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Am. Sub. S. B. No. 138As Passed by the HouseAs Passed by the House
124th General Assembly | Regular Session | 2001-2002 |
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SENATORS Nein, Espy, Harris, Jacobson, White, Spada
REPRESENTATIVES G. Smith, Wolpert, Stapleton, Flowers, Schmidt, Coates, Schaffer, Seitz, Sferra, Niehaus, Olman
A BILL
To amend sections 111.15, 119.01, 1121.01, 1121.11,
1121.18, 1155.01,
1155.091, 1155.16, 1163.01,
1163.121, 1163.20,
1321.09, 1321.55, 1321.76,
1322.06, 1322.061,
1707.092, 1707.11, 1707.12,
1707.141, 1707.15, 1707.151,
1707.161, 1707.17,
1707.20, 1707.40, 1707.44, 1733.01, 1733.32, 1733.327,
1751.19, 3901.36,
3901.44, 3901.48, 3901.70,
3901.83, 3903.11,
3903.72, 3903.83, 3903.88,
3905.492, 3905.50,
3999.36, and 4727.18, to enact
sections 1181.25, 1707.201,
and 3901.045 of the
Revised Code,
and to repeal section 1322.06 of the
Revised Code,
as amended by this act, on May 2,
2002, relative to
the
circumstances under which the
Department of
Insurance and the Divisions of
Financial
Institutions and Securities may share
confidential
documents and
information with, and
receive such
documents and
information from, other
specified
regulators and
officials, or otherwise
disclose
these documents
and information, and to
modifications of the Securities Law with respect to
investment advisers, application for a securities
dealer's license, license renewals and fees, parity
rules, notice filings, and
consent to service of
process.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 111.15, 119.01, 1121.01, 1121.11,
1121.18, 1155.01,
1155.091, 1155.16, 1163.01, 1163.121, 1163.20,
1321.09, 1321.55,
1321.76, 1322.06, 1322.061, 1707.092, 1707.11,
1707.12, 1707.141, 1707.15,
1707.151, 1707.161, 1707.17, 1707.20,
1707.40, 1707.44, 1733.01, 1733.32, 1733.327, 1751.19,
3901.36, 3901.44,
3901.48, 3901.70, 3901.83, 3903.11, 3903.72,
3903.83, 3903.88,
3905.492, 3905.50, 3999.36, and 4727.18 be
amended and sections
1181.25, 1707.201, and 3901.045 of the Revised Code be
enacted to
read as follows:
Sec. 111.15. (A) As used in this section: (1) "Rule" includes any rule, regulation, bylaw, or
standard
having a general and uniform operation adopted by an
agency under
the authority of the laws governing the agency; any
appendix to a
rule; and any internal management rule. "Rule"
does not include
any guideline adopted pursuant to section
3301.0714 of the Revised
Code, any order respecting the duties of
employees, any finding,
any determination of a question of law or
fact in a matter
presented to an agency, or any rule promulgated
pursuant to
Chapter 119., section 4141.14, division (C)(1) or (2)
of section
5117.02, or section 5703.14 of the Revised Code.
"Rule" includes
any amendment or rescission of a rule. (2) "Agency" means any governmental entity of the state
and
includes, but is not limited to, any board, department,
division,
commission, bureau, society, council, institution,
state college
or university, community college district,
technical college
district, or state community college. "Agency"
does not include
the general assembly, the controlling board,
the adjutant
general's department, or
any court. (3) "Internal management rule" means any rule, regulation,
bylaw, or standard governing the day-to-day staff procedures and
operations within an agency. (4) "Substantive revision" has the same meaning as in
division (J) of section 119.01 of the Revised Code. (B)(1) Any rule, other than a rule of an emergency nature,
adopted by any agency pursuant to this section shall be effective
on the tenth day after the day on which the rule in final form
and
in compliance with division (B)(3) of this section is filed
as
follows: (a) The rule shall be filed in electronic form with
both the
secretary of state and the director of the legislative
service
commission; (b) The rule shall be filed in electronic form with
the
joint committee on agency rule review. Division (B)(1)(b) of
this
section does not apply to any rule to which division (D) of
this
section does not apply. An agency that adopts or amends a rule that is subject to
division
(D) of this section shall assign a review
date to the
rule that is not later than five years after its effective date.
