As Reported by the Senate Insurance, Commerce and Labor Committee

126th General Assembly Regular Session 2005-2006

Sub. H. B. No. 193

Representatives Daniels, G. Smith, Fessler, Combs, Wolpert, C. Evans, Martin, Gibbs, D. Evans, Setzer, Barrett, Perry, DeBose, Boccieri, Hughes, Koziura, Brown, Chandler, Domenick, Reidelbach, Schlichter, Webster 

Senator Hottinger 

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A BILL

To amend sections 9.90, 1751.12, 3917.01, 3917.06,

1

and 3917.07, to enact new section 3917.03 and

2

section 3917.02, and to repeal section 3917.03 of

3

the Revised Code to permit the sale of group life

4

insurance to specified groups and provide the

5

Superintendent of Insurance with the discretion to

6

authorize the sale of group life insurance to

7

additional groups.

8

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

Section 1. That sections 9.90, 1751.12, 3917.01, 3917.06, and	9
3917.07 be amended and new section 3917.03 and section 3917.02 of	10
the Revised Code be enacted to read as follows:	11

Sec. 9.90.  (A) The governing board of any public institution	12
of higher education, including without limitation state	13
universities and colleges, community college districts, university	14
branch districts, technical college districts, and municipal	15
universities, or the board of education of any school district,	16
may, in addition to all other powers provided in the Revised Code:	17

(1) Contract for, purchase, or otherwise procure from an	18
insurer or insurers licensed to do business by the state of Ohio	19
for or on behalf of such of its employees as it may determine,	20
life insurance, or sickness, accident, annuity, endowment, health,	21
medical, hospital, dental, or surgical coverage and benefits, or	22
any combination thereof, by means of insurance plans or other	23
types of coverage, family, group or otherwise, and may pay from	24
funds under its control and available for such purpose all or any	25
portion of the cost, premium, or charge for such insurance,	26
coverage, or benefits. However, the governing board, in addition	27
to or as an alternative to the authority otherwise granted by	28
division (A)(1) of this section, may elect to procure coverage for	29
health care services, for or on behalf of such of its employees as	30
it may determine, by means of policies, contracts, certificates,	31
or agreements issued by at least two health insuring corporations	32
holding a certificate of authority under Chapter 1751. of the	33
Revised Code and may pay from funds under the governing board's	34
control and available for such purpose all or any portion of the	35
cost of such coverage.	36

(2) Make payments to a custodial account for investment in	37
regulated investment company stock for the purpose of providing	38
retirement benefits as described in section 403(b)(7) of the	39
Internal Revenue Code of 1954, as amended. Such stock shall be	40
purchased only from persons authorized to sell such stock in this	41
state.	42

Any income of an employee deferred under divisions (A)(1) and	43
(2) of this section in a deferred compensation program eligible	44
for favorable tax treatment under the Internal Revenue Code of	45
1954, as amended, shall continue to be included as regular	46
compensation for the purpose of computing the contributions to and	47
benefits from the retirement system of such employee. Any sum so	48
deferred shall not be included in the computation of any federal	49
and state income taxes withheld on behalf of any such employee.	50

(B) All or any portion of the cost, premium, or charge	51
therefor may be paid in such other manner or combination of	52
manners as the governing board or the school board may determine,	53
including direct payment by the employee in cases under division	54
(A)(1) of this section, and, if authorized in writing by the	55
employee in cases under division (A)(1) or (2) of this section, by	56
such governing board or school board with moneys made available by	57
deduction from or reduction in salary or wages or by the foregoing	58
of a salary or wage increase. Division (B)(7) ofNothing in	59
section 3917.01 and the last paragraph ofor section 3917.06 of	60
the Revised Code shall not prohibit the issuance or purchase of	61
group life insurance authorized by this section by reason of	62
payment of premiums therefor by the governing board or the school	63
board from its funds, and such group life insurance may be so	64
issued and purchased if otherwise consistent with the provisions	65
of sections 3917.01 to 3917.07 of the Revised Code.	66

Sec. 1751.12.  (A)(1) No contractual periodic prepayment and	67
no premium rate for nongroup and conversion policies for health	68
care services, or any amendment to them, may be used by any health	69
insuring corporation at any time until the contractual periodic	70
prepayment and premium rate, or amendment, have been filed with	71
the superintendent of insurance, and shall not be effective until	72
the expiration of sixty days after their filing unless the	73
superintendent sooner gives approval. The filing shall be	74
accompanied by an actuarial certification in the form prescribed	75
by the superintendent. The superintendent shall disapprove the	76
filing, if the superintendent determines within the sixty-day	77
period that the contractual periodic prepayment or premium rate,	78
or amendment, is not in accordance with sound actuarial principles	79
or is not reasonably related to the applicable coverage and	80
characteristics of the applicable class of enrollees. The	81
superintendent shall notify the health insuring corporation of the	82
disapproval, and it shall thereafter be unlawful for the health	83
insuring corporation to use the contractual periodic prepayment or	84
premium rate, or amendment.	85

(2) No contractual periodic prepayment for group policies for	86
health care services shall be used until the contractual periodic	87
prepayment has been filed with the superintendent. The filing	88
shall be accompanied by an actuarial certification in the form	89
prescribed by the superintendent. The superintendent may reject a	90
filing made under division (A)(2) of this section at any time,	91
with at least thirty days' written notice to a health insuring	92
corporation, if the contractual periodic prepayment is not in	93
accordance with sound actuarial principles or is not reasonably	94
related to the applicable coverage and characteristics of the	95
applicable class of enrollees.	96

(3) At any time, the superintendent, upon at least thirty	97
days' written notice to a health insuring corporation, may	98
withdraw the approval given under division (A)(1) of this section,	99
deemed or actual, of any contractual periodic prepayment or	100
premium rate, or amendment, based on information that either of	101
the following applies:	102

(a) The contractual periodic prepayment or premium rate, or	103
amendment, is not in accordance with sound actuarial principles.	104

(b) The contractual periodic prepayment or premium rate, or	105
amendment, is not reasonably related to the applicable coverage	106
and characteristics of the applicable class of enrollees.	107

(4) Any disapproval under division (A)(1) of this section,	108
any rejection of a filing made under division (A)(2) of this	109
section, or any withdrawal of approval under division (A)(3) of	110
this section, shall be effected by a written notice, which shall	111
state the specific basis for the disapproval, rejection, or	112
withdrawal and shall be issued in accordance with Chapter 119. of	113
the Revised Code.	114

