SENATORS Nein, Espy, Harris, Jacobson, White, Spada

To amend sections 1121.01, 1121.11, 1121.18, 1155.01,

1

1155.091, 1155.16, 1163.01, 1163.121, 1163.20,

2

1321.09, 1321.55, 1321.76, 1322.06, 1322.061,

3

1707.11, 1707.12, 1707.141, 1707.15, 1707.151,

4

1707.161, 1707.17, 1733.01, 1733.32, 1733.327,

5

1751.19, 3901.36, 3901.44, 3901.48, 3901.70,

6

3901.83, 3903.11, 3903.72, 3903.83, 3903.88,

7

3905.492, 3905.50, 3999.36, and 4727.18, to enact

8

sections 1181.25 and 3901.045 of the Revised Code,

9

and to repeal section 1322.06 of the Revised Code,

10

as amended by this act, on May 2, 2002, relative to

11

the circumstances under which the Department of

12

Insurance and the Divisions of Financial

13

Institutions and Securities may share confidential

14

documents and information with, and receive such

15

documents and information from, other specified

16

regulators and officials, or otherwise disclose

17

these documents and information, and to

18

modifications of the Securities Law with respect to

19

investment advisers, application for a securities

20

dealer's license, license renewals and fees, and

21

consent to service of process.

22

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

Section 1. That sections 1121.01, 1121.11, 1121.18, 1155.01,	23
1155.091, 1155.16, 1163.01, 1163.121, 1163.20, 1321.09, 1321.55,	24
1321.76, 1322.06, 1322.061, 1707.11, 1707.12, 1707.141, 1707.15,	25
1707.151, 1707.161, 1707.17, 1733.01, 1733.32, 1733.327, 1751.19,	26
3901.36, 3901.44, 3901.48, 3901.70, 3901.83, 3903.11, 3903.72,	27
3903.83, 3903.88, 3905.492, 3905.50, 3999.36, and 4727.18 be	28
amended and sections 1181.25 and 3901.045 of the Revised Code be	29
enacted to read as follows:	30

Sec. 1121.01.  As used in this chapter:

31

(A) "Financial institution regulatory authority" includes a	32
regulator of a business activity in which a bank or trust company	33
is engaged, or has applied to engage in, to the extent that the	34
regulator has jurisdiction over a bank or trust company engaged in	35
that business activity. A bank or trust company is engaged in a	36
business activity, and a regulator of that business activity has	37
jurisdiction over the bank or trust company, whether the bank or	38
trust company conducts the activity directly or a subsidiary or	39
affiliate of the bank or trust company conducts the activity.	40

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

41

(1) A director, officer, or employee of or agent for a bank	42
or trust company or a controlling shareholder of a state bank,	43
foreign bank, or trust company;	44

(2) A person who is required to obtain, but has not yet	45
obtained, the consent of the superintendent of financial	46
institutions to acquire control of a bank pursuant to section	47
1115.06 of the Revised Code;	48

(3) A person participating in the conduct of the affairs of	49
a bank or trust company.	50

(B)(C) "Participating in the conduct of the affairs of a	51
bank or trust company" means either making decisions or, directly	52
or indirectly, taking actions that are management or policymaking	53
in nature and generally within the scope of authority of the	54
bank's or trust company's board of directors or executive	55
officers. Whether a person is or was participating in the conduct	56
of the affairs of a bank or trust company is an issue of fact, and	57
not to be determined solely on the basis of the person's title,	58
contract, or indicia of employment or independent contractor	59
status.	60

Sec. 1121.11.  (A) In administering Chapters 1101. to 1127.	61
of the Revised Code and fulfilling the duties imposed by those	62
chapters, including the duty imposed by section 1121.10 of the	63
Revised Code, the superintendent of financial institutions may do	64
any of the following:	65

(1) Participate with financial institution regulatory	66
authorities of this and other states, the United States, and other	67
countries in any of the following:	68

(a) Programs for alternate examinations of the records and	69
affairs of banks and trust companies over which they have	70
concurrent jurisdiction;	71

(b) Joint or concurrent examinations of the records and	72
affairs of banks and trust companies over which they have	73
concurrent jurisdiction;	74

(c) Coordinated examinations of the records and affairs of	75
banks and trust companies over which they have collective	76
jurisdiction.	77

(2) Conduct, participate in, or coordinate independent,	78
concurrent, joint, or coordinated examinations of the records and	79
affairs of banks and trust companies and otherwise act on behalf	80
of financial institution regulatory authorities of this and other	81
states, the United States, and other countries having jurisdiction	82
over the banks and trust companies;	83

(3) Rely on information leading to, arising from, or	84
obtained in the course of examinations conducted by financial	85
institution regulatory authorities of this and other states, the	86
United States, and other countries when both of the following	87
apply:	88

(a) Pursuant to agreement and applicable law, the	89
superintendent may receive and use the information leading to,	90
arising from, or obtained in the course of the other regulatory	91
authorities' examinations in administering Chapters 1101. to 1127.	92
of the Revised Code and acting under the authority of those	93
chapters;	94

(b) In the superintendent's judgment the other regulatory	95
authorities' personnel, practices, and authority warrant the	96
superintendent's reliance.	97

(4) Authorize financial institution regulatory authorities	98
of this and other states, the United States, and other countries	99
to receive and use information leading to, arising from, or	100
obtained in the course of examinations conducted by the division	101
of financial institutions in the same manner and for the purposes	102
they could use information leading to, arising from, or obtained	103
in the course of their own examinations when both of the following	104
apply:	105

(a) Pursuant to applicable law, information leading to,	106
arising from, or obtained in the course of examinations the other	107
regulatory authorities conduct is protected from general	108
disclosure and may only be disclosed for purposes similar to those	109
provided in section 1121.18 of the Revised Code, which are	110
principally regulatory in nature, for disclosure of information	111
leading to, arising from, or obtained in the course of	112
examinations conducted by the division;	113

(b) Pursuant to agreement and applicable law, information	114
leading to, arising from, or obtained in the course of	115
examinations conducted by the division will, in the other	116
regulatory authorities' possession or the possession of any	117
persons to whom the other regulatory authorities disclosed the	118
information as a part of examinations of those persons, be	119
protected from disclosure to the same extent as information	120
leading to, arising from, or obtained in the course of those	121
regulatory authorities' examinations.	122

(5) Rely on the actions of financial institution regulatory	123
authorities of this and other states, the United States, or other	124
countries, or participate with them jointly, in responding to	125
violations of law, unsafe or unsound practices, breaches of	126
fiduciary duty, or other regulatory concerns affecting banks and	127
trust companies over which they have concurrent jurisdiction when	128
the other regulatory authorities have adequate personnel,	129
practices, and authority to warrant the reliance;	130

(6) Implement other cooperative arrangements with financial	131
institution regulatory authorities of this and other states, the	132
United States, and other countries consistent with safety and	133
soundness.	134

(B) No person shall use any reliance by the superintendent,	135
in whole or in part, on financial institution regulatory	136
authorities of this or other states, the United States, or other	137
countries in accordance with division (A) of this section to	138
support any assertion of either of the following:	139

(1) Failure of the superintendent or division to properly	140
administer Chapters 1101. to 1127. of the Revised Code or fulfill	141
the duties imposed by those chapters;	142

(2) Disagreement by the superintendent or division with any	143
action taken by financial institution regulatory authorities of	144
this or other states, the United States, or other countries.	145

(C) In conducting, participating in, or coordinating	146
independent, concurrent, joint, or coordinated examinations of the	147
records and affairs of banks and trust companies, the	148
superintendent may purchase services from financial institution	149
regulatory authorities of this and other states, the United	150
States, and other countries, including services provided by	151
employees of other financial institution regulatory authorities in	152
their capacities as employees of other financial institution	153
regulatory authorities. The purchase of services from one or more	154
financial institution regulatory authorities of this and other	155
states, the United States, or other countries is the purchase of	156
services from a sole source provider and is not the employment of	157
any financial institution regulatory authority or any of its	158
employees.	159

The authority to purchase services pursuant to this division	160
does not impair the superintendent's authority to purchase	161
services from any other source.	162

Sec. 1121.18.  (A) Information leading to, arising from, or	163
obtained in the course of the examination of a bank or any	164
examination conducted pursuant to the authority of section 1121.10	165
or 1121.11 of the Revised Code is privileged and confidential. No	166
person, including any person to whom the information is disclosed	167
under the authority of this section, shall disclose information	168
leading to, arising from, or obtained in the course of an	169
examination, except as specifically provided in this section.	170

(B) The superintendent of financial institutions and the	171
superintendent's agents and employees may disclose information	172
leading to, arising from, or obtained in the course of an	173
examination conducted pursuant to section 1121.10 or 1121.11 of	174
the Revised Code as follows:	175

(1) To the governor, director of commerce, or deputy	176
director of commerce to enable them to act in the interests of the	177
public;	178

(2) To the banking commission to enable the commission to	179
effectively advise the superintendent and take action on any	180
matter the superintendent presents to the commission;	181

(3) To financial institution regulatory authorities of this	182
and other states, the United States, and other countries to assist	183
them in their regulatory duties;	184

(4) To the directors, officers, agents, and parent company	185
of the bank or other person examined to assist them in conducting	186
the business of the bank or other person examined in a safe and	187
sound manner and in compliance with law;	188

(5) To law enforcement authorities conducting criminal	189
investigations.	190

(C)(1) Information leading to, arising from, or obtained in	191
the course of an examination of a bank or other person pursuant to	192
section 1121.10 or 1121.11 of the Revised Code shall not be	193
discoverable from any source, and shall not be introduced into	194
evidence, except in the following circumstances:	195

(a) In connection with criminal proceedings;

196

(b) When, in the opinion of the superintendent, it is	197
appropriate with regard to enforcement actions taken and decisions	198
made by the superintendent under the authority of Chapters 1101.	199
to 1127. of the Revised Code regarding a bank, trust company, or	200
other person;	201

(c) When litigation has been initiated by the superintendent	202
in furtherance of the powers, duties, and obligations imposed upon	203
the superintendent by Chapters 1101. to 1127. of the Revised Code;	204

(d) When authorized by agreements between the superintendent	205
and financial institution regulatory authorities of this and other	206
states, the United States, and other countries authorized by	207
section 1121.11 of the Revised Code;	208

(e) When and in the manner authorized in section 1181.25 of	209
the Revised Code.	210

(2) The discovery of information leading to, arising from,	211
or obtained in the course of an examination pursuant to division	212
(C)(1)(b), (c), or (d) of this section shall be limited to	213
information that directly relates to the bank, trust company,	214
regulated person, or other person who is the subject of the	215
enforcement action, decision, or litigation.	216

(D) A report of an examination conducted pursuant to section	217
1121.10 or 1121.11 of the Revised Code is the property of the	218
division of financial institutions. Under no circumstances may	219
the bank or other person examined, its directors, officers,	220
employees, agents, regulated persons, or contractors, or any	221
person having knowledge or possession of a report of examination,	222
or any of its contents, disclose or make public in any manner the	223
report of examination or its contents. The authority provided in	224
division (B)(4) of this section for use of examination information	225
to assist in conducting the business of the bank or other person	226
examined in a safe and sound manner and in compliance with law	227
shall not be construed to authorize disclosure of a report of	228
examination or any of its contents in conducting business with the	229
examined bank's or person's customers, creditors, or shareholders,	230
or with other persons.	231

(E) Whoever violates this section shall be removed from	232
office, shall be liable, with the violator's bonder in damages to	233
the person injured by the disclosure of information, and is guilty	234
of a felony of the fourth degree.	235

Sec. 1155.01.  As used in sections 1155.01 to 1155.20 of the	236
Revised Code:	237

(A) "Controlling person" means any person or entity which,	238
either directly or indirectly, or acting in concert with one or	239
more other persons or entities, owns, controls, or holds with	240
power to vote, or holds proxies representing, fifteen per cent or	241
more of the voting shares or rights of a savings and loan	242
association, or controls in any manner the election or appointment	243
of a majority of the directors of an association. However, a	244
director of an association will not be deemed to be a controlling	245
person of such association based upon histhe director's voting,	246
or acting in concert with other directors in voting, proxies	247
obtained in connection with an annual solicitation of proxies or	248
obtained from savings account holders and borrowers if such	249
proxies are voted as directed by a majority of the entire board of	250
directors of the association, or of a committee of such directors	251
if such committee's composition and authority are controlled by a	252
majority vote of the entire board and if its authority is	253
revocable by such a majority.	254

(B) "Independent auditor" means an accountant who is licensed	255
to practice as a certified public accountant or public accountant	256
by this state, and who is employed or otherwise retained by a	257
savings and loan association to audit its accounts. An independent	258
auditor may not be an employee of the association, its	259
subsidiaries, or holding company affiliates.	260

(C) "Outside director" means a director of a savings and loan	261
association who is not an officer or employee of the association,	262
an independent auditor of the association, an attorney of the	263
association, or any other person having a fiduciary relationship,	264
other than that of being a director, with the association.	265

(D) "Holding company affiliate" means a savings and loan	266
holding company of which the savings and loan association is a	267
subsidiary and any other subsidiary of such holding company other	268
than a subsidiary of such association.	269

(E) "Financial institution regulatory authority" includes a	270
regulator of a business activity in which a savings and loan	271
association is engaged, or has applied to engage in, to the extent	272
that the regulator has jurisdiction over a savings and loan	273
association engaged in that business activity. A savings and loan	274
association is engaged in a business activity, and a regulator of	275
that business activity has jurisdiction over the savings and loan	276
association, whether the savings and loan association conducts the	277
activity directly or a subsidiary or affiliate of the savings and	278
loan association conducts the activity.	279

Sec. 1155.091.  (A) In administering Chapters 1151. to 1157.	280
of the Revised Code and fulfilling the duties imposed by those	281
chapters, including the duty imposed by section 1151.09 of the	282
Revised Code, the superintendent of financial institutions may do	283
any of the following:	284

(1) Participate with financial institution regulatory	285
authorities of this and other states, the United States, and other	286
countries in any of the following:	287

(a) Programs for alternate examinations of the records and	288
affairs of savings and loan associations over which they have	289
concurrent jurisdiction;	290

(b) Joint or concurrent examinations of the records and	291
affairs of savings and loan associations over which they have	292
concurrent jurisdiction;	293

(c) Coordinated examinations of the records and affairs of	294
savings and loan associations over which they have collective	295
jurisdiction.	296

(2) Conduct, participate in, or coordinate independent,	297
concurrent, joint, or coordinated examinations of the records and	298
affairs of savings and loan associations and otherwise act on	299
behalf of financial institution regulatory authorities of this and	300
other states, the United States, and other countries having	301
jurisdiction over the savings and loan associations;	302

(3) Rely on information leading to, arising from, or	303
obtained in the course of examinations conducted by financial	304
institution regulatory authorities of this and other states, the	305
United States, and other countries when both of the following	306
apply:	307

(a) Pursuant to agreement and applicable law, the	308
superintendent may receive and use the information leading to,	309
arising from, or obtained in the course of the other regulatory	310
authorities' examinations in administering Chapters 1151. to 1157.	311
of the Revised Code and acting under the authority of those	312
chapters;	313

(b) In the superintendent's judgment the other regulatory	314
authorities' personnel, practices, and authority warrant the	315
superintendent's reliance.	316

(4) Authorize financial institution regulatory authorities	317
of this and other states, the United States, and other countries	318
to receive and use information leading to, arising from, or	319
obtained in the course of examinations conducted by the division	320
of financial institutions in the same manner and for the purposes	321
they could use information leading to, arising from, or obtained	322
in the course of their own examinations when both of the following	323
apply:	324

(a) Pursuant to applicable law, information leading to,	325
arising from, or obtained in the course of examinations the other	326
regulatory authorities conduct is protected from general	327
disclosure and may only be disclosed for purposes similar to those	328
provided in section 1155.16 of the Revised Code, which are	329
principally regulatory in nature, for disclosure of information	330
leading to, arising from, or obtained in the course of	331
examinations conducted by the division;	332

(b) Pursuant to agreement and applicable law, information	333
leading to, arising from, or obtained in the course of	334
examinations conducted by the division will, in the other	335
regulatory authorities' possession or the possession of any	336
persons to whom the other regulatory authorities disclosed the	337
information as a part of examinations of those persons, be	338
protected from disclosure to the same extent as information	339
leading to, arising from, or obtained in the course of those	340
regulatory authorities' examinations.	341

(5) Rely on the actions of financial institution regulatory	342
authorities of this and other states, the United States, or other	343
countries, or participate with them jointly, in responding to	344
violations of law, unsafe or unsound practices, breaches of	345
fiduciary duty, or other regulatory concerns affecting savings and	346
loan associations over which they have concurrent jurisdiction	347
when the other regulatory authorities have adequate personnel,	348
practices, and authority to warrant the reliance;	349

(6) Implement other cooperative arrangements with financial	350
institution regulatory authorities of this and other states, the	351
United States, and other countries consistent with safety and	352
soundness.	353

(B) No person shall use any reliance by the superintendent,	354
in whole or in part, on financial institution regulatory	355
authorities of this or other states, the United States, or other	356
countries in accordance with division (A) of this section to	357
support any assertion of either of the following:	358

(1) Failure of the superintendent or division to properly	359
administer Chapters 1151. to 1157. of the Revised Code or fulfill	360
the duties imposed by those chapters;	361

(2) Disagreement by the superintendent or division with any	362
action taken by financial institution regulatory authorities of	363
this or other states, the United States, or other countries.	364

(C) In conducting, participating in, or coordinating	365
independent, concurrent, joint, or coordinated examinations of the	366
records and affairs of savings and loan associations, the	367
superintendent may purchase services from financial institution	368
regulatory authorities of this and other states, the United	369
States, and other countries, including services provided by	370
employees of other financial institution regulatory authorities.	371
The purchase of services from one or more financial institution	372
regulatory authorities of this and other states, the United	373
States, and other countries is the purchase of services from a	374
sole source provider and is not the employment of any financial	375
institution regulatory authority or any of its employees.	376

The authority to purchase services pursuant to this division	377
does not impair the superintendent's authority to purchase	378
services from any other source.	379

Sec. 1155.16.  (A)(1) Except as provided in division (B) of	380
this section, the superintendent of savings and loan associations	381
financial institutions, the superintendent's agents, and employees	382
shall keep privileged and confidential the examination reports,	383
information obtained in an examination, or any other information	384
obtained by reason of their official position. This section does	385
not prevent the superintendent from properly releasing to or	386
exchanging information relating to a savings and loan association,	387
or its affairs, with the governor, the director of commerce, the	388
deputy director of commerce, or representatives of state or	389
federal financial institution regulatory agencies or governmental	390
authorities, or prevent such release by the association or its	391
officers or directors, in the conduct of the business of the	392
association.	393

(2) Any person who receives privileged and confidential	394
examination reports or other information under the authority of	395
this section is also subject to the requirements of this section	396
and such person, knowing that such examination reports or	397
information are privileged and confidential, shall not purposely	398
divulge such reports or information in any manner.	399

(3) If the superintendent, an agent of the superintendent, or	400
an employee of the superintendent purposely makes, or causes to be	401
made, any false statements or reports regarding the affairs or	402
condition of a savings and loan association, the act constitutes	403
falsification under section 2921.13 of the Revised Code.	404

(B) Examination reports, information obtained in an	405
examination, and any other information obtained by reason of the	406
official position of the division of savings and loan associations	407
financial institutions shall not be discoverable from any source,	408
and shall not be introduced into evidence, except in the following	409
situations:	410

(1) In connection with criminal proceedings;

411

(2) When, in the opinion of the superintendent, it is	412
necessary for the superintendent or for the agents or employees of	413
the superintendent to take enforcement action under Chapter 1151.,	414
1153., 1155., or 1157. of the Revised Code regarding the affairs	415
of the savings and loan association examined;	416

(3) When litigation has been initiated by the superintendent	417
in furtherance of the powers, duties, and obligations imposed upon	418
the superintendent by Chapter 1151., 1153., 1155., or 1157. of the	419
Revised Code;	420

(4) When authorized by agreements between the	421
superintendent and financial institution regulatory authorities of	422
this and other states, the United States, and other countries	423
authorized by section 1155.091 of the Revised Code;	424

(5) When and in the manner authorized in section 1181.25 of	425
the Revised Code.	426

(C) The discovery of examination reports and other related	427
material pursuant to divisions (B)(2) and (3) of this section	428
shall be limited to information that directly relates to the	429
association that is the subject of the enforcement action or the	430
litigation.	431

(D)(1) No person shall fail to comply with division (A)(1),	432
(2), or (3) of this section.	433

(2) Whoever violates division (D)(1) of this section is	434
guilty of a felony of the fourth degree.	435