If no review date is assigned to a rule, or if a review date
assigned to a
rule exceeds the five-year maximum, the review date
for the rule is
five years after its effective date. A rule with
a review date is
subject to review under section 119.032 of the
Revised Code. This paragraph does not apply to a rule of a
state
college or university, community college district, technical
college
district, or state community college. If all filings are not completed on the same day, the rule
shall
be effective on the tenth day after the day on which the
latest
filing is completed. If an agency in adopting a rule
designates an
effective date that is later than the effective date
provided for
by division (B)(1) of this section, the rule if filed
as required
by such division shall become effective on the later
date
designated by the agency. Any rule that is required to be filed under division (B)(1)
of this section is also subject to division (D) of this section
if
not exempted by division (D)(1), (2), (3), (4), (5), (6),
(7), or
(8) of this section. (2) A rule of an emergency nature necessary for the
immediate preservation of the public peace, health, or safety
shall state the reasons for the necessity. The
emergency rule, in
final form and in compliance with division
(B)(3) of this section,
shall be filed in electronic
form
with the
secretary of state, the
director of the legislative service
commission, and
the joint
committee on agency rule review. The
emergency rule is effective
immediately upon completion of the latest filing,
except that if
the agency in adopting the emergency rule
designates an effective
date, or date and time of day, that is
later than the effective
date and time provided for by division
(B)(2) of this section, the
emergency rule if filed as required
by such division shall become
effective at the later date, or
later date and time of day,
designated by the agency. An emergency rule becomes invalid at the end of the
ninetieth
day it is in effect. Prior to that date, the agency
may file the
emergency rule as a nonemergency rule in compliance
with division
(B)(1) of this section. The agency may not refile
the emergency
rule in compliance with division (B)(2) of this
section so that,
upon the emergency rule becoming invalid under
such division, the
emergency rule will continue in effect without
interruption for
another ninety-day period. (3) An agency shall file a rule under division (B)(1) or
(2)
of this section in compliance with the following standards
and
procedures: (a) The rule shall be numbered in accordance with the
numbering system devised by the director for the Ohio
administrative code. (b) The rule shall be prepared and submitted in compliance
with the rules of the legislative service commission. (c) The rule shall clearly state the date on which it is
to
be effective and the date on which it will expire, if known. (d) Each rule that amends or rescinds another rule shall
clearly refer to the rule that is amended or rescinded. Each
amendment shall fully restate the rule as amended. If the director of the legislative service commission or
the
director's designee gives an agency notice
pursuant to section
103.05 of the Revised Code that a rule filed by the agency is not
in compliance with the rules of the legislative service
commission, the agency shall within thirty days after receipt of
the notice conform the rule to the rules of the commission as
directed in the notice. (C) All rules filed pursuant to divisions (B)(1)(a) and
(2)
of this section shall be recorded by the secretary of state
and
the director under the title of the agency adopting the rule
and
shall be numbered according to the numbering system devised
by the
director. The secretary of state and the director shall
preserve
the rules in an accessible manner. Each such rule shall
be a
public record open to public inspection and may be transmitted to
any law publishing company that wishes to reproduce it. (D) At least sixty-five days before a board, commission,
department, division, or bureau of the government of the state
files a rule under division (B)(1) of this section, it shall file
the full text of the proposed rule in electronic form
with the
joint
committee on agency rule review, and the proposed rule
is
subject to legislative review and invalidation under division (I)
of section 119.03 of the Revised Code. If a state board,