(B) Notwithstanding division (A) of this section, a health	115
insuring corporation may use a contractual periodic prepayment or	116
premium rate for policies used for the coverage of beneficiaries	117
enrolled in Title XVIII of the "Social Security Act," 49 Stat. 620	118
(1935), 42 U.S.C.A. 301, as amended, pursuant to a medicare risk	119
contract or medicare cost contract, or for policies used for the	120
coverage of beneficiaries enrolled in the federal employees health	121
benefits program pursuant to 5 U.S.C.A. 8905, or for policies used	122
for the coverage of beneficiaries enrolled in Title XIX of the	123
"Social Security Act," 49 Stat. 620 (1935), 42 U.S.C.A. 301, as	124
amended, known as the medical assistance program or medicaid,	125
provided by the department of job and family services under	126
Chapter 5111. of the Revised Code, or for policies used for the	127
coverage of beneficiaries under any other federal health care	128
program regulated by a federal regulatory body, or for policies	129
used for the coverage of beneficiaries under any contract covering	130
officers or employees of the state that has been entered into by	131
the department of administrative services, if both of the	132
following apply:	133

(1) The contractual periodic prepayment or premium rate has	134
been approved by the United States department of health and human	135
services, the United States office of personnel management, the	136
department of job and family services, or the department of	137
administrative services.	138

(2) The contractual periodic prepayment or premium rate is	139
filed with the superintendent prior to use and is accompanied by	140
documentation of approval from the United States department of	141
health and human services, the United States office of personnel	142
management, the department of job and family services, or the	143
department of administrative services.	144

(C) The administrative expense portion of all contractual	145
periodic prepayment or premium rate filings submitted to the	146
superintendent for review must reflect the actual cost of	147
administering the product. The superintendent may require that the	148
administrative expense portion of the filings be itemized and	149
supported.	150

(D)(1) Copayments must be reasonable and must not be a	151
barrier to the necessary utilization of services by enrollees.	152

(2) A health insuring corporation, in order to ensure that	153
copayments are reasonable and not a barrier to the necessary	154
utilization of basic health care services by enrollees, may do one	155
of the following:	156

(a) Impose copayment charges on any single covered basic	157
health care service that does not exceed forty per cent of the	158
average cost to the health insuring corporation of providing the	159
service;	160

(b) Impose copayment charges that annually do not exceed	161
twenty per cent of the total annual cost to the health insuring	162
corporation of providing all covered basic health care services,	163
including physician office visits, urgent care services, and	164
emergency health services, when aggregated as to all persons	165
covered under the filed product in question. In addition, annual	166
copayment charges as to each enrollee shall not exceed twenty per	167
cent of the total annual cost to the health insuring corporation	168
of providing all covered basic health care services, including	169
physician office visits, urgent care services, and emergency	170
health services, as to such enrollee. The total annual cost of	171
providing a health care service is the cost to the health insuring	172
corporation of providing the health care service to its enrollees	173
as reduced by any applicable provider discount.	174

(3) To ensure that copayments are reasonable and not a	175
barrier to the utilization of basic health care services, a health	176
insuring corporation may not impose, in any contract year, on any	177
subscriber or enrollee, copayments that exceed two hundred per	178
cent of the average annual premium rate to subscribers or	179
enrollees.	180

(4) For purposes of division (D) of this section, both of the	181
following apply:	182

(a) Copayments imposed by health insuring corporations in	183
connection with a high deductible health plan that is linked to a	184
health savings account are reasonable and are not a barrier to the	185
necessary utilization of services by enrollees.	186

(b) Divisions (D)(2) and (3) of this section do not apply to	187
a high deductible health plan that is linked to a health savings	188
account.	189

(E) A health insuring corporation shall not impose lifetime	190
maximums on basic health care services. However, a health insuring	191
corporation may establish a benefit limit for inpatient hospital	192
services that are provided pursuant to a policy, contract,	193
certificate, or agreement for supplemental health care services.	194

(F) A health insuring corporation may require that an	195
enrollee pay an annual deductible that does not exceed one	196
thousand dollars per enrollee or two thousand dollars per family.	197
The, except that:	198

(1) A health insuring corporation may impose higher	199
deductibles for high deductible health plans that are linked to	200
health savings accounts;	201

(2) The superintendent may adopt rules definingallowing	202
different annual deductible amounts for plans with an	203
employer-sponsoreda medical savings account, health reimbursement	204
arrangement, or flexible spending account, or similar account.	205

(G) As used in this section, "health savings account" and	206
"high deductible health plan" have the same meanings as in the	207
"Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C. 223, as	208
amended.	209

Sec. 3917.01. (A) Group life insurance is that form of life	210
insurance covering not less than two employees with or without	211
medical examination, written under aAs used in sections 3917.01	212
to 3917.06 of the Revised Code, the following forms of life	213
insurance are group life insurance:	214

(A) A life insurance policy issued to thean employer, or to	215
a trusteethe trustees of a trust createdfund established by such	216
an employer, the premium on which is to be paid by the employer,	217
by the employer and employees jointly, or by such trustee out of	218
funds contributed by the employer or by the employer and employees	219
jointly, and insuring only all of the employer's employees or all	220
of any classes thereof, determined by sex, age, or conditions	221
pertaining to the employment, for amounts of insurance based upon	222
some plan which will preclude individual selection,which employer	223
or trustees shall be deemed the policyholder, to insure employees	224
of the employer for the benefit of persons other than the	225
employer; but when the premium is to be paid by the employer and	226
employee jointly and the benefits of the policy are offered to all	227
eligible employees, not less than seventy-five per cent of such	228
employees may be so insured. Such group, subject to all of the	229
following requirements:	230

(1) All of the employees of the employer, or all of any class	231
or classes of employees, are eligible for life insurance. The	232
policy may provide that "employees" includes the employees of one	233
or more subsidiary corporations and the employees, individual	234
proprietors, and partners of one or more affiliated corporations,	235
proprietorships, or partnerships if the business of the employer	236
and the affiliated corporations, proprietorships, or partnerships	237
is under common control. The policy may provide that "employees"	238
includes retired employees of the employer and the officers,	239
managers, former employees, and retired employees of subsidiary or	240
affiliated corporations and the individual proprietors, partners,	241
employees, and retired employees of affiliated individuals and	242
firms, when the business of such subsidiary or affiliated	243
corporations, firms, or individuals is controlled by the common	244
employer through stock ownership, contract, or otherwise. This	245
section does not define as a group the lives covered by a policy	246
issued on more than one life which provides for payments upon the	247
death of any one or more or upon the death of each of the lives so	248
insured, and upon which the premium rates charged are computed on	249
the same basis as used by the issuing company on single life	250
policies and upon its regular forms of insurance.	251