Sec. 1163.01.  As used in this chapter:

436

(A) "Controlling person" means any person or entity which,	437
either directly or indirectly, or acting in concert with one or	438
more other persons or entities, owns, controls, or holds with	439
power to vote, or holds proxies representing, fifteen per cent or	440
more of the voting shares or rights of a savings bank, or controls	441
in any manner the election or appointment of a majority of the	442
directors of a savings bank. However, a director of a savings	443
bank is not deemed to be a controlling person of the savings bank	444
based upon histhe director's voting, or acting in concert with	445
other directors in voting, proxies obtained in connection with an	446
annual solicitation of proxies or obtained from savings account	447
holders and borrowers if the proxies are voted as directed by a	448
majority of the entire board of directors of the savings bank, or	449
of a committee of the directors if the committee's composition and	450
authority are controlled by a majority vote of the entire board	451
and if its authority is revocable by such a majority.	452

(B) "Independent auditor" means an accountant who is	453
licensed to practice as a certified public accountant or public	454
accountant by this state, and who is employed or otherwise	455
retained by a savings bank to audit its accounts. An independent	456
auditor may not be an employee of the savings bank, its	457
subsidiaries, or holding company affiliates.	458

(C) "Outside director" means a director of a savings bank	459
who is not an officer or employee of the savings bank, an	460
independent auditor of the savings bank, an attorney of the	461
savings bank, or any other person having a fiduciary relationship,	462
other than that of being a director, with the savings bank.	463

(D) "Holding company affiliate" means a bank holding company	464
or a savings and loan holding company of which the savings bank is	465
a subsidiary and any other subsidiary of the holding company other	466
than a subsidiary of the savings bank.	467

(E) "Financial institution regulatory authority" includes a	468
regulator of a business activity in which a savings bank is	469
engaged, or has applied to engage in, to the extent that the	470
regulator has jurisdiction over a savings bank engaged in that	471
business activity. A savings bank is engaged in a business	472
activity, and a regulator of that business activity has	473
jurisdiction over the savings bank, whether the savings bank	474
conducts the activity directly or a subsidiary or affiliate of the	475
savings bank conducts the activity.	476

Sec. 1163.121.  (A) In administering Chapters 1161. to 1165.	477
of the Revised Code and fulfilling the duties imposed by those	478
chapters, including the duty imposed by section 1163.12 of the	479
Revised Code, the superintendent of financial institutions may do	480
any of the following:	481

(1) Participate with financial institution regulatory	482
authorities of this and other states, the United States, and other	483
countries in any of the following:	484

(a) Programs for alternate examinations of the records and	485
affairs of savings banks over which they have concurrent	486
jurisdiction;	487

(b) Joint or concurrent examinations of the records and	488
affairs of savings banks over which they have concurrent	489
jurisdiction;	490

(c) Coordinated examinations of the records and affairs of	491
savings banks over which they have collective jurisdiction.	492

(2) Conduct, participate in, or coordinate independent,	493
concurrent, joint, or coordinated examinations of the records and	494
affairs of savings banks and otherwise act on behalf of financial	495
institution regulatory authorities of this and other states, the	496
United States, and other countries having jurisdiction over the	497
savings banks;	498

(3) Rely on information leading to, arising from, or	499
obtained in the course of examinations conducted by financial	500
institution regulatory authorities of this and other states, the	501
United States, and other countries when both of the following	502
apply:	503

(a) Pursuant to agreement and applicable law, the	504
superintendent may receive and use the information leading to,	505
arising from, or obtained in the course of the other regulatory	506
authorities' examinations in administering Chapters 1161. to 1165.	507
of the Revised Code and acting under the authority of those	508
chapters;	509

(b) In the superintendent's judgment the other regulatory	510
authorities' personnel, practices, and authority warrant the	511
superintendent's reliance.	512

(4) Authorize financial institution regulatory authorities	513
of this and other states, the United States, and other countries	514
to receive and use information leading to, arising from, or	515
obtained in the course of examinations conducted by the division	516
of financial institutions in the same manner and for the purposes	517
they could use information leading to, arising from, or obtained	518
in the course of their own examinations when both of the following	519
apply:	520

(a) Pursuant to applicable law, information leading to,	521
arising from, or obtained in the course of examinations the other	522
regulatory authorities conduct is protected from general	523
disclosure and may only be disclosed for purposes similar to those	524
provided in section 1163.20 of the Revised Code, which are	525
principally regulatory in nature, for disclosure of information	526
leading to, arising from, or obtained in the course of	527
examinations conducted by the division;	528

(b) Pursuant to agreement and applicable law, information	529
leading to, arising from, or obtained in the course of	530
examinations conducted by the division will, in the other	531
regulatory authorities' possession or the possession of any	532
persons to whom the other regulatory authorities disclosed the	533
information as a part of examinations of those persons, be	534
protected from disclosure to the same extent as information	535
leading to, arising from, or obtained in the course of those	536
regulatory authorities' examinations.	537

(5) Rely on the actions of financial institution regulatory	538
authorities of this and other states, the United States, or other	539
countries, or participate with them jointly, in responding to	540
violations of law, unsafe or unsound practices, breaches of	541
fiduciary duty, or other regulatory concerns affecting savings	542
banks over which they have concurrent jurisdiction when the other	543
regulatory authorities have adequate personnel, practices, and	544
authority to warrant the reliance;	545

(6) Implement other cooperative arrangements with financial	546
institution regulatory authorities of this and other states, the	547
United States, and other countries consistent with safety and	548
soundness.	549

(B) No person shall use any reliance by the superintendent,	550
in whole or in part, on financial institution regulatory	551
authorities of this or other states, the United States, or other	552
countries in accordance with division (A) of this section to	553
support any assertion of either of the following:	554

(1) Failure of the superintendent or division to properly	555
administer Chapters 1161. to 1165. of the Revised Code or fulfill	556
the duties imposed by those chapters;	557

(2) Disagreement by the superintendent or division with any	558
action taken by financial institution regulatory authorities of	559
this or other states, the United States, or other countries.	560

(C) In conducting, participating in, or coordinating	561
independent, concurrent, joint, or coordinated examinations of the	562
records and affairs of savings banks, the superintendent may	563
purchase services from financial institution regulatory	564
authorities of this and other states, the United States, and other	565
countries, including services provided by employees of other	566
financial institution regulatory authorities. The purchase of	567
services from one or more financial institution regulatory	568
authorities of this and other states, the United States, and	569
other countries is the purchase of services from a sole source	570
provider and is not the employment of any financial institution	571
regulatory authority or any of its employees.	572

The authority to purchase services pursuant to this division	573
does not impair the superintendent's authority to purchase	574
services from any other source.	575

Sec. 1163.20.  (A)(1) Except as provided in division (B) of	576
this section, the superintendent of savings banksfinancial	577
institutions, his agents, and employees shall keep privileged and	578
confidential the examination reports, information obtained in an	579
examination, or any other information obtained by reason of their	580
official position. This section does not prevent the	581
superintendent from properly releasing to or exchanging	582
information relating to a savings bank, or its affairs, with the	583
governor, the director of commerce, the deputy director of	584
commerce, or representatives of state or federal financial	585
institution regulatory agencies or governmental authorities, or	586
prevent such release by the savings bank or its officers or	587
directors, in the conduct of the business of the savings bank.	588

(2) Any person who receives privileged and confidential	589
examination reports or other information under the authority of	590
this section also is subject to the requirements of this section.	591
No person, knowing that the examination reports or information are	592
privileged and confidential, shall purposely divulge the reports	593
or information in any manner.	594

(3) Neither the superintendent, nor any agent or employee of	595
the superintendent, shall purposely make, or cause to be made, any	596
false statements or reports regarding the affairs or condition of	597
a savings bank.	598

(B) Examination reports, information obtained in an	599
examination, and any other information obtained by reason of the	600
official position of the division of savings banksfinancial	601
institutions shall not be discoverable from any source, and shall	602
not be introduced into evidence, except in the following	603
situations:	604

(1) In connection with criminal proceedings;

605

(2) When, in the opinion of the superintendent, it is	606
necessary for the superintendent, his agents, or employees to take	607
enforcement action under this chapter or Chapter 1161. or 1165. of	608
the Revised Code regarding the affairs of the savings bank	609
examined;	610

(3) When litigation has been initiated by the superintendent	611
in furtherance of the powers, duties, and obligations imposed upon	612
the superintendent by this chapter or Chapter 1161. or 1165. of	613
the Revised Code;	614

(4) When authorized by agreements between the	615
superintendent and financial institution regulatory authorities of	616
this and other states, the United States, and other countries	617
authorized by section 1163.121 of the Revised Code;	618

(5) When and in the manner authorized in section 1181.25 of	619
the Revised Code.	620

(C) The discovery of examination reports and other related	621
material pursuant to divisions (B)(2) and (3) of this section	622
shall be limited to information that directly relates to the	623
savings bank which is the subject of the enforcement action or the	624
litigation.	625

(D)(1) No person shall fail to comply with division (A)(1),	626
(2), or (3) of this section.	627

(2) Whoever violates division (D)(1) of this section is	628
guilty of a felony of the fourth degree.	629

Sec. 1181.25. The superintendent of financial institutions	630
may introduce into evidence or disclose, or authorize to be	631
introduced into evidence or disclosed, information that, under	632
sections 1121.18, 1155.16, 1163.20, 1321.09, 1321.55, 1321.76,	633
1322.06, 1322.061, 1733.32, 1733.327, and 4727.18 of the Revised	634
Code, is privileged, confidential, or otherwise not public	635
information or a public record, provided that the superintendent	636
acts only as provided in those sections or in the following	637
circumstances:	638

(A) When in the opinion of the superintendent, it is	639
appropriate with regard to any enforcement actions taken and	640
decisions made by the superintendent under Chapters 1315., 1321.,	641
1322., 1733., 4712., 4727., and 4728. of the Revised Code or Title	642
XI of the Revised Code;	643

(B) When litigation has been initiated by the	644
superintendent in furtherance of the powers, duties, and	645
obligations imposed upon the superintendent by Chapters 1315.,	646
1321., 1322., 1733., 4712., 4727., and 4728. of the Revised Code	647
or Title XI of the Revised Code;	648

(C) When in the opinion of the superintendent, it is	649
appropriate with regard to enforcement actions taken or decisions	650
made by other financial institution regulatory authorities to whom	651
the superintendent has provided the information pursuant to	652
authority in Chapters 1315., 1321., 1322., 1733., 4712., 4727.,	653
and 4728. of the Revised Code or Title XI of the Revised Code.	654

Sec. 1321.09. (A) Every licensee shall keep and use in the	655
licensee's business such books, accounts, and records as will	656
enable the division of financial institutions to determine whether	657
the licensee is complying with sections 1321.01 to 1321.19 of the	658
Revised Code and with the orders and rules made by the division	659
under those sections. Every licensee shall preserve such books,	660
accounts, and records for at least two years after making the	661
final entry on any loan recorded therein. Accounting systems	662
maintained in whole or in part by mechanical or electronic data	663
processing methods that provide information equivalent to that	664
otherwise required are acceptable for this purpose.	665

As required by the superintendent of financial institutions,	666
every licensee each year shall file a report with the division	667
giving such relevant information concerning the business and	668
operations, during the preceding calendar year, of each licensed	669
place of business conducted by the licensee within the state. If	670
a licensee has more than one place of business within this state	671
it is optional with the licensee to furnish the report for each	672
location, or a composite report for all locations. Such report	673
shall be made under oath in the form prescribed by the division,	674
which shall make and publish annually an analysis and	675
recapitulation of such reports. Such licensee reports are not	676
public records and shall only be used by the division for the	677
purpose of enforcing sections 1321.01 to 1321.19 of the Revised	678
Code or any rules or orders made in compliance with those	679
sections. Such licensee reports may be introduced into evidence or	680
disclosed when and in the manner authorized in section 1181.25 of	681
the Revised Code, or in connection with criminal proceedings.	682

This section does not prevent the division from releasing to	683
or exchanging with other financial institution regulatory	684
authorities information relating to licensees.	685

(B) For purposes of this section, "financial institution	686
regulatory authority" includes a regulator of a business activity	687
in which a licensee is engaged, or has applied to engage in, to	688
the extent that the regulator has jurisdiction over a licensee	689
engaged in that business activity. A licensee is engaged in a	690
business activity, and a regulator of that business activity has	691
jurisdiction over the licensee, whether the licensee conducts the	692
activity directly or a subsidiary or affiliate of the licensee	693
conducts the activity.	694

Sec. 1321.55.  (A) Every registrant shall keep records	695
pertaining to loans made under sections 1321.51 to 1321.60 of the	696
Revised Code. Such records shall be segregated from records	697
pertaining to transactions that are not subject to these sections	698
of the Revised Code. Every registrant shall preserve records	699
pertaining to loans made under sections 1321.51 to 1321.60 of the	700
Revised Code for at least two years after making the final entry	701
on such records. Accounting systems maintained in whole or in	702
part by mechanical or electronic data processing methods that	703
provide information equivalent to that otherwise required are	704
acceptable for this purpose. At least once each eighteen-month	705
cycle, the division of financial institutions shall make or cause	706
to be made an examination of records pertaining to loans made	707
under sections 1321.51 to 1321.60 of the Revised Code, for the	708
purpose of determining whether the registrant is complying with	709
these sections and of verifying the registrant's annual report.	710

(B)(1) As required by the superintendent of financial	711
institutions, each registrant shall file with the division each	712
year a report under oath or affirmation, on forms supplied by the	713
division, concerning the business and operations for the preceding	714
calendar year. Whenever a registrant operates two or more	715
registered offices or whenever two or more affiliated registrants	716
operate registered offices, then a composite report of the group	717
of registered offices may be filed in lieu of individual reports.	718

(2) The division shall publish annually an analysis of the	719
information required under division (B)(1) of this section, but	720
the individual reports shall not be public records and shall not	721
be open to public inspection.	722

(C) All information obtained by the superintendent or the	723
superintendent's deputies, examiners, assistants, agents, or	724
clerks by reason of their official position, including information	725
obtained by such persons from the annual report of a registrant or	726
in the course of examining a registrant or investigating an	727
applicant for a certificate, is privileged and confidential. All	728
such information shall remain privileged and confidential for all	729
purposes except when it is necessary for the superintendent and	730
the superintendent's deputies, examiners, assistants, agents, or	731
clerks to take official action regarding the affairs of the	732
registrant or in connection with criminal proceedings. Such	733
information may also be introduced into evidence or disclosed when	734
and in the manner authorized in section 1181.25 of the Revised	735
Code.	736

(D) No person is in violation of sections 1321.51 to 1321.60	737
of the Revised Code for any act taken or omission made in reliance	738
on a written notice, interpretation, or examination report from	739
the superintendent.	740

(E) This section does not prevent the division from	741
releasing to or exchanging with other financial institution	742
regulatory authorities information relating to registrants.	743

(F) For purposes of this section, "financial institution	744
regulatory authority" includes a regulator of a business activity	745
in which a registrant is engaged, or has applied to engage in, to	746
the extent that the regulator has jurisdiction over a registrant	747
engaged in that business activity. A registrant is engaged in a	748
business activity, and a regulator of that business activity has	749
jurisdiction over the registrant, whether the registrant conducts	750
the activity directly or a subsidiary or affiliate of the	751
registrant conducts the activity.	752

Sec. 1321.76.  (A) Each licensee shall keep records of its	753
insurance premium finance transactions conducted under sections	754
1321.71 to 1321.83 of the Revised Code. Such records shall be	755
maintained separately from any records pertaining to transactions	756
that are not subject to those sections. Each licensee shall	757
preserve its records pertaining to insurance premium finance	758
transactions conducted under sections 1321.71 to 1321.83 of the	759
Revised Code for at least two years after the final entry on such	760
records. Preservation of records by means of accounting systems	761
maintained in whole or in part by mechanical or electronic data	762
processing methods constitutes compliance with this division.	763

The division of financial institutions for purposes of	764
determining whether a licensee is complying with sections 1321.71	765
to 1321.83 of the Revised Code, may make or cause to be made an	766
examination of records pertaining to insurance premium finance	767
transactions conducted under those sections.	768

(B) If a licensee's books, records, data, and other	769
documents are located outside this state, the licensee shall, upon	770
the request of the superintendent of financial institutions,	771
deposit with the division an amount equal to the estimated costs,	772
as determined by the superintendent, of an examination of the	773
licensee conducted outside this state. After the actual costs of	774
the examination have been determined and itemized by the division,	775
the division shall return to the licensee any amount it had	776
deposited in excess of the actual costs.	777

(C) All information obtained by the superintendent or the	778
superintendent's deputies, examiners, assistants, agents, or	779
clerks by reason of their official position, including information	780
obtained by such persons in the course of examining a licensee or	781
investigating an applicant for a license, is privileged and	782
confidential. All such information shall remain privileged and	783
confidential for all purposes except when, in the opinion of the	784
superintendent, it is necessary for the superintendent and the	785
superintendent's deputies, examiners, assistants, agents, or	786
clerks to take official action in administering and enforcing	787
sections 1321.71 to 1321.83 of the Revised Code or in connection	788
with criminal proceedings. Such information may also be introduced	789
into evidence or disclosed when and in the manner authorized in	790
section 1181.25 of the Revised Code.	791

(D) This section does not prevent the division from	792
releasing to or exchanging with other financial institution	793
regulatory authorities information relating to licensees.	794

(E) For purposes of this section, "financial institution	795
regulatory authority" includes a regulator of a business activity	796
in which a licensee is engaged, or has applied to engage in, to	797
the extent that the regulator has jurisdiction over a licensee	798
engaged in that business activity. A licensee is engaged in a	799
business activity, and a regulator of that business activity has	800
jurisdiction over the licensee, whether the licensee conducts the	801
activity directly or a subsidiary or affiliate of the licensee	802
conducts the activity.	803

Sec. 1322.06.  (A) As often as the superintendent of	804
financial institutions considers it necessary, the superintendent	805
may examine the registrant's records pertaining to business	806
transacted pursuant to sections 1322.01 to 1322.12 of the Revised	807
Code.	808

(B) A registrant shall maintain records pertaining to	809
business transacted pursuant to sections 1322.01 to 1322.12 of the	810
Revised Code for two years or more after the final entry on such	811
records. No registrant shall fail to comply with this division.	812

(C)(1) All information obtained by the superintendent or the	813
superintendent's deputies, examiners, assistants, agents, or	814
clerks by reason of their official position, including information	815
obtained by such persons in the course of examining a registrant	816
or investigating an applicant for a certificate of registration,	817
is privileged and confidential. All such information shall remain	818
privileged and confidential for all purposes except when it is	819
necessary for the superintendent and the superintendent's	820
deputies, examiners, assistants, agents, or clerks to take	821
official action regarding the affairs of the registrant or in	822
connection with criminal proceedings. This information may also be	823
introduced into evidence or disclosed when and in the manner	824
authorized by section 1181.25 of the Revised Code.	825

(2) All application information, except social security	826
numbers, employer identification numbers, financial account	827
numbers, the identity of the institution where financial accounts	828
are maintained, personal financial information, fingerprint cards	829
and the information contained on such cards, and criminal	830
background information, is a public record as defined in section	831
149.43 of the Revised Code.	832

(3) This section does not prevent the division of	833
financial institutions from releasing to or exchanging with other	834
financial institution regulatory authorities information relating	835
to licensees. For this purpose, a "financial institution	836
regulatory authority" includes a regulator of a business activity	837
in which a licensee is engaged, or has applied to engage in, to	838
the extent that the regulator has jurisdiction over a licensee	839
engaged in that business activity. A licensee is engaged in a	840
business activity, and a regulator of that business activity has	841
jurisdiction over the licensee, whether the licensee conducts the	842
activity directly or a subsidiary or affiliate of the licensee	843
conducts the activity.	844

(4) This section does not prevent the division from	845
releasing information relating to licensees to the attorney	846
general for purposes relating to the attorney general's	847
administration of Chapter 1345. of the Revised Code. Information	848
the division releases to the attorney general pursuant to this	849
section remains privileged and confidential, and the attorney	850
general may not disclose the information or introduce the	851
information into evidence unless the superintendent authorizes the	852
disclosure or introduction into evidence in connection with the	853
attorney general's administration of Chapter 1345. of the Revised	854
Code.	855

Sec. 1322.061. (A)(1) The following information is	856
privileged and confidential:	857

(a) Examination information, and any information leading to	858
or arising from an examination;	859

(b) Investigation information, and any information arising	860
from or leading to an investigation.	861

