processing methods that	1000
provide information equivalent to that otherwise required are	1001
acceptable for this purpose. At least once each eighteen-month	1002
cycle, the division of financial institutions shall make or cause	1003
to be made an examination of records pertaining to loans made	1004
under sections 1321.51 to 1321.60 of the Revised Code, for the	1005
purpose of determining whether the registrant is complying with	1006
these sections and of verifying the registrant's annual report.	1007

(B)(1) As required by the superintendent of financial	1008
institutions, each registrant shall file with the division each	1009
year a report under oath or affirmation, on forms supplied by the	1010
division, concerning the business and operations for the preceding	1011
calendar year. Whenever a registrant operates two or more	1012
registered offices or whenever two or more affiliated registrants	1013
operate registered offices, then a composite report of the group	1014
of registered offices may be filed in lieu of individual reports.	1015

(2) The division shall publish annually an analysis of the	1016
information required under division (B)(1) of this section, but	1017
the individual reports shall not be public records and shall not	1018
be open to public inspection.	1019

(C) All information obtained by the superintendent or the	1020
superintendent's deputies, examiners, assistants, agents, or	1021
clerks by reason of their official position, including information	1022
obtained by such persons from the annual report of a registrant or	1023
in the course of examining a registrant or investigating an	1024
applicant for a certificate, is privileged and confidential. All	1025
such information shall remain privileged and confidential for all	1026
purposes except when it is necessary for the superintendent and	1027
the superintendent's deputies, examiners, assistants, agents, or	1028
clerks to take official action regarding the affairs of the	1029
registrant or in connection with criminal proceedings. Such	1030
information may also be introduced into evidence or disclosed when	1031
and in the manner authorized in section 1181.25 of the Revised	1032
Code.	1033

(D) No person is in violation of sections 1321.51 to 1321.60	1034
of the Revised Code for any act taken or omission made in reliance	1035
on a written notice, interpretation, or examination report from	1036
the superintendent.	1037

(E) This section does not prevent the division from	1038
releasing to or exchanging with other financial institution	1039
regulatory authorities information relating to registrants.	1040

(F) For purposes of this section, "financial institution	1041
regulatory authority" includes a regulator of a business activity	1042
in which a registrant is engaged, or has applied to engage in, to	1043
the extent that the regulator has jurisdiction over a registrant	1044
engaged in that business activity. A registrant is engaged in a	1045
business activity, and a regulator of that business activity has	1046
jurisdiction over the registrant, whether the registrant conducts	1047
the activity directly or a subsidiary or affiliate of the	1048
registrant conducts the activity.	1049

Sec. 1321.76.  (A) Each licensee shall keep records of its	1050
insurance premium finance transactions conducted under sections	1051
1321.71 to 1321.83 of the Revised Code. Such records shall be	1052
maintained separately from any records pertaining to transactions	1053
that are not subject to those sections. Each licensee shall	1054
preserve its records pertaining to insurance premium finance	1055
transactions conducted under sections 1321.71 to 1321.83 of the	1056
Revised Code for at least two years after the final entry on such	1057
records. Preservation of records by means of accounting systems	1058
maintained in whole or in part by mechanical or electronic data	1059
processing methods constitutes compliance with this division.	1060

The division of financial institutions for purposes of	1061
determining whether a licensee is complying with sections 1321.71	1062
to 1321.83 of the Revised Code, may make or cause to be made an	1063
examination of records pertaining to insurance premium finance	1064
transactions conducted under those sections.	1065

(B) If a licensee's books, records, data, and other	1066
documents are located outside this state, the licensee shall, upon	1067
the request of the superintendent of financial institutions,	1068
deposit with the division an amount equal to the estimated costs,	1069
as determined by the superintendent, of an examination of the	1070
licensee conducted outside this state. After the actual costs of	1071
the examination have been determined and itemized by the division,	1072
the division shall return to the licensee any amount it had	1073
deposited in excess of the actual costs.	1074

(C) All information obtained by the superintendent or the	1075
superintendent's deputies, examiners, assistants, agents, or	1076
clerks by reason of their official position, including information	1077
obtained by such persons in the course of examining a licensee or	1078
investigating an applicant for a license, is privileged and	1079
confidential. All such information shall remain privileged and	1080
confidential for all purposes except when, in the opinion of the	1081
superintendent, it is necessary for the superintendent and the	1082
superintendent's deputies, examiners, assistants, agents, or	1083
clerks to take official action in administering and enforcing	1084
sections 1321.71 to 1321.83 of the Revised Code or in connection	1085
with criminal proceedings. Such information may also be introduced	1086
into evidence or disclosed when and in the manner authorized in	1087
section 1181.25 of the Revised Code.	1088

(D) This section does not prevent the division from	1089
releasing to or exchanging with other financial institution	1090
regulatory authorities information relating to licensees.	1091

(E) For purposes of this section, "financial institution	1092
regulatory authority" includes a regulator of a business activity	1093
in which a licensee is engaged, or has applied to engage in, to	1094
the extent that the regulator has jurisdiction over a licensee	1095
engaged in that business activity. A licensee is engaged in a	1096
business activity, and a regulator of that business activity has	1097
jurisdiction over the licensee, whether the licensee conducts the	1098
activity directly or a subsidiary or affiliate of the licensee	1099
conducts the activity.	1100

Sec. 1322.06.  (A) As often as the superintendent of	1101
financial institutions considers it necessary, the superintendent	1102
may examine the registrant's records pertaining to business	1103
transacted pursuant to sections 1322.01 to 1322.12 of the Revised	1104
Code.	1105

(B) A registrant shall maintain records pertaining to	1106
business transacted pursuant to sections 1322.01 to 1322.12 of the	1107
Revised Code for two years or more after the final entry on such	1108
records. No registrant shall fail to comply with this division.	1109

(C)(1) All information obtained by the superintendent or the	1110
superintendent's deputies, examiners, assistants, agents, or	1111
clerks by reason of their official position, including information	1112
obtained by such persons in the course of examining a registrant	1113
or investigating an applicant for a certificate of registration,	1114
is privileged and confidential. All such information shall remain	1115
privileged and confidential for all purposes except when it is	1116
necessary for the superintendent and the superintendent's	1117
deputies, examiners, assistants, agents, or clerks to take	1118
official action regarding the affairs of the registrant or in	1119
connection with criminal proceedings. This information may also be	1120
introduced into evidence or disclosed when and in the manner	1121
authorized by section 1181.25 of the Revised Code.	1122

(2) All application information, except social security	1123
numbers, employer identification numbers, financial account	1124
numbers, the identity of the institution where financial accounts	1125
are maintained, personal financial information, fingerprint cards	1126
and the information contained on such cards, and criminal	1127
background information, is a public record as defined in section	1128
149.43 of the Revised Code.	1129

(3) This section does not prevent the division of	1130
financial institutions from releasing to or exchanging with other	1131
financial institution regulatory authorities information relating	1132
to registrants. For this purpose, a "financial institution	1133
regulatory authority" includes a regulator of a business activity	1134
in which a registrant is engaged, or has applied to engage in, to	1135
the extent that the regulator has jurisdiction over a registrant	1136
engaged in that business activity. A registrant is engaged in a	1137
business activity, and a regulator of that business activity has	1138
jurisdiction over the registrant, whether the registrant conducts	1139
the activity directly or a subsidiary or affiliate of the	1140
registrant conducts the activity.	1141

(4) This section does not prevent the division from	1142
releasing information relating to registrants to the attorney	1143
general for purposes relating to the attorney general's	1144
administration of Chapter 1345. of the Revised Code. Information	1145
the division releases to the attorney general pursuant to this	1146
section remains privileged and confidential, and the attorney	1147
general may not disclose the information or introduce the	1148
information into evidence unless the superintendent authorizes the	1149
disclosure or introduction into evidence in connection with the	1150
attorney general's administration of Chapter 1345. of the Revised	1151
Code.	1152

Sec. 1322.061. (A)(1) The following information is	1153
privileged and confidential:	1154

(a) Examination information, and any information leading to	1155
or arising from an examination;	1156

(b) Investigation information, and any information arising	1157
from or leading to an investigation.	1158

(2) The information described in division (A)(1) of this	1159
section shall remain privileged and confidential for all purposes	1160
except when it is necessary for the superintendent of financial	1161
institutions to take official action regarding the affairs of a	1162
registrant or licensee, or in connection with civil or criminal	1163
investigations or proceedings conducted by the attorney general or	1164
a county prosecutor. The superintendent may share examination and	1165
investigation information with any law enforcement agency or any	1166
other state or federal regulatory agency. Any information shared	1167
with the attorney general, a county prosecutor, or a law	1168
enforcement agency or other state or federal regulatory agency	1169
shall remain privileged and confidential and shall only be used in	1170
connection with an official investigation, proceeding, or action.	1171
This information may also be introduced into evidence or disclosed	1172
when and in the manner authorized by section 1181.25 of the	1173
Revised Code.	1174

(B) All application information, except social security	1175
numbers, employer identification numbers, financial account	1176
numbers, the identity of the institution where financial accounts	1177
are maintained, personal financial information, fingerprint cards	1178
and the information contained on such cards, and criminal	1179
background information, is a public record as defined in section	1180
149.43 of the Revised Code.	1181

(C) This section does not prevent the division of financial	1182
institutions from releasing to or exchanging with other financial	1183
institution regulatory authorities information relating to	1184
registrants and licensees. For this purpose, a "financial	1185
institution regulatory authority" includes a regulator of a	1186
business activity in which a registrant or licensee is engaged, or	1187
has applied to engage in, to the extent that the regulator has	1188
jurisdiction over a registrant or licensee engaged in that	1189
business activity. A registrant or licensee is engaged in a	1190
business activity, and a regulator of that business activity has	1191
jurisdiction over the registrant or licensee, whether the	1192
registrant or licensee conducts the activity directly or a	1193
subsidiary or affiliate of the registrant or licensee conducts the	1194
activity.	1195

(D) This section does not prevent the division from	1196
releasing information relating to registrants and licensees to the	1197
attorney general for purposes relating to the attorney general's	1198
administration of Chapter 1345. of the Revised Code. Information	1199
the division releases to the attorney general pursuant to this	1200
section remains privileged and confidential, and the attorney	1201
general may not disclose the information or introduce the	1202
information into evidence unless the superintendent authorizes the	1203
disclosure or introduction into evidence in connection with the	1204
attorney general's administration of Chapter 1345. of the Revised	1205
Code.	1206

Sec. 1707.092.  (A) For the purposes of selling securities	1207
in this state, except securities that are the subject matter of	1208
transactions enumerated in section 1707.03 of the Revised Code, an	1209
investment company, as defined by the Investment Company Act of	1210
1940, that is registered or has filed a registration statement	1211
with the securities and exchange commission under the Investment	1212
Company Act of 1940, shall file the following with the division of	1213
securities:	1214

(1) For the purposes of the sale of securities by a managed	1215
investment company, as defined in the Investment Company Act of	1216
1940:	1217

(a) A notice filing consisting of either of the following:

1218

(i)(a) A copy of the investment company's federal	1219
registration statement as filed with the securities and exchange	1220
commission;	1221

(ii)(b) A form U-1 or form NF of the North American	1222
securities administrators association and a copy of the investment	1223
company's prospectus and statement of additional information.	1224

(b)(2) Appropriate filing fees consisting of both of the	1225
following:	1226

(i)(a) A flat fee of one hundred dollars;

1227

(ii)(b) A fee calculated at one-tenth of one per cent of the	1228
aggregate price at which the securities are to be sold to the	1229
public in this state, which calculated fee, however, shall in no	1230
case be less than one hundred or more than one thousand dollars.	1231

(c) Upon the registration of the securities with the	1232
securities and exchange commission, a managed investment company	1233
with an initial notice filing on file with the division shall	1234
submit to the division a copy of its final prospectus.	1235

(2) For the purposes of the sale of securities by a	1236
non-managed investment company, as defined in the Investment	1237
Company Act of 1940:	1238

(a) A notice filing consisting of either a copy of the	1239
investment company's federal registration statement as filed with	1240
the securities and exchange commission or a form U-1 or form NF of	1241
the North American securities administrators association;	1242

(b) Appropriate filing fees, as provided in division	1243
(A)(1)(b) of this section;	1244

(c) Upon the effectiveness of the registration of the	1245
securities with the securities and exchange commission, a	1246
non-managed investment company shall submit to the division a copy	1247
of its final prospectus.	1248

(B)(1) Upon payment of the maximum filing fees as provided	1249
in division (A)(1)(b) or (2)(b)(A)(2) of this section, a managed	1250
or non-managedan investment company may sell an indefinite amount	1251
of securities in this state.	1252

(2) A managed or non-managedAn investment company making a	1253
notice filing as provided in this section shall comply with	1254
section 1707.11 of the Revised Code. An investment company that	1255
previously filed with the division a valid consent to service of	1256
process pursuant to section 1707.11 of the Revised Code may	1257
incorporate that consent by reference.	1258

(C)(1) For offerings involving covered securities, as	1259
defined in section 18 of the "Securities actAct of 1933," 15	1260
U.S.C. 77r, that are not subject to section 1707.02, 1707.03,	1261
1707.04, 1707.06, 1707.08, 1707.09, or 1707.091 of the Revised	1262
Code, or division (A) of this section, a notice filing shall be	1263
submitted to the division together with a consent to service of	1264
process pursuant to section 1707.11 of the Revised Code and a	1265
filing fee as provided in division (A)(1)(b)(A)(2) of this	1266
section.	1267

(2) The notice filing described in division (C)(1) of this	1268
section shall consist of any document filed with the securities	1269
and exchange commission pursuant to the Securities Act of 1933,	1270
together with annual or periodic reports of the value of the	1271
securities sold or offered to be sold to persons located in this	1272
state.	1273

(D) A notice filing submitted under this section shall be	1274
effective for thirteen months.	1275

Sec. 1707.11.  (A) Each person that is not organized	1276
under the laws of this state, that is not licensed under section	1277
1703.03 of the Revised Code, or that does not have its principal	1278
place of business in this state, shall submit to the division of	1279
securities an irrevocable consent to service of process, as	1280
described in division (B) of this section, in connection with any	1281
of the following:	1282

(1) Filings to claim any of the exemptions enumerated in	1283
division (Q), (W), (X), or (Y) of section 1707.03 of the Revised	1284
Code;	1285

(2) Applications for registration by description,	1286
qualification, or coordination;	1287

(3) Notice filings pursuant to section 1707.092 or 1707.141	1288
of the Revised Code;	1289

(4) Applications for licensure as a securities dealer under	1290
section 1707.15 of the Revised Code;	1291

(5) Applications for licensure as an investment adviser	1292
under section 1707.151 of the Revised Code.	1293

(B) The irrevocable written consent shall be executed and	1294
acknowledged by an individual duly authorized to give the consent	1295
and shall do all of the following:	1296

(1) Designate the secretary of state as agent for service of	1297
process or pleadings;	1298

(2) State that actions growing out of the sale of such	1299
securities, the giving of investment advice, or fraud committed by	1300
a person on whose behalf the consent is submitted may be commenced	1301
against the person, in the proper court of any county in this	1302
state in which a cause of action may arise or in which the	1303
plaintiff in the action may reside, by serving on the secretary of	1304
state any proper process or pleading authorized by the laws of	1305
this state;	1306

(3) Stipulate that service of process or pleading on the	1307
secretary of state shall be taken in all courts to be as valid and	1308
binding as if service had been made upon the person on whose	1309
behalf the consent is submitted.	1310

(C) Service of any process or pleadings may be made on the	1311
secretary of state by duplicate copies, of which one shall be	1312
filed in the office of the secretary of state, and the other	1313
immediately forwarded by the secretary of state by certified mail	1314
to the principal place of business of the person on whose behalf	1315
the consent is submitted or to the last known address as shown on	1316
the filing made with the division. However, failure to mail such	1317
copy does not invalidate the service.	1318

(D) Notwithstanding any provision of this chapter, or of any	1319
rule adopted by the division of securities under this chapter,	1320
that requires the submission of a consent to service of process,	1321
the division may provide by rule for the electronic filing or	1322
submission of a consent to service of process.	1323

Sec. 1707.12.  (A) AllExcept for offering materials filed	1324
with the division of securities in connection with exempt	1325
transactions under divisions (Q) and (W) of section 1707.03 of the	1326
Revised Code, all applications and other papers filed with the	1327
division of securities shall be open to inspection at all	1328
reasonable times, except for unreasonable or improper purposes.	1329

(B) Information obtained by the division through any	1330
offering materials filed with the division in connection with	1331
exempt transactions under divisions (Q) and (W) of section 1707.03	1332
of the Revised Code or through any investigation shall be retained	1333
by the division and shall not be available to inspection by	1334
persons other than those having a direct economic interest in the	1335
information or the transaction under investigation, or by a law	1336
enforcement officer pursuant to the duties of his officelaw	1337
enforcement agencies, state agencies, federal agencies, and other	1338
entities as set forth by rules adopted by the division.	1339

(C) Confidential law enforcement investigatory records and	1340
trial preparation records of the division of securities or any	1341
other law enforcement or administrative agency which are in the	1342
possession of the division of securities shall in no event be	1343
available to inspection by other than law enforcement agencies,	1344
state agencies, federal agencies, and other entities as set forth	1345
by rules adopted by the division.	1346

(D) All public records shall be prepared and made available	1347
promptly to any member of the general public at all reasonable	1348
times for inspection. Upon request, the custodian of public	1349
records shall make copies of the records available at cost, within	1350
a reasonable period of time. To facilitate public access, the	1351
division shall maintain public records in such a manner that they	1352
can be made available pursuant to this section.	1353

(E) No employee or representative of the division or the	1354
department of commerce shall be required to testify concerning any	1355
document or record subject to division (B) or (C) of this section,	1356
except as set forth by rules adopted by the division.	1357

(F) As used in this section:

1358

(1) "Confidential law enforcement investigatory record"	1359
means any record that pertains to a law enforcement matter of a	1360
criminal, quasi-criminal, civil, or administrative nature,	1361
provided that release of the record would create a high	1362
probability of disclosure of any of the following:	1363

(a) The identity of a suspect who has not been charged with	1364
the offense to which the record pertains, or of an information	1365
source or witness to whom confidentiality reasonably has been	1366
promised;	1367

(b) Information provided by an information source or witness	1368
to whom confidentiality reasonably has been promised, which	1369
information reasonably would tend to disclose histhe identity of	1370
the information source or witness;	1371

(c) Specific confidential investigatory techniques or	1372
procedures or specific investigatory work product.	1373

(2) "Trial preparation record" means any record that	1374
contains information that is specifically compiled in reasonable	1375
anticipation of, or in defense of, a criminal, quasi-criminal,	1376
civil, or administrative action or proceeding, including, but not	1377
limited to, the independent thought processes and personal trial	1378
preparation of an attorney and division personnel, their notes,	1379
diaries, and memoranda.	1380