(B) As used in sections 3917.01 to 3917.06 of the Revised	252
Code, the following forms of life insurance are group life	253
insurance:	254

(1) Life insurance covering the members of one or more	255
companies, batteries, troops, battalions, divisions, or other	256
units of the national guard or naval militia of any state, written	257
under a policy issued to the commanding general of the national	258
guard or commanding officer of the naval militia, who is the	259
employer for the purposes of such sections, the premium on which	260
is to be paid by the members of such units for the benefit of	261
persons other than the employer; provided that when the benefits	262
of the policy are offered to all eligible members of a unit of the	263
national guard or naval militia, not less than seventy-five per	264
cent of the members of such a unit may be insured;	265

(2) Life insurance covering the members of one or more troops	266
or other units of the state troopers or state police of any state,	267
written under a policy issued to the commanding officer of the	268
state troopers or state police who is the employer for the	269
purposes of such sections, the premium on which is to be paid by	270
the members of such units for the benefit of persons other than	271
the employer; provided that when the benefits of the policy are	272
offered to all eligible members of a unit of the state troopers or	273
state police, not less than seventy-five per cent of the members	274
of such a unit may be insured;	275

(3) Life insurance covering the members of any labor union,	276
written under a policy issued to such union which is the employer	277
for the purposes of such sections, the premium on which is to be	278
paid by the union or by the union and its members jointly, and	279
insuring only all of its members, who are actively engaged in the	280
same occupation, for amounts of insurance based upon some plan	281
which will preclude individual selection, for the benefit of	282
persons other than the union or its officials; provided that in	283
case the insurance policy is cancellable at the end of any policy	284
year at the option of the insurance company and that the basis of	285
premium rates may be changed by the insurance company at the	286
beginning of any policy year, all members of a labor union may be	287
insured; and provided that when the premium is to be paid by the	288
union and its members jointly and the benefits are offered to all	289
eligible members, not less than seventy-five per cent of such	290
members may be insured; and provided that when members apply and	291
pay for additional amounts of insurance, a smaller percentage of	292
members may be insured for such additional amounts if they pass	293
satisfactory medical examinations or submit satisfactory evidence	294
of insurability;	295

(4) Life insurance written under adirectors of a corporate	296
employer. A policy issued to insure the employees of a public body	297
may provide that "employees" includes elected or appointed	298
officials.	299

(2) The premium for the policy shall be paid either from the	300
employer's funds or from funds contributed by the insured	301
employees, or from both. Except as provided in division (A)(3) of	302
this section, a policy for which no part of the premium is derived	303
from funds contributed by the insured employees shall insure all	304
eligible employees, except those employees who reject the coverage	305
in writing.	306

(3) An insurer may exclude or limit the coverage on any	307
employee as to whom evidence of individual insurability is not	308
satisfactory to the insurer.	309

(4) A policy issued pursuant to section 3911.091 of the	310
Revised Code is not subject to the requirements of this division.	311

(B) A life insurance policy issued to a creditor, whoor its	312
parent holding company or to a trustee or trustees or agent	313
designated by two or more creditors, which creditor, holding	314
company, affiliate, trustee, trustees, or agent shall be deemed	315
the policyholder, to insure debtors of the creditor or creditors,	316
subject to the following requirements:	317

(a)(1) The debtors eligible for insurance under the policy	318
shall be all of the debtors of the creditor, excepting that no	319
debtor is eligible unless the indebtedness constitutes an	320
obligation to repay that is binding upon the debtor during the	321
debtor's lifetime at and from the date the insurance becomes	322
effective upon the debtor's lifeor creditors, or all of any class	323
or classes of the debtors. The policy may provide that "debtors"	324
includes theall of the following:	325

(a) Borrowers of money or purchasers or lessees of goods,	326
services, or property for which payment is arranged through a	327
credit transaction;	328

(b) The debtors of one or more subsidiary corporations and	329
the;	330

(c) The debtors of one or more affiliated corporations,	331
proprietorsproprietorships, or partnerships if the business of	332
the policyholder and of suchthe affiliated corporations,	333
proprietorsproprietorships, or partnerships is under common	334
control through stock ownership, contract, or otherwise.	335

(b)(2) The premium for the policy shall be paid by the	336
policyholder, either from the creditor's funds, or from charges	337
collected from the insured debtors, or from both. A policy on	338
which part or all of the premium is to be derived from the	339
collection from the insured debtors of identifiable charges not	340
required of uninsured debtors shall not include debtors under	341
obligations outstanding at its date of issue without evidence of	342
individual insurability unless at least seventy-five per cent of	343
the then eligible debtors elect to pay the required charges. A	344
Except as provided in division (B)(3) of this section, a policy on	345
which no part of the premium is to be derived from the collection	346
of such identifiable charges mustfunds contributed by insured	347
debtors specifically for the debtors' insurance shall insure all	348
eligible debtors, or all except any.	349

(3) An insurer may exclude any debtor as to whom evidence of	350
individual insurability is not satisfactory to the insurer.	351

(c) The policy may be issued only if the group of eligible	352
debtors is then receiving new entrants at the rate of at least one	353
hundred persons yearly, or may reasonably be expected to receive	354
at least one hundred new entrants during the first policy year,	355
and continues to receive not less than one hundred new entrants to	356
the group yearly, and only if the policy reserves to the insurer	357
the right to require evidence of individual insurability if less	358
than seventy-five per cent of the new entrants become insured. The	359
policy may exclude from the classes eligible for insurance classes	360
of debtors determined by age.	361

(d) The amount of insurance on the life of any debtor may be	362
determined by the age of the debtor based upon a plan which will	363
preclude individual selection and shall at no time exceed the	364
amount owed by the debtor that is repayable in installments to the	365
creditor.	366

(e) The insurance shall be payable to the policyholder. Such	367
payment shall reduce or extinguish the unpaid indebtedness of the	368
debtor to the extent of such payment.	369

(5) Life insurance covering the members of any duly organized	370
corporation or association of veterans or veteran society or	371
association of the World War veterans, written under a policy	372
issued to such corporation, association, or society which is the	373
employer for the purpose of such sections, the premium on which is	374
to be paid by the corporation, association, society, and its	375
members jointly, and insuring all of its members who are actively	376
engaged in any occupation for amounts of insurance based upon some	377
plan which will preclude individual selection for the benefit of	378
persons other than the corporation, association, or society or its	379
officials; provided that when the premium is to be paid by the	380
corporation, association, or society and its members jointly and	381
the benefits are offered to all eligible members, not less than	382
seventy-five per cent of such members may be insured; and provided	383
that when members apply and pay for additional amounts of	384
insurance, a smaller percentage of members may be insured for such	385
additional amounts if they pass satisfactory medical examinations	386
or submit satisfactory evidence of insurability;	387