commission, department, division, or bureau makes a substantive
revision in a proposed rule after it is filed with the joint
committee, the state board, commission, department,
division, or
bureau shall promptly file the full text of
the
proposed rule in
its revised form in electronic form
with the joint committee. The
latest version of a proposed rule as filed with the joint
committee supersedes each earlier version of the text
of the same
proposed rule. Except as provided in division (F) of this
section, a state board, commission, department, division, or
bureau shall also file the rule summary and fiscal
analysis
prepared under section 121.24 or 127.18 of the Revised
Code, or
both, in electronic form along with a proposed
rule, and
along
with a proposed rule in revised form, that is filed under this
division. As used in this division, "commission" includes the public
utilities
commission when adopting rules under a federal or state
statute. This division does not apply to any of the following: (1) A proposed rule of an emergency nature; (2) A rule proposed under section 1121.05, 1121.06, 1155.18,
1707.201, 1733.412,
4123.29, 4123.34, 4123.341, 4123.342, 4123.40,
4123.411, 4123.44,
or
4123.442 of the Revised Code; (3) A rule proposed by an agency other than a board,
commission, department, division, or bureau of the government of
the state; (4) A proposed internal management rule of a board,
commission, department, division, or bureau of the government of
the state; (5) Any proposed rule that must be adopted verbatim by an
agency pursuant to federal law or rule, to become effective
within
sixty days of adoption, in order to continue the operation
of a
federally reimbursed program in this state, so long as the
proposed rule contains both of the following: (a) A statement that it is proposed for the purpose of
complying with a federal law or rule; (b) A citation to the federal law or rule that requires
verbatim compliance. (6) An initial rule proposed by the director of health to
impose safety standards, quality-of-care standards, and
quality-of-care data
reporting requirements with respect to a
health service specified in section
3702.11 of the Revised Code,
or an initial rule proposed by the director to
impose
quality
standards on a facility listed in division (A)(4) of section
3702.30 of the Revised Code, if section 3702.12 of the Revised
Code requires
that the rule be adopted under this section; (7) A rule of the state lottery commission pertaining to
instant game rules. If a rule is exempt from legislative review under division
(D)(5)
of this section, and if the federal law or rule pursuant to
which
the rule was adopted expires, is repealed or rescinded, or
otherwise terminates, the rule is thereafter subject to
legislative review under division (D) of this section. (E) Whenever a state board, commission, department,
division, or bureau files a proposed rule or a proposed rule in
revised form under division (D) of this section, it shall also
file the full text of the same proposed rule or
proposed rule in
revised form in electronic form with
the secretary of state and
the director of the legislative service
commission. Except as
provided in division (F) of this section,
a state board,
commission, department, division, or bureau shall
file the rule
summary and fiscal analysis prepared
under section 121.24 or
127.18 of the Revised Code, or both, in electronic form
along with
a proposed rule or proposed rule in revised form
that is filed
with the secretary of state or the director of the
legislative
service commission. (F) Except as otherwise provided in this division, the
auditor of state or the auditor of state's designee is not
required
to file a rule
summary and fiscal analysis along with a
proposed rule, or
proposed rule in revised form, that the auditor
of state proposes
under section
117.12, 117.19, 117.38, or 117.43
of the Revised Code and files
under division (D) or (E) of this
section. If, however, the
auditor of state or the designee
prepares a rule summary and
fiscal analysis of the original
version of such a proposed rule
for purposes of complying with
section 121.24 of the Revised
Code, the auditor of state or
designee shall file the
rule summary and fiscal
analysis in
electronic form along with the original
version of the proposed
rule filed under division (D) or (E) of this section.