(2) The information described in division (A)(1) of this	862
section shall remain privileged and confidential for all purposes	863
except when it is necessary for the superintendent of financial	864
institutions to take official action regarding the affairs of a	865
registrant, or in connection with civil or criminal investigations	866
or proceedings conducted by the attorney general or a county	867
prosecutor. The superintendent may share examination and	868
investigation information with any law enforcement agency or any	869
other state or federal regulatory agency. Any information shared	870
with the attorney general, a county prosecutor, or a law	871
enforcement agency or other state or federal regulatory agency	872
shall remain privileged and confidential and shall only be used in	873
connection with an official investigation, proceeding, or action.	874
This information may also be introduced into evidence or disclosed	875
when and in the manner authorized by section 1181.25 of the	876
Revised Code.	877

(B) All application information, except social security	878
numbers, employer identification numbers, financial account	879
numbers, the identity of the institution where financial accounts	880
are maintained, personal financial information, fingerprint cards	881
and the information contained on such cards, and criminal	882
background information, is a public record as defined in section	883
149.43 of the Revised Code.	884

(C) This section does not prevent the division of financial	885
institutions from releasing to or exchanging with other financial	886
institution regulatory authorities information relating to	887
licensees. For this purpose, a "financial institution regulatory	888
authority" includes a regulator of a business activity in which a	889
licensee is engaged, or has applied to engage in, to the extent	890
that the regulator has jurisdiction over a licensee engaged in	891
that business activity. A licensee is engaged in a business	892
activity, and a regulator of that business activity has	893
jurisdiction over the licensee, whether the licensee conducts the	894
activity directly or a subsidiary or affiliate of the licensee	895
conducts the activity.	896

(D) This section does not prevent the division from	897
releasing information relating to licensees to the attorney	898
general for purposes relating to the attorney general's	899
administration of Chapter 1345. of the Revised Code. Information	900
the division releases to the attorney general pursuant to this	901
section remains privileged and confidential, and the attorney	902
general may not disclose the information or introduce the	903
information into evidence unless the superintendent authorizes the	904
disclosure or introduction into evidence in connection with the	905
attorney general's administration of Chapter 1345. of the Revised	906
Code.	907

Sec. 1707.11.  (A) Each person that is not organized	908
under the laws of this state, that is not licensed under section	909
1703.03 of the Revised Code, or that does not have its principal	910
place of business in this state, shall submit to the division of	911
securities an irrevocable consent to service of process, as	912
described in division (B) of this section, in connection with any	913
of the following:	914

(1) Filings to claim any of the exemptions enumerated in	915
division (Q), (W), (X), or (Y) of section 1707.03 of the Revised	916
Code;	917

(2) Applications for registration by description,	918
qualification, or coordination;	919

(3) Notice filings pursuant to section 1707.092 or 1707.141	920
of the Revised Code;	921

(4) Applications for licensure as a securities dealer under	922
section 1707.15 of the Revised Code;	923

(5) Applications for licensure as an investment adviser	924
under section 1707.151 of the Revised Code.	925

(B) The irrevocable written consent shall be executed and	926
acknowledged by an individual duly authorized to give the consent	927
and shall do all of the following:	928

(1) Designate the secretary of state as agent for service of	929
process or pleadings;	930

(2) State that actions growing out of the sale of such	931
securities, the giving of investment advice, or fraud committed by	932
a person on whose behalf the consent is submitted may be commenced	933
against the person, in the proper court of any county in this	934
state in which a cause of action may arise or in which the	935
plaintiff in the action may reside, by serving on the secretary of	936
state any proper process or pleading authorized by the laws of	937
this state;	938

(3) Stipulate that service of process or pleading on the	939
secretary of state shall be taken in all courts to be as valid and	940
binding as if service had been made upon the person on whose	941
behalf the consent is submitted.	942

(C) Service of any process or pleadings may be made on the	943
secretary of state by duplicate copies, of which one shall be	944
filed in the office of the secretary of state, and the other	945
immediately forwarded by the secretary of state by certified mail	946
to the principal place of business of the person on whose behalf	947
the consent is submitted or to the last known address as shown on	948
the filing made with the division. However, failure to mail such	949
copy does not invalidate the service.	950

(D) Notwithstanding any provision of this chapter, or of any	951
rule adopted by the division of securities under this chapter,	952
that requires the submission of a consent to service of process,	953
the division may provide by rule for the electronic filing or	954
submission of a consent to service of process.	955

Sec. 1707.12.  (A) AllExcept for offering materials filed	956
with the division of securities in connection with exempt	957
transactions under divisions (Q) and (W) of section 1707.03 of the	958
Revised Code, all applications and other papers filed with the	959
division of securities shall be open to inspection at all	960
reasonable times, except for unreasonable or improper purposes.	961

(B) Information obtained by the division through any	962
offering materials filed with the division in connection with	963
exempt transactions under divisions (Q) and (W) of section 1707.03	964
of the Revised Code or through any investigation shall be retained	965
by the division and shall not be available to inspection by	966
persons other than those having a direct economic interest in the	967
information or the transaction under investigation, or by a law	968
enforcement officer pursuant to the duties of his officelaw	969
enforcement agencies, state agencies, federal agencies, and other	970
entities as set forth by rules adopted by the division.	971

(C) Confidential law enforcement investigatory records and	972
trial preparation records of the division of securities or any	973
other law enforcement or administrative agency which are in the	974
possession of the division of securities shall in no event be	975
available to inspection by other than law enforcement agencies,	976
state agencies, federal agencies, and other entities as set forth	977
by rules adopted by the division.	978

(D) All public records shall be prepared and made available	979
promptly to any member of the general public at all reasonable	980
times for inspection. Upon request, the custodian of public	981
records shall make copies of the records available at cost, within	982
a reasonable period of time. To facilitate public access, the	983
division shall maintain public records in such a manner that they	984
can be made available pursuant to this section.	985

(E) No employee or representative of the division or the	986
department of commerce shall be required to testify concerning any	987
document or record subject to division (B) or (C) of this section,	988
except as set forth by rules adopted by the division.	989

(F) As used in this section:

990

(1) "Confidential law enforcement investigatory record"	991
means any record that pertains to a law enforcement matter of a	992
criminal, quasi-criminal, civil, or administrative nature,	993
provided that release of the record would create a high	994
probability of disclosure of any of the following:	995

(a) The identity of a suspect who has not been charged with	996
the offense to which the record pertains, or of an information	997
source or witness to whom confidentiality reasonably has been	998
promised;	999

(b) Information provided by an information source or witness	1000
to whom confidentiality reasonably has been promised, which	1001
information reasonably would tend to disclose histhe identity of	1002
the information source or witness;	1003

(c) Specific confidential investigatory techniques or	1004
procedures or specific investigatory work product.	1005

(2) "Trial preparation record" means any record that	1006
contains information that is specifically compiled in reasonable	1007
anticipation of, or in defense of, a criminal, quasi-criminal,	1008
civil, or administrative action or proceeding, including, but not	1009
limited to, the independent thought processes and personal trial	1010
preparation of an attorney and division personnel, their notes,	1011
diaries, and memoranda.	1012

Sec. 1707.141.  (A) No person shall act as an investment	1013
adviser, unless one of the following applies:	1014

(1) The person is licensed as an investment adviser by the	1015
division of securities; however, nothing in this section shall be	1016
construed to prohibit a person from being licensed by the division	1017
as both an investment adviser and a dealer or salesperson.	1018

(2) The person is registered under section 203 of the	1019
"Investment Advisers Act of 1940," 15 U.S.C. 80b-3, as an	1020
investment adviser and is in compliance with the notice filing	1021
requirements of division (B) of this section.	1022

(3) The person has no place of business in this state, and	1023
the person's only clients in this state are any of the following:	1024

(a) Investment companies as defined in the Investment	1025
Company Act of 1940;	1026

(b) Other investment advisers;

1027

(c) Licensed dealers;

1028

(d) Banks;

1029

(e) Insurance companies subject to regulation under Title	1030
XXXIX of the Revised Code and health insuring corporations	1031
regulated under Chapter 1751. of the Revised Code;	1032

(f) Employee benefit plans with assets of not less than one	1033
million dollars;	1034

(g) Government agencies or instrumentalities, whether acting	1035
for themselves or trustees with investment control;	1036

(h) Other institutional investors as the division may	1037
designate by rule.	1038

(4) The person has no place of business in this state, and	1039
during the preceding twelve-month period, the person has had not	1040
more than five clients, other than those described in division	1041
(A)(3) of this section, that are residents of this state.	1042

(5) The person is a charitable organization, as defined in	1043
section 3(c)(10) of the "Investment Company Act of 1940," 54 Stat.	1044
797, 15 U.S.C. 80a-3(c)(10), as amended, or is a trustee,	1045
director, officer, employee, or volunteer of such a charitable	1046
organization acting within the scope of the person's employment or	1047
duties with such an organization, whose advice, analysis, or	1048
reports are provided only to one or more of the following:	1049

(a) Any such charitable organization;

1050

(b) A fund that is excluded from the definition of an	1051
investment company under section 3(c)(10)(B) of the "Investment	1052
Company Act of 1940," 54 Stat. 797, 15 U.S.C. 80a-3(c)(10)(B), as	1053
amended;	1054

(c) A trust or other donative instrument described in	1055
section 3(c)(10)(B) of the "Investment Company Act of 1940," 54	1056
Stat. 797, 15 U.S.C. 80a-3(c)(10)(B), as amended, or the trustees,	1057
administrators, settlors and potential settlors, or beneficiaries	1058
of any such trust or other instrument.	1059

(6) The person is a plan described in subsection 414(e) of	1060
the "Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.	1061
414, as amended, any person or entity eligible to establish and	1062
maintain such a plan under Title 26 of the United States Code, or	1063
any trustee, director, officer, or employee of or volunteer for	1064
any such plan or person, if such person or entity, acting in such	1065
capacity, provides investment advice exclusively to, or with	1066
respect to, any plan, person, or entity, or any company, account,	1067
or fund that is excluded from the definition of an investment	1068
company under section 3(c)(14) of the "Investment Company Act of	1069
1940," 54 Stat. 797, 15 U.S.C. 80a-3(c)(14), as amended.	1070

(B)(1) No person who is registered under section 203 of the	1071
"Investment Advisers Act of 1940," 15 U.S.C. 80b-3, as an	1072
investment adviser shall act as an investment adviser, unless the	1073
person has done both of the following:	1074

(a) Filed with the division a consent to service of process	1075
pursuant to section 1707.11 of the Revised Code, together with	1076
either a notice filing form as specified in rules adopted by the	1077
division or a copy of those documents that have been filed by the	1078
investment adviser with the securities and exchange commission as	1079
specified in rules adopted by the division;	1080

(b) Paid the notice filing fee specified in division (B) of	1081
section 1707.17 of the Revised Code.	1082

(2) Upon compliance with division (B)(1) of this section,	1083
the division shall issue to the person an acknowledgment of notice	1084
filing.	1085

(3) The notice filing and fee requirements of division	1086
(B)(1) of this section do not apply to a person described in	1087
division (A)(3) or, (4), (5), or (6) of this section.	1088

Sec. 1707.15.  (A) Application for a dealer's license shall	1089
be made in accordance with this section and by filing with the	1090
division of securities the information, materials, and forms	1091
specified in rules adopted by the division, along with all of the	1092
following information:	1093

(1) The name and address of the applicant;

1094

(2) A description of the applicant, including, if the	1095
applicant is a partnership, unincorporated association, or any	1096
similar form of business organization, the names and the residence	1097
and business addresses of all partners, officers, directors,	1098
trustees, or managers of the organization, and the limitation of	1099
the liability of any partner or member; if the applicant is a	1100
corporation, a list of its executive officers and directors, and	1101
the residence and business addresses of each; and if it is a	1102
foreign corporation, a copy of its articles of incorporation in	1103
addition thereto;	1104

(3) The location and addresses of the principal office and	1105
all other offices of the applicant;	1106

(4)(3) A general description of the business of the	1107
applicant done prior to the application, including a list of	1108
states in which the applicant is a licensed dealer.	1109

(B) Each applicant shall file an irrevocable consent to	1110
service of process as provided in section 1707.11 of the Revised	1111
Code.	1112

(C)(1) The division may investigate any applicant for a	1113
license, and may require such additional information as it deems	1114
necessary to determine the applicant's business repute and	1115
qualifications to act as a dealer in securities.	1116

(2) If the application for any license involves	1117
investigation outside of this state, the applicant may be required	1118
by the division to advance sufficient funds to pay any of the	1119
actual expenses of such examination. An itemized statement of any	1120
such expenses which the applicant is required to pay shall be	1121
furnished the applicant by the division.	1122

(D)(C) The division shall by rule require one natural	1123
person who is a principal, officer, director, general partner,	1124
manager, or employee of a dealer to pass an examination	1125
designated by the division. Each dealer that is not a natural	1126
person shall notify the division of the name and relationship to	1127
the dealer of the natural person who has passed the examination on	1128
behalf of the dealer and who will serve as the designated	1129
principal on behalf of the dealer.	1130

(E)(D) Dealers shall employ as salespersons only those	1131
salespersons who are licensed under this chapter. If at any time	1132
a salesperson resigns or is discharged or a new salesperson is	1133
added, the dealer shall promptly notify the division.	1134

(F)(E) If the division finds that the applicant is of good	1135
business repute, appears qualified to act as a dealer in	1136
securities, and has fully complied with this chapter and rules	1137
adopted under this chapter by the division, the division, upon	1138
payment of the fees prescribed by division (B) of section	1139
1707.17 of the Revised Code, shall issue to the applicant a	1140
license authorizing the applicant to act as a dealer.	1141

Sec. 1707.151.  (A) Application for an investment adviser's	1142
license shall be made in accordance with this section and by	1143
filing with the division of securities the information, materials,	1144
and forms specified in rules adopted by the division.	1145

(B) Each applicant shall file an irrevocable consent to	1146
service of process as provided in section 1707.11 of the Revised	1147
Code.	1148

(C)(1) The division may investigate any applicant for a	1149
license and may require any additional information as it considers	1150
necessary to determine the applicant's business repute and	1151
qualifications to act as an investment adviser.	1152

(2) If the application for any license involves	1153
investigation outside of this state, the applicant may be required	1154
by the division to advance sufficient funds to pay any of the	1155
actual expenses of the examination. The division shall furnish	1156
the applicant with an itemized statement of such expenses that the	1157
applicant is required to pay.	1158

(D)(C) The division shall by rule require onea natural	1159
person who is a principal, officer, director, general partner,	1160
manager, or employee of an applicant for an investment adviser	1161
adviser's license to pass an examination designated by the	1162
division or achieve a specified professional designation. Each	1163
investment adviser that is not a natural person shall notify the	1164
division of the name and relationship to the investment adviser of	1165
the natural person who has passed the examination or achieved the	1166
specified professional designation on behalf of the investment	1167
adviser and who will serve as the designated principal on behalf	1168
of the investment adviser.	1169

(E)(D) An investment adviser licensed under section 1707.141	1170
of the Revised Code shall employ only investment adviser	1171
representatives licensed, or exempted from licensure, under	1172
section 1707.161 of the Revised Code.	1173

(F)(E) If the division finds that the applicant is of good	1174
business repute, appears to be qualified to act as an investment	1175
adviser, and has complied with this chapter and rules adopted	1176
under this chapter by the division, the division, upon payment of	1177
the fees prescribed by division (B) of section 1707.17 of the	1178
Revised Code, shall issue to the applicant a license authorizing	1179
the applicant to act as an investment adviser.	1180

Sec. 1707.161.  (A) No person shall act as an investment	1181
adviser representative, unless one of the following applies:	1182

(1) The person is licensed as an investment adviser	1183
representative by the division of securities.	1184

(2) The person is a natural person who is licensed as an	1185
investment adviser by the division, and does not act as an	1186
investment adviser representative for another investment adviser;	1187
however, a natural person who is licensed as an investment adviser	1188
by the division may act as an investment adviser representative	1189
for another investment adviser if the natural person also is	1190
licensed by the division, or is properly excepted from licensure,	1191
as an investment adviser representative of the other investment	1192
adviser.	1193

(3) The person is employed by or associated with an	1194
investment adviser registered under section 203 of the "Investment	1195
Advisers Act of 1940," 15 U.S.C. 80b-3, and does not have a place	1196
of business in this state.	1197

(4) The person is employed by or associated with an	1198
investment adviser that is excepted from licensure pursuant to	1199
division (A)(3) or, (4), (5), or (6) of section 1707.141 of the	1200
Revised Code or excepted from notice filing pursuant to division	1201
(B)(3) of section 1707.141 of the Revised Code.	1202

(B)(1) No investment adviser representative required to be	1203
licensed under this section shall act as an investment adviser	1204
representative for more than two investment advisers. An	1205
investment adviser representative that acts as an investment	1206
adviser representative for two investment advisers shall do so	1207
only after the occurrence of both of the following:	1208

(a) Being properly licensed, or properly excepted from	1209
licensure under this section, as an investment adviser	1210
representative for both investment advisers;	1211

(b) Complying with the requirements set forth in rules	1212
adopted by the division regarding consent of both investment	1213
advisers and notice.	1214

(2) Nothing in this section shall be construed to prohibit a	1215
natural person from being licensed by the division as both an	1216
investment adviser and an investment adviser representative.	1217

(3) Nothing in this section shall be construed to prohibit a	1218
natural person from being licensed by the division as both a	1219
salesperson and an investment adviser representative.	1220

(4) Nothing in this section shall be construed to prohibit a	1221
natural person from being licensed by the division as both a	1222
dealer and an investment adviser representative.	1223

(C) An investment adviser representative's license issued	1224
under this section shall not be effective during any period when	1225
the investment adviser representative is not employed by or	1226
associated with an investment adviser that is licensed by the	1227
division or that is in compliance with the notice filing	1228
requirements of division (B) of section 1707.141 of the Revised	1229
Code. Notice of the commencement and termination of the	1230
employment or association of an investment adviser representative	1231
licensed under this section shall be given to the division within	1232
thirty days after the commencement or termination by either of the	1233
following:	1234

(1) The investment adviser, in the case of an investment	1235
adviser representative licensed under this section and employed by	1236
or associated with, or formerly employed by or associated with, an	1237
investment adviser licensed under section 1707.141 of the Revised	1238
Code;	1239

(2) The investment adviser representative, in the case of an	1240
investment adviser representative licensed under this section and	1241
employed by or associated with, or formerly employed by or	1242
associated with, an investment adviser that is subject to the	1243
notice filings requirements of division (B) of section 1707.141 of	1244
the Revised Code.	1245

(D)(1) Application for an investment adviser representative	1246
license shall be made in accordance with this section and by	1247
filing with the division the information, materials, and forms	1248
specified in rules adopted by the division.	1249

(2) The division shall by rule require an applicant to pass	1250
an examination designated by the division or achieve a specified	1251
professional designation.	1252

(3) Prior to issuing the investment adviser representative	1253
license, the division may require the applicant to reimburse the	1254
division for the actual expenses incurred in investigating the	1255
applicant. An itemized statement of any such expenses that the	1256
applicant is required to pay shall be furnished to the applicant	1257
by the division.	1258

(E) If the division finds that the applicant is of good	1259
business repute, appears to be qualified to act as an investment	1260
adviser representative, and has complied with sections 1707.01 to	1261
1707.45 of the Revised Code and the rules adopted under those	1262
sections by the division, the division, upon payment of the fees	1263
prescribed by division (B) of section 1707.17 of the Revised Code,	1264
shall issue to the applicant a license authorizing the applicant	1265
to act as an investment adviser representative for the investment	1266
adviser, or investment advisers that are under common ownership or	1267
control, named in the application.	1268

Sec. 1707.17.  (A)(1) The license of every dealer in and	1269
salesperson of securities shall expire on the thirty-first day of	1270
December of each year, and may be renewed upon the filing with the	1271
division of securities of an application for renewal, and the	1272
payment of the fee prescribed in this section, between the first	1273
day of November and the fifteenth day of December of each year.	1274
The division may accept an application for renewal filed between	1275
the fifteenth and the thirty-first day of December of each year.	1276
The division also may accept an application for renewal received	1277
by the division not later than the tenth day of January of the	1278
subsequent calendar year, provided that the application for	1279
renewal is accompanied by the license renewal fee and the	1280
additional fee prescribed in division (B) of this section. The	1281
division shall give notice, without unreasonable delay, of its	1282
action on any application for renewal of a dealer's or	1283
salesperson's license.	1284

(2) The license of every investment adviser and investment	1285
adviser representative licensed under section 1707.141 or 1707.161	1286
of the Revised Code shall expire on the thirty-first day of	1287
December of each year. The licenses may be renewed upon the	1288
filing with the division of an application for renewal, and the	1289
payment of the fee prescribed in division (B) of this section,	1290
between the fifteenth day of October and the thirtieth day of	1291
November of each year. The division may accept an application for	1292
renewal filed between the first and thirty-first day of December	1293
of each year. The division also may accept an application for	1294
renewal received by the division not later than the tenth day of	1295
January of the subsequent calendar year, provided that the	1296
application for renewal is accompanied by the license renewal fee	1297
and the additional fee prescribed in division (B) of this section.	1298
The division shall give notice, without unreasonable delay, of its	1299
action on any application for renewal.	1300