(6) Life insurance covering the members of any organization	388
of agriculturists or horticulturists organized under the	389
co-operative laws of this state, written under a policy issued to	390
such co-operative association which is the employer for the	391
purpose of such sections, the premium on which is to be paid by	392
the association or by the association and its members jointly, and	393
insuring all of its members who are actively engaged in	394
agricultural or horticultural pursuits, for an amount of insurance	395
based upon some plan which will preclude individual selection, and	396
for the benefit of persons other than the association or its	397
officials; provided that when the premium is to be paid by the	398
corporation, association, or society and its members jointly and	399
the benefits are offered to all eligible members, not less than	400
seventy-five per cent of such members may be insured; provided	401
that when members apply and pay for additional amounts of	402
insurance, a smaller percentage of members may be insured for such	403
additional amounts if they pass satisfactory medical examinations	404
or submit satisfactory evidence of insurability;	405

(7) Life insurance covering employees of a political	406
subdivision or district of this state, or of an educational or	407
other institution supported in whole or in part by public funds,	408
or of any classes thereof, determined by conditions pertaining to	409
employment, or of this state or any department or division	410
thereof, written under a policy issued to such political	411
subdivision, district, or institution, or the proper official or	412
board of this state or of such state department or division	413
thereof, which is the employer for the purpose of such sections,	414
the premium on which is to be paid by such employees, unless	415
otherwise provided by law, charter, or ordinance, for the benefit	416
of persons other than the employer; provided that when the	417
benefits of the policy are offered to all eligible employees of a	418
political subdivision or district of the state or of an	419
educational or other institution supported in whole, or in part by	420
public funds, or of this state or a state department or division	421
thereof, not less than seventy-five per cent of such employees may	422
be insured; and provided that when employees apply and pay for	423
additional amounts of insurance, a smaller percentage of employees	424
may be insured for such additional amounts if they pass	425
satisfactory medical examinations or submit satisfactory evidence	426
of insurability; and provided that upon acquisition by a political	427
subdivision of any privately owned property or enterprise, the	428
employees of which have been covered by a group policy of life or	429
other insurance as employees of such private employer, such	430
political subdivision and insurance company may continue such	431
contract in force upon similar conditions as the last preceding	432
private employer;	433

(8) Life insurance covering the members, or the members and	434
the employees of members of any duly organized association, other	435
than an association subject to any other provision of this	436
division, written under a policy issued to such association, which	437
association is the employer for the purpose of such sections, the	438
premium on which is to be paid by the insured members or their	439
employees, insuring members and their employees for amounts of	440
insurance based upon some plan which will preclude individual	441
selection except as provided in this section, for the benefit of	442
persons other than the association; provided the association has	443
been in existence for at least two years immediately preceding the	444
purchase of the insurance; provided that there must be at least	445
fifty insured members in any group; and provided that the	446
association has been organized and is maintained in good faith for	447
purposes other than that of obtaining insurance;	448

(9) Life(4) The amount of insurance on the life of any	449
debtor, at no time, shall exceed the greater of the scheduled or	450
actual amount of unpaid indebtedness to the creditor, except that	451
insurance written in connection with open-end credit having a	452
credit limit exceeding ten thousand dollars may be in an amount	453
not exceeding the credit limit.	454

(5) The insurance may be payable to the creditor or any	455
successor to the right, title, and interest of the creditor. The	456
payment shall reduce or extinguish the unpaid indebtedness of the	457
debtor to the extent of the payment and any excess of the	458
insurance shall be payable to the estate of the insured.	459

(6) Notwithstanding divisions (B)(1) to (5) of this section,	460
insurance on agricultural credit transaction commitments may be	461
written up to the amount of the loan commitment on a nondecreasing	462
or level term plan. Insurance on educational credit transaction	463
commitments may be written up to the amount of the loan commitment	464
less the amount of any repayments made on the loan.	465

(C) A life insurance policy issued to a labor union or	466
similar employee organization, which union or organization shall	467
be deemed the policyholder, to insure members of the union or	468
organization for the benefit of persons other than the union or	469
organization or any of its officials, representatives, or agents,	470
subject to all of the following requirements:	471

(1) All of the members of the union or organization, or all	472
of any class or classes of the members, are eligible for insurance	473
under the policy.	474

(2) The premium for the policy is paid either from funds of	475
the union or organization or from funds contributed by the insured	476
members specifically for the members' insurance, or from both.	477
Except as provided in division (C)(3) of this section, a policy on	478
which no part of the premium is derived from funds contributed by	479
the insured members specifically for the members' insurance shall	480
insure all eligible members, except those members who reject the	481
coverage in writing.	482

(3) An insurer may exclude or limit the coverage on any	483
member as to whom evidence of individual insurability is not	484
satisfactory to the insurer.	485

(D) A life insurance policy issued to a trust or to the	486
trustees of a trust fund established jointly by one or more	487
employers in the same industry, on the one hand, andor adopted by	488
two or more employees, or by one or more labor unions representing	489
as bargaining agents employees of such employers, on the other	490
hand, or by twoor similar employee organizations, or by one or	491
more employers in the same industry, or by twoand one or more	492
labor unions or similar employee organizations, which trust or	493
trustees shall be deemed the policyholder, to insure employees of	494
the employers or members of the unions or similar employee	495
organizations for the benefit of persons other than the employers	496
or the unions or the trusteesorganizations, subject to the	497
following requirements:	498

(a)(1) The persons eligible for such insurance shall be all	499
of the employees of the employers, or all of the members of the	500
unions or organizations, or all of any class of such employees	501
determined by sex, age, or conditions pertaining to their	502
employment, or to membership in the unions, or to any or all of	503
themor classes of the employees or members. The policy may	504
provide that "employees" includes the retired employees of the	505
employer and the officers, managers, employees, and retired	506
employees of one or more subsidiary or affiliated corporations and	507
the employees, individual proprietors, and partners, employees,	508
and retired employees of affiliated individuals and firms, when	509
the business of such subsidiary orof one or more affiliated	510
corporations, firms, or individuals is controlled by the common	511
employer through stock ownership, contract, or otherwise	512
proprietorships, or partnerships if the business of the employer	513
and of the affiliated corporations, proprietorships, or	514
partnerships is under common control. The policy may provide that	515
"employees" includes the individual proprietor or partners if the	516
employer is an individual proprietorproprietorship or a	517
partnership. The policy may provide that "employees" includes	518
retired employees, former employees, and directors of a corporate	519
employer. The policy may provide that "employees" includes the	520
trustees or their employees, or both, if their duties are	521
principally connected with suchthe trusteeship.	522