Sec. 1707.141.  (A) No person shall act as an investment	1381
adviser, unless one of the following applies:	1382

(1) The person is licensed as an investment adviser by the	1383
division of securities; however, nothing in this section shall be	1384
construed to prohibit a person from being licensed by the division	1385
as both an investment adviser and a dealer or salesperson.	1386

(2) The person is registered under section 203 of the	1387
"Investment Advisers Act of 1940," 15 U.S.C. 80b-3, as an	1388
investment adviser and is in compliance with the notice filing	1389
requirements of division (B) of this section.	1390

(3) The person has no place of business in this state, and	1391
the person's only clients in this state are any of the following:	1392

(a) Investment companies as defined in the Investment	1393
Company Act of 1940;	1394

(b) Other investment advisers;

1395

(c) Licensed dealers;

1396

(d) Banks;

1397

(e) Insurance companies subject to regulation under Title	1398
XXXIX of the Revised Code and health insuring corporations	1399
regulated under Chapter 1751. of the Revised Code;	1400

(f) Employee benefit plans with assets of not less than one	1401
million dollars;	1402

(g) Government agencies or instrumentalities, whether acting	1403
for themselves or trustees with investment control;	1404

(h) Other institutional investors as the division may	1405
designate by rule.	1406

(4) The person has no place of business in this state, and	1407
during the preceding twelve-month period, the person has had not	1408
more than five clients, other than those described in division	1409
(A)(3) of this section, that are residents of this state.	1410

(5) The person is a charitable organization, as defined in	1411
section 3(c)(10) of the "Investment Company Act of 1940," 54 Stat.	1412
797, 15 U.S.C. 80a-3(c)(10), as amended, or is a trustee,	1413
director, officer, employee, or volunteer of such a charitable	1414
organization acting within the scope of the person's employment or	1415
duties with such an organization, whose advice, analysis, or	1416
reports are provided only to one or more of the following:	1417

(a) Any such charitable organization;

1418

(b) A fund that is excluded from the definition of an	1419
investment company under section 3(c)(10)(B) of the "Investment	1420
Company Act of 1940," 54 Stat. 797, 15 U.S.C. 80a-3(c)(10)(B), as	1421
amended;	1422

(c) A trust or other donative instrument described in	1423
section 3(c)(10)(B) of the "Investment Company Act of 1940," 54	1424
Stat. 797, 15 U.S.C. 80a-3(c)(10)(B), as amended, or the trustees,	1425
administrators, settlors and potential settlors, or beneficiaries	1426
of any such trust or other instrument.	1427

(6) The person is a plan described in subsection 414(e) of	1428
the "Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.	1429
414, as amended, any person or entity eligible to establish and	1430
maintain such a plan under Title 26 of the United States Code, or	1431
any trustee, director, officer, or employee of or volunteer for	1432
any such plan or person, if such person or entity, acting in such	1433
capacity, provides investment advice exclusively to, or with	1434
respect to, any plan, person, or entity, or any company, account,	1435
or fund that is excluded from the definition of an investment	1436
company under section 3(c)(14) of the "Investment Company Act of	1437
1940," 54 Stat. 797, 15 U.S.C. 80a-3(c)(14), as amended.	1438

(B)(1) No person who is registered under section 203 of the	1439
"Investment Advisers Act of 1940," 15 U.S.C. 80b-3, as an	1440
investment adviser shall act as an investment adviser, unless the	1441
person has done both of the following:	1442

(a) Filed with the division a consent to service of process	1443
pursuant to section 1707.11 of the Revised Code, together with	1444
either a notice filing form as specified in rules adopted by the	1445
division or a copy of those documents that have been filed by the	1446
investment adviser with the securities and exchange commission as	1447
specified in rules adopted by the division;	1448

(b) Paid the notice filing fee specified in division (B) of	1449
section 1707.17 of the Revised Code.	1450

(2) Upon compliance with division (B)(1) of this section,	1451
the division shall issue to the person an acknowledgment of notice	1452
filing.	1453

(3) The notice filing and fee requirements of division	1454
(B)(1) of this section do not apply to a person described in	1455
division (A)(3) or, (4), (5), or (6) of this section.	1456

Sec. 1707.15.  (A) Application for a dealer's license shall	1457
be made in accordance with this section and by filing with the	1458
division of securities the information, materials, and forms	1459
specified in rules adopted by the division, along with all of the	1460
following information:	1461

(1) The name and address of the applicant;

1462

(2) A description of the applicant, including, if the	1463
applicant is a partnership, unincorporated association, or any	1464
similar form of business organization, the names and the residence	1465
and business addresses of all partners, officers, directors,	1466
trustees, or managers of the organization, and the limitation of	1467
the liability of any partner or member; if the applicant is a	1468
corporation, a list of its executive officers and directors, and	1469
the residence and business addresses of each; and if it is a	1470
foreign corporation, a copy of its articles of incorporation in	1471
addition thereto;	1472

(3) The location and addresses of the principal office and	1473
all other offices of the applicant;	1474

(4)(3) A general description of the business of the	1475
applicant done prior to the application, including a list of	1476
states in which the applicant is a licensed dealer.	1477

(B) Each applicant shall file an irrevocable consent to	1478
service of process as provided in section 1707.11 of the Revised	1479
Code.	1480

(C)(1) The division may investigate any applicant for a	1481
license, and may require such additional information as it deems	1482
necessary to determine the applicant's business repute and	1483
qualifications to act as a dealer in securities.	1484

(2) If the application for any license involves	1485
investigation outside of this state, the applicant may be required	1486
by the division to advance sufficient funds to pay any of the	1487
actual expenses of such examination. An itemized statement of any	1488
such expenses which the applicant is required to pay shall be	1489
furnished the applicant by the division.	1490

(D)(C) The division shall by rule require one natural	1491
person who is a principal, officer, director, general partner,	1492
manager, or employee of a dealer to pass an examination	1493
designated by the division. Each dealer that is not a natural	1494
person shall notify the division of the name and relationship to	1495
the dealer of the natural person who has passed the examination on	1496
behalf of the dealer and who will serve as the designated	1497
principal on behalf of the dealer.	1498

(E)(D) Dealers shall employ as salespersons only those	1499
salespersons who are licensed under this chapter. If at any time	1500
a salesperson resigns or is discharged or a new salesperson is	1501
added, the dealer shall promptly notify the division.	1502

(F)(E) If the division finds that the applicant is of good	1503
business repute, appears qualified to act as a dealer in	1504
securities, and has fully complied with this chapter and rules	1505
adopted under this chapter by the division, the division, upon	1506
payment of the fees prescribed by division (B) of section	1507
1707.17 of the Revised Code, shall issue to the applicant a	1508
license authorizing the applicant to act as a dealer.	1509

Sec. 1707.151.  (A) Application for an investment adviser's	1510
license shall be made in accordance with this section and by	1511
filing with the division of securities the information, materials,	1512
and forms specified in rules adopted by the division.	1513

(B) Each applicant shall file an irrevocable consent to	1514
service of process as provided in section 1707.11 of the Revised	1515
Code.	1516

(C)(1) The division may investigate any applicant for a	1517
license and may require any additional information as it considers	1518
necessary to determine the applicant's business repute and	1519
qualifications to act as an investment adviser.	1520

(2) If the application for any license involves	1521
investigation outside of this state, the applicant may be required	1522
by the division to advance sufficient funds to pay any of the	1523
actual expenses of the examination. The division shall furnish	1524
the applicant with an itemized statement of such expenses that the	1525
applicant is required to pay.	1526

(D)(C) The division shall by rule require onea natural	1527
person who is a principal, officer, director, general partner,	1528
manager, or employee of an applicant for an investment adviser	1529
adviser's license to pass an examination designated by the	1530
division or achieve a specified professional designation. Each	1531
investment adviser that is not a natural person shall notify the	1532
division of the name and relationship to the investment adviser of	1533
the natural person who has passed the examination or achieved the	1534
specified professional designation on behalf of the investment	1535
adviser and who will serve as the designated principal on behalf	1536
of the investment adviser.	1537

(E)(D) An investment adviser licensed under section 1707.141	1538
of the Revised Code shall employ only investment adviser	1539
representatives licensed, or exempted from licensure, under	1540
section 1707.161 of the Revised Code.	1541

(F)(E) If the division finds that the applicant is of good	1542
business repute, appears to be qualified to act as an investment	1543
adviser, and has complied with this chapter and rules adopted	1544
under this chapter by the division, the division, upon payment of	1545
the fees prescribed by division (B) of section 1707.17 of the	1546
Revised Code, shall issue to the applicant a license authorizing	1547
the applicant to act as an investment adviser.	1548

Sec. 1707.161.  (A) No person shall act as an investment	1549
adviser representative, unless one of the following applies:	1550

(1) The person is licensed as an investment adviser	1551
representative by the division of securities.	1552

(2) The person is a natural person who is licensed as an	1553
investment adviser by the division, and does not act as an	1554
investment adviser representative for another investment adviser;	1555
however, a natural person who is licensed as an investment adviser	1556
by the division may act as an investment adviser representative	1557
for another investment adviser if the natural person also is	1558
licensed by the division, or is properly excepted from licensure,	1559
as an investment adviser representative of the other investment	1560
adviser.	1561

(3) The person is employed by or associated with an	1562
investment adviser registered under section 203 of the "Investment	1563
Advisers Act of 1940," 15 U.S.C. 80b-3, and does not have a place	1564
of business in this state.	1565

(4) The person is employed by or associated with an	1566
investment adviser that is excepted from licensure pursuant to	1567
division (A)(3) or, (4), (5), or (6) of section 1707.141 of the	1568
Revised Code or excepted from notice filing pursuant to division	1569
(B)(3) of section 1707.141 of the Revised Code.	1570

(B)(1) No investment adviser representative required to be	1571
licensed under this section shall act as an investment adviser	1572
representative for more than two investment advisers. An	1573
investment adviser representative that acts as an investment	1574
adviser representative for two investment advisers shall do so	1575
only after the occurrence of both of the following:	1576

(a) Being properly licensed, or properly excepted from	1577
licensure under this section, as an investment adviser	1578
representative for both investment advisers;	1579

(b) Complying with the requirements set forth in rules	1580
adopted by the division regarding consent of both investment	1581
advisers and notice.	1582

(2) Nothing in this section shall be construed to prohibit a	1583
natural person from being licensed by the division as both an	1584
investment adviser and an investment adviser representative.	1585

(3) Nothing in this section shall be construed to prohibit a	1586
natural person from being licensed by the division as both a	1587
salesperson and an investment adviser representative.	1588

(4) Nothing in this section shall be construed to prohibit a	1589
natural person from being licensed by the division as both a	1590
dealer and an investment adviser representative.	1591

(C) An investment adviser representative's license issued	1592
under this section shall not be effective during any period when	1593
the investment adviser representative is not employed by or	1594
associated with an investment adviser that is licensed by the	1595
division or that is in compliance with the notice filing	1596
requirements of division (B) of section 1707.141 of the Revised	1597
Code. Notice of the commencement and termination of the	1598
employment or association of an investment adviser representative	1599
licensed under this section shall be given to the division within	1600
thirty days after the commencement or termination by either of the	1601
following:	1602

(1) The investment adviser, in the case of an investment	1603
adviser representative licensed under this section and employed by	1604
or associated with, or formerly employed by or associated with, an	1605
investment adviser licensed under section 1707.141 of the Revised	1606
Code;	1607

(2) The investment adviser representative, in the case of an	1608
investment adviser representative licensed under this section and	1609
employed by or associated with, or formerly employed by or	1610
associated with, an investment adviser that is subject to the	1611
notice filings requirements of division (B) of section 1707.141 of	1612
the Revised Code.	1613

(D)(1) Application for an investment adviser representative	1614
license shall be made in accordance with this section and by	1615
filing with the division the information, materials, and forms	1616
specified in rules adopted by the division.	1617

(2) The division shall by rule require an applicant to pass	1618
an examination designated by the division or achieve a specified	1619
professional designation.	1620

(3) Prior to issuing the investment adviser representative	1621
license, the division may require the applicant to reimburse the	1622
division for the actual expenses incurred in investigating the	1623
applicant. An itemized statement of any such expenses that the	1624
applicant is required to pay shall be furnished to the applicant	1625
by the division.	1626

(E) If the division finds that the applicant is of good	1627
business repute, appears to be qualified to act as an investment	1628
adviser representative, and has complied with sections 1707.01 to	1629
1707.45 of the Revised Code and the rules adopted under those	1630
sections by the division, the division, upon payment of the fees	1631
prescribed by division (B) of section 1707.17 of the Revised Code,	1632
shall issue to the applicant a license authorizing the applicant	1633
to act as an investment adviser representative for the investment	1634
adviser, or investment advisers that are under common ownership or	1635
control, named in the application.	1636

Sec. 1707.17.  (A)(1) The license of every dealer in and	1637
salesperson of securities shall expire on the thirty-first day of	1638
December of each year, and may be renewed upon the filing with the	1639
division of securities of an application for renewal, and the	1640
payment of the fee prescribed in this section, between the first	1641
day of November and the fifteenth day of December of each year.	1642
The division may accept an application for renewal filed between	1643
the fifteenth and the thirty-first day of December of each year.	1644
The division also may accept an application for renewal received	1645
by the division not later than the tenth day of January of the	1646
subsequent calendar year, provided that the application for	1647
renewal is accompanied by the license renewal fee and the	1648
additional fee prescribed in division (B) of this section. The	1649
division shall give notice, without unreasonable delay, of its	1650
action on any application for renewal of a dealer's or	1651
salesperson's license.	1652

(2) The license of every investment adviser and investment	1653
adviser representative licensed under section 1707.141 or 1707.161	1654
of the Revised Code shall expire on the thirty-first day of	1655
December of each year. The licenses may be renewed upon the	1656
filing with the division of an application for renewal, and the	1657
payment of the fee prescribed in division (B) of this section,	1658
between the fifteenth day of October and the thirtieth day of	1659
November of each year. The division may accept an application for	1660
renewal filed between the first and thirty-first day of December	1661
of each year. The division also may accept an application for	1662
renewal received by the division not later than the tenth day of	1663
January of the subsequent calendar year, provided that the	1664
application for renewal is accompanied by the license renewal fee	1665
and the additional fee prescribed in division (B) of this section.	1666
The division shall give notice, without unreasonable delay, of its	1667
action on any application for renewal.	1668

(3) An investment adviser required to make a notice filing	1669
under division (B) of section 1707.141 of the Revised Code	1670
annually shall file with the division the notice filing and the	1671
fee prescribed in division (B) of this section, no later than the	1672
thirty-first day of December of each year. The division may accept	1673
a notice filing received by the division not later than the tenth	1674
day of January of the subsequent calendar year, provided that the	1675
notice filing is accompanied by the notice filing fee and the	1676
additional fee prescribed in division (B) of this section.	1677

(B)(1) The fee for each dealer's license, and for each	1678
annual renewal thereof that is received by the division not later	1679
than the thirty-first day of December of each year, shall be one	1680
hundred dollars. Upon payment of an additional fee of one-half of	1681
the license renewal fee, the division may accept an application	1682
for renewal received by the division between the first and tenth	1683
day of January of the subsequent calendar year. The fee for the	1684
examination of applicant dealers, when administered by the	1685
division, shall be seventy-five dollars.	1686

(2) The fee for each salesperson's license, and for each	1687
annual renewal thereof, shall be fifty dollars. The fee for the	1688
examination of an applicant salesperson, when administered by the	1689
division, shall be fifty dollars.	1690

(3) The fee for each investment adviser's license, and for	1691
each annual renewal thereof that is received by the division not	1692
later than the thirty-first day of December of each year, shall be	1693
fifty dollars. Upon the payment of an additional fee of one-half	1694
of the license fee, the division may accept a license renewal	1695
application received by the division between the first and tenth	1696
day of January of the subsequent calendar year.	1697

(4) The fee for each investment adviser notice filing	1698
required by division (B) of section 1707.141 of the Revised Code	1699
and received by the division not later than the thirty-first day	1700
of December of each year shall be fifty dollars. Upon the payment	1701
of an additional fee of one-half of the notice filing fee, the	1702
division may accept a notice filing received by the division	1703
between the first and tenth day of January of the subsequent	1704
calendar year. A notice filing may be made at any time during the	1705
calendar year. In that event, the notice filing fee shall not be	1706
reduced.	1707

(5) The fee for each investment adviser representative's	1708
license, and for each annual renewal thereof that is received by	1709
the division not later than the thirty-first day of December of	1710
each year, shall be thirty-five dollars; however, the fee shall be	1711
waived for the investment adviser representative designated the	1712
principal of the investment adviser pursuant to division (D) of	1713
section 1707.151 of the Revised Code. Upon the payment of an	1714
additional fee of one-half of the license fee, the division may	1715
accept a license renewal application received by the division	1716
between the first and tenth day of January of the subsequent	1717
calendar year.	1718

(C) A dealer's, salesperson's, investment adviser's, or	1719
investment adviser representative's license may be issued at any	1720
time for the remainder of the calendar year. In that event, the	1721
annual fee shall not be reduced.	1722

Sec. 1707.20.  (A) The division of securities may adopt,	1723
amend, and rescind such rules, forms, and orders as are necessary	1724
to carry out sections 1707.01 to 1707.45 of the Revised Code,	1725
including rules and forms governing registration statements,	1726
applications, and reports, and defining any terms, whether or not	1727
used in sections 1707.01 to 1707.45 of the Revised Code, insofar	1728
as the definitions are not inconsistent with these sections. For	1729
the purpose of rules and forms, the division may classify	1730
securities, persons, and matters within its jurisdiction, and	1731
prescribe different requirements for different classes.	1732

(B) No rule, form, or order may be made, amended, or	1733
rescinded unless the division finds that the action is necessary	1734
or appropriate in the public interest or for the protection of	1735
investors, clients, or prospective clients and consistent with the	1736
purposes fairly intended by the policy and provisions of sections	1737
1707.01 to 1707.45 of the Revised Code. In prescribing rules and	1738
forms and in otherwise administering sections 1707.01 to 1707.45	1739
of the Revised Code, the division may cooperate with the	1740
securities administrators of the other states and the securities	1741
and exchange commission with a view of effectuating the policy of	1742
this section to achieve maximum uniformity in the form and content	1743
of registration statements, applications, reports, and overall	1744
securities regulation wherever practicable.	1745

(C) The division may by rule or order prescribe:

1746

(1) The form and content of financial statements required	1747
under sections 1707.01 to 1707.45 of the Revised Code;	1748

(2) The circumstances under which consolidated financial	1749
statements shall be filed;	1750