(3) An investment adviser required to make a notice filing	1301
under division (B) of section 1707.141 of the Revised Code	1302
annually shall file with the division the notice filing and the	1303
fee prescribed in division (B) of this section, no later than the	1304
thirty-first day of December of each year. The division may accept	1305
a notice filing received by the division not later than the tenth	1306
day of January of the subsequent calendar year, provided that the	1307
notice filing is accompanied by the notice filing fee and the	1308
additional fee prescribed in division (B) of this section.	1309

(B)(1) The fee for each dealer's license, and for each	1310
annual renewal thereof that is received by the division not later	1311
than the thirty-first day of December of each year, shall be one	1312
hundred dollars. Upon payment of an additional fee of one-half of	1313
the license renewal fee, the division may accept an application	1314
for renewal received by the division between the first and tenth	1315
day of January of the subsequent calendar year. The fee for the	1316
examination of applicant dealers, when administered by the	1317
division, shall be seventy-five dollars.	1318

(2) The fee for each salesperson's license, and for each	1319
annual renewal thereof, shall be fifty dollars. The fee for the	1320
examination of an applicant salesperson, when administered by the	1321
division, shall be fifty dollars.	1322

(3) The fee for each investment adviser's license, and for	1323
each annual renewal thereof that is received by the division not	1324
later than the thirty-first day of December of each year, shall be	1325
fifty dollars. Upon the payment of an additional fee of one-half	1326
of the license fee, the division may accept a license renewal	1327
application received by the division between the first and tenth	1328
day of January of the subsequent calendar year.	1329

(4) The fee for each investment adviser notice filing	1330
required by division (B) of section 1707.141 of the Revised Code	1331
and received by the division not later than the thirty-first day	1332
of December of each year shall be fifty dollars. Upon the payment	1333
of an additional fee of one-half of the notice filing fee, the	1334
division may accept a notice filing received by the division	1335
between the first and tenth day of January of the subsequent	1336
calendar year. A notice filing may be made at any time during the	1337
calendar year. In that event, the notice filing fee shall not be	1338
reduced.	1339

(5) The fee for each investment adviser representative's	1340
license, and for each annual renewal thereof that is received by	1341
the division not later than the thirty-first day of December of	1342
each year, shall be thirty-five dollars; however, the fee shall be	1343
waived for the investment adviser representative designated the	1344
principal of the investment adviser pursuant to division (D) of	1345
section 1707.151 of the Revised Code. Upon the payment of an	1346
additional fee of one-half of the license fee, the division may	1347
accept a license renewal application received by the division	1348
between the first and tenth day of January of the subsequent	1349
calendar year.	1350

(C) A dealer's, salesperson's, investment adviser's, or	1351
investment adviser representative's license may be issued at any	1352
time for the remainder of the calendar year. In that event, the	1353
annual fee shall not be reduced.	1354

Sec. 1733.01.  As used in this chapter, unless the context	1355
otherwise requires:	1356

(A) "Credit union" means a corporation organized and	1357
qualified as such under this chapter. In addition to the powers	1358
enumerated in this chapter and unless restricted in this chapter,	1359
every credit union has the general powers conferred upon	1360
corporations by Chapter 1701. of the Revised Code. A credit union	1361
is a nonprofit cooperative financial institution and as such is	1362
organized and operates for the mutual benefit and general welfare	1363
of its members with the earnings, savings, benefits, or services	1364
of the credit union being distributed to its members as patron	1365
savers and borrowers and not to its members as individuals.	1366

(B) "Corporate credit union" means a credit union,	1367
eligibility for membership in which is being a credit union	1368
qualified to do business in this state. Such credit union shall	1369
use the term "corporate" in its official name.	1370

(C) "Foreign credit union" means a credit union formed under	1371
the laws of another state which are substantially similar to this	1372
chapter.	1373

(D) "Member" means a person who is a member of a credit	1374
union.	1375

(E) "Association member" means any member of a credit union	1376
other than a credit union or an individual member.	1377

(F) "Voting member" means an association member or an	1378
individual member who is qualified to vote as provided by law, the	1379
articles, or the regulations.	1380

(G) "Person" includes, without limitation, an individual, a	1381
corporation, an unincorporated society or association, or any	1382
other organization of individuals.	1383

(H) "Articles" includes original articles of incorporation,	1384
agreements of merger, amended articles, and amendments to any of	1385
these.	1386

(I) "Regulations" includes the code of regulations of a	1387
credit union and any amendments thereto or an amended code of	1388
regulations and any amendments thereto.	1389

(J) Persons having a "common bond of association" include	1390
those persons and their families.	1391

(K) "Membership share" means a share of the credit union,	1392
the subscription to which shall be a prerequisite for membership	1393
in the credit union.	1394

(L) "Share account" means an account established for a	1395
member for which no share certificates are issued but which are	1396
included in the registry of shares, which includes all	1397
transactions of the credit union pertaining to such shares.	1398

(M) "Undivided earnings" consist of all accumulated net	1399
earnings and reserves required under division (B) of section	1400
1733.31 of the Revised Code.	1401

(N) "State" means the United States, any state, territory,	1402
insular possession, or other political subdivision of the United	1403
States, including the District of Columbia.	1404

(O) An "emergency" exists when an emergency exists for other	1405
corporations as the same is defined and described in section	1406
1701.01 of the Revised Code.	1407

(P) "Superintendent of credit unions" means the "division of	1408
financial institutions" or the "superintendent of the division of	1409
financial institutions of this state"; and whenever the context	1410
requires it, may be read as "director of commerce" or as "chief of	1411
the division of financial institutions." Whenever the division or	1412
superintendent of credit unions is referred to or designated in	1413
any statute, rule, contract, or other document, the reference or	1414
designation shall be deemed to refer to the division or	1415
superintendent of financial institutions, as the case may be.	1416

(Q) "Outside auditor" means an accountant who is licensed to	1417
practice as a certified public accountant or public accountant by	1418
this state, and who is retained by a credit union to audit its	1419
accounts, but who is not otherwise employed by the credit union.	1420

(R) "Regulated individual" means a director, committee	1421
member, officer, or employee of a credit union.	1422

(S) "Financial institution regulatory authority" includes a	1423
regulator of business activity in which a credit union is engaged,	1424
or has applied to engage in, to the extent that the regulator has	1425
jurisdiction over a credit union engaged in that business	1426
activity. A credit union is engaged in a business activity, and a	1427
regulator of that business activity has jurisdiction over the	1428
credit union, whether the credit union conducts the activity	1429
directly or a subsidiary or affiliate of the credit union conducts	1430
the activity.	1431

Sec. 1733.32.  (A)(1) The superintendent of financial	1432
institutions shall see that the laws relating to credit unions are	1433
executed and enforced.	1434

(2) The deputy superintendent for credit unions shall be the	1435
principal supervisor of credit unions. In that position the	1436
deputy superintendent for credit unions shall, notwithstanding	1437
division (A)(3) of this section, be responsible for conducting	1438
examinations and preparing examination reports under that	1439
division. In addition, the deputy superintendent for credit	1440
unions shall, notwithstanding sections 1733.191, 1733.41,	1441
1733.411, and 1733.412 of the Revised Code, have the authority to	1442
adopt rules in accordance with those sections, and,	1443
notwithstanding section 1733.05 of the Revised Code, shall have	1444
the authority to approve issues and matters pertaining to fields	1445
of membership. In performing or exercising any of the	1446
examination, rule-making, or other regulatory functions, powers,	1447
or duties vested by division (A)(2) of this section in the deputy	1448
superintendent for credit unions, the deputy superintendent for	1449
credit unions shall be subject to the control of the	1450
superintendent of financial institutions.	1451

(3) The superintendent shall develop and implement a system	1452
for evaluating the safety and soundness of credit unions and for	1453
determining when examinations and supervisory actions are	1454
necessary. Credit unions shall be subject to periodic	1455
examinations, as specified in rules adopted by the superintendent,	1456
and their books, records, and accounts shall be open to the	1457
inspection of the superintendent at all times. For the purpose of	1458
such examination or inspection, the superintendent may subpoena	1459
witnesses, administer oaths, receive testimony, and order the	1460
submission of documents.	1461

(B) Every credit union shall prepare and submit, on forms	1462
provided by the superintendent, a financial report to the	1463
superintendent showing its assets and liabilities whenever	1464
requested to do so by the superintendent. Every financial report	1465
shall be verified by the oaths of the two principal officers in	1466
charge of the affairs of the credit union at the time of such	1467
verification and shall be submitted to the superintendent within	1468
thirty days after the superintendent requests the financial	1469
report.	1470

(C) An annual financial report of the affairs and business	1471
of the credit union, showing its condition as of the thirty-first	1472
day of December unless otherwise authorized by the superintendent,	1473
shall be filed with the superintendent not later than the date	1474
authorized in the rules adopted by the superintendent.	1475

(D) If a financial report or an annual financial report is	1476
not filed with the superintendent in accordance with division (B)	1477
or (C) of this section, the superintendent may do both of the	1478
following:	1479

(1) Assess a fine, determined by rule adopted by the	1480
superintendent, for each day the report is in arrears;	1481

(2) If the superintendent gives written notice to the	1482
president of the credit union of the superintendent's intention to	1483
do so, issue an order revoking the credit union's articles of	1484
incorporation and appointing a liquidating agent to liquidate the	1485
credit union in accordance with section 1733.37 of the Revised	1486
Code.	1487

(E)(1) Except as provided in division (E)(2) of this	1488
section, each credit union doing business in this state shall	1489
remit, semiannually and within fifteen days after billing, to the	1490
treasurer of state, a supervisory fee in an amount determined by	1491
the superintendent and confirmed by the credit union council. The	1492
supervisory fee described in division (E)(1) of this section shall	1493
be based on a percentage of the gross assets of the credit union	1494
as shown by its last annual financial report filed with the	1495
superintendent in accordance with division (C) of this section.	1496
The minimum supervisory fee shall be determined by the	1497
superintendent and confirmed by the credit union council.	1498

(2) Each corporate credit union doing business in this state	1499
shall remit, semiannually and within fifteen days after billing,	1500
to the treasurer of state, a supervisory fee determined by rule	1501
adopted by the superintendent and confirmed by the credit union	1502
council. The aggregate annual amount of the fee shall not exceed	1503
the annual operating fee that the national credit union	1504
administration charges a federally chartered credit union pursuant	1505
to the "Federal Credit Union Act," 84 Stat. 994 (1970), 12	1506
U.S.C.A. 1751.	1507

(3) The superintendent annually shall present to the credit	1508
union council for confirmation the supervisory fees to be billed	1509
credit unions and corporate credit unions pursuant to division (E)	1510
of this section.	1511

(4) If any supervisory fee is not remitted in accordance	1512
with division (E)(1) or (2) of this section, the superintendent	1513
may assess a fine, determined by rule adopted by the	1514
superintendent, for each day that each fee is in arrears.	1515

(5)(a) Subject to division (E)(5)(b) of this section, the	1516
total amount of each semiannual billing to all credit unions and	1517
corporate credit unions combined shall equal one-half of the	1518
appropriation made by the main operating appropriation act,	1519
including any modifications made by the controlling board, to the	1520
division of financial institutions for the regulation of credit	1521
unions for the fiscal year in which the billings occur, except	1522
that the superintendent, in determining the supervisory fees, may	1523
take into consideration any funds lapsed from the appropriation	1524
made in the previous fiscal year.	1525

(b) If during the period between the credit union council's	1526
confirmation of supervisory fees and when supervisory fees	1527
described in this section are collected, the credit union council	1528
determines additional money is required to adequately fund the	1529
operations of the division of financial institutions for that	1530
fiscal year, the credit union council may, by the affirmative vote	1531
of five of its members, increase the supervisory fees billed. The	1532
superintendent promptly shall notify each credit union and	1533
corporate credit union of the increased supervisory fees, and each	1534
credit union or corporate credit union shall pay the increased	1535
supervisory fees billed by the superintendent.	1536

(6) The fees or fines collected pursuant to this section	1537
shall be credited to the credit unions fund created in section	1538
1733.321 of the Revised Code.	1539

(F) A report of such examination shall be forwarded to the	1540
president of each credit union after the completion of the	1541
examination. Such report may contain comments relative to the	1542
management of the affairs of the credit union and also as to the	1543
general condition of its assets. Within thirty days of the	1544
receipt of such report, a meeting of the directors shall be called	1545
to consider matters contained in the report, and the president	1546
shall notify the superintendent of any action taken at such	1547
meeting.	1548

(G)(1) The superintendent shall furnish reports of	1549
examinations or other appropriate information to any organization	1550
referred to in section 1733.041 of the Revised Code when requested	1551
by such organization and authorized by the credit union. The	1552
superintendent may charge a fee for such reports and other	1553
information as may be established by rules adopted by the	1554
superintendent.	1555

(2) A report of examination furnished pursuant to division	1556
(G)(1) of this section is the property of the division of credit	1557
unions and may be used by the examined credit union only in the	1558
conduct of its business. Under no circumstances may the credit	1559
union, its current or former directors, officers, employees,	1560
agents, shareholders, participants in the conduct of its affairs,	1561
or their agents disclose or make public, in any manner, a report	1562
of examination or its contents.	1563

(H) Except as provided in this division, information	1564
obtained by the superintendent of credit unionsfinancial	1565
institutions and the superintendent's employees as a result of or	1566
arising out of the examination or independent audit of a credit	1567
union, from required reports, or because of their official	1568
position, shall be confidential. Such information may be	1569
disclosed only in connection with criminal proceedings or, subject	1570
to section 1733.327 of the Revised Code, when it is necessary for	1571
the superintendent to take official action pursuant to Chapter	1572
1733. of the Revised Code and the rules adopted thereunder	1573
regarding the affairs of the credit union examined. Such	1574
information may also be introduced into evidence or disclosed when	1575
and in the manner authorized in section 1181.25 of the Revised	1576
Code. This division does not prevent the superintendent from	1577
properly exchanging information relating to an examined credit	1578
union pursuant to division (F) or (G) of this section or with	1579
officials of properly authorized state or federal supervisory	1580
financial institution regulatory authorities or with any insurer	1581
recognized under section 1733.041 or any surety recognized under	1582
section 1733.23 of the Revised Code. This division also does not	1583
prevent the superintendent from disclosing information contained	1584
in the financial reports or annual financial reports described in	1585
division (B) or (C) of this section to recognized credit union	1586
trade associations.	1587

Sec. 1733.327.  (A) All conferences and administrative	1588
proceedings under sections 1733.324 and 1733.325 of the Revised	1589
Code, the fact of their actual or anticipated occurrence, and all	1590
notices, agreements, hearings, orders, records, evidence,	1591
transcripts, and other writings, happenings, or things pertaining	1592
to those conferences or proceedings, shall be kept confidential as	1593
among the superintendent of credit unionsfinancial institutions,	1594
the director of commerce, the deputy director of financial	1595
institutions, the governor, the credit union or regulated	1596
individual who is party to the conference or proceedings,	1597
witnesses in the conference or proceedings, and other persons	1598
specifically designated by the superintendent or director. In	1599
designating specific persons who may be present or acquire	1600
knowledge of matters made confidential by this division, the	1601
superintendent and director shall not exclude attorneys or other	1602
suitable representatives of the credit union, or of any regulated	1603
individual, who is party to the conference or proceedings. If the	1604
conference or proceedings apply to a regulated individual, the	1605
superintendent and director shall not exclude suitable	1606
representatives of the credit union of which such regulated	1607
individual is an officer, director, or employee.	1608

(B) Division (A) of this section ceases to apply upon the	1609
occurrence of any of the following:	1610

(1) An action is brought to recover a forfeiture for the	1611
violation of an agreement concluded, or a final or summary	1612
cease-and-desist order issued, under section 1733.324 or 1733.325	1613
of the Revised Code. A forfeiture, in the absence of such an	1614
action for recovery, does not waive division (A) of this section	1615
except insofar as the forfeiture must be reflected or reported in	1616
the financial records or reports of the credit union or regulated	1617
individual.	1618

(2) Information made confidential by division (A) of this	1619
section is needed as evidence in a criminal proceeding; in	1620
proceedings under section 1733.37 of the Revised Code; or in the	1621
work of a committee of the general assembly;.	1622

(3) The superintendent furnishes information made	1623
confidential by division (A) of this section to the applicable	1624
insurer recognized under section 1733.041 of the Revised Code.	1625

(4) The superintendent furnishes information made	1626
confidential by division (A) of this section to financial	1627
institution regulatory authorities as authorized in section	1628
1733.32 of the Revised Code.	1629

(5) Information made confidential by division (A) of this	1630
section is disclosed when and in the manner authorized in section	1631
1181.25 of the Revised Code.	1632

(C) No officer or employee of the division of credit unions,	1633
of the department of commerce or any of its other divisions, or of	1634
the governor's office shall violate division (A) of this section.	1635

Sec. 1751.19.  (A) A health insuring corporation shall	1636
establish and maintain a complaint system that has been approved	1637
by the superintendent of insurance to provide adequate and	1638
reasonable procedures for the expeditious resolution of written	1639
complaints initiated by subscribers or enrollees concerning any	1640
matter relating to services provided, directly or indirectly, by	1641
the health insuring corporation, including, but not limited to,	1642
complaints regarding cancellations or nonrenewals of coverage.	1643
Complaints regarding a health insuring corporation's decision to	1644
deny, reduce, or terminate coverage for health care services are	1645
subject to section 1751.83 of the Revised Code.	1646

(B) A health insuring corporation shall provide a timely	1647
written response to each written complaint it receives.	1648

(C)(1) Copies of complaints and responses, including medical	1649
records related to those complaints, shall be available to the	1650
superintendent and the director of health for inspection for three	1651
years. Any document or information provided to the superintendent	1652
pursuant to this division that contains a medical record is	1653
confidential, and is not a public record subject to section 149.43	1654
of the Revised Code.	1655

(2) Notwithstanding division (C)(1) of this section, the	1656
superintendent may share documents and information that contain a	1657
medical record in connection with the investigation or prosecution	1658
of any illegal or criminal activity with the chief deputy	1659
rehabilitator, the chief deputy liquidator, other deputy	1660
rehabilitators and liquidators, and any other person employed by,	1661
or acting on behalf of, the superintendent pursuant to Chapter	1662
3901. or 3903. of the Revised Code, with other local, state,	1663
federal, and international regulatory and law enforcement	1664
agencies, with local, state, and federal prosecutors, and with the	1665
national association of insurance commissioners and its affiliates	1666
and subsidiaries, provided that the recipient agrees to maintain	1667
the confidential or privileged status of the confidential or	1668
privileged document or information and has authority to do so.	1669

(3) Nothing in this section shall prohibit the superintendent	1670
from receiving documents and information in accordance with	1671
section 3901.045 of the Revised Code.	1672

(4) The superintendent may enter into agreements governing	1673
the sharing and use of documents and information consistent with	1674
the requirements of this section.	1675

(5) No waiver of any applicable privilege or claim of	1676
confidentiality in the documents and information described in	1677
division (C)(1) of this section occurs as a result of sharing or	1678
receiving documents and information as authorized in divisions	1679
(C)(2) and (3) of this section.	1680

(D) A health insuring corporation shall establish and	1681
maintain a procedure to accept complaints over the telephone or in	1682
person. These complaints are not subject to the reporting	1683
requirement under division (C) of section 1751.32 of the Revised	1684
Code.	1685

(E) A health insuring corporation may comply with this	1686
section and section 1751.83 of the Revised Code by establishing	1687
one system for receiving and reviewing complaints and requests for	1688
internal review from enrollees and subscribers if the system meets	1689
the requirements of both sections.	1690

Sec. 3901.045. (A) The superintendent of insurance may	1691
receive documents and information, including otherwise	1692
confidential or privileged documents and information, from local,	1693
state, federal, and international regulatory and law enforcement	1694
agencies, from local, state, and federal prosecutors, and from the	1695
national association of insurance commissioners and its affiliates	1696
and subsidiaries, provided that the superintendent maintains as	1697
confidential or privileged any document or information received	1698
with notice or the understanding that the document or information	1699
is confidential or privileged under the laws of the jurisdiction	1700
that is the source of the document or information.	1701