(b)(2) The premium for the policy shall be paid by the	523
trustees, either wholly from funds contributed by the employer or	524
employers of the insured persons, or partly from such funds and	525
partly from funds contributed by the insured employees. If part of	526
the premium is to be derived from funds contributed by the insured	527
employees, then such policy may be placed in force only if it	528
covers at least seventy-five per cent of the then eligible	529
employees. Aor by the union or unions or similar employee	530
organizations, or by both, or from funds contributed by the	531
insured persons or from both the insured persons and the employers	532
or unions or similar employee organizations. Except as provided in	533
division (D)(3) of this section, a policy on which no part of the	534
premium is derived from funds contributed by the insured employees	535
persons specifically for their insurance must insure all eligible	536
employees.	537

(c) Any policy must insure at least two persons at date of	538
issue.	539

(d) The amounts of insurance under the policy must be based	540
upon some plan precluding individual selection by the insured	541
persons or the policyholder or the employers or the unions or the	542
trustees.	543

(10) Life insurance covering the members of a credit union,	544
which shall be deemed to be the employer for the purposes of this	545
section, the premium on which is to be paid by the credit union or	546
by the credit union and its members jointly, and insuring all of	547
its eligible members for amounts of insurance not in excess of the	548
share balance as to each member, and for the benefit of persons	549
other than the credit union or its officers; provided that in the	550
determination of the eligibility of members there may be	551
classifications and limitations based upon age; provided also that	552
when the premium is to be paid by the credit union and its members	553
jointly and the benefits are offered to all eligible members, not	554
less than seventy-five per cent of such members may be so insured;	555
provided also that in obtaining such insurance, the officers of	556
the credit union shall consider proposals from any licensed	557
insurer; provided also that members may be required to provide	558
evidence of insurability satisfactory to the insurer.	559

(11) Life insurance covering the members of any duly	560
organized corporation or association of members of the Ohio	561
national guard, the Ohio naval militia, and the Ohio military	562
reserve, which shall have been in existence for at least two years	563
immediately preceding the purchase of such insurance, written	564
under a policy issued to such corporation or association, which	565
corporation or association is the employer for the purpose of such	566
sections, the premium on which is to be paid by the insured	567
members, insuring members for amounts of insurance based upon some	568
plan which will preclude individual selection, except as provided	569
in this section, for the benefit of persons other than the	570
corporation or association, provided that there must be at least	571
fifty insured members in any group, and provided further that	572
unless seventy-five per cent of all members or one thousand	573
members, whichever is the lesser number, are insured, each member	574
must pass a satisfactory medical examination in order to be	575
insured; and provided that, when members apply and pay for	576
additional amounts of insurance, they may be insured for such	577
additional amounts if they pass satisfactory medical examinations	578
or submit satisfactory evidence of insurabilitypersons, except	579
those persons who reject the coverage in writing.	580

(3) An insurer may exclude or limit the coverage on any	581
person as to whom evidence of individual insurability is not	582
satisfactory to the insurer.	583

(E) A life insurance policy issued to an association or to a	584
trust or the trustees of a fund established, created, or	585
maintained for the benefit of members of one or more associations,	586
which association, trust or trustee, or an agent, shall be deemed	587
the policyholder, subject to all of the following requirements:	588

(1) The association or associations have at the outset a	589
minimum of one hundred persons, have been organized and maintained	590
in good faith for purposes other than that of obtaining insurance,	591
have been in active existence for at least two years, and have a	592
constitution and bylaws providing for all of the following:	593

(a) The association or associations shall hold regular	594
meetings not less than annually to further purposes of the	595
members.	596

(b) The association or associations, except for credit	597
unions, shall collect dues or solicit contributions from members.	598

(c) The members of the association or associations shall have	599
voting privileges and representation on the governing board and	600
committees.	601

(2) The policy is subject to all of the following	602
requirements:	603

(a) The policy may insure one or more of the members of the	604
association or associations, employees of the association or	605
associations, or employees of members, or all of any class or	606
classes of the employees or members of the association or	607
associations, and employees of the members of the association or	608
associations, for the benefit of persons other than an employee's	609
employer.	610

(b) The premium for the policy is paid from funds contributed	611
by the association or associations, or by employer members, or by	612
both, or from funds contributed by the covered members or	613
employees or from both the covered members and employees and the	614
association, associations, or employer members.	615

(c) Except as provided in division (E)(3) of this section, a	616
policy on which no part of the premium is derived from funds	617
contributed by the covered members and employees specifically for	618
the covered members' and employees' insurance shall insure all	619
eligible members and employees, except those who reject the	620
coverage in writing.	621

(3) An insurer may exclude or limit the coverage on any	622
member or employee as to whom evidence of individual insurance is	623
not satisfactory to the insurer.	624

(F) A life insurance policy issued to a credit union or to a	625
trustee or trustees or agent designated by two or more credit	626
unions, which credit union, trustee, trustees, or agent shall be	627
deemed the policyholder, to insure the members of the credit union	628
or credit unions for the benefit of persons other than the credit	629
union or credit unions, trust or trustees, or agents or officials	630
of the credit union or credit unions or trust, subject to all of	631
the following requirements:	632

(1) All of the members of the credit union or credit unions,	633
or all of any class or classes of the members, are eligible for	634
insurance.	635

(2) The premium for the policy is paid by the policyholder	636
from the credit union's funds and except as provided in division	637
(F)(3) of this section shall insure all eligible members.	638

(3) An insurer may exclude or limit the coverage on any	639
member as to whom evidence of individual insurability is not	640
satisfactory to the insurer.	641

(12)(G) Life insurance that is written under a policy issued	642
to a trustee under a trust established by an insurer for the	643
purpose of providing continued group life insurance coverage to	644
those former employees, former members, or former members and the	645
employees of such members, and their spouses and dependent	646
childrendependents, previously covered under policies of group	647
life insurance issued by the insurer to employers or trustees	648
pursuant to division (A) of this section, to associations pursuant	649
to division (B)(8)(D) of this section, or to trustees pursuant to	650
division (B)(9)(E) of this section, or to groups pursuant to	651
division (I) of this section, and that is evidenced by the	652
issuance of a certificate of insurance or other evidence of	653
insurance to such former employees or members as required by	654
section 3917.06 of the Revised Code; provided that the amount of	655
the continued life insurance coverage made available to a former	656
employee or member and to the employee's or member's spouse and	657
dependents shall not exceed the amount of the group life insurance	658
coverage previously provided to the employee or member and the	659
employee's or member's eligible dependents at the time of the	660
employee's separation from employment or the member's termination	661
of membership.	662