(3) Whether any required financial statements shall be	1751
certified by independent or certified public accountants. All	1752
financial statements shall be prepared in accordance with	1753
generally accepted accounting practices.	1754

(D) All rules and forms of the division shall be published;	1755
and in addition to fulfilling the requirements of Chapter 119. of	1756
the Revised Code, the division shall prescribe, and shall publish	1757
and make available its rules regarding the sale of securities, the	1758
administration of sections 1707.01 to 1707.45 of the Revised Code,	1759
and the procedure and practice before the division.	1760

(E) No provision of sections 1707.01 to 1707.45 of the	1761
Revised Code imposing any liability applies to any act done or	1762
omitted in good faith in conformity with any rule, form, or order	1763
of the division of securities, notwithstanding that the rule,	1764
form, or order may later be amended or rescinded or be determined	1765
by judicial or other authority to be invalid for any reason,	1766
except that the issuance of an order granting effectiveness to a	1767
registration under section 1707.09 or 1707.091 of the Revised Code	1768
for the purposes of this division shall not be deemed an order	1769
other than as the establishment of the fact of registration.	1770

(F) Notwithstanding any provision of Revised Code, if the	1771
"securities act of 1933," the "Securities Exchange Act of 1934,"	1772
the "Investment Company Act of 1940," the "Investment Advisers Act	1773
of 1940," and any amendments to any of those federal acts, if any	1774
rule, regulation, release, statement, or position promulgated or	1775
adopted under the authority of any of those federal acts, and any	1776
amendments to those federal acts, or if any rule, regulation, or	1777
guideline of a self-regulatory organization registered under the	1778
"Securities and Exchange Act of 1934," and any amendments to that	1779
act, contains a provision that is not contained in this chapter or	1780
the rules adopted under this chapter and that affects any matter	1781
within the scope of this chapter, the division by rule may	1782
promulgate a similar provision.	1783

A rule adopted under the authority granted in this division	1784
may delete, modify, or replace an existing rule of the division. A	1785
rule adopted under the authority granted in this division becomes	1786
effective on the later of the date on which the division issues	1787
the rule or the date on which the federal statute or the rule,	1788
regulation, release, statement, or position on which the	1789
division's rule is based becomes effective. The division, upon	1790
thirty days written notice, may revoke any rule adopted under the	1791
authority granted in this division. A rule adopted under the	1792
authority granted in this division, and not revoked by the	1793
commissioner, lapses and has no further force and effect thirty	1794
months after the rule's effective date.	1795

Sec. 1707.201. Notwithstanding any provision of the Revised	1796
Code, if the "Securities Act of 1933," the "Securities Exchange	1797
Act of 1934," the "Investment Company Act of 1940," the	1798
"Investment Advisers Act of 1940," and any amendments to any of	1799
those federal acts, if any rule, regulation, release, statement,	1800
or position promulgated or adopted under the authority of any of	1801
those federal acts, and any amendments to those federal acts, or	1802
if any rule, regulation, or guideline of a self-regulatory	1803
organization registered under the "Securities Exchange Act of	1804
1934," and any amendments to that act, contains a provision that	1805
is not contained in this chapter or the rules adopted under this	1806
chapter and that affects any matter within the scope of this	1807
chapter, the division of securities by rule may promulgate a	1808
similar provision.	1809

A rule adopted under the authority granted in this section	1810
becomes effective on the later of the date on which the division	1811
issues the rule or the date on which the federal statute or the	1812
rule, regulation, release, statement, or position on which the	1813
division's rule is based becomes effective. The division, upon	1814
thirty days' written notice, may revoke any rule adopted under the	1815
authority granted in this section. A rule adopted under the	1816
authority granted in this section, and not revoked by the	1817
commissioner of securities, lapses and has no further force and	1818
effect eighteen months after the rule's effective date.	1819

Sec. 1707.40.  Sections 1707.01 to 1707.45 of the Revised	1820
Code create no new civil liabilities, and do not limit or restrict	1821
common law liabilities for deception or fraud other than as	1822
specified in sections 1707.042, 1707.043, 1707.41, 1707.42, and	1823
1707.43 of the Revised Code, and there is no civil liability for	1824
noncompliance with orders, requirements, rules, or regulations	1825
made by the division of securities under sections 1707.19,	1826
1707.20, 1707.201, and 1707.23 of the Revised Code.	1827

Sec. 1707.44.  (A)(1) No person shall engage in any act or	1828
practice that violates division (A), (B), or (C) of section	1829
1707.14 of the Revised Code, and no salesperson shall sell	1830
securities in this state without being licensed pursuant to	1831
section 1707.16 of the Revised Code.	1832

(2) No person shall engage in any act or practice that	1833
violates division (A) of section 1707.141 or section 1707.161 of	1834
the Revised Code.	1835

(B) No person shall knowingly make or cause to be made any	1836
false representation concerning a material and relevant fact, in	1837
any oral statement or in any prospectus, circular, description,	1838
application, or written statement, for any of the following	1839
purposes:	1840

(1) Registering securities or transactions, or exempting	1841
securities or transactions from registration, under this chapter;	1842

(2) Securing the qualification of any securities under this	1843
chapter;	1844

(3) Procuring the licensing of any dealer, salesperson,	1845
investment adviser, or investment adviser representative under	1846
this chapter;	1847

(4) Selling any securities in this state;

1848

(5) Advising for compensation, as to the value of securities	1849
or as to the advisability of investing in, purchasing, or selling	1850
securities;	1851

(6) Submitting a notice filing to the division under section	1852
1707.092 or 1707.141 of the Revised Code.	1853

(C) No person shall knowingly and intentionally sell, cause	1854
to be sold, offer for sale, or cause to be offered for sale, any	1855
security which comes under any of the following descriptions:	1856

(1) Is not exempt under section 1707.02 of the Revised Code,	1857
nor the subject matter of one of the transactions exempted in	1858
section 1707.03, 1707.04, or 1707.34 of the Revised Code, has not	1859
been registered by coordination or qualification, and is not the	1860
subject matter of a transaction that has been registered by	1861
description;	1862

(2) The prescribed fees for registering by description, by	1863
coordination, or by qualification have not been paid in respect to	1864
such security;	1865

(3) Such person has been notified by the division, or has	1866
knowledge of the notice, that the right to buy, sell, or deal in	1867
such security has been suspended or revoked, or that the	1868
registration by description, by coordination, or by qualification	1869
under which it may be sold has been suspended or revoked;	1870

(4) The offer or sale is accompanied by a statement that the	1871
security offered or sold has been or is to be in any manner	1872
indorsed by the division.	1873

(D) No person who is an officer, director, or trustee of, or	1874
a dealer for, any issuer, and who knows such issuer to be	1875
insolvent in that the liabilities of the issuer exceed its assets,	1876
shall sell any securities of or for any such issuer, without	1877
disclosing the fact of the insolvency to the purchaser.	1878

(E) No person with intent to aid in the sale of any	1879
securities on behalf of the issuer, shall knowingly make any	1880
representation not authorized by such issuer or at material	1881
variance with statements and documents filed with the division by	1882
such issuer.	1883

(F) No person, with intent to deceive, shall sell, cause to	1884
be sold, offer for sale, or cause to be offered for sale, any	1885
securities of an insolvent issuer, with knowledge that such issuer	1886
is insolvent in that the liabilities of the issuer exceed its	1887
assets, taken at their fair market value.	1888

(G) No person in purchasing or selling securities shall	1889
knowingly engage in any act or practice that is, in this chapter,	1890
declared illegal, defined as fraudulent, or prohibited.	1891

(H) No licensed dealer shall refuse to buy from, sell to, or	1892
trade with any person because the person appears on a blacklist	1893
issued by, or is being boycotted by, any foreign corporate or	1894
governmental entity, nor sell any securities of or for any issuer	1895
who is known in relation to the issuance or sale of such	1896
securities to have engaged in such practices.	1897

(I) No dealer in securities, knowing that the dealer's	1898
liabilities exceed the reasonable value of the dealer's assets,	1899
shall accept money or securities, except in payment of or as	1900
security for an existing debt, from a customer who is ignorant of	1901
the dealer's insolvency, and thereby cause the customer to lose	1902
any part of the customer's securities or the value of those	1903
securities, by doing either of the following without the	1904
customer's consent:	1905

(1) Pledging, selling, or otherwise disposing of such	1906
securities, when the dealer has no lien on or any special property	1907
in such securities;	1908

(2) Pledging such securities for more than the amount due,	1909
or otherwise disposing of such securities for the dealer's own	1910
benefit, when the dealer has a lien or indebtedness on such	1911
securities.	1912

It is an affirmative defense to a charge under this division	1913
that, at the time the securities involved were pledged, sold, or	1914
disposed of, the dealer had in the dealer's possession or control,	1915
and available for delivery, securities of the same kinds and in	1916
amounts sufficient to satisfy all customers entitled to the	1917
securities, upon demand and tender of any amount due on the	1918
securities.	1919

(J) No person, with purpose to deceive, shall make, issue,	1920
publish, or cause to be made, issued, or published any statement	1921
or advertisement as to the value of securities, or as to alleged	1922
facts affecting the value of securities, or as to the financial	1923
condition of any issuer of securities, when the person knows that	1924
such statement or advertisement is false in any material respect.	1925

(K) No person, with purpose to deceive, shall make, record,	1926
or publish or cause to be made, recorded, or published, a report	1927
of any transaction in securities which is false in any material	1928
respect.	1929

(L) No dealer shall engage in any act that violates the	1930
provisions of section 15(c) or 15(g) of the "Securities Exchange	1931
Act of 1934," 48 Stat. 881, 15 U.S.C.A. 78o(c) or (g), or any rule	1932
or regulation promulgated by the securities and exchange	1933
commission thereunder. If, subsequent to October 11, 1994,	1934
additional amendments to section 15(c) or 15(g) are adopted, or	1935
additional rules or regulations are promulgated pursuant to such	1936
sections, the division of securities shall, by rule, adopt the	1937
amendments, rules, or regulations, unless the division finds that	1938
the amendments, rules, or regulations are not necessary for the	1939
protection of investors or in the public interest.	1940

(M)(1) No investment adviser or investment adviser	1941
representative shall do any of the following:	1942

(a) Employ any device, scheme, or artifice to defraud any	1943
person;	1944

(b) Engage in any act, practice, or course of business that	1945
operates or would operate as a fraud or deceit upon any person;	1946

(c) In acting as principal for the investment adviser's or	1947
investment adviser representative's own account, knowingly sell	1948
any security to or purchase any security from a client, or in	1949
acting as salesperson for a person other than such client,	1950
knowingly effect any sale or purchase of any security for the	1951
account of such client, without disclosing to the client in	1952
writing before the completion of the transaction the capacity in	1953
which the investment adviser or investment adviser representative	1954
is acting and obtaining the consent of the client to the	1955
transaction. Division (M)(1)(c) of this section does not apply to	1956
any investment adviser registered with the securities and exchange	1957
commission under section 203 of the "Investment Advisers Act of	1958
1940," 15 U.S.C. 80b-3, or to any transaction with a customer of a	1959
licensed dealer or salesperson if the licensed dealer or	1960
salesperson is not acting as an investment adviser or investment	1961
adviser representative in relation to the transaction.	1962

(d) Engage in any act, practice, or course of business that	1963
is fraudulent, deceptive, or manipulative. The division of	1964
securities may adopt rules reasonably designed to prevent such	1965
acts, practices, or courses of business as are fraudulent,	1966
deceptive, or manipulative.	1967

(2) No investment adviser or investment adviser	1968
representative licensed or required to be licensed under this	1969
chapter shall take or have custody of any securities or funds of	1970
any person, except as provided in rules adopted by the division.	1971

(3) In the solicitation of clients or prospective clients,	1972
no person shall make any untrue statement of a material fact or	1973
omit to state a material fact necessary in order to make the	1974
statements made not misleading in light of the circumstances under	1975
which the statements were made.	1976

Sec. 1733.01.  As used in this chapter, unless the context	1977
otherwise requires:	1978

(A) "Credit union" means a corporation organized and	1979
qualified as such under this chapter. In addition to the powers	1980
enumerated in this chapter and unless restricted in this chapter,	1981
every credit union has the general powers conferred upon	1982
corporations by Chapter 1701. of the Revised Code. A credit union	1983
is a nonprofit cooperative financial institution and as such is	1984
organized and operates for the mutual benefit and general welfare	1985
of its members with the earnings, savings, benefits, or services	1986
of the credit union being distributed to its members as patron	1987
savers and borrowers and not to its members as individuals.	1988

(B) "Corporate credit union" means a credit union,	1989
eligibility for membership in which is being a credit union	1990
qualified to do business in this state. Such credit union shall	1991
use the term "corporate" in its official name.	1992

(C) "Foreign credit union" means a credit union formed under	1993
the laws of another state which are substantially similar to this	1994
chapter.	1995

(D) "Member" means a person who is a member of a credit	1996
union.	1997

(E) "Association member" means any member of a credit union	1998
other than a credit union or an individual member.	1999

(F) "Voting member" means an association member or an	2000
individual member who is qualified to vote as provided by law, the	2001
articles, or the regulations.	2002

(G) "Person" includes, without limitation, an individual, a	2003
corporation, an unincorporated society or association, or any	2004
other organization of individuals.	2005

(H) "Articles" includes original articles of incorporation,	2006
agreements of merger, amended articles, and amendments to any of	2007
these.	2008

(I) "Regulations" includes the code of regulations of a	2009
credit union and any amendments thereto or an amended code of	2010
regulations and any amendments thereto.	2011

(J) Persons having a "common bond of association" include	2012
those persons and their families.	2013

(K) "Membership share" means a share of the credit union,	2014
the subscription to which shall be a prerequisite for membership	2015
in the credit union.	2016

(L) "Share account" means an account established for a	2017
member for which no share certificates are issued but which are	2018
included in the registry of shares, which includes all	2019
transactions of the credit union pertaining to such shares.	2020

(M) "Undivided earnings" consist of all accumulated net	2021
earnings and reserves required under division (B) of section	2022
1733.31 of the Revised Code.	2023

(N) "State" means the United States, any state, territory,	2024
insular possession, or other political subdivision of the United	2025
States, including the District of Columbia.	2026

(O) An "emergency" exists when an emergency exists for other	2027
corporations as the same is defined and described in section	2028
1701.01 of the Revised Code.	2029

(P) "Superintendent of credit unions" means the "division of	2030
financial institutions" or the "superintendent of the division of	2031
financial institutions of this state"; and whenever the context	2032
requires it, may be read as "director of commerce" or as "chief of	2033
the division of financial institutions." Whenever the division or	2034
superintendent of credit unions is referred to or designated in	2035
any statute, rule, contract, or other document, the reference or	2036
designation shall be deemed to refer to the division or	2037
superintendent of financial institutions, as the case may be.	2038

(Q) "Outside auditor" means an accountant who is licensed to	2039
practice as a certified public accountant or public accountant by	2040
this state, and who is retained by a credit union to audit its	2041
accounts, but who is not otherwise employed by the credit union.	2042

(R) "Regulated individual" means a director, committee	2043
member, officer, or employee of a credit union.	2044

(S) "Financial institution regulatory authority" includes a	2045
regulator of business activity in which a credit union is engaged,	2046
or has applied to engage in, to the extent that the regulator has	2047
jurisdiction over a credit union engaged in that business	2048
activity. A credit union is engaged in a business activity, and a	2049
regulator of that business activity has jurisdiction over the	2050
credit union, whether the credit union conducts the activity	2051
directly or a subsidiary or affiliate of the credit union conducts	2052
the activity.	2053

Sec. 1733.32.  (A)(1) The superintendent of financial	2054
institutions shall see that the laws relating to credit unions are	2055
executed and enforced.	2056

(2) The deputy superintendent for credit unions shall be the	2057
principal supervisor of credit unions. In that position the	2058
deputy superintendent for credit unions shall, notwithstanding	2059
division (A)(3) of this section, be responsible for conducting	2060
examinations and preparing examination reports under that	2061
division. In addition, the deputy superintendent for credit	2062
unions shall, notwithstanding sections 1733.191, 1733.41,	2063
1733.411, and 1733.412 of the Revised Code, have the authority to	2064
adopt rules in accordance with those sections, and,	2065
notwithstanding section 1733.05 of the Revised Code, shall have	2066
the authority to approve issues and matters pertaining to fields	2067
of membership. In performing or exercising any of the	2068
examination, rule-making, or other regulatory functions, powers,	2069
or duties vested by division (A)(2) of this section in the deputy	2070
superintendent for credit unions, the deputy superintendent for	2071
credit unions shall be subject to the control of the	2072
superintendent of financial institutions.	2073

(3) The superintendent shall develop and implement a system	2074
for evaluating the safety and soundness of credit unions and for	2075
determining when examinations and supervisory actions are	2076
necessary. Credit unions shall be subject to periodic	2077
examinations, as specified in rules adopted by the superintendent,	2078
and their books, records, and accounts shall be open to the	2079
inspection of the superintendent at all times. For the purpose of	2080
such examination or inspection, the superintendent may subpoena	2081
witnesses, administer oaths, receive testimony, and order the	2082
submission of documents.	2083

(B) Every credit union shall prepare and submit, on forms	2084
provided by the superintendent, a financial report to the	2085
superintendent showing its assets and liabilities whenever	2086
requested to do so by the superintendent. Every financial report	2087
shall be verified by the oaths of the two principal officers in	2088
charge of the affairs of the credit union at the time of such	2089
verification and shall be submitted to the superintendent within	2090
thirty days after the superintendent requests the financial	2091
report.	2092

(C) An annual financial report of the affairs and business	2093
of the credit union, showing its condition as of the thirty-first	2094
day of December unless otherwise authorized by the superintendent,	2095
shall be filed with the superintendent not later than the date	2096
authorized in the rules adopted by the superintendent.	2097

(D) If a financial report or an annual financial report is	2098
not filed with the superintendent in accordance with division (B)	2099
or (C) of this section, the superintendent may do both of the	2100
following:	2101

(1) Assess a fine, determined by rule adopted by the	2102
superintendent, for each day the report is in arrears;	2103

(2) If the superintendent gives written notice to the	2104
president of the credit union of the superintendent's intention to	2105
do so, issue an order revoking the credit union's articles of	2106
incorporation and appointing a liquidating agent to liquidate the	2107
credit union in accordance with section 1733.37 of the Revised	2108
Code.	2109

(E)(1) Except as provided in division (E)(2) of this	2110
section, each credit union doing business in this state shall	2111
remit, semiannually and within fifteen days after billing, to the	2112
treasurer of state, a supervisory fee in an amount determined by	2113
the superintendent and confirmed by the credit union council. The	2114
supervisory fee described in division (E)(1) of this section shall	2115
be based on a percentage of the gross assets of the credit union	2116
as shown by its last annual financial report filed with the	2117
superintendent in accordance with division (C) of this section.	2118
The minimum supervisory fee shall be determined by the	2119
superintendent and confirmed by the credit union council.	2120