(B) The superintendent may also receive documents and	1702
information, including otherwise confidential or privileged	1703
documents and information, from the chief deputy rehabilitator,	1704
the chief deputy liquidator, other deputy rehabilitators and	1705
liquidators, and from any other person employed by, or acting on	1706
behalf of, the superintendent pursuant to Chapter 3901. or 3903.	1707
of the Revised Code, provided that the superintendent maintains as	1708
confidential or privileged any document or information received	1709
with the notice or understanding that the document or information	1710
is confidential or privileged, except that the superintendent may	1711
share and disclose such a document or information when authorized	1712
by other sections of the Revised Code.	1713

(C) The superintendent has the authority to maintain as	1714
confidential or privileged the documents and information received	1715
pursuant to this section.	1716

(D) The superintendent's authority to receive documents and	1717
information under this section, from the persons and subject to	1718
the conditions listed in this section, is not limited in any way	1719
by section 1751.19, 3901.36, 3901.44, 3901.48, 3901.70, 3901.83,	1720
3903.11, 3903.72, 3903.88, 3905.492, 3905.50, or 3999.36 of the	1721
Revised Code.	1722

Sec. 3901.36. (A) All information, documents, and copies	1723
thereof obtained by or disclosed to the superintendent of	1724
insurance or any other person in the course of an examination or	1725
investigation made pursuant to section 3901.35 of the Revised Code	1726
and all information reported pursuant to section 3901.33 of the	1727
Revised Code shall be given confidential and privileged treatment	1728
and shall not be subject to subpoena or be made public by the	1729
superintendent or any other person, except to insurance regulatory	1730
authorities of other states, without the prior written consent of	1731
the insurer to which it pertains, unless the superintendent, after	1732
giving the insurer and its affiliates who would be affected	1733
thereby notice and opportunity to be heard, determines that the	1734
interests of policyholders, shareholders, or the public will be	1735
served by the publication thereof, in which event he may publish	1736
all or any part thereof in such manner as he considers	1737
appropriate.	1738

(B) Notwithstanding division (A) of this section, the	1739
superintendent may do any of the following:	1740

(1) Disclose documents and information that are the subject	1741
of this section upon obtaining prior written consent from the	1742
insurer to which the documents and information pertain;	1743

(2) Disclose documents and information that are the subject	1744
of this section in such a manner as the superintendent considers	1745
appropriate, after giving the insurer and those affiliates that	1746
are the subject of the documents and information notice and an	1747
opportunity to be heard in accordance with Chapter 119. of the	1748
Revised Code, if the superintendent determines that the interests	1749
of policyholders, shareholders, or the public will be served by	1750
the disclosure;	1751

(3) Share documents and information that are the subject of	1752
this section with the chief deputy rehabilitator, the chief deputy	1753
liquidator, other deputy rehabilitators and liquidators, and any	1754
other person employed by, or acting on behalf of, the	1755
superintendent pursuant to Chapter 3901. or 3903. of the Revised	1756
Code, with other local, state, federal, and international	1757
regulatory and law enforcement agencies, with local, state, and	1758
federal prosecutors, and with the national association of	1759
insurance commissioners and its affiliates and subsidiaries,	1760
provided that the recipient agrees to maintain the confidential or	1761
privileged status of the confidential or privileged document or	1762
information and has authority to do so;	1763

(4) Disclose documents and information that are the subject	1764
of this section in the furtherance of any regulatory or legal	1765
action brought by or on behalf of the superintendent or the state,	1766
resulting from the exercise of the superintendent's official	1767
duties.	1768

(C) Notwithstanding divisions (A) and (B) of this section,	1769
the superintendent may authorize the national association of	1770
insurance commissioners and its affiliates and subsidiaries by	1771
agreement to share confidential or privileged documents or	1772
information received pursuant to division (B)(3) of this section	1773
with local, state, federal, and international regulatory and law	1774
enforcement agencies and with local, state, and federal	1775
prosecutors, provided that the recipient agrees to maintain the	1776
confidential or privileged status of the confidential or	1777
privileged document or information and has authority to do so.	1778

(D) Notwithstanding divisions (A) and (B) of this section,	1779
the chief deputy rehabilitator, the chief deputy liquidator, and	1780
other deputy rehabilitators and liquidators may disclose documents	1781
and information that are the subject of this section in the	1782
furtherance of any regulatory or legal action brought by or on	1783
behalf of the superintendent, the rehabilitator, the liquidator,	1784
or the state resulting from the exercise of the superintendent's	1785
official duties in any capacity.	1786

(E) Nothing in this section shall prohibit the	1787
superintendent from receiving documents and information in	1788
accordance with section 3901.045 of the Revised Code.	1789

(F) The superintendent may enter into agreements governing	1790
the sharing and use of documents and information consistent with	1791
the requirements of this section.	1792

(G)(1) No waiver of any applicable privilege or claim of	1793
confidentiality in the documents and information described in this	1794
section shall occur as a result of sharing or receiving documents	1795
and information as authorized in divisions (B)(3), (C), and (E) of	1796
this section.	1797

(2) The disclosure of a document or information in	1798
connection with a regulatory or legal action pursuant to divisions	1799
(B)(4) and (D) of this section does not prohibit an insurer or any	1800
other person from taking steps to limit the dissemination of the	1801
document or information to persons not involved in or the subject	1802
of the regulatory or legal action on the basis of any recognized	1803
privilege arising under any other section of the Revised Code or	1804
the common law.	1805

Sec. 3901.44.  (A) As used in this section, "insurance fraud	1806
investigation" means any investigation conducted by the	1807
superintendent of insurance or a designee of the superintendent	1808
that relates to a fraudulent insurance act as defined in section	1809
3999.31 of the Revised Code.	1810

(B) All papers, documents, reports, and evidence in the	1811
possession of the superintendent or the superintendent's designee	1812
that pertain to an insurance fraud investigation are confidential	1813
law enforcement investigatory records under section 149.43 of the	1814
Revised Code. Notwithstanding such section, the superintendent	1815
shall not prohibit public inspection of such records that pertain	1816
to an insurance fraud investigation after the expiration of all	1817
federal and state statutes of limitations applicable to the	1818
particular offense to which the papers, documents, reports, and	1819
evidence relate.	1820

(C) All papers, documents, reports, and evidence in the	1821
possession of the superintendent that do not pertain to such an	1822
insurance fraud investigation are public records under section	1823
149.43 of the Revised Code, and are not by such possession alone	1824
confidential law enforcement investigatory records.	1825

(D) All papers, documents, reports, and evidence in the	1826
possession of the superintendent or the superintendent's designee	1827
that pertain to such an insurance fraud investigation are not	1828
subject to subpoena in civil actions by any court of this state	1829
until opened for public inspection by the superintendent in	1830
accordance with division (B) of this section or with section	1831
149.43 of the Revised Code, unless the superintendent or the	1832
superintendent's designee consents, or until after reasonable	1833
notice to the superintendent and opportunity for hearing, the	1834
court determines the superintendent would not be hindered	1835
unnecessarily by such subpoena.	1836

(E) Notwithstanding divisions (B), (C), and (D) of this	1837
section, the superintendent may do either of the following:	1838

(1) Share documents, reports, and evidence that are the	1839
subject of this section with the chief deputy rehabilitator, the	1840
chief deputy liquidator, other deputy rehabilitators and	1841
liquidators, and any other person employed by, or acting on behalf	1842
of, the superintendent pursuant to Chapter 3901. or 3903. of the	1843
Revised Code, with other local, state, federal, and international	1844
regulatory and law enforcement agencies, with local, state, and	1845
federal prosecutors, with the national association of insurance	1846
commissioners and its affiliates and subsidiaries, with insurers,	1847
and with investigators hired by insurers, provided that the	1848
recipient agrees to maintain the confidential or privileged status	1849
of the confidential or privileged document, report, or evidence	1850
and has authority to do so;	1851

(2) Disclose documents, reports, and evidence that are the	1852
subject of this section in the furtherance of any regulatory or	1853
legal action brought by or on behalf of the superintendent or the	1854
state, resulting from the exercise of the superintendent's	1855
official duties.	1856

(F) Notwithstanding divisions (B), (C), (D), and (E) of this	1857
section, the superintendent may authorize the national association	1858
of insurance commissioners and its affiliates and subsidiaries by	1859
agreement to share confidential or privileged documents, reports,	1860
and evidence received pursuant to division (E)(1) of this section	1861
with local, state, federal, and international regulatory and law	1862
enforcement agencies and with local, state, and federal	1863
prosecutors, provided that the recipient agrees to maintain the	1864
confidential or privileged status of the confidential or	1865
privileged document, report, or evidence and has authority to do	1866
so.	1867

(G) Notwithstanding divisions (B), (C), (D), and (E) of this	1868
section, the chief deputy rehabilitator, the chief deputy	1869
liquidator, and other deputy rehabilitators and liquidators may	1870
disclose documents, reports, and evidence that are the subject of	1871
this section in the furtherance of any regulatory or legal action	1872
brought by or on behalf of the superintendent, the rehabilitator,	1873
the liquidator, or the state resulting from the exercise of the	1874
superintendent's official duties in any capacity.	1875

(H) Nothing in this section shall prohibit the	1876
superintendent from receiving documents, reports, and evidence in	1877
accordance with section 3901.045 of the Revised Code.	1878

(I) The superintendent may enter into agreements governing	1879
the sharing and use of documents, reports, and evidence consistent	1880
with the requirements of this section.	1881

(J)(1) No waiver of any applicable privilege or claim of	1882
confidentiality in the documents, reports, and evidence described	1883
in this section shall occur as a result of sharing or receiving	1884
documents, reports, and evidence as authorized in divisions	1885
(E)(1), (F), and (H) of this section.	1886

(2) The disclosure of a document, report, or evidence in	1887
connection with a regulatory or legal action pursuant to divisions	1888
(E)(2) and (G) of this section does not prohibit an insurer or any	1889
other person from taking steps to limit the dissemination of the	1890
document, report, or evidence to persons not involved in or the	1891
subject of the regulatory or legal action on the basis of any	1892
recognized privilege arising under any other section of the	1893
Revised Code or the common law.	1894

(K) The superintendent and the superintendent's designee are	1895
not subject to subpoena in civil actions by any court of this	1896
state to testify concerning any matter of which they have	1897
knowledge pursuant to a pending insurance fraud investigation by	1898
the superintendent.	1899

Sec. 3901.48.  (A) The original work papers of a certified	1900
public accountant performing an audit of an insurance company or	1901
health insuring corporation doing business in this state that is	1902
required by rule or by any section of the Revised Code to file an	1903
audited financial report with the superintendent of insurance	1904
shall remain the property of the certified public accountant. Any	1905
copies of these work papers voluntarily given to the	1906
superintendent shall be the property of the superintendent. The	1907
original work papers or any copies of them, whether in possession	1908
of the certified public accountant or the department of insurance,	1909
are confidential and privileged and are not a public record as	1910
defined in section 149.43 of the Revised Code. The original work	1911
papers and any copies of them are not subject to subpoena and	1912
shall not be made public by the superintendent or any other	1913
person. However, the original work papers and any copies of them	1914
may be released by the superintendent to the insurance regulatory	1915
authority of any other state if that authority agrees to maintain	1916
the confidentiality of the work papers or copies and if the work	1917
papers and copies are not public records under the laws of that	1918
state.	1919

(B) The work papers of the superintendent or of the person	1920
appointed by the superintendent, resulting from the conduct of an	1921
examination made pursuant to section 3901.07 of the Revised Code	1922
or from the conduct of a financial analysis of any entity subject	1923
to examination by the superintendent, including but not limited to	1924
any insurance company, health insuring corporation, fraternal	1925
benefit society, or multiple employer welfare arrangement, are	1926
confidential and privileged and are not a public record as defined	1927
in section 149.43 of the Revised Code. The original work papers	1928
and any copies of them are not subject to subpoena and shall not	1929
be made public by the superintendent or any other person. However,	1930
the original work papers and any copies of them may be released by	1931
the superintendent to the insurance regulatory authority of any	1932
other state if that authority agrees to maintain the	1933
confidentiality of the work papers or copies and if the work	1934
papers and copies are not public records under the laws of that	1935
state.	1936

(C) The work papers of the superintendent or of any person	1937
appointed by the superintendent, resulting from the conduct of a	1938
performance regulation examination made pursuant to authority	1939
granted under section 3901.011 of the Revised Code, are	1940
confidential and privileged and are not a public record as defined	1941
in section 149.43 of the Revised Code. The original work papers	1942
and any copies of them are not subject to subpoena and shall not	1943
be made public by the superintendent or any other person. However,	1944
the original work papers and any copies of them may be released by	1945
the superintendent to the insurance regulatory authority of any	1946
other state if that authority agrees to maintain the	1947
confidentiality of the work papers or copies and if the work	1948
papers and copies are not public records under the laws of that	1949
state.	1950

(D) Notwithstanding divisions (A), (B), and (C) of this	1951
section, the superintendent may do either of the following:	1952

(1) Share work papers that are the subject of this section	1953
with the chief deputy rehabilitator, the chief deputy liquidator,	1954
other deputy rehabilitators and liquidators, and any other person	1955
employed by, or acting on behalf of, the superintendent pursuant	1956
to Chapter 3901. or 3903. of the Revised Code, with other local,	1957
state, federal, and international regulatory and law enforcement	1958
agencies, with local, state, and federal prosecutors, and with the	1959
national association of insurance commissioners and its affiliates	1960
and subsidiaries, provided that the recipient agrees to maintain	1961
the confidential or privileged status of the confidential or	1962
privileged work paper and has authority to do so;	1963

(2) Disclose work papers that are the subject of this	1964
section in the furtherance of any regulatory or legal action	1965
brought by or on behalf of the superintendent or the state,	1966
resulting from the exercise of the superintendent's official	1967
duties.	1968

(E) Notwithstanding divisions (A), (B), (C), and (D) of this	1969
section, the superintendent may authorize the national association	1970
of insurance commissioners and its affiliates and subsidiaries by	1971
agreement to share confidential or privileged work papers received	1972
pursuant to division (D)(1) of this section with local, state,	1973
federal, and international regulatory and law enforcement agencies	1974
and with local, state, and federal prosecutors, provided that the	1975
recipient agrees to maintain the confidential or privileged status	1976
of the confidential or privileged work paper and has authority to	1977
do so.	1978

(F) Notwithstanding divisions (A), (B), (C), and (D) of this	1979
section, the chief deputy rehabilitator, the chief deputy	1980
liquidator, and other deputy rehabilitators and liquidators may	1981
disclose work papers that are the subject of this section in the	1982
furtherance of any regulatory or legal action brought by or on	1983
behalf of the superintendent, the rehabilitator, the liquidator,	1984
or the state resulting from the exercise of the superintendent's	1985
official duties in any capacity.	1986

(G) Nothing in this section shall prohibit the	1987
superintendent from receiving work papers in accordance with	1988
section 3901.045 of the Revised Code.	1989

(H) The superintendent may enter into agreements governing	1990
the sharing and use of work papers consistent with the	1991
requirements of this section.	1992

(I)(1) No waiver of any applicable privilege or claim of	1993
confidentiality in the work papers, or copies thereof, that are	1994
the subject of this section shall occur as a result of sharing or	1995
receiving work papers as authorized in divisions (D)(1), (E), and	1996
(G) of this section.	1997

(2) The disclosure of work papers in connection with a	1998
regulatory or legal action pursuant to divisions (D)(2) and (F) of	1999
this section does not prohibit an insurer or any other person from	2000
taking steps to limit the dissemination of the work papers to	2001
persons not involved in or the subject of the regulatory or legal	2002
action on the basis of any recognized privilege arising under any	2003
other section of the Revised Code or the common law.	2004

Sec. 3901.70.  (A) Each report obtained by or disclosed to	2005
the superintendent of insurance pursuant to sections 3901.67 to	2006
3901.70 of the Revised Code is confidential and privileged and is	2007
not subject to subpoena. Except as provided in divisionsdivision	2008
(B) and (C) of this section, the report shall not be made public	2009
by the superintendent, the national association of insurance	2010
commissioners, or any other persons.	2011

(B) A report may be provided by the superintendent to the	2012
insurance regulatory authority of another state or to the national	2013
association of insurance commissioners without first obtaining the	2014
written consent of the insurer to which it pertains.	2015

(C) The superintendent, after conducting a hearing in	2016
accordance with Chapter 119. of the Revised Code, may determine	2017
that the interest of policyholders, shareholders, or the public	2018
will be served by the publication of the report and may publish	2019
all or any part of the report in such manner as the superintendent	2020
may consider appropriate.Notwithstanding division (A) of this	2021
section, the superintendent may do any of the following:	2022

(1) Disclose a report that is the subject of this section	2023
upon obtaining a prior written consent from the insurer to which	2024
the report pertains;	2025

(2) Share a report that is the subject of this section with	2026
the chief deputy rehabilitator, the chief deputy liquidator,	2027
other deputy rehabilitators and liquidators, and any other person	2028
employed by, or acting on behalf of, the superintendent pursuant	2029
to Chapter 3901. or 3903. of the Revised Code, with other local,	2030
state, federal, and international regulatory and law enforcement	2031
agencies, with local, state, and federal prosecutors, and with the	2032
national association of insurance commissioners and its affiliates	2033
and subsidiaries, provided that the recipient agrees to maintain	2034
the confidential or privileged status of the confidential or	2035
privileged report and has authority to do so;	2036

(3) Disclose a report that is the subject of this section in	2037
the furtherance of any regulatory or legal action brought by or on	2038
behalf of the superintendent or the state, resulting from the	2039
exercise of the superintendent's official duties;	2040

(4) Disclose or publish all or any part of a report that is	2041
the subject of this section in such a manner as the superintendent	2042
considers appropriate after conducting a hearing in accordance	2043
with Chapter 119. of the Revised Code and determining that the	2044
interests of policyholders, shareholders, or the public will be	2045
served by the disclosure or publication of the report.	2046

(C) Notwithstanding divisions (A) and (B) of this section,	2047
the superintendent may authorize the national association of	2048
insurance commissioners and its affiliates and subsidiaries by	2049
agreement to share confidential or privileged reports received	2050
pursuant to division (B)(2) of this section with local, state,	2051
federal, and international regulatory and law enforcement agencies	2052
and with local, state, and federal prosecutors, provided that the	2053
recipient agrees to maintain the confidential or privileged status	2054
of the confidential or privileged report and has authority to do	2055
so.	2056

(D) Notwithstanding divisions (A) and (B) of this section,	2057
the chief deputy rehabilitator, the chief deputy liquidator, and	2058
other deputy rehabilitators and liquidators may disclose a report	2059
that is the subject of this section in the furtherance of any	2060
regulatory or legal action brought by or on behalf of the	2061
superintendent, the rehabilitator, the liquidator, or the state	2062
resulting from the exercise of the superintendent's official	2063
duties in any capacity.	2064

(E) Nothing in this section shall prohibit the	2065
superintendent from receiving reports in accordance with section	2066
3901.045 of the Revised Code.	2067

(F) The superintendent may enter into agreements governing	2068
the sharing, use, and disclosure of reports consistent with the	2069
requirements of this section.	2070

(G)(1) No waiver of any applicable privilege or claim of	2071
confidentiality in the reports that are the subject of this	2072
section shall occur as a result of sharing or receiving reports as	2073
authorized in divisions (B)(2), (C), and (E) of this section.	2074

(2) The disclosure of a report in connection with a	2075
regulatory or legal action pursuant to divisions (B)(3) and (D) of	2076
this section does not prohibit an insurer or any other person from	2077
taking steps to limit the dissemination of the report to persons	2078
not involved in or the subject of the regulatory or legal action	2079
on the basis of any recognized privilege arising under any other	2080
section of the Revised Code or the common law.	2081

Sec. 3901.83. (A) When a record containing information	2082
pertaining to the medical history, diagnosis, prognosis, or	2083
medical condition of an enrollee of a health insuring corporation,	2084
insured of an insurer, or plan member of a public employee benefit	2085
plan is provided to the superintendent of insurance for any reason	2086
under sections 1751.77 to 1751.88, 3923.66 to 3923.70, or 3923.75	2087
to 3923.79 of the Revised Code, regardless of the source, the	2088
superintendent shall maintain the confidentiality of the record.	2089
The record in the superintendent's possession is not a public	2090
record under section 149.43 of the Revised Code, except to the	2091
extent that information from the record is used in preparing	2092
reports under section 3901.82 of the Revised Code.	2093

(B) Notwithstanding division (A) of this section, the	2094
superintendent may share a record that is the subject of this	2095
section in connection with the investigation or prosecution of	2096
any illegal or criminal activity with the chief deputy	2097
rehabilitator, the chief deputy liquidator, other deputy	2098
rehabilitators and liquidators, and any other person employed by,	2099
or acting on behalf of, the superintendent pursuant to Chapter	2100
3901. or 3903. of the Revised Code, with other local, state,	2101
federal, and international regulatory and law enforcement	2102
agencies, with local, state, and federal prosecutors, and with the	2103
national association of insurance commissioners and its affiliates	2104
and subsidiaries, provided that the recipient agrees to maintain	2105
the confidential or privileged status of the confidential or	2106
privileged record and has authority to do so.	2107