(13)(H) Life insurance covering the members of a workforce	663
actively engaged in an occupation for, and performing services on	664
behalf of, a duly organized corporation, limited liability	665
company, partnership, proprietor, or a similar organization, whose	666
members are not employees of the organization, written under a	667
policy issued to the organization, which organization is the	668
members' employer for this purpose, the premium on which is to be	669
paid by the organization or by the organization and the members	670
jointly, insuring members for amounts of insurance based upon some	671
plan which will preclude individual selection, for the benefit of	672
persons other than the organization; provided, that when the	673
premium is to be paid by the organization and its members jointly	674
and the benefits are offered to all eligible members, not less	675
than seventy-five per cent of the members may be so insured;	676
provided also that members may be required to furnish evidence of	677
insurability satisfactory to the insurer. Life insurance meeting	678
this definition may also cover the organization's employees at the	679
option of the organization.	680

(C) Any policy issued pursuant to this section, except a	681
policy issued to a creditor pursuant to division (B)(4) of this	682
section, may be extended, in the form of group term life insurance	683
only, to insure the spouse and dependent children of an insured	684
employee or member, or any class or classes thereof, subject to	685
the following requirements:	686

(1) The premiums for the group term life insurance shall be	687
paid by the policyholder, either from the employer, union or	688
association funds, or from funds contributed by the employer,	689
union, or association, or from funds contributed by the insured	690
employee or member, or from both.	691

(2) The amounts of insurance under the policy must be based	692
upon some plan precluding individual selection either by the	693
insured employee or member or by the policyholder.	694

(3) Upon termination of the group term life insurance with	695
respect to the spouse of any insured employee or member by reason	696
of such person's termination of employment or membership or death,	697
the spouse insured pursuant to this section shall have the same	698
conversion rights as to the group term life insurance on the	699
spouse's life as is provided for the insured employee or member.	700

(4) Only one certificate need be issued for delivery to an	701
insured employee or member if a statement concerning any	702
dependent's coverage is included in such certificate.	703

(I)(1) A life insurance policy covering the members of a	704
group other than one listed in divisions (A) to (H) of this	705
section, subject to the superintendent finding all of the	706
following:	707

(a) The issuance of the policy is not contrary to the best	708
interest of the public.	709

(b) The issuance of the policy would result in economies of	710
acquisition or administration.	711

(c) The policy provides benefits that are reasonable in	712
relation to the premiums charged.	713

(2) An insurer shall not offer group life insurance in this	714
state under a policy issued in another state unless the	715
superintendent, or the insurance regulatory authority of another	716
state with requirements substantially similar to the requirements	717
set forth in division (I)(1) of this section, makes a	718
determination that the requirements in division (I)(1) of this	719
section have been met.	720

(3) The premium for a life insurance policy under this	721
division is paid either from the policyholder's funds or from	722
funds contributed by the insured members, or from both, and except	723
as provided in division (I)(4) of this section, the policy must	724
insure all eligible members except those members who reject the	725
coverage in writing.	726

(4) An insurer may exclude or limit the coverage on any	727
member as to whom evidence of individual insurability is not	728
satisfactory to the insurer.	729

Sec. 3917.02. (A) As used in this section:

730

(1) "Direct response solicitation" means a solicitation	731
through a sponsoring or endorsing entity through the mail,	732
telephone, or other mass communication media.	733

(2) "Sponsoring or endorsing entity" means an organization	734
that has arranged for the offering of a program of insurance in a	735
manner that communicates that eligibility for participation in the	736
program is dependent upon affiliation with the organization or	737
that the organization encourages participation in the program.	738

(B) With respect to a program of life insurance that, if	739
issued on a group basis, would not qualify as a policy of group	740
life insurance under divisions (A) to (H) of section 3917.01 of	741
the Revised Code, the insurer shall distribute a written notice to	742
prospective insureds that compensation will or may be paid, if	743
compensation of any kind will or may be paid, to one of the	744
following persons:	745

(1) A policyholder, or sponsoring or endorsing entity, in the	746
case of a group policy;	747

(2) A sponsoring or endorsing entity in the case of	748
individual, blanket, or franchise policies marketed by means of a	749
direct response solicitation.	750

(C) The insurer shall distribute the notice required by this	751
section whether the potential compensation is direct or indirect	752
and whether the compensation is paid to or retained by the	753
policyholder or sponsoring or endorsing entity or paid to or	754
retained by a third party, or an entity affiliated with the third	755
party by way of ownership, contract, or employment, at the	756
direction of the policyholder or sponsoring or endorsing entity.	757

(D) The notice required by this section shall be placed on or	758
accompany an application or enrollment form provided to	759
prospective insureds.	760

Sec. 3917.03. Any life insurance policy issued pursuant to	761
section 3917.01 of the Revised Code, except for a policy issued	762
pursuant to division (B) of section 3917.01 of the Revised Code,	763
may be extended to insure an employee's dependents or member's	764
dependents, as defined by the policy, or any class or classes of	765
dependents, subject to the following:	766

(A) The premium for the insurance shall be paid either from	767
the funds contributed by the employer, union, association, or	768
other person to whom the policy has been issued, or from funds	769
contributed by the covered persons, or from both. Except as	770
provided in division (B) of this section, a policy on which no	771
part of the premium for the dependent's coverage is derived from	772
funds contributed by the covered persons shall insure the	773
dependents of all eligible employees or members, or a class or	774
classes of dependents.	775

(B) A life insurer may exclude or limit the coverage on any	776
dependent as to whom evidence of individual insurability is not	777
satisfactory to the insurer.	778

Sec. 3917.06. NoExcept as provided in division (M) of this	779
section, no policy of group life insurance shall be issued or	780
delivered in this state until a copy of its form has been filed	781
with the superintendent of insurance and formally approved by the	782
superintendent; nor shall such policy be so issued or delivered	783
unless it contains in substance the following provisions or other	784
provisions, that in the opinion of the superintendent of insurance	785
are more favorable to the persons insured, or at least as	786
favorable to the persons insured and more favorable to the	787
policyholder:	788