Sec. 119.01. As used in sections 119.01 to 119.13 of the
Revised Code: (A)(1) "Agency" means, except as limited by this division,
any official, board, or commission having authority to promulgate
rules or make adjudications in
the civil service commission, the
division of liquor control, the department
of
taxation, the
industrial commission, the bureau of workers'
compensation, the
functions of any administrative or executive
officer, department,
division, bureau, board, or commission of
the government of the
state specifically made subject to sections
119.01 to 119.13 of
the Revised Code, and the licensing functions
of any
administrative or executive officer, department, division,
bureau,
board, or commission of the government of the state
having the
authority or responsibility of issuing, suspending,
revoking, or
canceling licenses. Except as otherwise provided in division (I) of
this section,
sections 119.01 to 119.13 of
the Revised Code do not apply to the
public utilities commission. Sections
119.01 to 119.13 of the
Revised Code do not apply to the
utility radiological safety
board; to the controlling board; to
actions of the superintendent
of financial institutions and the superintendent
of insurance in
the taking
possession of, and rehabilitation or liquidation of,
the business
and property of banks, savings and loan associations,
savings banks,
credit unions, insurance
companies, associations,
reciprocal fraternal benefit societies,
and bond investment
companies;
to any taken by the division of securities under
section 1707.201 of the Revised Code; or to any
action that may be
taken by the superintendent of financial
institutions under
section 1113.03, 1121.05, 1121.06, 1121.10,
1125.09,
1125.12,
1125.18, 1155.18, 1157.01, 1157.02,
1157.10,
1163.22, 1165.01,
1165.02, 1165.10, 1733.35, 1733.361, 1733.37,
1733.412, or 1761.03
of the Revised Code. Sections 119.01 to 119.13 of the
Revised Code do not apply to
actions of the industrial commission
or the bureau of workers'
compensation under sections 4123.01 to
4123.94 of the Revised Code
with respect to all matters of
adjudication, and to the actions of
the industrial commission and
bureau of workers' compensation
under division (D) of section 4121.32 and
sections 4123.29,
4123.34, 4123.341, 4123.342, 4123.40, 4123.411, 4123.44,
4123.442,
and divisions (B), (C), and (E) of section 4131.14
of the Revised
Code. (2) "Agency" also means any official or work unit having
authority to promulgate rules or make adjudications in the
department of job
and family services, but only with respect to
both of
the following: (a) The adoption, amendment, or rescission
of rules that
section 5101.09 of the Revised
Code requires be adopted in
accordance with
this chapter; (b) The issuance, suspension, revocation, or cancellation
of
licenses. (B) "License" means any license, permit, certificate,
commission, or charter issued by any agency. "License" does not
include any arrangement whereby a person, institution, or entity
furnishes medicaid services under a provider agreement with the
department of job and family services pursuant to Title
XIX of the
"Social
Security Act," 49 Stat. 620 (1935), 42 U.S.C. 301, as
amended. (C) "Rule" means any rule, regulation, or standard, having
a
general and uniform operation, adopted, promulgated, and
enforced
by any agency under the authority of the laws governing
such
agency, and includes any appendix to a rule. "Rule" does
not
include any internal management rule of an agency unless the
internal management rule affects private rights and does not
include any guideline adopted pursuant to section 3301.0714 of
the
Revised Code. (D) "Adjudication" means the determination by the highest
or
ultimate authority of an agency of the rights, duties,
privileges,
benefits, or legal relationships of a specified
person, but does
not include the issuance of a license in
response to an
application with respect to which no question is
raised, nor other
acts of a ministerial nature. (E) "Hearing" means a public hearing by any agency in
compliance with procedural safeguards afforded by sections 119.01
to 119.13 of the Revised Code. (F) "Person" means a person, firm, corporation,
association,
or partnership. (G) "Party" means the person whose interests are the
subject
of an adjudication by an agency. (H) "Appeal" means the procedure by which a person,
aggrieved by a finding, decision, order, or adjudication of any
agency, invokes the jurisdiction of a court. (I) "Rule-making agency" means any board, commission,
department, division, or bureau of the government of the state
that is required to file proposed rules, amendments, or
rescissions under division (D) of section 111.15 of the Revised
Code and any agency that is required to file proposed rules,
amendments, or rescissions under divisions (B) and (H) of section
119.03 of the Revised Code. "Rule-making agency" includes the
public utilities
commission. "Rule-making agency" does not
include any state-supported college or university. (J) "Substantive revision" means any addition to,
elimination from, or other change in a rule, an amendment of a
rule, or a rescission of a rule, whether of a substantive or
procedural nature, that changes any of the following: (1) That which the rule, amendment, or rescission permits,
authorizes, regulates, requires, prohibits, penalizes, rewards,
or
otherwise affects; (2) The scope or application of the rule, amendment, or
rescission. (K) "Internal management rule" means any rule, regulation,
or standard governing the day-to-day staff procedures and
operations within an agency.