(2) Each corporate credit union doing business in this state	2121
shall remit, semiannually and within fifteen days after billing,	2122
to the treasurer of state, a supervisory fee determined by rule	2123
adopted by the superintendent and confirmed by the credit union	2124
council. The aggregate annual amount of the fee shall not exceed	2125
the annual operating fee that the national credit union	2126
administration charges a federally chartered credit union pursuant	2127
to the "Federal Credit Union Act," 84 Stat. 994 (1970), 12	2128
U.S.C.A. 1751.	2129

(3) The superintendent annually shall present to the credit	2130
union council for confirmation the supervisory fees to be billed	2131
credit unions and corporate credit unions pursuant to division (E)	2132
of this section.	2133

(4) If any supervisory fee is not remitted in accordance	2134
with division (E)(1) or (2) of this section, the superintendent	2135
may assess a fine, determined by rule adopted by the	2136
superintendent, for each day that each fee is in arrears.	2137

(5)(a) Subject to division (E)(5)(b) of this section, the	2138
total amount of each semiannual billing to all credit unions and	2139
corporate credit unions combined shall equal one-half of the	2140
appropriation made by the main operating appropriation act,	2141
including any modifications made by the controlling board, to the	2142
division of financial institutions for the regulation of credit	2143
unions for the fiscal year in which the billings occur, except	2144
that the superintendent, in determining the supervisory fees, may	2145
take into consideration any funds lapsed from the appropriation	2146
made in the previous fiscal year.	2147

(b) If during the period between the credit union council's	2148
confirmation of supervisory fees and when supervisory fees	2149
described in this section are collected, the credit union council	2150
determines additional money is required to adequately fund the	2151
operations of the division of financial institutions for that	2152
fiscal year, the credit union council may, by the affirmative vote	2153
of five of its members, increase the supervisory fees billed. The	2154
superintendent promptly shall notify each credit union and	2155
corporate credit union of the increased supervisory fees, and each	2156
credit union or corporate credit union shall pay the increased	2157
supervisory fees billed by the superintendent.	2158

(6) The fees or fines collected pursuant to this section	2159
shall be credited to the credit unions fund created in section	2160
1733.321 of the Revised Code.	2161

(F) A report of such examination shall be forwarded to the	2162
president of each credit union after the completion of the	2163
examination. Such report may contain comments relative to the	2164
management of the affairs of the credit union and also as to the	2165
general condition of its assets. Within thirty days of the	2166
receipt of such report, a meeting of the directors shall be called	2167
to consider matters contained in the report, and the president	2168
shall notify the superintendent of any action taken at such	2169
meeting.	2170

(G)(1) The superintendent shall furnish reports of	2171
examinations or other appropriate information to any organization	2172
referred to in section 1733.041 of the Revised Code when requested	2173
by such organization and authorized by the credit union. The	2174
superintendent may charge a fee for such reports and other	2175
information as may be established by rules adopted by the	2176
superintendent.	2177

(2) A report of examination furnished pursuant to division	2178
(G)(1) of this section is the property of the division of credit	2179
unions and may be used by the examined credit union only in the	2180
conduct of its business. Under no circumstances may the credit	2181
union, its current or former directors, officers, employees,	2182
agents, shareholders, participants in the conduct of its affairs,	2183
or their agents disclose or make public, in any manner, a report	2184
of examination or its contents.	2185

(H) Except as provided in this division, information	2186
obtained by the superintendent of credit unionsfinancial	2187
institutions and the superintendent's employees as a result of or	2188
arising out of the examination or independent audit of a credit	2189
union, from required reports, or because of their official	2190
position, shall be confidential. Such information may be	2191
disclosed only in connection with criminal proceedings or, subject	2192
to section 1733.327 of the Revised Code, when it is necessary for	2193
the superintendent to take official action pursuant to Chapter	2194
1733. of the Revised Code and the rules adopted thereunder	2195
regarding the affairs of the credit union examined. Such	2196
information may also be introduced into evidence or disclosed when	2197
and in the manner authorized in section 1181.25 of the Revised	2198
Code. This division does not prevent the superintendent from	2199
properly exchanging information relating to an examined credit	2200
union pursuant to division (F) or (G) of this section or with	2201
officials of properly authorized state or federal supervisory	2202
financial institution regulatory authorities or with any insurer	2203
recognized under section 1733.041 or any surety recognized under	2204
section 1733.23 of the Revised Code. This division also does not	2205
prevent the superintendent from disclosing information contained	2206
in the financial reports or annual financial reports described in	2207
division (B) or (C) of this section to recognized credit union	2208
trade associations.	2209

Sec. 1733.327.  (A) All conferences and administrative	2210
proceedings under sections 1733.324 and 1733.325 of the Revised	2211
Code, the fact of their actual or anticipated occurrence, and all	2212
notices, agreements, hearings, orders, records, evidence,	2213
transcripts, and other writings, happenings, or things pertaining	2214
to those conferences or proceedings, shall be kept confidential as	2215
among the superintendent of credit unionsfinancial institutions,	2216
the director of commerce, the deputy director of financial	2217
institutions, the governor, the credit union or regulated	2218
individual who is party to the conference or proceedings,	2219
witnesses in the conference or proceedings, and other persons	2220
specifically designated by the superintendent or director. In	2221
designating specific persons who may be present or acquire	2222
knowledge of matters made confidential by this division, the	2223
superintendent and director shall not exclude attorneys or other	2224
suitable representatives of the credit union, or of any regulated	2225
individual, who is party to the conference or proceedings. If the	2226
conference or proceedings apply to a regulated individual, the	2227
superintendent and director shall not exclude suitable	2228
representatives of the credit union of which such regulated	2229
individual is an officer, director, or employee.	2230

(B) Division (A) of this section ceases to apply upon the	2231
occurrence of any of the following:	2232

(1) An action is brought to recover a forfeiture for the	2233
violation of an agreement concluded, or a final or summary	2234
cease-and-desist order issued, under section 1733.324 or 1733.325	2235
of the Revised Code. A forfeiture, in the absence of such an	2236
action for recovery, does not waive division (A) of this section	2237
except insofar as the forfeiture must be reflected or reported in	2238
the financial records or reports of the credit union or regulated	2239
individual.	2240

(2) Information made confidential by division (A) of this	2241
section is needed as evidence in a criminal proceeding; in	2242
proceedings under section 1733.37 of the Revised Code; or in the	2243
work of a committee of the general assembly;.	2244

(3) The superintendent furnishes information made	2245
confidential by division (A) of this section to the applicable	2246
insurer recognized under section 1733.041 of the Revised Code.	2247

(4) The superintendent furnishes information made	2248
confidential by division (A) of this section to financial	2249
institution regulatory authorities as authorized in section	2250
1733.32 of the Revised Code.	2251

(5) Information made confidential by division (A) of this	2252
section is disclosed when and in the manner authorized in section	2253
1181.25 of the Revised Code.	2254

(C) No officer or employee of the division of credit unions,	2255
of the department of commerce or any of its other divisions, or of	2256
the governor's office shall violate division (A) of this section.	2257

Sec. 1751.19.  (A) A health insuring corporation shall	2258
establish and maintain a complaint system that has been approved	2259
by the superintendent of insurance to provide adequate and	2260
reasonable procedures for the expeditious resolution of written	2261
complaints initiated by subscribers or enrollees concerning any	2262
matter relating to services provided, directly or indirectly, by	2263
the health insuring corporation, including, but not limited to,	2264
complaints regarding cancellations or nonrenewals of coverage.	2265
Complaints regarding a health insuring corporation's decision to	2266
deny, reduce, or terminate coverage for health care services are	2267
subject to section 1751.83 of the Revised Code.	2268

(B) A health insuring corporation shall provide a timely	2269
written response to each written complaint it receives.	2270

(C)(1) Copies of complaints and responses, including medical	2271
records related to those complaints, shall be available to the	2272
superintendent and the director of health for inspection for three	2273
years. Any document or information provided to the superintendent	2274
pursuant to this division that contains a medical record is	2275
confidential, and is not a public record subject to section 149.43	2276
of the Revised Code.	2277

(2) Notwithstanding division (C)(1) of this section, the	2278
superintendent may share documents and information that contain a	2279
medical record in connection with the investigation or prosecution	2280
of any illegal or criminal activity with the chief deputy	2281
rehabilitator, the chief deputy liquidator, other deputy	2282
rehabilitators and liquidators, and any other person employed by,	2283
or acting on behalf of, the superintendent pursuant to Chapter	2284
3901. or 3903. of the Revised Code, with other local, state,	2285
federal, and international regulatory and law enforcement	2286
agencies, with local, state, and federal prosecutors, and with the	2287
national association of insurance commissioners and its affiliates	2288
and subsidiaries, provided that the recipient agrees to maintain	2289
the confidential or privileged status of the confidential or	2290
privileged document or information and has authority to do so.	2291

(3) Nothing in this section shall prohibit the superintendent	2292
from receiving documents and information in accordance with	2293
section 3901.045 of the Revised Code.	2294

(4) The superintendent may enter into agreements governing	2295
the sharing and use of documents and information consistent with	2296
the requirements of this section.	2297

(5) No waiver of any applicable privilege or claim of	2298
confidentiality in the documents and information described in	2299
division (C)(1) of this section occurs as a result of sharing or	2300
receiving documents and information as authorized in divisions	2301
(C)(2) and (3) of this section.	2302

(D) A health insuring corporation shall establish and	2303
maintain a procedure to accept complaints over the telephone or in	2304
person. These complaints are not subject to the reporting	2305
requirement under division (C) of section 1751.32 of the Revised	2306
Code.	2307

(E) A health insuring corporation may comply with this	2308
section and section 1751.83 of the Revised Code by establishing	2309
one system for receiving and reviewing complaints and requests for	2310
internal review from enrollees and subscribers if the system meets	2311
the requirements of both sections.	2312

Sec. 3901.045. (A) The superintendent of insurance may	2313
receive documents and information, including otherwise	2314
confidential or privileged documents and information, from local,	2315
state, federal, and international regulatory and law enforcement	2316
agencies, from local, state, and federal prosecutors, and from the	2317
national association of insurance commissioners and its affiliates	2318
and subsidiaries, provided that the superintendent maintains as	2319
confidential or privileged any document or information received	2320
with notice or the understanding that the document or information	2321
is confidential or privileged under the laws of the jurisdiction	2322
that is the source of the document or information.	2323

(B) The superintendent may also receive documents and	2324
information, including otherwise confidential or privileged	2325
documents and information, from the chief deputy rehabilitator,	2326
the chief deputy liquidator, other deputy rehabilitators and	2327
liquidators, and from any other person employed by, or acting on	2328
behalf of, the superintendent pursuant to Chapter 3901. or 3903.	2329
of the Revised Code, provided that the superintendent maintains as	2330
confidential or privileged any document or information received	2331
with the notice or understanding that the document or information	2332
is confidential or privileged, except that the superintendent may	2333
share and disclose such a document or information when authorized	2334
by other sections of the Revised Code.	2335

(C) The superintendent has the authority to maintain as	2336
confidential or privileged the documents and information received	2337
pursuant to this section.	2338

(D) The superintendent's authority to receive documents and	2339
information under this section, from the persons and subject to	2340
the conditions listed in this section, is not limited in any way	2341
by section 1751.19, 3901.36, 3901.44, 3901.48, 3901.70, 3901.83,	2342
3903.11, 3903.72, 3903.88, 3905.492, 3905.50, or 3999.36 of the	2343
Revised Code.	2344

Sec. 3901.36. (A) All information, documents, and copies	2345
thereof obtained by or disclosed to the superintendent of	2346
insurance or any other person in the course of an examination or	2347
investigation made pursuant to section 3901.35 of the Revised Code	2348
and all information reported pursuant to section 3901.33 of the	2349
Revised Code shall be given confidential and privileged treatment	2350
and shall not be subject to subpoena or be made public by the	2351
superintendent or any other person, except to insurance regulatory	2352
authorities of other states, without the prior written consent of	2353
the insurer to which it pertains, unless the superintendent, after	2354
giving the insurer and its affiliates who would be affected	2355
thereby notice and opportunity to be heard, determines that the	2356
interests of policyholders, shareholders, or the public will be	2357
served by the publication thereof, in which event he may publish	2358
all or any part thereof in such manner as he considers	2359
appropriate.	2360

(B) Notwithstanding division (A) of this section, the	2361
superintendent may do any of the following:	2362

(1) Disclose documents and information that are the subject	2363
of this section upon obtaining prior written consent from the	2364
insurer to which the documents and information pertain;	2365

(2) Disclose documents and information that are the subject	2366
of this section in such a manner as the superintendent considers	2367
appropriate, after giving the insurer and those affiliates that	2368
are the subject of the documents and information notice and an	2369
opportunity to be heard in accordance with Chapter 119. of the	2370
Revised Code, if the superintendent determines that the interests	2371
of policyholders, shareholders, or the public will be served by	2372
the disclosure;	2373

(3) Share documents and information that are the subject of	2374
this section with the chief deputy rehabilitator, the chief deputy	2375
liquidator, other deputy rehabilitators and liquidators, and any	2376
other person employed by, or acting on behalf of, the	2377
superintendent pursuant to Chapter 3901. or 3903. of the Revised	2378
Code, with other local, state, federal, and international	2379
regulatory and law enforcement agencies, with local, state, and	2380
federal prosecutors, and with the national association of	2381
insurance commissioners and its affiliates and subsidiaries,	2382
provided that the recipient agrees to maintain the confidential or	2383
privileged status of the confidential or privileged document or	2384
information and has authority to do so;	2385

(4) Disclose documents and information that are the subject	2386
of this section in the furtherance of any regulatory or legal	2387
action brought by or on behalf of the superintendent or the state,	2388
resulting from the exercise of the superintendent's official	2389
duties.	2390

(C) Notwithstanding divisions (A) and (B) of this section,	2391
the superintendent may authorize the national association of	2392
insurance commissioners and its affiliates and subsidiaries by	2393
agreement to share confidential or privileged documents or	2394
information received pursuant to division (B)(3) of this section	2395
with local, state, federal, and international regulatory and law	2396
enforcement agencies and with local, state, and federal	2397
prosecutors, provided that the recipient agrees to maintain the	2398
confidential or privileged status of the confidential or	2399
privileged document or information and has authority to do so.	2400

(D) Notwithstanding divisions (A) and (B) of this section,	2401
the chief deputy rehabilitator, the chief deputy liquidator, and	2402
other deputy rehabilitators and liquidators may disclose documents	2403
and information that are the subject of this section in the	2404
furtherance of any regulatory or legal action brought by or on	2405
behalf of the superintendent, the rehabilitator, the liquidator,	2406
or the state resulting from the exercise of the superintendent's	2407
official duties in any capacity.	2408

(E) Nothing in this section shall prohibit the	2409
superintendent from receiving documents and information in	2410
accordance with section 3901.045 of the Revised Code.	2411

(F) The superintendent may enter into agreements governing	2412
the sharing and use of documents and information consistent with	2413
the requirements of this section.	2414

(G)(1) No waiver of any applicable privilege or claim of	2415
confidentiality in the documents and information described in this	2416
section shall occur as a result of sharing or receiving documents	2417
and information as authorized in divisions (B)(3), (C), and (E) of	2418
this section.	2419

(2) The disclosure of a document or information in	2420
connection with a regulatory or legal action pursuant to divisions	2421
(B)(4) and (D) of this section does not prohibit an insurer or any	2422
other person from taking steps to limit the dissemination of the	2423
document or information to persons not involved in or the subject	2424
of the regulatory or legal action on the basis of any recognized	2425
privilege arising under any other section of the Revised Code or	2426
the common law.	2427

Sec. 3901.44.  (A) As used in this section, "insurance fraud	2428
investigation" means any investigation conducted by the	2429
superintendent of insurance or a designee of the superintendent	2430
that relates to a fraudulent insurance act as defined in section	2431
3999.31 of the Revised Code.	2432

(B) All papers, documents, reports, and evidence in the	2433
possession of the superintendent or the superintendent's designee	2434
that pertain to an insurance fraud investigation are confidential	2435
law enforcement investigatory records under section 149.43 of the	2436
Revised Code. Notwithstanding such section, the superintendent	2437
shall not prohibit public inspection of such records that pertain	2438
to an insurance fraud investigation after the expiration of all	2439
federal and state statutes of limitations applicable to the	2440
particular offense to which the papers, documents, reports, and	2441
evidence relate.	2442

(C) All papers, documents, reports, and evidence in the	2443
possession of the superintendent that do not pertain to such an	2444
insurance fraud investigation are public records under section	2445
149.43 of the Revised Code, and are not by such possession alone	2446
confidential law enforcement investigatory records.	2447

(D) All papers, documents, reports, and evidence in the	2448
possession of the superintendent or the superintendent's designee	2449
that pertain to such an insurance fraud investigation are not	2450
subject to subpoena in civil actions by any court of this state	2451
until opened for public inspection by the superintendent in	2452
accordance with division (B) of this section or with section	2453
149.43 of the Revised Code, unless the superintendent or the	2454
superintendent's designee consents, or until after reasonable	2455
notice to the superintendent and opportunity for hearing, the	2456
court determines the superintendent would not be hindered	2457
unnecessarily by such subpoena.	2458

(E) Notwithstanding divisions (B), (C), and (D) of this	2459
section, the superintendent may do either of the following:	2460

(1) Share documents, reports, and evidence that are the	2461
subject of this section with the chief deputy rehabilitator, the	2462
chief deputy liquidator, other deputy rehabilitators and	2463
liquidators, and any other person employed by, or acting on behalf	2464
of, the superintendent pursuant to Chapter 3901. or 3903. of the	2465
Revised Code, with other local, state, federal, and international	2466
regulatory and law enforcement agencies, with local, state, and	2467
federal prosecutors, with the national association of insurance	2468
commissioners and its affiliates and subsidiaries, with insurers,	2469
and with investigators hired by insurers, provided that the	2470
recipient agrees to maintain the confidential or privileged status	2471
of the confidential or privileged document, report, or evidence	2472
and has authority to do so;	2473

(2) Disclose documents, reports, and evidence that are the	2474
subject of this section in the furtherance of any regulatory or	2475
legal action brought by or on behalf of the superintendent or the	2476
state, resulting from the exercise of the superintendent's	2477
official duties.	2478