(C) Nothing in this section shall prohibit the	2108
superintendent from receiving records in accordance with section	2109
3901.045 of the Revised Code.	2110

(D) The superintendent may enter into agreements governing	2111
the sharing and use of records consistent with the requirements of	2112
this section.	2113

(E) No waiver of any applicable privilege or claim of	2114
confidentiality in the records that are the subject of this	2115
section shall occur as a result of sharing or receiving records as	2116
authorized in divisions (B) and (C) of this section.	2117

Sec. 3903.11. (A) In all proceedings and judicial reviews	2118
thereof under sections 3903.09 and 3903.10 of the Revised Code,	2119
all records of the insurer, other documents, and all department of	2120
insurance files and court records and papers, so far as they	2121
pertain to or are a part of the record of the proceedings, shall	2122
be and remain confidential and privileged except as is necessary	2123
to enforce compliance with those sections, unless and until the	2124
court of common pleas, after hearing arguments from the parties in	2125
chambers, shall order otherwise, or unless the insurer requests in	2126
writing that the matter be made public. Until such court order or	2127
such request from the insurer, all papers filed with the clerk of	2128
the court shall be held by the clerk in a confidential file.	2129

(B) Notwithstanding division (A) of this section, the	2130
superintendent may do either of the following:	2131

(1) Share the documents and information that are the subject	2132
of this section with the chief deputy rehabilitator, the chief	2133
deputy liquidator, other deputy rehabilitators and liquidators,	2134
and any other person employed by, or acting on behalf of, the	2135
superintendent pursuant to Chapter 3901. or 3903. of the Revised	2136
Code, with other local, state, federal, and international	2137
regulatory and law enforcement agencies, with local, state, and	2138
federal prosecutors, and with the national association of	2139
insurance commissioners and its affiliates and subsidiaries,	2140
provided that the recipient agrees to maintain the confidential or	2141
privileged status of the confidential or privileged document or	2142
information and has authority to do so;	2143

(2) Disclose documents and information that are the subject	2144
of this section in the furtherance of any regulatory or legal	2145
action brought by or on behalf of the superintendent or the state,	2146
resulting from the exercise of the superintendent's official	2147
duties.	2148

(C) Notwithstanding divisions (A) and (B) of this section,	2149
the superintendent may authorize the national association of	2150
insurance commissioners and its affiliates and subsidiaries by	2151
agreement to share confidential or privileged documents or	2152
information received pursuant to division (B)(1) of this section	2153
with local, state, federal, and international regulatory and law	2154
enforcement agencies and with local, state, and federal	2155
prosecutors, provided that the recipient agrees to maintain the	2156
confidential or privileged status of the confidential or	2157
privileged document or information and has authority to do so.	2158

(D) Notwithstanding divisions (A) and (B) of this section,	2159
the chief deputy rehabilitator, the chief deputy liquidator, and	2160
other deputy rehabilitators and liquidators may disclose documents	2161
and information that are the subject of this section in the	2162
furtherance of any regulatory or legal action brought by or on	2163
behalf of the superintendent, the rehabilitator, the liquidator,	2164
or the state resulting from the exercise of the superintendent's	2165
official duties in any capacity.	2166

(E) Nothing in this section shall prohibit the	2167
superintendent from receiving documents or information in	2168
accordance with section 3901.045 of the Revised Code.	2169

(F) The superintendent may enter into agreements governing	2170
the sharing and use of documents and information consistent with	2171
the requirements of this section.	2172

(G)(1) No waiver of any applicable privilege or claim of	2173
confidentiality in the documents and information described in this	2174
section shall occur as a result of sharing or receiving documents	2175
and information as authorized in divisions (B)(1), (C), and (E) of	2176
this section.	2177

(2) The disclosure of documents or information in connection	2178
with a regulatory or legal action pursuant to divisions (B)(2) and	2179
(D) of this section does not prohibit an insurer or any other	2180
person from taking steps to limit the dissemination of the	2181
document or information to persons not involved in or the subject	2182
of the regulatory or legal action on the basis of any recognized	2183
privilege arising under any other section of the Revised Code or	2184
the common law.	2185

Sec. 3903.72.  (A) The superintendent of insurance shall	2186
annually value, or cause to be valued, the reserve liabilities,	2187
referred to in this section as reserves, for all outstanding life	2188
insurance policies and annuity and pure endowment contracts of	2189
every life insurance company doing business in this state. The	2190
superintendent may certify the amount of such reserves, specifying	2191
the mortality tables, rates of interest, and net level premium	2192
method and other methods used to calculate reserves. In	2193
calculating reserves, the superintendent may use group methods and	2194
approximate averages for fractions of a year or otherwise. The	2195
valuation of the reserves of a company organized under the laws of	2196
a foreign government shall be limited to its United States	2197
business.	2198

In lieu of a valuation of the reserves of a foreign company,	2199
the superintendent may accept the valuation made, or caused to be	2200
made, by the insurance supervisory official of any state or other	2201
jurisdiction when such valuation complies with the minimum	2202
standards required by this section, provided such official accepts	2203
the certificate of valuation of the superintendent when such	2204
certificate states that the valuation was made in a specified	2205
manner and when such valuation complies with the minimum standards	2206
required by the law of that state or jurisdiction.	2207

A company, which adopts a standard of valuation producing	2208
aggregate reserves greater than those required by this section,	2209
may adopt a lower standard of valuation with the approval of the	2210
superintendent, but not lower than the minimum provided by this	2211
section. However, the holding of additional reserves previously	2212
determined by a qualified actuary to be necessary for the actuary	2213
to render the opinions required by divisions (B)(1) and (2) of	2214
this section shall not be deemed to be the adoption of a higher	2215
standard of valuation.	2216

(B)(1) Every life insurance company doing business in this	2217
state shall annually submit to the superintendent the opinion of a	2218
qualified actuary as to whether the reserves and related actuarial	2219
items held in support of the policies and contracts specified by	2220
rule by the superintendent are computed appropriately, are based	2221
on assumptions that satisfy contractual provisions, and are	2222
consistent with prior reported amounts. The opinion shall be	2223
submitted no later than March 1, 1996, and no later than the first	2224
day of March of each year thereafter. The superintendent shall	2225
adopt rules establishing the form and content of this opinion, and	2226
may require the life insurance company to supply information in	2227
addition to that contained in the actuarial opinion.	2228

As used in this section, a "qualified actuary" means a person	2229
who is a member in good standing of the American academy of	2230
actuaries and who meets the requirements set by rule by the	2231
superintendent.	2232

(2)(a) Every life insurance company, except as exempted by	2233
rule adopted by the superintendent, shall also include in the	2234
annual opinion required by division (B)(1) of this section an	2235
opinion of the same qualified actuary as to whether the reserves	2236
and related actuarial items held in support of the policies and	2237
contracts specified by rule by the superintendent, when considered	2238
in light of the assets held by the company with respect to the	2239
reserves and related actuarial items, including, but not limited	2240
to, the investment earnings on the assets and the considerations	2241
anticipated to be received and retained under the policies and	2242
contracts, make adequate provision for the company's obligations	2243
under the policies and contracts, including, but not limited to,	2244
the benefits under and the expenses associated with the policies	2245
and contracts.	2246

(b) The superintendent may provide by rule for a transition	2247
period for establishing any higher reserves that the qualified	2248
actuary may consider necessary to render the opinion required by	2249
division (B) of this section.	2250

(c) Each opinion required by division (B) of this section	2251
shall be supported by a memorandum prepared in form and content as	2252
specified by rule by the superintendent.	2253

(d) If a life insurance company fails to provide a	2254
supporting memorandum within the period of time specified by rule	2255
by the superintendent, or if the superintendent determines that a	2256
supporting memorandum fails to meet the standards set out in the	2257
rule, or is otherwise unacceptable to the superintendent, the	2258
superintendent may employ, at the expense of the insurance	2259
company, a qualified actuary to review the opinion and the basis	2260
for the opinion and prepare such supporting memorandum as is	2261
required by the superintendent.	2262

(3) Every opinion required by division (B) of this section	2263
is governed by the following:	2264

(a) The opinion shall be submitted with the annual statement	2265
reflecting the valuation of the reserve liabilities.	2266

(b) The opinion shall apply to all business in force	2267
including individual and group health insurance plans.	2268

(c) The opinion shall be based on standards adopted from	2269
time to time by the actuarial standards board of the American	2270
academy of actuaries and on such additional standards as the	2271
superintendent may prescribe by rule.	2272

(d) In the case of an opinion required to be submitted by a	2273
foreign or alien life insurance company, the superintendent may	2274
accept the opinion filed by that company with the insurance	2275
regulatory authority of another state if the superintendent	2276
determines that the opinion reasonably meets the requirements	2277
applicable to a company domiciled in this state.	2278

(e) Except in cases of fraud or willful misconduct, the	2279
qualified actuary is not liable for damages in any civil action to	2280
any person, other than the insurance company and the	2281
superintendent, for any act, error, omission, decision, or conduct	2282
with respect to the actuary's opinion.	2283

(f) The superintendent shall establish by rule penalties for	2284
an insurance company's or qualified actuary's failure to comply	2285
with this section.	2286

(g) The superintendent shall keep as confidential and	2287
privileged any memorandum received in support of a qualified	2288
actuary's opinion and also any other material provided by the	2289
insurance company to the superintendent in connection with the	2290
opinion. The memorandum and other materials shall not be made	2291
public, and shall not be subject to subpoena other than for the	2292
purpose of defending an action required by this section or rules	2293
adopted under this section. However, the memorandum and other	2294
materials may be released by the superintendent with the written	2295
consent of the company, and may be released to the American	2296
academy of actuaries upon the superintendent's receipt of a	2297
request from the academy stating that the memorandum and other	2298
materials are required for the purpose of professional	2299
disciplinary proceedings. A request from the American academy of	2300
actuaries shall set forth the procedures to be used by the academy	2301
for preserving the confidentiality of the memorandum and other	2302
materials, which procedures shall be satisfactory to the	2303
superintendent prior to the superintendent's release of the	2304
memorandum and other materials. Ifif any portion of a	2305
confidential and privileged memorandum is cited by the company in	2306
its marketing, is cited before any governmental agency other than	2307
a state insurance regulatory authority, or is released by the	2308
company to the news media, the entire memorandum shall no longer	2309
be confidential and privileged.	2310

(h) Notwithstanding division (B)(3)(g) of this section, the	2311
superintendent may do any of the following:	2312

(i) Disclose memoranda and other materials described in this	2313
section upon obtaining prior written consent from the insurer to	2314
which the memorandum or other materials pertain;	2315

(ii) Disclose memoranda and other materials described in	2316
this section to the American academy of actuaries upon receipt of	2317
a written request from the academy stating that a memorandum or	2318
other material is required for the purpose of professional	2319
disciplinary proceedings. A request from the American academy of	2320
actuaries shall set forth the procedures to be used by the academy	2321
for preserving the confidential and privileged status of the	2322
memorandum or other material. If the procedures set forth are not	2323
satisfactory to the superintendent, the superintendent shall not	2324
release the memorandum or other material to the academy.	2325

(iii) Share memoranda and other materials described in this	2326
section with the chief deputy rehabilitator, the chief deputy	2327
liquidator, other deputy rehabilitators and liquidators, and any	2328
other person employed by, or acting on behalf of, the	2329
superintendent pursuant to Chapter 3901. or 3903. of the Revised	2330
Code, with other local, state, federal, and international	2331
regulatory and law enforcement agencies, with local, state, and	2332
federal prosecutors, and with the national association of	2333
insurance commissioners and its affiliates and subsidiaries,	2334
provided that the recipient agrees to maintain the confidential or	2335
privileged status of any confidential or privileged memorandum or	2336
other material and has authority to do so;	2337

(iv) Disclose memoranda and other materials described in	2338
this section in the furtherance of any regulatory or legal action	2339
brought by or on behalf of the superintendent or the state,	2340
resulting from the exercise of the superintendent's official	2341
duties.	2342

(i) Notwithstanding divisions (B)(3)(g) and (h) of this	2343
section, the superintendent may authorize the national association	2344
of insurance commissioners and its affiliates and subsidiaries by	2345
agreement to share confidential or privileged memoranda and other	2346
material received pursuant to division (B)(3)(h)(iii) of this	2347
section with local, state, federal, and international regulatory	2348
and law enforcement agencies and with local, state, and federal	2349
prosecutors, provided that the recipient agrees to maintain the	2350
confidential or privileged status of the confidential or	2351
privileged memorandum or other material and has authority to do	2352
so.	2353

(j) Notwithstanding divisions (B)(3)(g) and (h) of this	2354
section, the chief deputy rehabilitator, the chief deputy	2355
liquidator, and other deputy rehabilitators and liquidators may	2356
disclose memoranda and other material described in this section in	2357
the furtherance of any regulatory or legal action brought by or on	2358
behalf of the superintendent, the rehabilitator, the liquidator,	2359
or the state resulting from the exercise of the superintendent's	2360
official duties in any capacity.	2361

(k) Nothing in this section shall prohibit the	2362
superintendent from receiving memoranda and other material in	2363
accordance with section 3901.045 of the Revised Code.	2364

(l) The superintendent may enter into agreements governing	2365
the sharing and use of memoranda and materials consistent with the	2366
requirements of this section.	2367

(m)(i) No waiver of any applicable privilege or claim of	2368
confidentiality in the memoranda and materials described in this	2369
section shall occur as a result of sharing or receiving memoranda	2370
and material as authorized in divisions (B)(3)(h)(ii) and (iii),	2371
(B)(3)(i), and (B)(3)(k) of this section.	2372

(ii) The disclosure of any memorandum or material in	2373
connection with a regulatory or legal action pursuant to divisions	2374
(B)(3)(h)(iv) and (B)(3)(j) of this section does not prohibit an	2375
insurer or any other person from taking steps to limit the	2376
dissemination of the memorandum or material to persons not	2377
involved in or the subject of the regulatory or legal action on	2378
the basis of any recognized privilege arising under any other	2379
section of the Revised Code or the common law.	2380

(C) Except in the case of policies and contracts to which	2381
division (D) of this section applies, the minimum standard for the	2382
valuation of reserves shall be the method set forth in section	2383
3915.04 of the Revised Code, using four per cent interest and the	2384
American experience table of mortality; provided that in no event	2385
shall a company's aggregate reserves for policies and contracts	2386
which guarantee nonforfeiture benefits be less than the aggregate	2387
reserves calculated in accordance with the standard used in	2388
calculating nonforfeiture benefits for such policies and	2389
contracts.	2390

Reserves for such policies and contracts may be calculated	2391
according to standards which produce aggregate reserves greater	2392
than the minimum reserves required by this division.	2393

(D) This division applies to all life insurance policies and	2394
annuity and pure endowment contracts issued on and after November	2395
5, 1959, or each earlier date not before July 17, 1947, elected by	2396
the company for one or more of such policies or contracts as the	2397
date on which it would comply with the provisions of the	2398
nonforfeiture law for life insurance provided in section 3915.07	2399
of the Revised Code or with the provisions of this division. The	2400
minimum standard for the valuation of all such policies and	2401
contracts shall be the commissioners reserve valuation method	2402
defined in division (E), (F), (H), or (K) of this section and the	2403
following tables and interest rates:	2404

(1) For ordinary life insurance policies, excluding	2405
disability and accidental death benefits, issued on the standard	2406
basis:	2407

(a) On and after November 5, 1959, or an earlier date, not	2408
before July 17, 1947, specified in a written notice by the company	2409
to the superintendent of its election to use this table and before	2410
division (D)(1)(b) of this section became operative for subsequent	2411
policy issues, the commissioners 1941 standard ordinary mortality	2412
table and three and one-half per cent interest;	2413

(b) On and after January 1, 1966, or an earlier date, not	2414
before November 5, 1959, specified in a written notice by the	2415
company to the superintendent of its election to use this table	2416
and before division (D)(1)(c) of this section becomes operative	2417
for subsequent policy issues, the commissioners 1958 standard	2418
ordinary mortality table and three and one-half per cent interest	2419
before January 1, 1975; four per cent interest on and after	2420
January 1, 1975 and before January 1, 1979; and four and one-half	2421
per cent interest on and after January 1, 1979; provided that	2422
modified premiums and present values for female risks may be	2423
calculated at an age three years younger than the actual age of	2424
the insured for policies issued before January 1, 1979, and at an	2425
age six years younger for policies issued on and after January 1,	2426
1979.	2427

(c) On and after January 1, 1989, or an earlier date, not	2428
before January 1, 1983, specified in a written notice by the	2429
company to the superintendent of its election to use this table,	2430
the commissioners 1980 standard ordinary mortality table and the	2431
applicable valuation interest rate as defined in section 3903.721	2432
of the Revised Code. The company may elect to use the	2433
commissioners 1980 standard ordinary mortality table with ten-year	2434
select mortality factors for any specified plan of life insurance.	2435
The superintendent may approve the use of any ordinary mortality	2436
table adopted after 1980 by the national association of insurance	2437
commissioners for determining the minimum standard for the	2438
valuation of such policies.	2439

(2) For industrial life insurance policies, excluding	2440
disability and accidental death benefits, issued on the standard	2441
basis:	2442

(a) On and after November 5, 1959, or an earlier date, not	2443
before July 17, 1947, specified in a written notice by the company	2444
to the superintendent of its election to use this table and before	2445
division (D)(2)(b) of this section became operative for subsequent	2446
policy issues, the 1941 standard industrial mortality table and	2447
three and one-half per cent interest;	2448

(b) On and after January 1, 1968, or an earlier date, not	2449
before September 2, 1963, specified in a written notice by the	2450
company to the superintendent of its election to use this table,	2451
the commissioners 1961 standard industrial mortality table and	2452
three and one-half per cent interest before January 1, 1975; four	2453
per cent interest on and after January 1, 1975 and before January	2454
1, 1979; four and one-half per cent interest on and after January	2455
1, 1979 and before January 1, 1989, or before an earlier date, not	2456
before January 1, 1983, specified in a written notice by the	2457
company to the superintendent of its election to issue such	2458
policies pursuant to the provisions of the nonforfeiture law for	2459
life insurance provided in section 3915.071 of the Revised Code.	2460
On and after January 1, 1989, or such earlier date, the interest	2461
rate to be used in calculating the minimum reserve for such	2462
policies is the applicable valuation interest rate as defined in	2463
section 3903.721 of the Revised Code. The superintendent may	2464
approve the use of any industrial mortality table adopted after	2465
1980 by the national association of insurance commissioners for	2466
determining the minimum standard for the valuation of such	2467
policies.	2468

(3) For all individual annuity and pure endowment contracts,	2469
excluding disability and accidental death benefits, issued:	2470

(a) On and after November 5, 1959, or an earlier date, not	2471
before July 17, 1947, as of which the company elected to comply	2472
with this division (D)(3)(a) and before division (D)(3)(b) of this	2473
section became operative for subsequent contract issues, the 1937	2474
standard annuity mortality table, or, at the option of the	2475
company, the annuity mortality table for 1949, ultimate, or any	2476
modification of either table approved by the superintendent and	2477
three and one-half per cent interest;	2478

(b) On and after January 1, 1979, or an earlier date, not	2479
before January 1, 1975, specified by the company in a written	2480
notice to the superintendent of its election to use this table,	2481
the 1971 individual annuity mortality table or any modification of	2482
that table approved by the superintendent and four per cent	2483
interest on and after January 1, 1975 and before January 1, 1979;	2484
four and one-half per cent interest on and after January 1, 1979,	2485
and before January 1, 1983; and the valuation interest rate as	2486
defined in section 3903.721 of the Revised Code on and after	2487
January 1, 1983, except that on and after January 1, 1975, and	2488
before January 1, 1979, the interest rate is six per cent for	2489
single premium immediate contracts and on and after January 1,	2490
1979, and before January 1, 1983, the interest rate is five and	2491
one-half per cent for single premium deferred contracts and seven	2492
and one-half per cent for single premium immediate contracts. The	2493
superintendent may approve the use of any individual annuity	2494
mortality table adopted after 1980 by the national association of	2495
insurance commissioners, either as adopted or as modified by the	2496
superintendent, for determining the minimum standard for the	2497
valuation of such contracts.	2498

(4) For all annuity and pure endowment contracts, excluding	2499
disability and accidental death benefits, purchased under group	2500
annuity and pure endowment contracts:	2501