Sec. 1121.01. As used in this chapter: (A)
"Financial institution regulatory authority" includes a
regulator of a business activity in which a bank or trust company
is engaged, or has applied to engage in, to the extent that the
regulator has jurisdiction over a bank or trust company engaged in
that business activity. A bank or trust company is engaged in a
business activity, and a regulator of that business activity has
jurisdiction over the bank or trust company, whether the bank or
trust company conducts the activity directly or a subsidiary or
affiliate of the bank or trust company conducts the activity.
(B)
"Regulated person" means any of the following: (1) A director, officer, or employee of or agent for a bank
or trust
company or a controlling shareholder of a state bank,
foreign bank, or trust
company; (2) A person who is required to obtain, but has not yet
obtained, the
consent of the superintendent of financial
institutions to acquire control of
a bank pursuant to section
1115.06 of the Revised Code; (3) A person participating in the conduct of the affairs of
a bank or
trust company. (B)(C) "Participating in the conduct of the affairs of a
bank or
trust company" means either making decisions or, directly
or indirectly,
taking actions that are management or policymaking
in nature and generally
within the scope of authority of the
bank's or trust company's board of
directors or executive
officers. Whether a person is or was participating in
the conduct
of the affairs of a bank or trust company is an issue of fact, and
not to be determined solely on the basis of the person's title,
contract, or
indicia of employment or independent contractor
status.
Sec. 1121.11. (A) In administering Chapters 1101. to
1127.
of the Revised Code and fulfilling the
duties imposed by those
chapters, including the
duty imposed by section 1121.10 of the
Revised Code, the superintendent of
financial institutions may do
any of the following: (1) Participate with financial institution regulatory
authorities of
this and other
states, the United States, and other
countries in any of the following: (a) Programs for alternate examinations of the records and
affairs of banks and trust companies over which they have
concurrent
jurisdiction; (b) Joint or concurrent examinations of the records and
affairs
of banks and trust companies over which they have
concurrent jurisdiction; (c) Coordinated examinations of the records and affairs of
banks
and trust companies over which they have collective
jurisdiction. (2) Conduct, participate in, or coordinate independent,
concurrent, joint,
or coordinated examinations of the records and
affairs of banks and trust
companies and otherwise act on behalf
of financial institution regulatory
authorities of
this and other
states, the United States, and other
countries having jurisdiction
over the banks and trust companies; (3) Rely on information leading to, arising from, or
obtained in the
course of examinations conducted by financial
institution regulatory
authorities of
this and other states, the
United States, and other
countries when both of the following
apply: (a) Pursuant to agreement and applicable law, the
superintendent
may receive and use the information leading to,
arising from, or obtained in
the course of the other regulatory
authorities' examinations in administering
Chapters 1101. to 1127.
of the Revised Code and acting under the authority of
those
chapters; (b) In the superintendent's judgment the other regulatory
authorities' personnel, practices, and authority warrant the
superintendent's
reliance. (4) Authorize financial institution regulatory authorities
of
this and other
states, the United States, and other countries
to receive
and use information leading to, arising from, or
obtained in the course of
examinations conducted by the division
of financial institutions in the same
manner and for the purposes
they could use information leading to, arising
from, or obtained
in the course of their own examinations when both of the
following
apply: (a) Pursuant to applicable law, information leading to,
arising
from, or obtained in the course of examinations the other
regulatory
authorities conduct is protected from general
disclosure and may only be
disclosed for purposes similar to those
provided in section 1121.18 of the Revised Code,
which are
principally regulatory in nature, for disclosure of information
leading to, arising from, or obtained in the course of
examinations conducted
by the division; (b) Pursuant to agreement and applicable law, information
leading
to, arising from, or obtained in the course of
examinations conducted by the
division will, in the other
regulatory authorities' possession or the
possession of any
persons to whom the other regulatory authorities disclosed
the
information as a part of examinations of those persons, be
protected from
disclosure to the same extent as information
leading to, arising from, or
obtained in the course of those
regulatory authorities' examinations. (5) Rely on the actions of financial institution regulatory
authorities of
this and
other states, the United States, or other
countries, or
participate with them jointly, in responding to
violations of law, unsafe or
unsound practices, breaches of
fiduciary duty, or other regulatory concerns
affecting banks and
trust companies over which they have concurrent
jurisdiction when
the other regulatory authorities have adequate personnel,
practices, and authority to warrant the reliance; (6) Implement other cooperative arrangements with financial
institution
regulatory authorities of
this and other states, the
United States,
and other countries consistent with safety and