(F) Notwithstanding divisions (B), (C), (D), and (E) of this	2479
section, the superintendent may authorize the national association	2480
of insurance commissioners and its affiliates and subsidiaries by	2481
agreement to share confidential or privileged documents, reports,	2482
and evidence received pursuant to division (E)(1) of this section	2483
with local, state, federal, and international regulatory and law	2484
enforcement agencies and with local, state, and federal	2485
prosecutors, provided that the recipient agrees to maintain the	2486
confidential or privileged status of the confidential or	2487
privileged document, report, or evidence and has authority to do	2488
so.	2489

(G) Notwithstanding divisions (B), (C), (D), and (E) of this	2490
section, the chief deputy rehabilitator, the chief deputy	2491
liquidator, and other deputy rehabilitators and liquidators may	2492
disclose documents, reports, and evidence that are the subject of	2493
this section in the furtherance of any regulatory or legal action	2494
brought by or on behalf of the superintendent, the rehabilitator,	2495
the liquidator, or the state resulting from the exercise of the	2496
superintendent's official duties in any capacity.	2497

(H) Nothing in this section shall prohibit the	2498
superintendent from receiving documents, reports, and evidence in	2499
accordance with section 3901.045 of the Revised Code.	2500

(I) The superintendent may enter into agreements governing	2501
the sharing and use of documents, reports, and evidence consistent	2502
with the requirements of this section.	2503

(J)(1) No waiver of any applicable privilege or claim of	2504
confidentiality in the documents, reports, and evidence described	2505
in this section shall occur as a result of sharing or receiving	2506
documents, reports, and evidence as authorized in divisions	2507
(E)(1), (F), and (H) of this section.	2508

(2) The disclosure of a document, report, or evidence in	2509
connection with a regulatory or legal action pursuant to divisions	2510
(E)(2) and (G) of this section does not prohibit an insurer or any	2511
other person from taking steps to limit the dissemination of the	2512
document, report, or evidence to persons not involved in or the	2513
subject of the regulatory or legal action on the basis of any	2514
recognized privilege arising under any other section of the	2515
Revised Code or the common law.	2516

(K) The superintendent and the superintendent's designee are	2517
not subject to subpoena in civil actions by any court of this	2518
state to testify concerning any matter of which they have	2519
knowledge pursuant to a pending insurance fraud investigation by	2520
the superintendent.	2521

Sec. 3901.48.  (A) The original work papers of a certified	2522
public accountant performing an audit of an insurance company or	2523
health insuring corporation doing business in this state that is	2524
required by rule or by any section of the Revised Code to file an	2525
audited financial report with the superintendent of insurance	2526
shall remain the property of the certified public accountant. Any	2527
copies of these work papers voluntarily given to the	2528
superintendent shall be the property of the superintendent. The	2529
original work papers or any copies of them, whether in possession	2530
of the certified public accountant or the department of insurance,	2531
are confidential and privileged and are not a public record as	2532
defined in section 149.43 of the Revised Code. The original work	2533
papers and any copies of them are not subject to subpoena and	2534
shall not be made public by the superintendent or any other	2535
person. However, the original work papers and any copies of them	2536
may be released by the superintendent to the insurance regulatory	2537
authority of any other state if that authority agrees to maintain	2538
the confidentiality of the work papers or copies and if the work	2539
papers and copies are not public records under the laws of that	2540
state.	2541

(B) The work papers of the superintendent or of the person	2542
appointed by the superintendent, resulting from the conduct of an	2543
examination made pursuant to section 3901.07 of the Revised Code	2544
or from the conduct of a financial analysis of any entity subject	2545
to examination by the superintendent, including but not limited to	2546
any insurance company, health insuring corporation, fraternal	2547
benefit society, or multiple employer welfare arrangement, are	2548
confidential and privileged and are not a public record as defined	2549
in section 149.43 of the Revised Code. The original work papers	2550
and any copies of them are not subject to subpoena and shall not	2551
be made public by the superintendent or any other person. However,	2552
the original work papers and any copies of them may be released by	2553
the superintendent to the insurance regulatory authority of any	2554
other state if that authority agrees to maintain the	2555
confidentiality of the work papers or copies and if the work	2556
papers and copies are not public records under the laws of that	2557
state.	2558

(C) The work papers of the superintendent or of any person	2559
appointed by the superintendent, resulting from the conduct of a	2560
performance regulation examination made pursuant to authority	2561
granted under section 3901.011 of the Revised Code, are	2562
confidential and privileged and are not a public record as defined	2563
in section 149.43 of the Revised Code. The original work papers	2564
and any copies of them are not subject to subpoena and shall not	2565
be made public by the superintendent or any other person. However,	2566
the original work papers and any copies of them may be released by	2567
the superintendent to the insurance regulatory authority of any	2568
other state if that authority agrees to maintain the	2569
confidentiality of the work papers or copies and if the work	2570
papers and copies are not public records under the laws of that	2571
state.	2572

(D) Notwithstanding divisions (A), (B), and (C) of this	2573
section, the superintendent may do either of the following:	2574

(1) Share work papers that are the subject of this section	2575
with the chief deputy rehabilitator, the chief deputy liquidator,	2576
other deputy rehabilitators and liquidators, and any other person	2577
employed by, or acting on behalf of, the superintendent pursuant	2578
to Chapter 3901. or 3903. of the Revised Code, with other local,	2579
state, federal, and international regulatory and law enforcement	2580
agencies, with local, state, and federal prosecutors, and with the	2581
national association of insurance commissioners and its affiliates	2582
and subsidiaries, provided that the recipient agrees to maintain	2583
the confidential or privileged status of the confidential or	2584
privileged work paper and has authority to do so;	2585

(2) Disclose work papers that are the subject of this	2586
section in the furtherance of any regulatory or legal action	2587
brought by or on behalf of the superintendent or the state,	2588
resulting from the exercise of the superintendent's official	2589
duties.	2590

(E) Notwithstanding divisions (A), (B), (C), and (D) of this	2591
section, the superintendent may authorize the national association	2592
of insurance commissioners and its affiliates and subsidiaries by	2593
agreement to share confidential or privileged work papers received	2594
pursuant to division (D)(1) of this section with local, state,	2595
federal, and international regulatory and law enforcement agencies	2596
and with local, state, and federal prosecutors, provided that the	2597
recipient agrees to maintain the confidential or privileged status	2598
of the confidential or privileged work paper and has authority to	2599
do so.	2600

(F) Notwithstanding divisions (A), (B), (C), and (D) of this	2601
section, the chief deputy rehabilitator, the chief deputy	2602
liquidator, and other deputy rehabilitators and liquidators may	2603
disclose work papers that are the subject of this section in the	2604
furtherance of any regulatory or legal action brought by or on	2605
behalf of the superintendent, the rehabilitator, the liquidator,	2606
or the state resulting from the exercise of the superintendent's	2607
official duties in any capacity.	2608

(G) Nothing in this section shall prohibit the	2609
superintendent from receiving work papers in accordance with	2610
section 3901.045 of the Revised Code.	2611

(H) The superintendent may enter into agreements governing	2612
the sharing and use of work papers consistent with the	2613
requirements of this section.	2614

(I)(1) No waiver of any applicable privilege or claim of	2615
confidentiality in the work papers, or copies thereof, that are	2616
the subject of this section shall occur as a result of sharing or	2617
receiving work papers as authorized in divisions (D)(1), (E), and	2618
(G) of this section.	2619

(2) The disclosure of work papers in connection with a	2620
regulatory or legal action pursuant to divisions (D)(2) and (F) of	2621
this section does not prohibit an insurer or any other person from	2622
taking steps to limit the dissemination of the work papers to	2623
persons not involved in or the subject of the regulatory or legal	2624
action on the basis of any recognized privilege arising under any	2625
other section of the Revised Code or the common law.	2626

Sec. 3901.70.  (A) Each report obtained by or disclosed to	2627
the superintendent of insurance pursuant to sections 3901.67 to	2628
3901.70 of the Revised Code is confidential and privileged and is	2629
not subject to subpoena. Except as provided in divisionsdivision	2630
(B) and (C) of this section, the report shall not be made public	2631
by the superintendent, the national association of insurance	2632
commissioners, or any other persons.	2633

(B) A report may be provided by the superintendent to the	2634
insurance regulatory authority of another state or to the national	2635
association of insurance commissioners without first obtaining the	2636
written consent of the insurer to which it pertains.	2637

(C) The superintendent, after conducting a hearing in	2638
accordance with Chapter 119. of the Revised Code, may determine	2639
that the interest of policyholders, shareholders, or the public	2640
will be served by the publication of the report and may publish	2641
all or any part of the report in such manner as the superintendent	2642
may consider appropriate.Notwithstanding division (A) of this	2643
section, the superintendent may do any of the following:	2644

(1) Disclose a report that is the subject of this section	2645
upon obtaining a prior written consent from the insurer to which	2646
the report pertains;	2647

(2) Share a report that is the subject of this section with	2648
the chief deputy rehabilitator, the chief deputy liquidator,	2649
other deputy rehabilitators and liquidators, and any other person	2650
employed by, or acting on behalf of, the superintendent pursuant	2651
to Chapter 3901. or 3903. of the Revised Code, with other local,	2652
state, federal, and international regulatory and law enforcement	2653
agencies, with local, state, and federal prosecutors, and with the	2654
national association of insurance commissioners and its affiliates	2655
and subsidiaries, provided that the recipient agrees to maintain	2656
the confidential or privileged status of the confidential or	2657
privileged report and has authority to do so;	2658

(3) Disclose a report that is the subject of this section in	2659
the furtherance of any regulatory or legal action brought by or on	2660
behalf of the superintendent or the state, resulting from the	2661
exercise of the superintendent's official duties;	2662

(4) Disclose or publish all or any part of a report that is	2663
the subject of this section in such a manner as the superintendent	2664
considers appropriate after conducting a hearing in accordance	2665
with Chapter 119. of the Revised Code and determining that the	2666
interests of policyholders, shareholders, or the public will be	2667
served by the disclosure or publication of the report.	2668

(C) Notwithstanding divisions (A) and (B) of this section,	2669
the superintendent may authorize the national association of	2670
insurance commissioners and its affiliates and subsidiaries by	2671
agreement to share confidential or privileged reports received	2672
pursuant to division (B)(2) of this section with local, state,	2673
federal, and international regulatory and law enforcement agencies	2674
and with local, state, and federal prosecutors, provided that the	2675
recipient agrees to maintain the confidential or privileged status	2676
of the confidential or privileged report and has authority to do	2677
so.	2678

(D) Notwithstanding divisions (A) and (B) of this section,	2679
the chief deputy rehabilitator, the chief deputy liquidator, and	2680
other deputy rehabilitators and liquidators may disclose a report	2681
that is the subject of this section in the furtherance of any	2682
regulatory or legal action brought by or on behalf of the	2683
superintendent, the rehabilitator, the liquidator, or the state	2684
resulting from the exercise of the superintendent's official	2685
duties in any capacity.	2686

(E) Nothing in this section shall prohibit the	2687
superintendent from receiving reports in accordance with section	2688
3901.045 of the Revised Code.	2689

(F) The superintendent may enter into agreements governing	2690
the sharing, use, and disclosure of reports consistent with the	2691
requirements of this section.	2692

(G)(1) No waiver of any applicable privilege or claim of	2693
confidentiality in the reports that are the subject of this	2694
section shall occur as a result of sharing or receiving reports as	2695
authorized in divisions (B)(2), (C), and (E) of this section.	2696

(2) The disclosure of a report in connection with a	2697
regulatory or legal action pursuant to divisions (B)(3) and (D) of	2698
this section does not prohibit an insurer or any other person from	2699
taking steps to limit the dissemination of the report to persons	2700
not involved in or the subject of the regulatory or legal action	2701
on the basis of any recognized privilege arising under any other	2702
section of the Revised Code or the common law.	2703

Sec. 3901.83. (A) When a record containing information	2704
pertaining to the medical history, diagnosis, prognosis, or	2705
medical condition of an enrollee of a health insuring corporation,	2706
insured of an insurer, or plan member of a public employee benefit	2707
plan is provided to the superintendent of insurance for any reason	2708
under sections 1751.77 to 1751.88, 3923.66 to 3923.70, or 3923.75	2709
to 3923.79 of the Revised Code, regardless of the source, the	2710
superintendent shall maintain the confidentiality of the record.	2711
The record in the superintendent's possession is not a public	2712
record under section 149.43 of the Revised Code, except to the	2713
extent that information from the record is used in preparing	2714
reports under section 3901.82 of the Revised Code.	2715

(B) Notwithstanding division (A) of this section, the	2716
superintendent may share a record that is the subject of this	2717
section in connection with the investigation or prosecution of	2718
any illegal or criminal activity with the chief deputy	2719
rehabilitator, the chief deputy liquidator, other deputy	2720
rehabilitators and liquidators, and any other person employed by,	2721
or acting on behalf of, the superintendent pursuant to Chapter	2722
3901. or 3903. of the Revised Code, with other local, state,	2723
federal, and international regulatory and law enforcement	2724
agencies, with local, state, and federal prosecutors, and with the	2725
national association of insurance commissioners and its affiliates	2726
and subsidiaries, provided that the recipient agrees to maintain	2727
the confidential or privileged status of the confidential or	2728
privileged record and has authority to do so.	2729

(C) Nothing in this section shall prohibit the	2730
superintendent from receiving records in accordance with section	2731
3901.045 of the Revised Code.	2732

(D) The superintendent may enter into agreements governing	2733
the sharing and use of records consistent with the requirements of	2734
this section.	2735

(E) No waiver of any applicable privilege or claim of	2736
confidentiality in the records that are the subject of this	2737
section shall occur as a result of sharing or receiving records as	2738
authorized in divisions (B) and (C) of this section.	2739

Sec. 3903.11. (A) In all proceedings and judicial reviews	2740
thereof under sections 3903.09 and 3903.10 of the Revised Code,	2741
all records of the insurer, other documents, and all department of	2742
insurance files and court records and papers, so far as they	2743
pertain to or are a part of the record of the proceedings, shall	2744
be and remain confidential and privileged except as is necessary	2745
to enforce compliance with those sections, unless and until the	2746
court of common pleas, after hearing arguments from the parties in	2747
chambers, shall order otherwise, or unless the insurer requests in	2748
writing that the matter be made public. Until such court order or	2749
such request from the insurer, all papers filed with the clerk of	2750
the court shall be held by the clerk in a confidential file.	2751

(B) Notwithstanding division (A) of this section, the	2752
superintendent may do either of the following:	2753

(1) Share the documents and information that are the subject	2754
of this section with the chief deputy rehabilitator, the chief	2755
deputy liquidator, other deputy rehabilitators and liquidators,	2756
and any other person employed by, or acting on behalf of, the	2757
superintendent pursuant to Chapter 3901. or 3903. of the Revised	2758
Code, with other local, state, federal, and international	2759
regulatory and law enforcement agencies, with local, state, and	2760
federal prosecutors, and with the national association of	2761
insurance commissioners and its affiliates and subsidiaries,	2762
provided that the recipient agrees to maintain the confidential or	2763
privileged status of the confidential or privileged document or	2764
information and has authority to do so;	2765

(2) Disclose documents and information that are the subject	2766
of this section in the furtherance of any regulatory or legal	2767
action brought by or on behalf of the superintendent or the state,	2768
resulting from the exercise of the superintendent's official	2769
duties.	2770

(C) Notwithstanding divisions (A) and (B) of this section,	2771
the superintendent may authorize the national association of	2772
insurance commissioners and its affiliates and subsidiaries by	2773
agreement to share confidential or privileged documents or	2774
information received pursuant to division (B)(1) of this section	2775
with local, state, federal, and international regulatory and law	2776
enforcement agencies and with local, state, and federal	2777
prosecutors, provided that the recipient agrees to maintain the	2778
confidential or privileged status of the confidential or	2779
privileged document or information and has authority to do so.	2780

(D) Notwithstanding divisions (A) and (B) of this section,	2781
the chief deputy rehabilitator, the chief deputy liquidator, and	2782
other deputy rehabilitators and liquidators may disclose documents	2783
and information that are the subject of this section in the	2784
furtherance of any regulatory or legal action brought by or on	2785
behalf of the superintendent, the rehabilitator, the liquidator,	2786
or the state resulting from the exercise of the superintendent's	2787
official duties in any capacity.	2788

(E) Nothing in this section shall prohibit the	2789
superintendent from receiving documents or information in	2790
accordance with section 3901.045 of the Revised Code.	2791

(F) The superintendent may enter into agreements governing	2792
the sharing and use of documents and information consistent with	2793
the requirements of this section.	2794

(G)(1) No waiver of any applicable privilege or claim of	2795
confidentiality in the documents and information described in this	2796
section shall occur as a result of sharing or receiving documents	2797
and information as authorized in divisions (B)(1), (C), and (E) of	2798
this section.	2799

(2) The disclosure of documents or information in connection	2800
with a regulatory or legal action pursuant to divisions (B)(2) and	2801
(D) of this section does not prohibit an insurer or any other	2802
person from taking steps to limit the dissemination of the	2803
document or information to persons not involved in or the subject	2804
of the regulatory or legal action on the basis of any recognized	2805
privilege arising under any other section of the Revised Code or	2806
the common law.	2807

Sec. 3903.72.  (A) The superintendent of insurance shall	2808
annually value, or cause to be valued, the reserve liabilities,	2809
referred to in this section as reserves, for all outstanding life	2810
insurance policies and annuity and pure endowment contracts of	2811
every life insurance company doing business in this state. The	2812
superintendent may certify the amount of such reserves, specifying	2813
the mortality tables, rates of interest, and net level premium	2814
method and other methods used to calculate reserves. In	2815
calculating reserves, the superintendent may use group methods and	2816
approximate averages for fractions of a year or otherwise. The	2817
valuation of the reserves of a company organized under the laws of	2818
a foreign government shall be limited to its United States	2819
business.	2820

In lieu of a valuation of the reserves of a foreign company,	2821
the superintendent may accept the valuation made, or caused to be	2822
made, by the insurance supervisory official of any state or other	2823
jurisdiction when such valuation complies with the minimum	2824
standards required by this section, provided such official accepts	2825
the certificate of valuation of the superintendent when such	2826
certificate states that the valuation was made in a specified	2827
manner and when such valuation complies with the minimum standards	2828
required by the law of that state or jurisdiction.	2829

A company, which adopts a standard of valuation producing	2830
aggregate reserves greater than those required by this section,	2831
may adopt a lower standard of valuation with the approval of the	2832
superintendent, but not lower than the minimum provided by this	2833
section. However, the holding of additional reserves previously	2834
determined by a qualified actuary to be necessary for the actuary	2835
to render the opinions required by divisions (B)(1) and (2) of	2836
this section shall not be deemed to be the adoption of a higher	2837
standard of valuation.	2838