(a) On and after November 5, 1959, or an earlier date, not	2502
before July 17, 1947, as of which the company elected to comply	2503
with this division (D)(4)(a) and before division (D)(4)(b) of this	2504
section became operative for subsequent contract purchases, the	2505
group annuity mortality table for 1951, any modification of this	2506
table approved by the superintendent, or either of the tables, or	2507
modification of either of them, specified in division (D)(3)(a) of	2508
this section for individual annuity and pure endowment contracts	2509
and three and one-half per cent interest;	2510

(b) On and after January 1, 1979, or an earlier date, not	2511
before January 1, 1975, specified by the company in a written	2512
notice to the superintendent of its election to use this table,	2513
the 1971 group annuity mortality table, or any modification of	2514
that table approved by the superintendent, and six per cent	2515
interest on and after January 1, 1975, and before January 1, 1979;	2516
seven and one-half per cent interest on and after January 1, 1979,	2517
and before January 1, 1983, and the valuation interest rate as	2518
defined in section 3903.721 of the Revised Code on and after	2519
January 1, 1983. The superintendent may approve the use of any	2520
group annuity mortality table adopted after 1980 by the national	2521
association of insurance commissioners, either as adopted or as	2522
modified by the superintendent, for determining the minimum	2523
standard for the valuation of such contracts.	2524

(5) For total and permanent disability benefits in or	2525
supplementary to ordinary policies and contracts issued:	2526

(a) On and after July 17, 1947, and before January 1, 1961,	2527
the class (3) disability table (1926) and three and one-half per	2528
cent interest. This table, for active lives, shall be combined	2529
with a mortality table permitted for calculating the reserves for	2530
life insurance policies.	2531

(b) On and after January 1, 1961, the tables of period 2	2532
disablement rates and the 1930 to 1950 termination rates of the	2533
1952 disability study of the society of actuaries, with due regard	2534
for the type of benefit; except that a company may, at its option,	2535
use the class (3) disability table (1926) for policies and	2536
contracts issued on and after January 1, 1961, and before January	2537
1, 1966. Any such table, for active lives, shall be combined with	2538
a mortality table permitted for calculating the reserves for life	2539
insurance policies. The interest rate to be used in calculating	2540
minimum reserves for such benefits may not exceed the applicable	2541
rate specified in division (D)(1) of this section for ordinary	2542
life insurance policies. The superintendent may approve the use	2543
of any table of disablement rates and termination rates adopted	2544
after 1980 by the national association of insurance commissioners	2545
for determining the minimum standard for the valuation of such	2546
total and permanent benefits.	2547

(6) For accidental death benefits in or supplementary to	2548
policies issued:	2549

(a) On and after July 17, 1947, and before January 1, 1961,	2550
the inter-company double indemnity mortality table and three and	2551
one-half per cent interest. This table shall be combined with a	2552
mortality table permitted for calculating the reserves for life	2553
insurance policies.	2554

(b) On and after January 1, 1961, the 1959 accidental death	2555
benefits table; except that a company may, at its option, use the	2556
inter-company double indemnity mortality table for policies issued	2557
on and after January 1, 1961, and before January 1, 1966. Either	2558
table shall be combined with a mortality table permitted for	2559
calculating the reserves for life insurance policies. The	2560
interest rate to be used in calculating the minimum reserves for	2561
such benefits may not exceed the applicable rate specified in	2562
division (D)(1) of this section for ordinary life insurance	2563
policies. The superintendent may approve the use of any	2564
accidental death benefits table adopted after 1980 by the national	2565
association of insurance commissioners for determining the minimum	2566
standard for the valuation of such accidental death benefits.	2567

(7) For group life insurance, life insurance issued on the	2568
substandard basis and all other special benefits, such tables as	2569
may be approved by the superintendent and interest not to exceed	2570
the applicable rate used in division (D)(1) of this section for	2571
ordinary life insurance policies.	2572

(E) This division defines the commissioners reserve	2573
valuation method for all policies, riders, and supplemental policy	2574
provisions, with life insurance or endowment benefits, or both,	2575
providing for uniform amounts of life insurance and requiring	2576
uniform premiums. Reserves for such policies, riders, and	2577
provisions, except as otherwise provided in divisions (F) and (K)	2578
of this section, shall be the excess, if any, of the present value	2579
on the valuation date of the future guaranteed benefits over the	2580
present value on that date of the future modified net premiums.	2581
The modified net premium is a uniform percentage of each contract	2582
premium specified for the guaranteed benefits such that the	2583
present value, at the date of issue, of all modified net premiums	2584
shall be equal to the present value, on the date of issue, of the	2585
future guaranteed benefits plus the excess of division (E)(1) over	2586
division (E)(2) of this section, as follows:	2587

(1) A net level annual premium equal to the present value,	2588
at the date of issue, of such benefits provided for after the	2589
first policy year, divided by the present value, at the date of	2590
issue, of an annuity of one per annum payable on the first and	2591
each subsequent anniversary of the policy on which a premium falls	2592
due; provided that such net level annual premium shall not exceed	2593
the net level annual premium on the nineteen-year premium whole	2594
life plan for insurance of the same amount at an age one year	2595
higher than the age at issue of the policy.	2596

(2) A net one-year term premium for such benefits provided	2597
for in the first policy year.	2598

(F) This division defines the commissioners reserve	2599
valuation method for all life insurance policies issued on or	2600
after January 1, 1989, that have a first year premium in excess of	2601
the premium for the second policy year and for which excess no	2602
comparable benefit is provided in the first year and that provide	2603
either an endowment benefit or cash surrender value, or both, in	2604
an amount greater than the excess. Reserves for such policies	2605
before the assumed ending date shall be the greater of the amount	2606
calculated in accordance with division (E) of this section and the	2607
reserve calculated in accordance with that division but with the	2608
following changes:	2609

(1) The value defined in division (E)(1) of this section	2610
shall be reduced by fifteen per cent of the amount of such excess	2611
first-year premium;	2612

(2) All present values of benefits and premiums shall be	2613
determined without reference to premiums and benefits provided for	2614
by the policy after the assumed ending date;	2615

(3) The policy shall be assumed to mature on the assumed	2616
ending date in the amount of its endowment benefits and cash	2617
surrender value. The assumed ending date is the first policy	2618
anniversary on which the sum of any endowment benefit and any cash	2619
surrender value then available is greater than such excess	2620
first-year premium.	2621

On and after the assumed ending date, the reserve for such	2622
policies shall be calculated in accordance with division (E) of	2623
this section.	2624

(G) Reserves according to the commissioners reserve	2625
valuation method for:	2626

(1) All policies, riders, and supplemental policy provisions	2627
providing varying amounts of life insurance or requiring payment	2628
of varying premiums;	2629

(2) Group annuity and pure endowment contracts purchased	2630
under a retirement plan or plan of deferred compensation,	2631
established or maintained by an employer, including a partnership	2632
or sole proprietorship, or by an employee organization, or by	2633
both, other than a plan providing individual retirement accounts	2634
or individual retirement annuities under section 408 of the	2635
Internal Revenue Code of 1954, as amended;	2636

(3) Disability and accidental death benefits in all policies	2637
and contracts; and	2638

(4) All other benefits, except life insurance and endowment	2639
benefits in life insurance policies and benefits provided by all	2640
other annuity and pure endowment contracts, shall be calculated by	2641
a method consistent with the principles of division (E) of this	2642
section.	2643

Extra premiums charged because of impairments or special	2644
hazards shall be disregarded in determining modified net premiums.	2645

(H) This division defines the commissioners annuity reserve	2646
valuation method for all annuity and pure endowment contracts	2647
other than group annuity and pure endowment contracts purchased	2648
under a retirement plan or plan of deferred compensation,	2649
established or maintained by an employer, including a partnership	2650
or sole proprietorship, or by an employee organization, or by	2651
both, other than a plan providing individual retirement accounts	2652
or individual retirement annuities under section 408 of the	2653
Internal Revenue Code of 1954, as amended.	2654

Reserves for benefits under such contracts, excluding	2655
disability and accidental death benefits, shall be the greatest of	2656
the respective excesses of the present values, at the date of	2657
valuation, of the future guaranteed benefits, including guaranteed	2658
nonforfeiture benefits, provided for by such contract at the end	2659
of each respective contract year, over the present value, at the	2660
date of valuation, of any future valuation considerations derived	2661
from future gross considerations required by the terms of the	2662
contract that become payable prior to the end of each such	2663
respective contract year. The future guaranteed benefits shall be	2664
determined by using the mortality table, if any, and the interest	2665
rate, or rates, specified in such contracts for determining	2666
guaranteed benefits. The valuation considerations are the	2667
portions of the respective gross considerations applied under the	2668
terms of such contracts to determine nonforfeiture values.	2669

(I) In no event shall a company's aggregate reserves for all	2670
life insurance policies, to which division (D) of this section	2671
applies, excluding disability and accidental death benefits, be	2672
less than the aggregate reserves calculated in accordance with the	2673
method set forth in divisions (E), (F), (G), (K), and (L) of this	2674
section and the mortality table or tables and rate or rates of	2675
interest used in calculating nonforfeiture benefits for such	2676
policies.	2677

In no event shall the aggregate reserves for all policies,	2678
contracts, and benefits be less than the aggregate reserves	2679
determined by the qualified actuary to be necessary to render the	2680
opinion required by division (B) of this section.	2681

(J) Reserves for any category of policies, contracts, or	2682
benefits as established by the superintendent may be calculated,	2683
at the option of the company, according to any standards which	2684
produce aggregate reserves for such category greater than those	2685
calculated according to the minimum standards provided in this	2686
section, but the rate or rates of interest used for policies and	2687
contracts, other than annuity and pure endowment contracts, shall	2688
not be higher than the corresponding rate or rates of interest	2689
used in calculating any nonforfeiture benefits provided for in	2690
such standards.	2691

(K) If in any contract year the valuation net premium	2692
calculated by the method used in calculating the reserve for a	2693
policy or contract but using the minimum valuation standards of	2694
mortality and rate of interest is more than the gross premium for	2695
such policy or contract, the minimum reserve required for such	2696
policy or contract shall be the greater of either the reserve	2697
calculated according to the mortality table, rate of interest, and	2698
method actually used for such policy or contract, or the reserve	2699
calculated by such method but using the minimum valuation	2700
standards of mortality and rate of interest and replacing the	2701
valuation net premium by the actual gross premium in each contract	2702
year for which the valuation net premium exceeds the actual gross	2703
premium. The minimum valuation standards of mortality and rate of	2704
interest referred to in this division are those required by	2705
division (D) of this section.	2706

For the purposes of this division, the minimum reserve for	2707
any policy to which the provisions of division (F) of this section	2708
apply shall be calculated as if the method used in calculating the	2709
reserve for such policy were the method defined in division (E) of	2710
this section. The minimum reserve for such policy shall be the	2711
greater of the reserve calculated in accordance with division (F)	2712
of this section and in accordance with this division.	2713

(L) Methods for determining the reserves for plans of life	2714
insurance or annuity which are of such a nature that minimum	2715
reserves cannot be determined by the methods described in this	2716
section shall be promulgated by rule adopted by the	2717
superintendent. The reserves to be held under such plans must be	2718
appropriate in relation to the benefits and the pattern of	2719
premiums for each plan and must be computed by methods which are	2720
consistent with the principles of this section. This division	2721
applies to any plan of life insurance which provides for future	2722
premium determination, the amounts of which are to be determined	2723
by the company on the basis of an estimate of future experience	2724
made at the time of any such determination.	2725

(M) The superintendent shall adopt rules specifying minimum	2726
reserve standards for the valuation of individual and group health	2727
plans.	2728

Sec. 3903.83.  (A) For purposes of sections 3903.81 to	2729
3903.93 of the Revised Code, a "company action level event" is any	2730
of the following events:	2731

(1) A domestic or foreign insurer's filing of an RBC report	2732
that indicates that the insurer's total adjusted capital is	2733
greater than or equal to its regulatory action level RBC but less	2734
than its company action level RBC;	2735

(2) A life or health insurer's filing of an RBC report that	2736
indicates that the insurer's total adjusted capital is greater	2737
than or equal to its company action level RBC but less than the	2738
product of 2.5 and its authorized control level RBC, and that	2739
indicates a negative trend;	2740

(3) The notification by the superintendent of insurance to	2741
an insurer of an adjustment to the insurer's RBC report, which	2742
adjusted RBC report shows the insurer's total adjusted capital	2743
within the range described in either division (A)(1) or (2) of	2744
this section, provided that the insurer does not challenge the	2745
adjusted RBC report under section 3903.87 of the Revised Code;	2746

(4) The superintendent's notification to an insurer,	2747
following the hearing required under section 3903.87 of the	2748
Revised Code, that the superintendent has rejected the insurer's	2749
challenge to an adjusted RBC report showing the insurer's total	2750
adjusted capital within the range described in either division	2751
(A)(1) or (2) of this section.	2752

(B) In the case of a company action level event, the insurer	2753
shall prepare and submit to the superintendent an RBC plan that	2754
shall:	2755

(1) Identify the conditions that contributed to the company	2756
action level event;	2757

(2) Contain proposals of corrective actions that the insurer	2758
intends to take to eliminate the conditions leading to the company	2759
action level event;	2760

(3) Provide projections of the insurer's financial results	2761
in the current year and at least the four succeeding years, both	2762
in the absence of the proposed corrective actions and giving	2763
effect to the proposed corrective actions. The projections shall	2764
include projections of statutory operating income, net income,	2765
capital, and surplus. Projections for both new and renewal	2766
business may include separate projections for each major line of	2767
business, and may separately identify each significant income,	2768
expense, and benefit component of the projection.	2769

(4) Identify the key assumptions impacting the insurer's	2770
projections made pursuant to division (B)(3) of this section, and	2771
describe the sensitivity of the projections to the assumptions;	2772

(5) Identify the quality of, and problems associated with,	2773
the insurer's business, including, but not limited to, its assets,	2774
anticipated business growth and associated surplus strain,	2775
extraordinary exposure to risk, mix of business, and use of	2776
reinsurance.	2777

(C) The RBC plan shall be submitted within forty-five days	2778
after a company action level event. However, if an insurer has	2779
challenged an adjusted RBC report pursuant to section 3903.87 of	2780
the Revised Code, the RBC plan need not be submitted until after	2781
the hearing required under section 3903.87 of the Revised Code. If	2782
the superintendent rejects the insurer's challenge, the RBC plan	2783
shall be submitted within forty-five days after the	2784
superintendent's notification to the insurer of the rejection of	2785
the challenge.	2786

(D)(1) Within sixty days after an insurer submits an RBC	2787
plan to the superintendent, the superintendent shall either	2788
require the insurer to implement the RBC plan or shall notify the	2789
insurer that the RBC plan is unsatisfactory in the judgment of the	2790
superintendent. If the superintendent has determined that the RBC	2791
plan is unsatisfactory, the notification to the insurer shall set	2792
forth the reasons for the determination, and may set forth	2793
proposed revisions that will render the RBC plan satisfactory in	2794
the judgment of the superintendent. Upon such notification from	2795
the superintendent, the insurer shall prepare and submit a revised	2796
RBC plan, which may incorporate by reference any revisions	2797
proposed by the superintendent.	2798

(2) If an insurer challenges, under section 3903.87 of the	2799
Revised Code, a notification from the Superintendent that the	2800
insurer's RBC plan or a revised RBC plan is unsatisfactory,	2801
submission of a revised RBC plan need not be made unless the	2802
superintendent rejects the insurer's challenge following the	2803
hearing required by section 3903.87 of the Revised Code and then	2804
notifies the insurer of this rejection.	2805

(3) An insurer shall submit a revised RBC plan to the	2806
superintendent within forty-five days after receiving notification	2807
from the superintendent that its RBC plan is unsatisfactory, or,	2808
that its challenge to a notification made under division (D)(1) of	2809
this section has been rejected, as applicable.	2810

(E) Notwithstanding division (D) of this section, if the	2811
superintendent notifies an insurer that its RBC plan or revised	2812
RBC plan is unsatisfactory, the superintendent may, at the	2813
superintendent's discretion, but subject to the insurer's right to	2814
a hearing under section 3903.87 of the Revised Code, specify in	2815
the notification that the notification constitutes a regulatory	2816
action level event.	2817

(F) Every domestic insurer that submits an RBC plan or	2818
revised RBC plan to the superintendent shall file a copy of the	2819
RBC plan or revised RBC plan with the insurance regulatory	2820
authority of every state in which the insurer is authorized to do	2821
business upon receiving the insurance regulatory authority's	2822
written request for a copy of the plan, if the state has a	2823
confidentiality law with provisions substantially similar to those	2824
set forth in divisions (A) and (B) of section 3903.88 of the	2825
Revised Code. The insurer shall file the copy in that state no	2826
later than the later of:	2827

(1) Fifteen days after receiving the request for a copy of	2828
the plan;	2829

(2) The date on which the RBC plan or revised RBC plan is	2830
filed pursuant to division (C) or (D) of this section.	2831

Sec. 3903.88.  (A) The superintendent of insurance shall	2832
keep all of the following confidential:	2833

(1) An RBC report, to the extent that information contained	2834
in the report is not required to be included in an annual	2835
statement available to the public;	2836

(2) An RBC plan;

2837

(3) The results of, or a report on, an examination or	2838
analysis conducted pursuant to division (B)(2) of section 3903.84	2839
of the Revised Code, and a corrective order issued pursuant to	2840
division (B)(3) of section 3903.84 of the Revised Code.	2841

(B) The plans, reports, information, and orders described in	2842
division (A) of this section shallare confidential and privileged	2843
and not be subject to subpoena, except for use by the	2844
superintendent in accordance with the insurance laws of this	2845
state.	2846

(C) Notwithstanding divisions (A) and (B) of this section,	2847
the superintendent may do any of the following:	2848

(1) Use the plans, reports, information, and orders that are	2849
the subject of this section in accordance with the insurance laws	2850
of this state;	2851

(2) Share the plans, reports, information, and orders that	2852
are the subject of this section with the chief deputy	2853
rehabilitator, the chief deputy liquidator, other deputy	2854
rehabilitators and liquidators, and any other person employed by,	2855
or acting on behalf of, the superintendent pursuant to Chapter	2856
3901. or 3903. of the Revised Code, with other local, state,	2857
federal, and international regulatory and law enforcement	2858
agencies, with local, state, and federal prosecutors, and with the	2859
national association of insurance commissioners and its affiliates	2860
and subsidiaries, provided that the recipient agrees to maintain	2861
the confidential or privileged status of the confidential or	2862
privileged plan, report, information, or order and has authority	2863
to do so;	2864

(3) Disclose plans, reports, information, and orders that	2865
are the subject of this section in the furtherance of any	2866
regulatory or legal action brought by or on behalf of the	2867
superintendent or the state, resulting from the exercise of the	2868
superintendent's official duties.	2869

(D) Notwithstanding divisions (A), (B), and (C) of this	2870
section, the superintendent may authorize the national association	2871
of insurance commissioners and its affiliates and subsidiaries by	2872
agreement to share confidential or privileged plans, reports,	2873
information, and orders received pursuant to division (C)(2) of	2874
this section with local, state, federal, and international	2875
regulatory and law enforcement agencies and with local, state, and	2876
federal prosecutors, provided that the recipient agrees to	2877
maintain the confidential or privileged status of the confidential	2878
or privileged plan, report, information, or order and has	2879
authority to do so.	2880

(E) Notwithstanding divisions (A), (B), and (C) of this	2881
section, the chief deputy rehabilitator, the chief deputy	2882
liquidator, and other deputy rehabilitators and liquidators may	2883
disclose plans, reports, information, and orders that are the	2884
subject of this section in the furtherance of any regulatory or	2885
legal action brought by or on behalf of the superintendent, the	2886
rehabilitator, the liquidator, or the state resulting from the	2887
exercise of the superintendent's official duties in any capacity.	2888

(F) Nothing in this section shall prohibit the	2889
superintendent from receiving plans, reports, information, and	2890
orders in accordance with section 3901.045 of the Revised Code.	2891

(G) The superintendent may enter into agreements governing	2892
the sharing and use of plans, reports, information, and orders	2893
consistent with the requirements of this section.	2894

(H)(1) No waiver of any applicable privilege or claim of	2895
confidentiality in the plans, reports, information, and orders	2896
that are the subject of this section shall occur as a result of	2897
sharing or receiving plans, reports, information, and orders as	2898
authorized in divisions (C)(2), (D), and (F) of this section.	2899

(2) The disclosure of a plan, report, information, or order	2900
in connection with a regulatory or legal action pursuant to	2901
divisions (C)(3) and (E) of this section does not prohibit an	2902
insurer or any other person from taking steps to limit the	2903
dissemination of the plan, report, information, or order to	2904
persons not involved in or the subject of the regulatory or legal	2905
action on the basis of any recognized privilege arising under any	2906
other section of the Revised Code or the common law.	2907