soundness. (B) No person shall use any reliance by the superintendent,
in
whole or in part, on financial institution regulatory
authorities of
this or other
states, the United States, or other
countries in accordance
with division (A) of this section to
support any assertion of either
of the following: (1) Failure of the superintendent or division to properly
administer
Chapters 1101. to 1127. of the Revised Code or fulfill
the duties
imposed by those chapters; (2) Disagreement by the superintendent or division with any
action taken
by financial institution regulatory authorities of
this or other states, the
United States, or other countries. (C) In conducting, participating in,
or coordinating
independent, concurrent, joint, or coordinated
examinations of the
records and affairs of banks and trust
companies, the
superintendent may purchase services from
financial institution
regulatory authorities of
this and other states,
the United
States, and other countries,
including services provided by
employees of other financial
institution regulatory authorities in
their capacities as
employees of other financial institution
regulatory authorities. The purchase
of services from one or more
financial institution
regulatory authorities of
this and other
states, the
United States, or other countries is
the purchase of
services from a sole source provider and is not
the employment of
any financial institution regulatory authority
or any of its
employees. The authority to purchase services pursuant to this
division
does not impair the superintendent's authority to
purchase
services from any other source.
Sec. 1121.18. (A) Information leading to, arising from, or
obtained in the course of the examination of a bank or any
examination
conducted pursuant to the authority of section 1121.10
or 1121.11 of the Revised Code is
privileged and confidential. No
person, including any person to whom the
information is disclosed
under the authority of this section, shall disclose
information
leading to, arising from, or obtained in the course of an
examination, except as specifically provided in this section. (B) The superintendent of financial institutions and the
superintendent's agents and employees may disclose information
leading to,
arising from, or obtained in the course of an
examination conducted pursuant
to section 1121.10 or 1121.11 of
the Revised Code as follows: (1) To the governor, director of commerce, or deputy
director of commerce
to enable them to act in the interests of the
public; (2) To the banking commission to enable the
commission to
effectively advise the
superintendent and take action on any
matter the superintendent presents to
the commission; (3) To financial institution regulatory authorities of
this
and other states, the
United States, and other countries to assist
them in their
regulatory duties; (4) To the directors, officers, agents, and parent company
of the bank or
other person examined to assist them in conducting
the business of the bank or
other person examined in a safe and
sound manner and in compliance with law; (5) To law enforcement authorities conducting criminal
investigations. (C)(1) Information leading to, arising from, or obtained in
the
course of an examination of a bank or other person pursuant to
section 1121.10
or 1121.11 of the Revised Code shall not be
discoverable from any source, and shall not be
introduced into
evidence, except in the following circumstances: (a) In connection with criminal proceedings; (b) When, in the opinion of the superintendent, it is
appropriate
with regard to enforcement actions taken and decisions
made by the
superintendent under the authority of Chapters
1101.
to 1127. of the Revised Code
regarding a bank, trust company, or
other person; (c) When litigation has been initiated by the superintendent
in
furtherance of the powers, duties, and obligations imposed upon
the
superintendent by Chapters 1101. to 1127. of the Revised Code; (d) When authorized by agreements between the superintendent
and
financial institution regulatory authorities of
this and other
states, the
United States, and other countries authorized by
section
1121.11 of the Revised Code;
(e) When and in the manner authorized in section 1181.25 of
the Revised Code. (2) The discovery of information leading to, arising from,
or obtained in
the course of an examination pursuant to division
(C)(1)(b), (c), or (d) of this section
shall be limited to
information that directly relates to the bank, trust
company,
regulated person, or other person who is the subject of the
enforcement action, decision, or litigation. (D) A report of an examination conducted pursuant to section
1121.10 or 1121.11 of the Revised Code is the property of the
division of
financial
institutions. Under no circumstances may
the bank or other person examined,
its directors, officers,
employees, agents, regulated persons, or contractors,
or any
person having knowledge or possession of a report of examination,
or
any of its contents, disclose or make public in any manner the
report of
examination or its contents. The authority provided in
division
(B)(4) of this section for use of examination information
to assist
in conducting the business of the bank or other person
examined in a safe and
sound manner and in compliance with law
shall not be construed to authorize
disclosure of a report of
examination or any of its contents in conducting
business with the
examined bank's or person's customers, creditors, or
shareholders,
or with other persons. (E) Whoever violates this section shall be removed from
office,
shall be liable, with the violator's bonder in damages to
the person
injured by the disclosure of information, and is guilty
of a felony of the
fourth degree.