(B)(1) Every life insurance company doing business in this	2839
state shall annually submit to the superintendent the opinion of a	2840
qualified actuary as to whether the reserves and related actuarial	2841
items held in support of the policies and contracts specified by	2842
rule by the superintendent are computed appropriately, are based	2843
on assumptions that satisfy contractual provisions, and are	2844
consistent with prior reported amounts. The opinion shall be	2845
submitted no later than March 1, 1996, and no later than the first	2846
day of March of each year thereafter. The superintendent shall	2847
adopt rules establishing the form and content of this opinion, and	2848
may require the life insurance company to supply information in	2849
addition to that contained in the actuarial opinion.	2850

As used in this section, a "qualified actuary" means a person	2851
who is a member in good standing of the American academy of	2852
actuaries and who meets the requirements set by rule by the	2853
superintendent.	2854

(2)(a) Every life insurance company, except as exempted by	2855
rule adopted by the superintendent, shall also include in the	2856
annual opinion required by division (B)(1) of this section an	2857
opinion of the same qualified actuary as to whether the reserves	2858
and related actuarial items held in support of the policies and	2859
contracts specified by rule by the superintendent, when considered	2860
in light of the assets held by the company with respect to the	2861
reserves and related actuarial items, including, but not limited	2862
to, the investment earnings on the assets and the considerations	2863
anticipated to be received and retained under the policies and	2864
contracts, make adequate provision for the company's obligations	2865
under the policies and contracts, including, but not limited to,	2866
the benefits under and the expenses associated with the policies	2867
and contracts.	2868

(b) The superintendent may provide by rule for a transition	2869
period for establishing any higher reserves that the qualified	2870
actuary may consider necessary to render the opinion required by	2871
division (B) of this section.	2872

(c) Each opinion required by division (B) of this section	2873
shall be supported by a memorandum prepared in form and content as	2874
specified by rule by the superintendent.	2875

(d) If a life insurance company fails to provide a	2876
supporting memorandum within the period of time specified by rule	2877
by the superintendent, or if the superintendent determines that a	2878
supporting memorandum fails to meet the standards set out in the	2879
rule, or is otherwise unacceptable to the superintendent, the	2880
superintendent may employ, at the expense of the insurance	2881
company, a qualified actuary to review the opinion and the basis	2882
for the opinion and prepare such supporting memorandum as is	2883
required by the superintendent.	2884

(3) Every opinion required by division (B) of this section	2885
is governed by the following:	2886

(a) The opinion shall be submitted with the annual statement	2887
reflecting the valuation of the reserve liabilities.	2888

(b) The opinion shall apply to all business in force	2889
including individual and group health insurance plans.	2890

(c) The opinion shall be based on standards adopted from	2891
time to time by the actuarial standards board of the American	2892
academy of actuaries and on such additional standards as the	2893
superintendent may prescribe by rule.	2894

(d) In the case of an opinion required to be submitted by a	2895
foreign or alien life insurance company, the superintendent may	2896
accept the opinion filed by that company with the insurance	2897
regulatory authority of another state if the superintendent	2898
determines that the opinion reasonably meets the requirements	2899
applicable to a company domiciled in this state.	2900

(e) Except in cases of fraud or willful misconduct, the	2901
qualified actuary is not liable for damages in any civil action to	2902
any person, other than the insurance company and the	2903
superintendent, for any act, error, omission, decision, or conduct	2904
with respect to the actuary's opinion.	2905

(f) The superintendent shall establish by rule penalties for	2906
an insurance company's or qualified actuary's failure to comply	2907
with this section.	2908

(g) The superintendent shall keep as confidential and	2909
privileged any memorandum received in support of a qualified	2910
actuary's opinion and also any other material provided by the	2911
insurance company to the superintendent in connection with the	2912
opinion. The memorandum and other materials shall not be made	2913
public, and shall not be subject to subpoena other than for the	2914
purpose of defending an action required by this section or rules	2915
adopted under this section. However, the memorandum and other	2916
materials may be released by the superintendent with the written	2917
consent of the company, and may be released to the American	2918
academy of actuaries upon the superintendent's receipt of a	2919
request from the academy stating that the memorandum and other	2920
materials are required for the purpose of professional	2921
disciplinary proceedings. A request from the American academy of	2922
actuaries shall set forth the procedures to be used by the academy	2923
for preserving the confidentiality of the memorandum and other	2924
materials, which procedures shall be satisfactory to the	2925
superintendent prior to the superintendent's release of the	2926
memorandum and other materials. Ifif any portion of a	2927
confidential and privileged memorandum is cited by the company in	2928
its marketing, is cited before any governmental agency other than	2929
a state insurance regulatory authority, or is released by the	2930
company to the news media, the entire memorandum shall no longer	2931
be confidential and privileged.	2932

(h) Notwithstanding division (B)(3)(g) of this section, the	2933
superintendent may do any of the following:	2934

(i) Disclose memoranda and other materials described in this	2935
section upon obtaining prior written consent from the insurer to	2936
which the memorandum or other materials pertain;	2937

(ii) Disclose memoranda and other materials described in	2938
this section to the American academy of actuaries upon receipt of	2939
a written request from the academy stating that a memorandum or	2940
other material is required for the purpose of professional	2941
disciplinary proceedings. A request from the American academy of	2942
actuaries shall set forth the procedures to be used by the academy	2943
for preserving the confidential and privileged status of the	2944
memorandum or other material. If the procedures set forth are not	2945
satisfactory to the superintendent, the superintendent shall not	2946
release the memorandum or other material to the academy.	2947

(iii) Share memoranda and other materials described in this	2948
section with the chief deputy rehabilitator, the chief deputy	2949
liquidator, other deputy rehabilitators and liquidators, and any	2950
other person employed by, or acting on behalf of, the	2951
superintendent pursuant to Chapter 3901. or 3903. of the Revised	2952
Code, with other local, state, federal, and international	2953
regulatory and law enforcement agencies, with local, state, and	2954
federal prosecutors, and with the national association of	2955
insurance commissioners and its affiliates and subsidiaries,	2956
provided that the recipient agrees to maintain the confidential or	2957
privileged status of any confidential or privileged memorandum or	2958
other material and has authority to do so;	2959

(iv) Disclose memoranda and other materials described in	2960
this section in the furtherance of any regulatory or legal action	2961
brought by or on behalf of the superintendent or the state,	2962
resulting from the exercise of the superintendent's official	2963
duties.	2964

(i) Notwithstanding divisions (B)(3)(g) and (h) of this	2965
section, the superintendent may authorize the national association	2966
of insurance commissioners and its affiliates and subsidiaries by	2967
agreement to share confidential or privileged memoranda and other	2968
material received pursuant to division (B)(3)(h)(iii) of this	2969
section with local, state, federal, and international regulatory	2970
and law enforcement agencies and with local, state, and federal	2971
prosecutors, provided that the recipient agrees to maintain the	2972
confidential or privileged status of the confidential or	2973
privileged memorandum or other material and has authority to do	2974
so.	2975

(j) Notwithstanding divisions (B)(3)(g) and (h) of this	2976
section, the chief deputy rehabilitator, the chief deputy	2977
liquidator, and other deputy rehabilitators and liquidators may	2978
disclose memoranda and other material described in this section in	2979
the furtherance of any regulatory or legal action brought by or on	2980
behalf of the superintendent, the rehabilitator, the liquidator,	2981
or the state resulting from the exercise of the superintendent's	2982
official duties in any capacity.	2983

(k) Nothing in this section shall prohibit the	2984
superintendent from receiving memoranda and other material in	2985
accordance with section 3901.045 of the Revised Code.	2986

(l) The superintendent may enter into agreements governing	2987
the sharing and use of memoranda and materials consistent with the	2988
requirements of this section.	2989

(m)(i) No waiver of any applicable privilege or claim of	2990
confidentiality in the memoranda and materials described in this	2991
section shall occur as a result of sharing or receiving memoranda	2992
and material as authorized in divisions (B)(3)(h)(ii) and (iii),	2993
(B)(3)(i), and (B)(3)(k) of this section.	2994

(ii) The disclosure of any memorandum or material in	2995
connection with a regulatory or legal action pursuant to divisions	2996
(B)(3)(h)(iv) and (B)(3)(j) of this section does not prohibit an	2997
insurer or any other person from taking steps to limit the	2998
dissemination of the memorandum or material to persons not	2999
involved in or the subject of the regulatory or legal action on	3000
the basis of any recognized privilege arising under any other	3001
section of the Revised Code or the common law.	3002

(C) Except in the case of policies and contracts to which	3003
division (D) of this section applies, the minimum standard for the	3004
valuation of reserves shall be the method set forth in section	3005
3915.04 of the Revised Code, using four per cent interest and the	3006
American experience table of mortality; provided that in no event	3007
shall a company's aggregate reserves for policies and contracts	3008
which guarantee nonforfeiture benefits be less than the aggregate	3009
reserves calculated in accordance with the standard used in	3010
calculating nonforfeiture benefits for such policies and	3011
contracts.	3012

Reserves for such policies and contracts may be calculated	3013
according to standards which produce aggregate reserves greater	3014
than the minimum reserves required by this division.	3015

(D) This division applies to all life insurance policies and	3016
annuity and pure endowment contracts issued on and after November	3017
5, 1959, or each earlier date not before July 17, 1947, elected by	3018
the company for one or more of such policies or contracts as the	3019
date on which it would comply with the provisions of the	3020
nonforfeiture law for life insurance provided in section 3915.07	3021
of the Revised Code or with the provisions of this division. The	3022
minimum standard for the valuation of all such policies and	3023
contracts shall be the commissioners reserve valuation method	3024
defined in division (E), (F), (H), or (K) of this section and the	3025
following tables and interest rates:	3026

(1) For ordinary life insurance policies, excluding	3027
disability and accidental death benefits, issued on the standard	3028
basis:	3029

(a) On and after November 5, 1959, or an earlier date, not	3030
before July 17, 1947, specified in a written notice by the company	3031
to the superintendent of its election to use this table and before	3032
division (D)(1)(b) of this section became operative for subsequent	3033
policy issues, the commissioners 1941 standard ordinary mortality	3034
table and three and one-half per cent interest;	3035

(b) On and after January 1, 1966, or an earlier date, not	3036
before November 5, 1959, specified in a written notice by the	3037
company to the superintendent of its election to use this table	3038
and before division (D)(1)(c) of this section becomes operative	3039
for subsequent policy issues, the commissioners 1958 standard	3040
ordinary mortality table and three and one-half per cent interest	3041
before January 1, 1975; four per cent interest on and after	3042
January 1, 1975 and before January 1, 1979; and four and one-half	3043
per cent interest on and after January 1, 1979; provided that	3044
modified premiums and present values for female risks may be	3045
calculated at an age three years younger than the actual age of	3046
the insured for policies issued before January 1, 1979, and at an	3047
age six years younger for policies issued on and after January 1,	3048
1979.	3049

(c) On and after January 1, 1989, or an earlier date, not	3050
before January 1, 1983, specified in a written notice by the	3051
company to the superintendent of its election to use this table,	3052
the commissioners 1980 standard ordinary mortality table and the	3053
applicable valuation interest rate as defined in section 3903.721	3054
of the Revised Code. The company may elect to use the	3055
commissioners 1980 standard ordinary mortality table with ten-year	3056
select mortality factors for any specified plan of life insurance.	3057
The superintendent may approve the use of any ordinary mortality	3058
table adopted after 1980 by the national association of insurance	3059
commissioners for determining the minimum standard for the	3060
valuation of such policies.	3061

(2) For industrial life insurance policies, excluding	3062
disability and accidental death benefits, issued on the standard	3063
basis:	3064

(a) On and after November 5, 1959, or an earlier date, not	3065
before July 17, 1947, specified in a written notice by the company	3066
to the superintendent of its election to use this table and before	3067
division (D)(2)(b) of this section became operative for subsequent	3068
policy issues, the 1941 standard industrial mortality table and	3069
three and one-half per cent interest;	3070

(b) On and after January 1, 1968, or an earlier date, not	3071
before September 2, 1963, specified in a written notice by the	3072
company to the superintendent of its election to use this table,	3073
the commissioners 1961 standard industrial mortality table and	3074
three and one-half per cent interest before January 1, 1975; four	3075
per cent interest on and after January 1, 1975 and before January	3076
1, 1979; four and one-half per cent interest on and after January	3077
1, 1979 and before January 1, 1989, or before an earlier date, not	3078
before January 1, 1983, specified in a written notice by the	3079
company to the superintendent of its election to issue such	3080
policies pursuant to the provisions of the nonforfeiture law for	3081
life insurance provided in section 3915.071 of the Revised Code.	3082
On and after January 1, 1989, or such earlier date, the interest	3083
rate to be used in calculating the minimum reserve for such	3084
policies is the applicable valuation interest rate as defined in	3085
section 3903.721 of the Revised Code. The superintendent may	3086
approve the use of any industrial mortality table adopted after	3087
1980 by the national association of insurance commissioners for	3088
determining the minimum standard for the valuation of such	3089
policies.	3090

(3) For all individual annuity and pure endowment contracts,	3091
excluding disability and accidental death benefits, issued:	3092

(a) On and after November 5, 1959, or an earlier date, not	3093
before July 17, 1947, as of which the company elected to comply	3094
with this division (D)(3)(a) and before division (D)(3)(b) of this	3095
section became operative for subsequent contract issues, the 1937	3096
standard annuity mortality table, or, at the option of the	3097
company, the annuity mortality table for 1949, ultimate, or any	3098
modification of either table approved by the superintendent and	3099
three and one-half per cent interest;	3100

(b) On and after January 1, 1979, or an earlier date, not	3101
before January 1, 1975, specified by the company in a written	3102
notice to the superintendent of its election to use this table,	3103
the 1971 individual annuity mortality table or any modification of	3104
that table approved by the superintendent and four per cent	3105
interest on and after January 1, 1975 and before January 1, 1979;	3106
four and one-half per cent interest on and after January 1, 1979,	3107
and before January 1, 1983; and the valuation interest rate as	3108
defined in section 3903.721 of the Revised Code on and after	3109
January 1, 1983, except that on and after January 1, 1975, and	3110
before January 1, 1979, the interest rate is six per cent for	3111
single premium immediate contracts and on and after January 1,	3112
1979, and before January 1, 1983, the interest rate is five and	3113
one-half per cent for single premium deferred contracts and seven	3114
and one-half per cent for single premium immediate contracts. The	3115
superintendent may approve the use of any individual annuity	3116
mortality table adopted after 1980 by the national association of	3117
insurance commissioners, either as adopted or as modified by the	3118
superintendent, for determining the minimum standard for the	3119
valuation of such contracts.	3120

(4) For all annuity and pure endowment contracts, excluding	3121
disability and accidental death benefits, purchased under group	3122
annuity and pure endowment contracts:	3123

(a) On and after November 5, 1959, or an earlier date, not	3124
before July 17, 1947, as of which the company elected to comply	3125
with this division (D)(4)(a) and before division (D)(4)(b) of this	3126
section became operative for subsequent contract purchases, the	3127
group annuity mortality table for 1951, any modification of this	3128
table approved by the superintendent, or either of the tables, or	3129
modification of either of them, specified in division (D)(3)(a) of	3130
this section for individual annuity and pure endowment contracts	3131
and three and one-half per cent interest;	3132

(b) On and after January 1, 1979, or an earlier date, not	3133
before January 1, 1975, specified by the company in a written	3134
notice to the superintendent of its election to use this table,	3135
the 1971 group annuity mortality table, or any modification of	3136
that table approved by the superintendent, and six per cent	3137
interest on and after January 1, 1975, and before January 1, 1979;	3138
seven and one-half per cent interest on and after January 1, 1979,	3139
and before January 1, 1983, and the valuation interest rate as	3140
defined in section 3903.721 of the Revised Code on and after	3141
January 1, 1983. The superintendent may approve the use of any	3142
group annuity mortality table adopted after 1980 by the national	3143
association of insurance commissioners, either as adopted or as	3144
modified by the superintendent, for determining the minimum	3145
standard for the valuation of such contracts.	3146

(5) For total and permanent disability benefits in or	3147
supplementary to ordinary policies and contracts issued:	3148

(a) On and after July 17, 1947, and before January 1, 1961,	3149
the class (3) disability table (1926) and three and one-half per	3150
cent interest. This table, for active lives, shall be combined	3151
with a mortality table permitted for calculating the reserves for	3152
life insurance policies.	3153

(b) On and after January 1, 1961, the tables of period 2	3154
disablement rates and the 1930 to 1950 termination rates of the	3155
1952 disability study of the society of actuaries, with due regard	3156
for the type of benefit; except that a company may, at its option,	3157
use the class (3) disability table (1926) for policies and	3158
contracts issued on and after January 1, 1961, and before January	3159
1, 1966. Any such table, for active lives, shall be combined with	3160
a mortality table permitted for calculating the reserves for life	3161
insurance policies. The interest rate to be used in calculating	3162
minimum reserves for such benefits may not exceed the applicable	3163
rate specified in division (D)(1) of this section for ordinary	3164
life insurance policies. The superintendent may approve the use	3165
of any table of disablement rates and termination rates adopted	3166
after 1980 by the national association of insurance commissioners	3167
for determining the minimum standard for the valuation of such	3168
total and permanent benefits.	3169

(6) For accidental death benefits in or supplementary to	3170
policies issued:	3171

(a) On and after July 17, 1947, and before January 1, 1961,	3172
the inter-company double indemnity mortality table and three and	3173
one-half per cent interest. This table shall be combined with a	3174
mortality table permitted for calculating the reserves for life	3175
insurance policies.	3176

(b) On and after January 1, 1961, the 1959 accidental death	3177
benefits table; except that a company may, at its option, use the	3178
inter-company double indemnity mortality table for policies issued	3179
on and after January 1, 1961, and before January 1, 1966. Either	3180
table shall be combined with a mortality table permitted for	3181
calculating the reserves for life insurance policies. The	3182
interest rate to be used in calculating the minimum reserves for	3183
such benefits may not exceed the applicable rate specified in	3184
division (D)(1) of this section for ordinary life insurance	3185
policies. The superintendent may approve the use of any	3186
accidental death benefits table adopted after 1980 by the national	3187
association of insurance commissioners for determining the minimum	3188
standard for the valuation of such accidental death benefits.	3189

(7) For group life insurance, life insurance issued on the	3190
substandard basis and all other special benefits, such tables as	3191
may be approved by the superintendent and interest not to exceed	3192
the applicable rate used in division (D)(1) of this section for	3193
ordinary life insurance policies.	3194