(A) A provision that the policyholder is entitled to a grace	789
period of thirty-one days for the payment of any premiums due	790
except the first, during which grace period the death benefit	791
coverage shall continue in force, unless the policyholder has	792
given the insurer written notice of discontinuance in advance of	793
the date of discontinuance and in accordance with the terms of the	794
policy; the policy may provide that the policyholder is liable to	795
the insurer for the payment of a pro rata premium for the time the	796
policy was in force during such grace period;	797

(B) A provision that the policy is incontestable after two	798
years from its date of issue, except for nonpayment of premiums	799
and except for violation of the conditions of the policy relating	800
to military or naval service in time of war;. No statement made by	801
any individual insured under the policy relating to the	802
individual's insurability shall be used in contesting the validity	803
of the insurance, with respect to which the statement was made,	804
that has been in force prior to the contest for a period of two	805
years during the individual's life, unless the statement is	806
contained in a written instrument signed by the individual. This	807
division does not preclude the assertion at any time of defenses	808
based upon provisions in the policy that relate to eligibility for	809
coverage.	810

(C) A provision requiring that the policy anda copy of the	811
application submitted in connection therewith constitute the	812
entire contract between the partiesof the policyholder, if any,	813
be attached to the policy when issued, and that all statements	814
contained in such application are deemed, in the absence of fraud,	815
made by the policyholder and individuals insured shall be deemed	816
representations and not warranties, and that no such statement	817
made by any person insured shall be used in defense to a claim	818
under the policy, unless it is contained in a written application	819
any contest unless a copy of the instrument containing the	820
statement is furnished to the insured, or in the event of the	821
death or incapacity of the insured, to the insured's beneficiary	822
or personal representative;	823

(D) A provision setting forth the conditions, if any, under	824
which the insurer reserves the right to require an individual	825
eligible for insurance to furnish evidence of individual	826
insurability satisfactory to the insurer as a condition to part or	827
all of the individual's coverage;	828

(E) A provision for thespecifying an equitable adjustment of	829
the premium or the amount of insurance payablebenefits, or both,	830
to be made in the event of a misstatement of the age of an	831
employee or other person whose life is insured under a group life	832
policy;	833

(E) Except in the case of a policy described in division	834
(B)(4) of section 3917.01 of the Revised Code, a. The provision	835
shall contain a clear statement of the method of adjustment.	836

(F) A provision requiring that any sum becoming due by reason	837
of the death of the insured be payable to the beneficiary	838
designated by the insured. However, if the policy contains	839
conditions pertaining to family status, the beneficiary may be the	840
family member specified by the policy terms, subject to the	841
provisions of the policy in the event that there is no designated	842
beneficiary living at the time of the death of the insured as to	843
all or any part of the sum, and subject to any right reserved in	844
the policy by the insurer and set forth in the certificate to pay,	845
at the insurer's option, a part of the sum not exceeding two	846
thousand dollars to any beneficiary that the insurer believes is	847
equitably entitled to the amount by reason of having incurred	848
funeral or other expenses incident to the last illness or death of	849
the insured.	850

(G) A provision that the companyinsurer will issue to the	851
policyholder for delivery to each person whose life is insured	852
under such policy, an individuala certificate setting forth a	853
statement as to the insurance protection to which the person is	854
entitled, any dependent's coverage, to whom benefits are payable,	855
together withand the rights and conditions set forth in divisions	856
(H) to (K) of this section. The policyholder may issue a single	857
certificate for delivery to an insured employee or member if a	858
statement concerning any dependent's coverage is included in the	859
certificate.	860

(H)(1) A provision to the effect that in case ofif all or	861
any part of the insurance on an insured or an insured's dependents	862
ceases because of the termination of the employment for any reason	863
or of membership in the class or classes eligible for insurance	864
coverage under the policy, such person is entitled to have issued	865
to the person by the companyinsurer, without evidence of	866
insurability, and upon application made to the companyan	867
individual policy of life insurance without disability or	868
supplementary benefits, provided that application for the	869
individual policy is made, and the first premium is paid to the	870
insurer, within thirty-one days after such termination, and upon	871
the payment of the premium applicable to the class of risk to	872
which the person belongs and to the form and amount of the policy	873
at the person's then attained age, either a policy of life	874
insurance inprovided that all of the following conditions are	875
met:	876

(a) The individual policy is on any one of the forms	877
customarily issued by the company, except term insurance, in any	878
amount not in excess of the amount of the person's protection	879
under the group insurance policy at the time of the termination,	880
as the person elects or, if applicable, the coverage described in	881
division (B)(12) of section 3917.01 of the Revised Code;	882

(F)insurer to that age and for the amount applied for,	883
except that the group policy may exclude the option to elect term	884
insurance.	885

(b) The individual policy is in an amount not in excess of	886
the amount of life insurance that ceases because of termination,	887
less the amount of any life insurance for which the person is	888
eligible under the same or any other group policy within	889
thirty-one days after termination, provided that any amount of	890
life insurance that matures on or before the date of termination	891
as an endowment payable to the insured, whether in one sum,	892
installments, or in the form of an annuity, shall not, for	893
purposes of this division, be included in the amount that is	894
considered to cease because of termination.	895

(c) The premium on the individual policy is set at the	896
insurer's then customary rate applicable to the form and amount of	897
the individual policy, the individual's class of risk, and the	898
individual's age as of the effective date of the individual	899
policy.	900

(2) Subject to the conditions set forth in division (H)(1) of	901
this section, the conversion privilege is available to the	902
following individuals:	903

(a) A surviving dependent, if any, at the death of the	904
employee or member, with respect to the coverage under the group	905
policy that terminates by reason of the employee's or member's	906
death;	907

(b) A dependent of an employee or member upon termination of	908
the dependent's coverage, while the employee or member remains	909
insured under the group policy, by reason of the dependent ceasing	910
to be a dependent under the group policy.	911

(3) If the individual is not given notice of the right to	912
obtain individual coverage under this division at least fifteen	913
days prior to the expiration of the thirty-one-day conversion	914
period provided by division (H)(1) of this section then the	915
individual shall have an additional period to exercise that right.	916
This additional period shall extend for fifteen days after the	917
individual is given notice, but in no event shall the period	918
extend beyond sixty days after the expiration date of the period	919
provided in the policy. Written notice provided to the individual	920
or mailed by the policyholder to the last known address of the	921
individual, or mailed by the insurer to the last known address of	922
the individual furnished to the insurer by the policyholder,	923
constitutes notice for purposes of this division.	924

(4) Nothing contained in the division shall be construed to	925
continue any insurance beyond the expiration date of the period	926
provided in the policy.	927