(I) The comparison of an insurer's total adjusted capital to	2908
any of its RBC levels shall not be used to rank insurers.	2909

(D)(J) RBC instructions, RBC reports, adjusted RBC reports,	2910
RBC plans, and revised RBC plans, shall not be used by the	2911
superintendent for ratemaking, considered or introduced as	2912
evidence in any rate proceeding, or used by the superintendent to	2913
calculate or derive any elements of an appropriate premium level	2914
or rate of return for any line of insurance that an insurer or any	2915
affiliate is authorized to write.	2916

(E)(K) Except as otherwise required under Title XXXIX of the	2917
Revised Code, it is an unfair and deceptive act or practice in the	2918
business of insurance for any person, as defined in division (A)	2919
of section 3901.19 of the Revised Code, to make, publish,	2920
disseminate, circulate, or place before the public, or to cause,	2921
directly or indirectly, to be made, published, disseminated,	2922
circulated, or placed before the public, in a newspaper, magazine,	2923
or other publication, in the form of a notice, circular, pamphlet,	2924
letter, or poster, or over any radio or television station, or in	2925
any other manner, an advertisement, announcement, or statement,	2926
written or oral, that contains an assertion, representation, or	2927
statement, regarding the RBC levels of any insurer or any	2928
component derived in the calculation of the RBC levels.	2929

(F)(L) If any materially false statement is published	2930
comparing an insurer's total adjusted capital to its RBC levels,	2931
or any inappropriate comparison of any other amount to any of the	2932
insurers' RBC levels is published, and the insurer is able to	2933
demonstrate to the superintendent with substantial proof the	2934
falsity of the statement or the inappropriateness of the	2935
comparison, then the insurer may publish with the superintendent's	2936
approval an announcement in a written publication to rebut the	2937
materially false statement or inappropriate comparison.	2938

Sec. 3905.492.  (A)(1) All records and other information	2939
obtained by the superintendent of insurance or the	2940
superintendent's deputies, examiners, assistants, or other	2941
employees, or agents relating to an investigation of an applicant	2942
for licensure under this chapter, or of an agent, solicitor,	2943
broker, or other person licensed under this chapter or Chapter	2944
3951., 3957., or 3959. of the Revised Code, are confidential and	2945
are not public records as defined in section 149.43 of the Revised	2946
Code until the applicant or licensee is provided notice and	2947
opportunity for hearing pursuant to Chapter 119. of the Revised	2948
Code with respect to such records or information. If no	2949
administrative action is initiated with respect to a particular	2950
matter about which the superintendent obtained records or other	2951
information as part of an investigation, all such records and	2952
information relating to that matter shall remain confidential for	2953
three years after the file on the matter is closed.	2954

(2) Division (A)(1) of this section applies only to	2955
investigations that could result in administrative action under	2956
Title XVII or XXXIX or Chapter 119. of the Revised Code.	2957

(B) The records and other information described in division	2958
(A) of this section shall remain confidential for all purposes	2959
except when it is appropriate for the superintendent and the	2960
superintendent's deputies, examiners, assistants, or other	2961
employees, or agents to take official action regarding the affairs	2962
of the applicant or licensee or in connection with actual or	2963
potential criminal proceedings.	2964

(C) Employees or agents of the department of insurance shall	2965
not be required by any court in this state to testify in a civil	2966
action, if such testimony concerns any matter related to records	2967
or any other information considered confidential under this	2968
section of which they have knowledge.	2969

(D) This section does not apply to any complaint or action	2970
under section 3905.04 of the Revised Code.Notwithstanding	2971
divisions (A) and (B) of this section, the superintendent may do	2972
either of the following:	2973

(1) Share records and other information that are the subject	2974
of this section with the chief deputy rehabilitator, the chief	2975
deputy liquidator, other deputy rehabilitators and liquidators,	2976
and any other person employed by, or acting on behalf of, the	2977
superintendent pursuant to Chapter 3901. or 3903. of the Revised	2978
Code, with other local, state, federal, and international	2979
regulatory and law enforcement agencies, with local, state, and	2980
federal prosecutors, and with the national association of	2981
insurance commissioners and its affiliates and subsidiaries,	2982
provided that the recipient agrees to maintain the confidential	2983
status of the confidential record or other information and has	2984
authority to do so;	2985

(2) Disclose records and other information that are the	2986
subject of this section in the furtherance of any regulatory or	2987
legal action brought by or on behalf of the superintendent or the	2988
state, resulting from the exercise of the superintendent's	2989
official duties.	2990

(D) Notwithstanding divisions (A), (B), and (C) of this	2991
section, the superintendent may authorize the national association	2992
of insurance commissioners and its affiliates and subsidiaries by	2993
agreement to share confidential records and other information	2994
received pursuant to division (C)(1) of this section with local,	2995
state, federal, and international regulatory and law enforcement	2996
agencies and with local, state, and federal prosecutors, provided	2997
that the recipient agrees to maintain the confidential status of	2998
the confidential record or other information and has authority to	2999
do so.	3000

(E) Notwithstanding divisions (A), (B), and (C) of this	3001
section, the chief deputy rehabilitator, the chief deputy	3002
liquidator, and other deputy rehabilitators and liquidators may	3003
disclose records and other information that are the subject of	3004
this section in the furtherance of any regulatory or legal action	3005
brought by or on behalf of the superintendent, the rehabilitator,	3006
the liquidator, or the state resulting from the exercise of the	3007
superintendent's official duties in any capacity.	3008

(F) Nothing in this section shall prohibit the	3009
superintendent from receiving records and other information in	3010
accordance with section 3901.045 of the Revised Code.	3011

(G)(1) No waiver of any applicable privilege or claim of	3012
confidentiality in the records and other information that are the	3013
subject of this section shall occur as a result of sharing or	3014
receiving records or other information as authorized in divisions	3015
(C)(1), (D), and (F) of this section.	3016

(2) The disclosure of records or other information in	3017
connection with a regulatory or legal action pursuant to divisions	3018
(C)(2) and (E) of this section does not prohibit an insurer or any	3019
other person from taking steps to limit the dissemination of the	3020
record or other information to persons not involved in or the	3021
subject of the regulatory or legal action on the basis of any	3022
recognized privilege arising under any other section of the	3023
Revised Code or the common law.	3024

(H) Employees or agents of the department of insurance shall	3025
not be required by any court in this state to testify in a civil	3026
action, if the testimony concerns any matter related to records or	3027
other information considered confidential under this section of	3028
which they have knowledge.	3029

(I) This section does not apply to any complaint or action	3030
under section 3905.04 of the Revised Code.	3031

Sec. 3905.50.  (A)(1) Except as provided in division (A)(2)	3032
or (3) of this section, this section applies to every contract of	3033
agency between a property and casualty insurance company and an	3034
independent insurance agent, as defined in division (A) of section	3035
3905.47 of the Revised Code, which has been in effect for not less	3036
than two years.	3037

(2) This section does not apply to a contract of exclusive	3038
employment by, or an exclusive agency contract with, a single	3039
insurer or group of insurers under common ownership or control.	3040

(3) This section does not apply to an agent whose license	3041
has been suspended or revoked by the superintendent of insurance,	3042
an agent who has demonstrated gross incompetence, or an agent	3043
whose contract has been terminated for insolvency, abandonment,	3044
gross or willful misconduct, or failure to pay to the insurer, in	3045
accordance with the agency contract, moneys due to the insurer	3046
upon written demand of the insurer.	3047

(B) No insurer shall terminate an independent insurance	3048
agent contract of agency except by mutual agreement of the parties	3049
or upon one hundred eighty days' written notice to the independent	3050
insurance agent.	3051

(1) Such notice shall include specific reasons for the	3052
termination of the agent.	3053

(2) Such notice shall be sent by certified mail, return	3054
receipt requested, to the last known address of the agency.	3055

(C) During the one hundred eighty day notice period, an	3056
independent insurance agent shall not write or bind any new	3057
policies on behalf of an insurer without written approval from the	3058
insurer. However, during such period, an independent insurance	3059
agent, subject to the current underwriting rules, guidelines,	3060
commission rates, and practices of the insurer, may renew or	3061
effect any necessary changes or endorsements of outstanding	3062
policies of insurance that are in force prior to the date of	3063
receipt of the notice of termination.	3064

(D) None of the following constitutes an acceptable reason	3065
for the termination of a contract of agency:	3066

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

3067

(2) Claims experience due to catastrophiescatastrophes of	3068
nature covered by a policy;	3069

(3) Claims experience under uninsured and underinsured	3070
motorist coverages.	3071

(E) An agent aggrieved by the conduct of an insurer in its	3072
breach or termination of a contract of agency may file with the	3073
superintendent a request that the superintendent review the action	3074
to determine whether it is in accord with this section and the	3075
lawful provisions of the contract of agency and send a copy of the	3076
request to the insurer at the address of the office issuing the	3077
notice of termination. Upon receipt of such a request, an insurer	3078
shall promptly provide the independent insurance agent and	3079
superintendent with documentation in support of the insurer's	3080
stated reason for termination.	3081

(F) The superintendent shall promptly investigate the	3082
allegation. If the superintendent has reasonable cause to believe	3083
that this section or the lawful provisions of the contract of	3084
agency have been violated, hethe superintendent shall, within	3085
thirty days of receipt of a request for review, conduct an	3086
adjudication hearing subject to Chapter 119. of the Revised Code,	3087
held upon not less than ten days' written notice to the agent and	3088
the insurer. Pending a final order in the adjudication hearing,	3089
the superintendent may take such interim action as necessary to	3090
protect the parties or the public. During the pendency of the	3091
proceeding before the superintendent, the contract of agency	3092
subject to the proceeding continues in force and divison (C) of	3093
this section applies. The superintendent shall, within thirty	3094
days following such hearing, issue an order approving or	3095
disapproving the action of the insurer. All final orders and	3096
decisions of the superintendent are subject to judicial review as	3097
provided in Chapter 119. of the Revised Code.	3098

(G) An insurer shall not cancel or nonrenew any policy of	3099
insurance written through an agent upon the sole ground of the	3100
termination of the agency until the expiration of the policy term	3101
or the twelve-month period following the effective date of the	3102
termination of the contract of agency, whichever is earlier.	3103
However, during such period, an independent insurance agent may,	3104
subject to the current underwriting rules, guidelines, commission	3105
rates, and practices of the insurer, effect any necessary changes	3106
or endorsements to outstanding policies of insurance that are in	3107
force prior to the date of termination.	3108

This section does not abridge, restrict, or supersede the	3109
rights of an agent to the ownership of expirations provided for in	3110
any contract with an insurer.	3111

(H) Any information or documentation provided to an agent or	3112
the superintendent by an insurer under this section is	3113
confidential and shall be used by the superintendent only in the	3114
exercise of the proper functions authorized by this section. No	3115
insurer is liable for furnishing information or documentation in	3116
compliance with this section if the insurer acts without malice	3117
and in the reasonable belief that such information or	3118
documentation is warranted by this section.	3119

(I) Notwithstanding division (H) of this section, the	3120
superintendent may do either of the following:	3121

(1) Share the information or documentation that is the	3122
subject of this section with the chief deputy rehabilitator, the	3123
chief deputy liquidator, other deputy rehabilitators and	3124
liquidators, and any other person employed by, or acting on behalf	3125
of, the superintendent pursuant to Chapter 3901. or 3903. of the	3126
Revised Code, with other local, state, federal, and international	3127
regulatory and law enforcement agencies, with local, state, and	3128
federal prosecutors, and with the national association of	3129
insurance commissioners and its affiliates and subsidiaries,	3130
provided that the recipient agrees to maintain the confidential	3131
status of the confidential information or documentation and has	3132
authority to do so;	3133

(2) Disclose any information or documentation that is the	3134
subject of this section in the furtherance of any regulatory or	3135
legal action brought by or on behalf of the superintendent or the	3136
state, resulting from the exercise of the superintendent's	3137
official duties.	3138

(J) Notwithstanding divisions (H) and (I) of this section,	3139
the superintendent may authorize the national association of	3140
insurance commissioners and its affiliates and subsidiaries by	3141
agreement to share confidential information and documentation	3142
received pursuant to division (I)(1) of this section with local,	3143
state, federal, and international regulatory and law enforcement	3144
agencies and with local, state, and federal prosecutors, provided	3145
that the recipient agrees to maintain the confidential status of	3146
the confidential information or documentation and has authority to	3147
do so.	3148

(K) Notwithstanding divisions (H) and (I) of this section,	3149
the chief deputy rehabilitator, the chief deputy liquidator, and	3150
other deputy rehabilitators and liquidators may disclose	3151
information and documentation that is the subject of this section	3152
in the furtherance of any regulatory or legal action brought by or	3153
on behalf of the superintendent, the rehabilitator, the	3154
liquidator, or the state resulting from the exercise of the	3155
superintendent's official duties in any capacity.	3156

(L) Nothing in this section shall prohibit the	3157
superintendent from receiving information and documentation in	3158
accordance with section 3901.045 of the Revised Code.	3159

(M) The superintendent may enter into agreements governing	3160
the sharing and use of information and documentation consistent	3161
with the requirements of this section.	3162

(N)(1) No waiver of any applicable privilege or claim of	3163
confidentiality in the information and documentation that is the	3164
subject of this section shall occur as a result of sharing or	3165
receiving information and documentation as authorized in divisions	3166
(I)(1), (J), and (L) of this section.	3167

(2) The disclosure of information or documentation in	3168
connection with a regulatory or legal action pursuant to divisions	3169
(I)(2) and (K) of this section does not prohibit an insurer or any	3170
other person from taking steps to limit the dissemination of the	3171
information or documentation to persons not involved in or the	3172
subject of the regulatory or legal action on the basis of any	3173
recognized privilege arising under any other section of the	3174
Revised Code or the common law.	3175

Sec. 3999.36.  (A) As used in this section and sections	3176
3999.37 and 3999.38 of the Revised Code:	3177

(1) "Insurer" means any person that is authorized to engage	3178
in the business of insurance in this state under Title XXXIX of	3179
the Revised Code, any health insuring corporation, or any other	3180
person engaging either directly or indirectly in this state in the	3181
business of insurance or entering into contracts substantially	3182
amounting to insurance under section 3905.42 of the Revised Code.	3183

(2) "Impaired" or "impairment" means a financial situation	3184
in which the insurer's assets are less than the sum of the	3185
insurer's minimum required capital, minimum required surplus, and	3186
all liabilities, as determined in accordance with the requirements	3187
for the preparation and filing of the insurer's annual financial	3188
statement.	3189

(3) "Chief executive officer" means the person, irrespective	3190
of the person's title, designated by the board of directors or	3191
trustees of an insurer as the person charged with the	3192
responsibility of administering and implementing the insurer's	3193
policies and procedures.	3194

(B) Whenever a chief executive officer of an insurer knows	3195
or has reason to know that the insurer is impaired, the chief	3196
executive officer shall provide written notice of the impairment	3197
to the superintendent of insurance and to each member of the board	3198
of directors or trustees of the insurer. The chief executive	3199
officer shall provide the notice as soon as reasonably possible,	3200
but no later than thirty days after the chief executive officer	3201
knows or has reason to know of the impairment. No chief executive	3202
officer shall fail to provide notice in compliance with this	3203
division.	3204

(C) The notice received by the superintendent under division	3205
(B) of this section is confidential and is not a public record	3206
under section 149.43 of the Revised Code.	3207

(D) Notwithstanding division (C) of this section, the	3208
superintendent may do any of the following:	3209

(1) Disclose the notice upon obtaining prior written consent	3210
from the insurer to which the notice pertains;	3211

(2) Share the notice that is the subject of this section	3212
with the chief deputy rehabilitator, the chief deputy liquidator,	3213
other deputy rehabilitators and liquidators, and any other person	3214
employed by, or acting on behalf of, the superintendent pursuant	3215
to Chapter 3901. or 3903. of the Revised Code, with other local,	3216
state, federal, and international regulatory and law enforcement	3217
agencies, with local, state, and federal prosecutors, and with the	3218
national association of insurance commissioners and its affiliates	3219
and subsidiaries, provided that the recipient agrees to maintain	3220
the confidential status of the notice and has authority to do so;	3221

(3) Disclose the notice in the furtherance of any regulatory	3222
or legal action brought by or on behalf of the superintendent or	3223
the state, resulting from the exercise of the superintendent's	3224
official duties.	3225

(E) Notwithstanding divisions (C) and (D) of this section,	3226
the superintendent may authorize the national association of	3227
insurance commissioners and its affiliates and subsidiaries by	3228
agreement to share confidential notices received pursuant to	3229
division (D)(2) of this section with local, state, federal, and	3230
international regulatory and law enforcement agencies and with	3231
local, state, and federal prosecutors, provided that the recipient	3232
agrees to maintain the confidential status of the notice and has	3233
authority to do so.	3234

(F) Notwithstanding divisions (C) and (D) of this section,	3235
the chief deputy rehabilitator, the chief deputy liquidator and	3236
other deputy rehabilitators and liquidators may disclose notices	3237
in the furtherance of any regulatory or legal action brought by or	3238
on behalf of the superintendent, the rehabilitator, the	3239
liquidator, or the state resulting from the exercise of the	3240
superintendent's official duties in any capacity.	3241

(G) Nothing in this section shall prohibit the	3242
superintendent from receiving notices in accordance with section	3243
3901.045 of the Revised Code.	3244

(H) The superintendent may enter into agreements governing	3245
the sharing and use of notices consistent with the requirements of	3246
this section.	3247

(I)(1) No waiver of any applicable privilege or claim of	3248
confidentiality in the notices that are the subject of this	3249
section shall occur as a result of sharing or receiving notices as	3250
authorized in divisions (D)(2), (E), and (G) of this section.	3251

(2) The disclosure of a notice in connection with a	3252
regulatory or legal action pursuant to divisions (D)(3) and (F) of	3253
this section does not prohibit an insurer or any other person from	3254
taking steps to limit the dissemination of the notice to persons	3255
not involved in or the subject of the regulatory or legal action	3256
on the basis of any recognized privilege arising under any other	3257
section of the Revised Code or the common law.	3258

Sec. 4727.18.  (A) Except as otherwise provided in this	3259
division (C) of this section, any information arising from,	3260
obtained by, or contained in an investigation of a person licensed	3261
as a pawnbroker under this chapter performed by the superintendent	3262
of financial institutions is confidential information and is not a	3263
public record under section 149.43 of the Revised Code. The	3264
superintendent, however, may share investigation information with	3265
a law enforcement agency.	3266

(B) Except as otherwise provided in this division (C) of	3267
this section, any information arising from, obtained by, or	3268
contained in an investigation by the superintendent of any person	3269
the superintendent reasonably suspects has violated or is	3270
violating this chapter is confidential information and not a	3271
public record under section 149.43 of the Revised Code. The	3272
superintendent, however, may share investigation information with	3273
a law enforcement agency.	3274

(C) Information made confidential by division (A) or (B) of	3275
this section may only be disclosed, discovered, or introduced into	3276
evidence as follows:	3277

(1) To a law enforcement agency;

3278

(2) In connection with criminal proceedings;

3279

(3) In any action taken or litigation by or against the	3280
superintendent in connection with the powers, duties, and	3281
obligations imposed upon the superintendent by this chapter;	3282

(4) When and in the manner authorized in section 1181.25 of	3283
the Revised Code.	3284

Section 2. That existing sections 1121.01, 1121.11, 1121.18,	3285
1155.01, 1155.091, 1155.16, 1163.01, 1163.121, 1163.20, 1321.09,	3286
1321.55, 1321.76, 1322.06, 1322.061, 1707.11, 1707.12, 1707.141,	3287
1707.15, 1707.151, 1707.161, 1707.17, 1733.01, 1733.32, 1733.327,	3288
1751.19, 3901.36, 3901.44, 3901.48, 3901.70, 3901.83, 3903.11,	3289
3903.72, 3903.83, 3903.88, 3905.492, 3905.50, 3999.36, and 4727.18	3290
of the Revised Code are hereby repealed.	3291

Section 3. Section 1322.061 of the Revised Code, as enacted	3292
by Am. Sub. S.B. 76 of the 124th General Assembly (effective May	3293
2, 2002), and as amended by this act, shall take effect May 2,	3294
2002.	3295

Section 4. Section 1322.06 of the Revised Code, as amended by	3296
this act, is repealed, effective May 2, 2002. The section is	3297
superseded by section 1322.06 of the Revised Code as it results	3298
from Am. Sub. S.B. 76 of the 124th General Assembly, which is	3299
scheduled to take effect May 2, 2002.	3300