(E) This division defines the commissioners reserve	3195
valuation method for all policies, riders, and supplemental policy	3196
provisions, with life insurance or endowment benefits, or both,	3197
providing for uniform amounts of life insurance and requiring	3198
uniform premiums. Reserves for such policies, riders, and	3199
provisions, except as otherwise provided in divisions (F) and (K)	3200
of this section, shall be the excess, if any, of the present value	3201
on the valuation date of the future guaranteed benefits over the	3202
present value on that date of the future modified net premiums.	3203
The modified net premium is a uniform percentage of each contract	3204
premium specified for the guaranteed benefits such that the	3205
present value, at the date of issue, of all modified net premiums	3206
shall be equal to the present value, on the date of issue, of the	3207
future guaranteed benefits plus the excess of division (E)(1) over	3208
division (E)(2) of this section, as follows:	3209

(1) A net level annual premium equal to the present value,	3210
at the date of issue, of such benefits provided for after the	3211
first policy year, divided by the present value, at the date of	3212
issue, of an annuity of one per annum payable on the first and	3213
each subsequent anniversary of the policy on which a premium falls	3214
due; provided that such net level annual premium shall not exceed	3215
the net level annual premium on the nineteen-year premium whole	3216
life plan for insurance of the same amount at an age one year	3217
higher than the age at issue of the policy.	3218

(2) A net one-year term premium for such benefits provided	3219
for in the first policy year.	3220

(F) This division defines the commissioners reserve	3221
valuation method for all life insurance policies issued on or	3222
after January 1, 1989, that have a first year premium in excess of	3223
the premium for the second policy year and for which excess no	3224
comparable benefit is provided in the first year and that provide	3225
either an endowment benefit or cash surrender value, or both, in	3226
an amount greater than the excess. Reserves for such policies	3227
before the assumed ending date shall be the greater of the amount	3228
calculated in accordance with division (E) of this section and the	3229
reserve calculated in accordance with that division but with the	3230
following changes:	3231

(1) The value defined in division (E)(1) of this section	3232
shall be reduced by fifteen per cent of the amount of such excess	3233
first-year premium;	3234

(2) All present values of benefits and premiums shall be	3235
determined without reference to premiums and benefits provided for	3236
by the policy after the assumed ending date;	3237

(3) The policy shall be assumed to mature on the assumed	3238
ending date in the amount of its endowment benefits and cash	3239
surrender value. The assumed ending date is the first policy	3240
anniversary on which the sum of any endowment benefit and any cash	3241
surrender value then available is greater than such excess	3242
first-year premium.	3243

On and after the assumed ending date, the reserve for such	3244
policies shall be calculated in accordance with division (E) of	3245
this section.	3246

(G) Reserves according to the commissioners reserve	3247
valuation method for:	3248

(1) All policies, riders, and supplemental policy provisions	3249
providing varying amounts of life insurance or requiring payment	3250
of varying premiums;	3251

(2) Group annuity and pure endowment contracts purchased	3252
under a retirement plan or plan of deferred compensation,	3253
established or maintained by an employer, including a partnership	3254
or sole proprietorship, or by an employee organization, or by	3255
both, other than a plan providing individual retirement accounts	3256
or individual retirement annuities under section 408 of the	3257
Internal Revenue Code of 1954, as amended;	3258

(3) Disability and accidental death benefits in all policies	3259
and contracts; and	3260

(4) All other benefits, except life insurance and endowment	3261
benefits in life insurance policies and benefits provided by all	3262
other annuity and pure endowment contracts, shall be calculated by	3263
a method consistent with the principles of division (E) of this	3264
section.	3265

Extra premiums charged because of impairments or special	3266
hazards shall be disregarded in determining modified net premiums.	3267

(H) This division defines the commissioners annuity reserve	3268
valuation method for all annuity and pure endowment contracts	3269
other than group annuity and pure endowment contracts purchased	3270
under a retirement plan or plan of deferred compensation,	3271
established or maintained by an employer, including a partnership	3272
or sole proprietorship, or by an employee organization, or by	3273
both, other than a plan providing individual retirement accounts	3274
or individual retirement annuities under section 408 of the	3275
Internal Revenue Code of 1954, as amended.	3276

Reserves for benefits under such contracts, excluding	3277
disability and accidental death benefits, shall be the greatest of	3278
the respective excesses of the present values, at the date of	3279
valuation, of the future guaranteed benefits, including guaranteed	3280
nonforfeiture benefits, provided for by such contract at the end	3281
of each respective contract year, over the present value, at the	3282
date of valuation, of any future valuation considerations derived	3283
from future gross considerations required by the terms of the	3284
contract that become payable prior to the end of each such	3285
respective contract year. The future guaranteed benefits shall be	3286
determined by using the mortality table, if any, and the interest	3287
rate, or rates, specified in such contracts for determining	3288
guaranteed benefits. The valuation considerations are the	3289
portions of the respective gross considerations applied under the	3290
terms of such contracts to determine nonforfeiture values.	3291

(I) In no event shall a company's aggregate reserves for all	3292
life insurance policies, to which division (D) of this section	3293
applies, excluding disability and accidental death benefits, be	3294
less than the aggregate reserves calculated in accordance with the	3295
method set forth in divisions (E), (F), (G), (K), and (L) of this	3296
section and the mortality table or tables and rate or rates of	3297
interest used in calculating nonforfeiture benefits for such	3298
policies.	3299

In no event shall the aggregate reserves for all policies,	3300
contracts, and benefits be less than the aggregate reserves	3301
determined by the qualified actuary to be necessary to render the	3302
opinion required by division (B) of this section.	3303

(J) Reserves for any category of policies, contracts, or	3304
benefits as established by the superintendent may be calculated,	3305
at the option of the company, according to any standards which	3306
produce aggregate reserves for such category greater than those	3307
calculated according to the minimum standards provided in this	3308
section, but the rate or rates of interest used for policies and	3309
contracts, other than annuity and pure endowment contracts, shall	3310
not be higher than the corresponding rate or rates of interest	3311
used in calculating any nonforfeiture benefits provided for in	3312
such standards.	3313

(K) If in any contract year the valuation net premium	3314
calculated by the method used in calculating the reserve for a	3315
policy or contract but using the minimum valuation standards of	3316
mortality and rate of interest is more than the gross premium for	3317
such policy or contract, the minimum reserve required for such	3318
policy or contract shall be the greater of either the reserve	3319
calculated according to the mortality table, rate of interest, and	3320
method actually used for such policy or contract, or the reserve	3321
calculated by such method but using the minimum valuation	3322
standards of mortality and rate of interest and replacing the	3323
valuation net premium by the actual gross premium in each contract	3324
year for which the valuation net premium exceeds the actual gross	3325
premium. The minimum valuation standards of mortality and rate of	3326
interest referred to in this division are those required by	3327
division (D) of this section.	3328

For the purposes of this division, the minimum reserve for	3329
any policy to which the provisions of division (F) of this section	3330
apply shall be calculated as if the method used in calculating the	3331
reserve for such policy were the method defined in division (E) of	3332
this section. The minimum reserve for such policy shall be the	3333
greater of the reserve calculated in accordance with division (F)	3334
of this section and in accordance with this division.	3335

(L) Methods for determining the reserves for plans of life	3336
insurance or annuity which are of such a nature that minimum	3337
reserves cannot be determined by the methods described in this	3338
section shall be promulgated by rule adopted by the	3339
superintendent. The reserves to be held under such plans must be	3340
appropriate in relation to the benefits and the pattern of	3341
premiums for each plan and must be computed by methods which are	3342
consistent with the principles of this section. This division	3343
applies to any plan of life insurance which provides for future	3344
premium determination, the amounts of which are to be determined	3345
by the company on the basis of an estimate of future experience	3346
made at the time of any such determination.	3347

(M) The superintendent shall adopt rules specifying minimum	3348
reserve standards for the valuation of individual and group health	3349
plans.	3350

Sec. 3903.83.  (A) For purposes of sections 3903.81 to	3351
3903.93 of the Revised Code, a "company action level event" is any	3352
of the following events:	3353

(1) A domestic or foreign insurer's filing of an RBC report	3354
that indicates that the insurer's total adjusted capital is	3355
greater than or equal to its regulatory action level RBC but less	3356
than its company action level RBC;	3357

(2) A life or health insurer's filing of an RBC report that	3358
indicates that the insurer's total adjusted capital is greater	3359
than or equal to its company action level RBC but less than the	3360
product of 2.5 and its authorized control level RBC, and that	3361
indicates a negative trend;	3362

(3) The notification by the superintendent of insurance to	3363
an insurer of an adjustment to the insurer's RBC report, which	3364
adjusted RBC report shows the insurer's total adjusted capital	3365
within the range described in either division (A)(1) or (2) of	3366
this section, provided that the insurer does not challenge the	3367
adjusted RBC report under section 3903.87 of the Revised Code;	3368

(4) The superintendent's notification to an insurer,	3369
following the hearing required under section 3903.87 of the	3370
Revised Code, that the superintendent has rejected the insurer's	3371
challenge to an adjusted RBC report showing the insurer's total	3372
adjusted capital within the range described in either division	3373
(A)(1) or (2) of this section.	3374

(B) In the case of a company action level event, the insurer	3375
shall prepare and submit to the superintendent an RBC plan that	3376
shall:	3377

(1) Identify the conditions that contributed to the company	3378
action level event;	3379

(2) Contain proposals of corrective actions that the insurer	3380
intends to take to eliminate the conditions leading to the company	3381
action level event;	3382

(3) Provide projections of the insurer's financial results	3383
in the current year and at least the four succeeding years, both	3384
in the absence of the proposed corrective actions and giving	3385
effect to the proposed corrective actions. The projections shall	3386
include projections of statutory operating income, net income,	3387
capital, and surplus. Projections for both new and renewal	3388
business may include separate projections for each major line of	3389
business, and may separately identify each significant income,	3390
expense, and benefit component of the projection.	3391

(4) Identify the key assumptions impacting the insurer's	3392
projections made pursuant to division (B)(3) of this section, and	3393
describe the sensitivity of the projections to the assumptions;	3394

(5) Identify the quality of, and problems associated with,	3395
the insurer's business, including, but not limited to, its assets,	3396
anticipated business growth and associated surplus strain,	3397
extraordinary exposure to risk, mix of business, and use of	3398
reinsurance.	3399

(C) The RBC plan shall be submitted within forty-five days	3400
after a company action level event. However, if an insurer has	3401
challenged an adjusted RBC report pursuant to section 3903.87 of	3402
the Revised Code, the RBC plan need not be submitted until after	3403
the hearing required under section 3903.87 of the Revised Code. If	3404
the superintendent rejects the insurer's challenge, the RBC plan	3405
shall be submitted within forty-five days after the	3406
superintendent's notification to the insurer of the rejection of	3407
the challenge.	3408

(D)(1) Within sixty days after an insurer submits an RBC	3409
plan to the superintendent, the superintendent shall either	3410
require the insurer to implement the RBC plan or shall notify the	3411
insurer that the RBC plan is unsatisfactory in the judgment of the	3412
superintendent. If the superintendent has determined that the RBC	3413
plan is unsatisfactory, the notification to the insurer shall set	3414
forth the reasons for the determination, and may set forth	3415
proposed revisions that will render the RBC plan satisfactory in	3416
the judgment of the superintendent. Upon such notification from	3417
the superintendent, the insurer shall prepare and submit a revised	3418
RBC plan, which may incorporate by reference any revisions	3419
proposed by the superintendent.	3420

(2) If an insurer challenges, under section 3903.87 of the	3421
Revised Code, a notification from the Superintendent that the	3422
insurer's RBC plan or a revised RBC plan is unsatisfactory,	3423
submission of a revised RBC plan need not be made unless the	3424
superintendent rejects the insurer's challenge following the	3425
hearing required by section 3903.87 of the Revised Code and then	3426
notifies the insurer of this rejection.	3427

(3) An insurer shall submit a revised RBC plan to the	3428
superintendent within forty-five days after receiving notification	3429
from the superintendent that its RBC plan is unsatisfactory, or,	3430
that its challenge to a notification made under division (D)(1) of	3431
this section has been rejected, as applicable.	3432

(E) Notwithstanding division (D) of this section, if the	3433
superintendent notifies an insurer that its RBC plan or revised	3434
RBC plan is unsatisfactory, the superintendent may, at the	3435
superintendent's discretion, but subject to the insurer's right to	3436
a hearing under section 3903.87 of the Revised Code, specify in	3437
the notification that the notification constitutes a regulatory	3438
action level event.	3439

(F) Every domestic insurer that submits an RBC plan or	3440
revised RBC plan to the superintendent shall file a copy of the	3441
RBC plan or revised RBC plan with the insurance regulatory	3442
authority of every state in which the insurer is authorized to do	3443
business upon receiving the insurance regulatory authority's	3444
written request for a copy of the plan, if the state has a	3445
confidentiality law with provisions substantially similar to those	3446
set forth in divisions (A) and (B) of section 3903.88 of the	3447
Revised Code. The insurer shall file the copy in that state no	3448
later than the later of:	3449

(1) Fifteen days after receiving the request for a copy of	3450
the plan;	3451

(2) The date on which the RBC plan or revised RBC plan is	3452
filed pursuant to division (C) or (D) of this section.	3453

Sec. 3903.88.  (A) The superintendent of insurance shall	3454
keep all of the following confidential:	3455

(1) An RBC report, to the extent that information contained	3456
in the report is not required to be included in an annual	3457
statement available to the public;	3458

(2) An RBC plan;

3459

(3) The results of, or a report on, an examination or	3460
analysis conducted pursuant to division (B)(2) of section 3903.84	3461
of the Revised Code, and a corrective order issued pursuant to	3462
division (B)(3) of section 3903.84 of the Revised Code.	3463

(B) The plans, reports, information, and orders described in	3464
division (A) of this section shallare confidential and privileged	3465
and not be subject to subpoena, except for use by the	3466
superintendent in accordance with the insurance laws of this	3467
state.	3468

(C) Notwithstanding divisions (A) and (B) of this section,	3469
the superintendent may do any of the following:	3470

(1) Use the plans, reports, information, and orders that are	3471
the subject of this section in accordance with the insurance laws	3472
of this state;	3473

(2) Share the plans, reports, information, and orders that	3474
are the subject of this section with the chief deputy	3475
rehabilitator, the chief deputy liquidator, other deputy	3476
rehabilitators and liquidators, and any other person employed by,	3477
or acting on behalf of, the superintendent pursuant to Chapter	3478
3901. or 3903. of the Revised Code, with other local, state,	3479
federal, and international regulatory and law enforcement	3480
agencies, with local, state, and federal prosecutors, and with the	3481
national association of insurance commissioners and its affiliates	3482
and subsidiaries, provided that the recipient agrees to maintain	3483
the confidential or privileged status of the confidential or	3484
privileged plan, report, information, or order and has authority	3485
to do so;	3486

(3) Disclose plans, reports, information, and orders that	3487
are the subject of this section in the furtherance of any	3488
regulatory or legal action brought by or on behalf of the	3489
superintendent or the state, resulting from the exercise of the	3490
superintendent's official duties.	3491

(D) Notwithstanding divisions (A), (B), and (C) of this	3492
section, the superintendent may authorize the national association	3493
of insurance commissioners and its affiliates and subsidiaries by	3494
agreement to share confidential or privileged plans, reports,	3495
information, and orders received pursuant to division (C)(2) of	3496
this section with local, state, federal, and international	3497
regulatory and law enforcement agencies and with local, state, and	3498
federal prosecutors, provided that the recipient agrees to	3499
maintain the confidential or privileged status of the confidential	3500
or privileged plan, report, information, or order and has	3501
authority to do so.	3502

(E) Notwithstanding divisions (A), (B), and (C) of this	3503
section, the chief deputy rehabilitator, the chief deputy	3504
liquidator, and other deputy rehabilitators and liquidators may	3505
disclose plans, reports, information, and orders that are the	3506
subject of this section in the furtherance of any regulatory or	3507
legal action brought by or on behalf of the superintendent, the	3508
rehabilitator, the liquidator, or the state resulting from the	3509
exercise of the superintendent's official duties in any capacity.	3510

(F) Nothing in this section shall prohibit the	3511
superintendent from receiving plans, reports, information, and	3512
orders in accordance with section 3901.045 of the Revised Code.	3513

(G) The superintendent may enter into agreements governing	3514
the sharing and use of plans, reports, information, and orders	3515
consistent with the requirements of this section.	3516

(H)(1) No waiver of any applicable privilege or claim of	3517
confidentiality in the plans, reports, information, and orders	3518
that are the subject of this section shall occur as a result of	3519
sharing or receiving plans, reports, information, and orders as	3520
authorized in divisions (C)(2), (D), and (F) of this section.	3521

(2) The disclosure of a plan, report, information, or order	3522
in connection with a regulatory or legal action pursuant to	3523
divisions (C)(3) and (E) of this section does not prohibit an	3524
insurer or any other person from taking steps to limit the	3525
dissemination of the plan, report, information, or order to	3526
persons not involved in or the subject of the regulatory or legal	3527
action on the basis of any recognized privilege arising under any	3528
other section of the Revised Code or the common law.	3529

(I) The comparison of an insurer's total adjusted capital to	3530
any of its RBC levels shall not be used to rank insurers.	3531

(D)(J) RBC instructions, RBC reports, adjusted RBC reports,	3532
RBC plans, and revised RBC plans, shall not be used by the	3533
superintendent for ratemaking, considered or introduced as	3534
evidence in any rate proceeding, or used by the superintendent to	3535
calculate or derive any elements of an appropriate premium level	3536
or rate of return for any line of insurance that an insurer or any	3537
affiliate is authorized to write.	3538

(E)(K) Except as otherwise required under Title XXXIX of the	3539
Revised Code, it is an unfair and deceptive act or practice in the	3540
business of insurance for any person, as defined in division (A)	3541
of section 3901.19 of the Revised Code, to make, publish,	3542
disseminate, circulate, or place before the public, or to cause,	3543
directly or indirectly, to be made, published, disseminated,	3544
circulated, or placed before the public, in a newspaper, magazine,	3545
or other publication, in the form of a notice, circular, pamphlet,	3546
letter, or poster, or over any radio or television station, or in	3547
any other manner, an advertisement, announcement, or statement,	3548
written or oral, that contains an assertion, representation, or	3549
statement, regarding the RBC levels of any insurer or any	3550
component derived in the calculation of the RBC levels.	3551

(F)(L) If any materially false statement is published	3552
comparing an insurer's total adjusted capital to its RBC levels,	3553
or any inappropriate comparison of any other amount to any of the	3554
insurers' RBC levels is published, and the insurer is able to	3555
demonstrate to the superintendent with substantial proof the	3556
falsity of the statement or the inappropriateness of the	3557
comparison, then the insurer may publish with the superintendent's	3558
approval an announcement in a written publication to rebut the	3559
materially false statement or inappropriate comparison.	3560