(I) A provision that if the group policy terminates or is	928
amended so as to terminate the insurance of any class of insured	929
persons, every person insured thereunder at the date of such	930
termination whose insurance terminates, including an insured's	931
dependent, and who has been so insured for at least five years	932
prior to such termination date is entitled to have issued to the	933
person by the insurer an individual policy of life insurance,	934
subject to the same conditions and limitations as are provided by	935
division (E)(H) of this section, except that the group policy may	936
provide that the amount of such individual policy shall not exceed	937
the smaller of (1) the amount of the person's life insurance	938
protection ceasing because of the termination or amendment of the	939
group policy, less the amount of any life insurance for which the	940
person is or becomes eligible under any group policy issued or	941
reinstated by the same or another insurer within thirty-one days	942
after such termination, and (2) twoten thousand dollars;	943

(G)(J) A provision that if a person insured under the group	944
policy, or an insured's dependent, dies during the period within	945
which the person would have been entitled to have an individual	946
policy issued to the person in accordance with division (E)(H) or	947
(F)(I) of this section, and before such an individual policy has	948
become effective, the amount of life insurance which the person	949
would have been entitled to have issued to the person under such	950
individual policy shall be payable as a claim under the group	951
policy, whether or not application for the individual policy or	952
the payment of the first premium therefor has been made;	953

(H) A provision that to the group or class of persons	954
originally insured there shall be added from time to time all new	955
employees of the employer or other persons eligible to insurance	956
in such group or class;	957

(I) In the case of a policy issued to a labor union covering	958
all members of the union, a notice that the annual renewable term	959
premium depends upon the attained ages of the members in the group	960
and increases with advancing ages.	961

Policies of group life insurance, when issued in this state	962
by any company not organized under the laws of this state, may	963
contain, when issued, any provision required by the law of the	964
state, territory, or district of the United States under which the	965
company is organized; and policies issued in other states or	966
countries by companies organized in this state, may contain any	967
provision required or permitted by the laws of the state,	968
territory, district, or country in which the same are issued. Any	969
such policy may be issued or delivered in this state which in the	970
opinion of the superintendent contains provisions on any one or	971
more of the requirements of this section more favorable to the	972
policyholder or to the person whose life is insured under such	973
policy than such requirements.	974

The group life insurance policy together with any application	975
in connection therewith shall be available for inspection during	976
regular business hours at the office of the policyholder where	977
such policy is on file, by any beneficiary thereunder or by an	978
authorized representative of such beneficiary.	979

Except as provided in sections 3917.01 to 3917.06 of the	980
Revised Code, no contract of life insurance shall be made covering	981
a group in this state.	982

(K) Where active employment is a condition of insurance, a	983
provision that an insured may continue coverage during the	984
insured's total disability by timely payment to the policyholder	985
of that portion, if any, of the premium that would have been	986
required from the insured if the insured's total disability had	987
not occurred. The continuation shall be on a premium basis for a	988
period of six months after the date on which the insured's total	989
disability started, but not later than the earlier of either of	990
the following:	991

(1) The insurer approving of continuation of the coverage	992
under any disability provision that the group policy may contain;	993

(2) The discontinuance of the group life insurance policy.

994

(L) In the case of a life insurance policy insuring the lives	995
of debtors, a provision requiring that the insurer furnish to the	996
policyholder for delivery to each debtor insured under the policy	997
a certificate of insurance describing the coverage and specifying	998
that the death benefit first be applied to reduce or extinguish	999
the debtor's unpaid indebtedness.	1000

(M)(1) Divisions (F) to (K) of this section do not apply to	1001
group policies insuring the lives of debtors.	1002

(2) With the exception of division (K) of section 3915.05 and	1003
section 3915.052 of the Revised Code, Chapter 3915. of the Revised	1004
Code does not apply to group policies.	1005

(3) If a group policy is other than a term plan of insurance,	1006
the policy shall contain a nonforfeiture provision or provisions,	1007
which, in the opinion of the superintendent, are equitable to the	1008
insureds and the policyholder. Nothing in this division shall be	1009
construed to require group life insurance policies to contain the	1010
same nonforfeiture provisions as are required for individual life	1011
insurance policies.	1012

(4)(a) If a group policy is other than a term plan of	1013
insurance the policy shall contain a policy loan provision	1014
authorizing insureds to borrow upon the policy, unless the loan	1015
value of certificates issued under the policy is established by	1016
federal law. The policy loan provision may include one or more of	1017
the following conditions:	1018

(i) The borrower has held a certificate under the policy for	1019
a minimum period, not to exceed three years;	1020

(ii) No premium on the policy is in default beyond the grace	1021
period for payment;	1022

(iii) A minimum loan amount, not to exceed one thousand	1023
dollars;	1024

(iv) The borrower accepts an adjustable interest rate charge,	1025
not to exceed two per cent above the rate used to compute the cash	1026
surrender value.	1027

(b) For purposes of the policy loan provision, the loan value	1028
of a certificate shall equal one of the following:	1029

(i) Ninety per cent of the cash surrender value of the	1030
certificate at the time that the loan is made, less any	1031
outstanding indebtedness including any unpaid interest not already	1032
deducted;	1033

(ii) The cash surrender value of the certificate at the time	1034
that the loan is made, less any outstanding indebtedness including	1035
any unpaid interest not already deducted, less the amount needed	1036
to pay the certificate's cost of insurance charges and expenses	1037
for as long as three months after the time that the loan is made.	1038

Sec. 3917.07.  No provision in section 3917.06 of the Revised	1039
Code shall prohibit a person whose life is insured under any such	1040
policy of group life insurance from making an assignment of all or	1041
any part of histhe person's incidents of ownership under such	1042
policy including specifically, but not by way of limitation, any	1043
right to designate a beneficiary or beneficiaries thereunder and	1044
any right to have an individual policy issued to himthe person in	1045
accordance with division (E)(H) or (F)(I) of section 3917.06 of	1046
the Revised Code. Subject to the terms of the policy relating to	1047
assignment of incidents of ownership thereunder, such an	1048
assignment by an insured, made either before or after the	1049
effective date of this section, is valid for the purpose of	1050
vesting in the assignee, in accordance with any provisions	1051
included therein as to the time at which it is to be effective,	1052
all of such incidents of ownership so assigned, but without	1053
prejudice to the insurer on account of any payment it may make or	1054
individual policy it may issue in accordance with division (E)(H)	1055
or (F)(I) of section 3917.06 of the Revised Code prior to receipt	1056
of notice of the assignment.	1057

Section 2. That existing sections 9.90, 1751.12, 3917.01,	1058
3917.06, and 3917.07 and section 3917.03 of the Revised Code are	1059
hereby repealed.	1060