Sec. 3905.492.  (A)(1) All records and other information	3561
obtained by the superintendent of insurance or the	3562
superintendent's deputies, examiners, assistants, or other	3563
employees, or agents relating to an investigation of an applicant	3564
for licensure under this chapter, or of an agent, solicitor,	3565
broker, or other person licensed under this chapter or Chapter	3566
3951., 3957., or 3959. of the Revised Code, are confidential and	3567
are not public records as defined in section 149.43 of the Revised	3568
Code until the applicant or licensee is provided notice and	3569
opportunity for hearing pursuant to Chapter 119. of the Revised	3570
Code with respect to such records or information. If no	3571
administrative action is initiated with respect to a particular	3572
matter about which the superintendent obtained records or other	3573
information as part of an investigation, all such records and	3574
information relating to that matter shall remain confidential for	3575
three years after the file on the matter is closed.	3576

(2) Division (A)(1) of this section applies only to	3577
investigations that could result in administrative action under	3578
Title XVII or XXXIX or Chapter 119. of the Revised Code.	3579

(B) The records and other information described in division	3580
(A) of this section shall remain confidential for all purposes	3581
except when it is appropriate for the superintendent and the	3582
superintendent's deputies, examiners, assistants, or other	3583
employees, or agents to take official action regarding the affairs	3584
of the applicant or licensee or in connection with actual or	3585
potential criminal proceedings.	3586

(C) Employees or agents of the department of insurance shall	3587
not be required by any court in this state to testify in a civil	3588
action, if such testimony concerns any matter related to records	3589
or any other information considered confidential under this	3590
section of which they have knowledge.	3591

(D) This section does not apply to any complaint or action	3592
under section 3905.04 of the Revised Code.Notwithstanding	3593
divisions (A) and (B) of this section, the superintendent may do	3594
either of the following:	3595

(1) Share records and other information that are the subject	3596
of this section with the chief deputy rehabilitator, the chief	3597
deputy liquidator, other deputy rehabilitators and liquidators,	3598
and any other person employed by, or acting on behalf of, the	3599
superintendent pursuant to Chapter 3901. or 3903. of the Revised	3600
Code, with other local, state, federal, and international	3601
regulatory and law enforcement agencies, with local, state, and	3602
federal prosecutors, and with the national association of	3603
insurance commissioners and its affiliates and subsidiaries,	3604
provided that the recipient agrees to maintain the confidential	3605
status of the confidential record or other information and has	3606
authority to do so;	3607

(2) Disclose records and other information that are the	3608
subject of this section in the furtherance of any regulatory or	3609
legal action brought by or on behalf of the superintendent or the	3610
state, resulting from the exercise of the superintendent's	3611
official duties.	3612

(D) Notwithstanding divisions (A), (B), and (C) of this	3613
section, the superintendent may authorize the national association	3614
of insurance commissioners and its affiliates and subsidiaries by	3615
agreement to share confidential records and other information	3616
received pursuant to division (C)(1) of this section with local,	3617
state, federal, and international regulatory and law enforcement	3618
agencies and with local, state, and federal prosecutors, provided	3619
that the recipient agrees to maintain the confidential status of	3620
the confidential record or other information and has authority to	3621
do so.	3622

(E) Notwithstanding divisions (A), (B), and (C) of this	3623
section, the chief deputy rehabilitator, the chief deputy	3624
liquidator, and other deputy rehabilitators and liquidators may	3625
disclose records and other information that are the subject of	3626
this section in the furtherance of any regulatory or legal action	3627
brought by or on behalf of the superintendent, the rehabilitator,	3628
the liquidator, or the state resulting from the exercise of the	3629
superintendent's official duties in any capacity.	3630

(F) Nothing in this section shall prohibit the	3631
superintendent from receiving records and other information in	3632
accordance with section 3901.045 of the Revised Code.	3633

(G)(1) No waiver of any applicable privilege or claim of	3634
confidentiality in the records and other information that are the	3635
subject of this section shall occur as a result of sharing or	3636
receiving records or other information as authorized in divisions	3637
(C)(1), (D), and (F) of this section.	3638

(2) The disclosure of records or other information in	3639
connection with a regulatory or legal action pursuant to divisions	3640
(C)(2) and (E) of this section does not prohibit an insurer or any	3641
other person from taking steps to limit the dissemination of the	3642
record or other information to persons not involved in or the	3643
subject of the regulatory or legal action on the basis of any	3644
recognized privilege arising under any other section of the	3645
Revised Code or the common law.	3646

(H) Employees or agents of the department of insurance shall	3647
not be required by any court in this state to testify in a civil	3648
action, if the testimony concerns any matter related to records or	3649
other information considered confidential under this section of	3650
which they have knowledge.	3651

Sec. 3905.50.  (A)(1) Except as provided in division (A)(2)	3652
or (3) of this section, this section applies to every contract of	3653
agency between a property and casualty insurance company and an	3654
independent insurance agent, as defined in division (A) of section	3655
3905.47 of the Revised Code, which has been in effect for not less	3656
than two years.	3657

(2) This section does not apply to a contract of exclusive	3658
employment by, or an exclusive agency contract with, a single	3659
insurer or group of insurers under common ownership or control.	3660

(3) This section does not apply to an agent whose license	3661
has been suspended or revoked by the superintendent of insurance,	3662
an agent who has demonstrated gross incompetence, or an agent	3663
whose contract has been terminated for insolvency, abandonment,	3664
gross or willful misconduct, or failure to pay to the insurer, in	3665
accordance with the agency contract, moneys due to the insurer	3666
upon written demand of the insurer.	3667

(B) No insurer shall terminate an independent insurance	3668
agent contract of agency except by mutual agreement of the parties	3669
or upon one hundred eighty days' written notice to the independent	3670
insurance agent.	3671

(1) Such notice shall include specific reasons for the	3672
termination of the agent.	3673

(2) Such notice shall be sent by certified mail, return	3674
receipt requested, to the last known address of the agency.	3675

(C) During the one hundred eighty day notice period, an	3676
independent insurance agent shall not write or bind any new	3677
policies on behalf of an insurer without written approval from the	3678
insurer. However, during such period, an independent insurance	3679
agent, subject to the current underwriting rules, guidelines,	3680
commission rates, and practices of the insurer, may renew or	3681
effect any necessary changes or endorsements of outstanding	3682
policies of insurance that are in force prior to the date of	3683
receipt of the notice of termination.	3684

(D) None of the following constitutes an acceptable reason	3685
for the termination of a contract of agency:	3686

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

3687

(2) Claims experience due to catastrophiescatastrophes of	3688
nature covered by a policy;	3689

(3) Claims experience under uninsured and underinsured	3690
motorist coverages.	3691

(E) An agent aggrieved by the conduct of an insurer in its	3692
breach or termination of a contract of agency may file with the	3693
superintendent a request that the superintendent review the action	3694
to determine whether it is in accord with this section and the	3695
lawful provisions of the contract of agency and send a copy of the	3696
request to the insurer at the address of the office issuing the	3697
notice of termination. Upon receipt of such a request, an insurer	3698
shall promptly provide the independent insurance agent and	3699
superintendent with documentation in support of the insurer's	3700
stated reason for termination.	3701

(F) The superintendent shall promptly investigate the	3702
allegation. If the superintendent has reasonable cause to believe	3703
that this section or the lawful provisions of the contract of	3704
agency have been violated, hethe superintendent shall, within	3705
thirty days of receipt of a request for review, conduct an	3706
adjudication hearing subject to Chapter 119. of the Revised Code,	3707
held upon not less than ten days' written notice to the agent and	3708
the insurer. Pending a final order in the adjudication hearing,	3709
the superintendent may take such interim action as necessary to	3710
protect the parties or the public. During the pendency of the	3711
proceeding before the superintendent, the contract of agency	3712
subject to the proceeding continues in force and divison (C) of	3713
this section applies. The superintendent shall, within thirty	3714
days following such hearing, issue an order approving or	3715
disapproving the action of the insurer. All final orders and	3716
decisions of the superintendent are subject to judicial review as	3717
provided in Chapter 119. of the Revised Code.	3718

(G) An insurer shall not cancel or nonrenew any policy of	3719
insurance written through an agent upon the sole ground of the	3720
termination of the agency until the expiration of the policy term	3721
or the twelve-month period following the effective date of the	3722
termination of the contract of agency, whichever is earlier.	3723
However, during such period, an independent insurance agent may,	3724
subject to the current underwriting rules, guidelines, commission	3725
rates, and practices of the insurer, effect any necessary changes	3726
or endorsements to outstanding policies of insurance that are in	3727
force prior to the date of termination.	3728

This section does not abridge, restrict, or supersede the	3729
rights of an agent to the ownership of expirations provided for in	3730
any contract with an insurer.	3731

(H) Any information or documentation provided to an agent or	3732
the superintendent by an insurer under this section is	3733
confidential and shall be used by the superintendent only in the	3734
exercise of the proper functions authorized by this section. No	3735
insurer is liable for furnishing information or documentation in	3736
compliance with this section if the insurer acts without malice	3737
and in the reasonable belief that such information or	3738
documentation is warranted by this section.	3739

(I) Notwithstanding division (H) of this section, the	3740
superintendent may do either of the following:	3741

(1) Share the information or documentation that is the	3742
subject of this section with the chief deputy rehabilitator, the	3743
chief deputy liquidator, other deputy rehabilitators and	3744
liquidators, and any other person employed by, or acting on behalf	3745
of, the superintendent pursuant to Chapter 3901. or 3903. of the	3746
Revised Code, with other local, state, federal, and international	3747
regulatory and law enforcement agencies, with local, state, and	3748
federal prosecutors, and with the national association of	3749
insurance commissioners and its affiliates and subsidiaries,	3750
provided that the recipient agrees to maintain the confidential	3751
status of the confidential information or documentation and has	3752
authority to do so;	3753

(2) Disclose any information or documentation that is the	3754
subject of this section in the furtherance of any regulatory or	3755
legal action brought by or on behalf of the superintendent or the	3756
state, resulting from the exercise of the superintendent's	3757
official duties.	3758

(J) Notwithstanding divisions (H) and (I) of this section,	3759
the superintendent may authorize the national association of	3760
insurance commissioners and its affiliates and subsidiaries by	3761
agreement to share confidential information and documentation	3762
received pursuant to division (I)(1) of this section with local,	3763
state, federal, and international regulatory and law enforcement	3764
agencies and with local, state, and federal prosecutors, provided	3765
that the recipient agrees to maintain the confidential status of	3766
the confidential information or documentation and has authority to	3767
do so.	3768

(K) Notwithstanding divisions (H) and (I) of this section,	3769
the chief deputy rehabilitator, the chief deputy liquidator, and	3770
other deputy rehabilitators and liquidators may disclose	3771
information and documentation that is the subject of this section	3772
in the furtherance of any regulatory or legal action brought by or	3773
on behalf of the superintendent, the rehabilitator, the	3774
liquidator, or the state resulting from the exercise of the	3775
superintendent's official duties in any capacity.	3776

(L) Nothing in this section shall prohibit the	3777
superintendent from receiving information and documentation in	3778
accordance with section 3901.045 of the Revised Code.	3779

(M) The superintendent may enter into agreements governing	3780
the sharing and use of information and documentation consistent	3781
with the requirements of this section.	3782

(N)(1) No waiver of any applicable privilege or claim of	3783
confidentiality in the information and documentation that is the	3784
subject of this section shall occur as a result of sharing or	3785
receiving information and documentation as authorized in divisions	3786
(I)(1), (J), and (L) of this section.	3787

(2) The disclosure of information or documentation in	3788
connection with a regulatory or legal action pursuant to divisions	3789
(I)(2) and (K) of this section does not prohibit an insurer or any	3790
other person from taking steps to limit the dissemination of the	3791
information or documentation to persons not involved in or the	3792
subject of the regulatory or legal action on the basis of any	3793
recognized privilege arising under any other section of the	3794
Revised Code or the common law.	3795

Sec. 3999.36.  (A) As used in this section and sections	3796
3999.37 and 3999.38 of the Revised Code:	3797

(1) "Insurer" means any person that is authorized to engage	3798
in the business of insurance in this state under Title XXXIX of	3799
the Revised Code, any health insuring corporation, or any other	3800
person engaging either directly or indirectly in this state in the	3801
business of insurance or entering into contracts substantially	3802
amounting to insurance under section 3905.42 of the Revised Code.	3803

(2) "Impaired" or "impairment" means a financial situation	3804
in which the insurer's assets are less than the sum of the	3805
insurer's minimum required capital, minimum required surplus, and	3806
all liabilities, as determined in accordance with the requirements	3807
for the preparation and filing of the insurer's annual financial	3808
statement.	3809

(3) "Chief executive officer" means the person, irrespective	3810
of the person's title, designated by the board of directors or	3811
trustees of an insurer as the person charged with the	3812
responsibility of administering and implementing the insurer's	3813
policies and procedures.	3814

(B) Whenever a chief executive officer of an insurer knows	3815
or has reason to know that the insurer is impaired, the chief	3816
executive officer shall provide written notice of the impairment	3817
to the superintendent of insurance and to each member of the board	3818
of directors or trustees of the insurer. The chief executive	3819
officer shall provide the notice as soon as reasonably possible,	3820
but no later than thirty days after the chief executive officer	3821
knows or has reason to know of the impairment. No chief executive	3822
officer shall fail to provide notice in compliance with this	3823
division.	3824

(C) The notice received by the superintendent under division	3825
(B) of this section is confidential and is not a public record	3826
under section 149.43 of the Revised Code.	3827

(D) Notwithstanding division (C) of this section, the	3828
superintendent may do any of the following:	3829

(1) Disclose the notice upon obtaining prior written consent	3830
from the insurer to which the notice pertains;	3831

(2) Share the notice that is the subject of this section	3832
with the chief deputy rehabilitator, the chief deputy liquidator,	3833
other deputy rehabilitators and liquidators, and any other person	3834
employed by, or acting on behalf of, the superintendent pursuant	3835
to Chapter 3901. or 3903. of the Revised Code, with other local,	3836
state, federal, and international regulatory and law enforcement	3837
agencies, with local, state, and federal prosecutors, and with the	3838
national association of insurance commissioners and its affiliates	3839
and subsidiaries, provided that the recipient agrees to maintain	3840
the confidential status of the notice and has authority to do so;	3841

(3) Disclose the notice in the furtherance of any regulatory	3842
or legal action brought by or on behalf of the superintendent or	3843
the state, resulting from the exercise of the superintendent's	3844
official duties.	3845

(E) Notwithstanding divisions (C) and (D) of this section,	3846
the superintendent may authorize the national association of	3847
insurance commissioners and its affiliates and subsidiaries by	3848
agreement to share confidential notices received pursuant to	3849
division (D)(2) of this section with local, state, federal, and	3850
international regulatory and law enforcement agencies and with	3851
local, state, and federal prosecutors, provided that the recipient	3852
agrees to maintain the confidential status of the notice and has	3853
authority to do so.	3854

(F) Notwithstanding divisions (C) and (D) of this section,	3855
the chief deputy rehabilitator, the chief deputy liquidator and	3856
other deputy rehabilitators and liquidators may disclose notices	3857
in the furtherance of any regulatory or legal action brought by or	3858
on behalf of the superintendent, the rehabilitator, the	3859
liquidator, or the state resulting from the exercise of the	3860
superintendent's official duties in any capacity.	3861

(G) Nothing in this section shall prohibit the	3862
superintendent from receiving notices in accordance with section	3863
3901.045 of the Revised Code.	3864

(H) The superintendent may enter into agreements governing	3865
the sharing and use of notices consistent with the requirements of	3866
this section.	3867

(I)(1) No waiver of any applicable privilege or claim of	3868
confidentiality in the notices that are the subject of this	3869
section shall occur as a result of sharing or receiving notices as	3870
authorized in divisions (D)(2), (E), and (G) of this section.	3871

(2) The disclosure of a notice in connection with a	3872
regulatory or legal action pursuant to divisions (D)(3) and (F) of	3873
this section does not prohibit an insurer or any other person from	3874
taking steps to limit the dissemination of the notice to persons	3875
not involved in or the subject of the regulatory or legal action	3876
on the basis of any recognized privilege arising under any other	3877
section of the Revised Code or the common law.	3878

Sec. 4727.18.  (A) Except as otherwise provided in this	3879
division (C) of this section, any information arising from,	3880
obtained by, or contained in an investigation of a person licensed	3881
as a pawnbroker under this chapter performed by the superintendent	3882
of financial institutions is confidential information and is not a	3883
public record under section 149.43 of the Revised Code. The	3884
superintendent, however, may share investigation information with	3885
a law enforcement agency.	3886

(B) Except as otherwise provided in this division (C) of	3887
this section, any information arising from, obtained by, or	3888
contained in an investigation by the superintendent of any person	3889
the superintendent reasonably suspects has violated or is	3890
violating this chapter is confidential information and not a	3891
public record under section 149.43 of the Revised Code. The	3892
superintendent, however, may share investigation information with	3893
a law enforcement agency.	3894

(C) Information made confidential by division (A) or (B) of	3895
this section may only be disclosed, discovered, or introduced into	3896
evidence as follows:	3897

(1) To a law enforcement agency;

3898

(2) In connection with criminal proceedings;

3899

(3) In any action taken or litigation by or against the	3900
superintendent in connection with the powers, duties, and	3901
obligations imposed upon the superintendent by this chapter;	3902

(4) When and in the manner authorized in section 1181.25 of	3903
the Revised Code.	3904

Section 2. That existing sections 111.15, 119.01, 1121.01,	3905
1121.11, 1121.18, 1155.01, 1155.091, 1155.16, 1163.01, 1163.121,	3906
1163.20, 1321.09, 1321.55, 1321.76, 1322.06, 1322.061, 1707.092,	3907
1707.11, 1707.12, 1707.141, 1707.15, 1707.151, 1707.161, 1707.17,	3908
1707.20, 1707.40, 1707.44, 1733.01, 1733.32, 1733.327, 1751.19,	3909
3901.36, 3901.44, 3901.48, 3901.70, 3901.83, 3903.11, 3903.72,	3910
3903.83, 3903.88, 3905.492, 3905.50, 3999.36, and 4727.18 of the	3911
Revised Code are hereby repealed.	3912

Section 3. Section 1322.061 of the Revised Code, as enacted	3913
by Am. Sub. S.B. 76 of the 124th General Assembly (effective May	3914
2, 2002), and as amended by this act, shall take effect May 2,	3915
2002.	3916

Section 4. Section 1322.06 of the Revised Code, as amended by	3917
this act, is repealed, effective May 2, 2002. The section is	3918
superseded by section 1322.06 of the Revised Code as it results	3919
from Am. Sub. S.B. 76 of the 124th General Assembly, which is	3920
scheduled to take effect May 2, 2002.	3921