Sec. 1155.01. As used in sections 1155.01 to 1155.20 of the
Revised Code: (A)
"Controlling person" means any person or entity which,
either directly or indirectly, or acting in concert with one or
more other persons or entities, owns, controls, or holds with
power to vote, or holds proxies representing, fifteen per cent or
more of the voting shares or rights of a savings and loan
association, or controls in any manner the election or
appointment
of a majority of the directors of an association.
However, a
director of an association will not be deemed to be a
controlling
person of such association based upon
his
the
director's voting,
or acting in concert with other directors in voting,
proxies
obtained in connection with an annual solicitation of proxies or
obtained from savings account holders and borrowers if such
proxies are voted as directed by a majority of the entire board
of
directors of the association, or of a committee of such
directors
if such committee's composition and authority are
controlled by a
majority vote of the entire board and if its
authority is
revocable by such a majority. (B)
"Independent auditor" means an accountant who is
licensed
to practice as a certified public accountant or public
accountant
by this state, and who is employed or otherwise
retained by a
savings and loan association to audit its accounts.
An independent
auditor may not be an employee of the association,
its
subsidiaries, or holding company affiliates. (C)
"Outside director" means a director of a savings and
loan
association who is not an officer or employee of the
association,
an independent auditor of the association, an
attorney of the
association, or any other person having a
fiduciary relationship,
other than that of being a director, with
the association. (D)
"Holding company affiliate" means a savings and loan
holding company of which the savings and loan association is a
subsidiary and any other subsidiary of such holding company other
than a subsidiary of such association.
(E) "Financial institution regulatory authority" includes a
regulator of a business activity in which a savings and loan
association is engaged, or has applied to engage in, to the extent
that the regulator has jurisdiction over a savings and loan
association engaged in that business activity. A savings and loan
association is engaged in a business activity, and a regulator of
that business activity has jurisdiction over the savings and loan
association, whether the savings and loan association conducts the
activity directly or a subsidiary or affiliate of the savings and
loan association conducts the activity.
Sec. 1155.091. (A) In administering Chapters 1151. to
1157.
of the Revised Code and fulfilling the duties imposed by
those
chapters, including the duty imposed by section 1151.09 of the
Revised
Code, the superintendent of financial institutions may do
any of the
following: (1) Participate with financial institution regulatory
authorities of
this and other
states, the United States, and other
countries in any of the
following: (a) Programs for alternate examinations of the records and
affairs of savings and loan associations over which they have
concurrent
jurisdiction; (b) Joint or concurrent examinations of the records and
affairs
of savings and loan associations over which they have
concurrent jurisdiction; (c) Coordinated examinations of the records and affairs of
savings and loan associations over which they have collective
jurisdiction. (2) Conduct, participate in, or coordinate independent,
concurrent, joint,
or coordinated examinations of the records and
affairs of savings and loan
associations and otherwise act on
behalf of financial institution regulatory
authorities of
this and
other states, the United States, and other
countries having
jurisdiction over the savings and loan associations; (3) Rely on information leading to, arising from, or
obtained in the
course of examinations conducted by financial
institution regulatory
authorities of
this and other states, the
United States, and other
countries when both of the following
apply: (a) Pursuant to agreement and applicable law, the
superintendent may receive and use the information leading to,
arising from,
or obtained in the course of the other regulatory
authorities' examinations in
administering Chapters 1151. to 1157.
of the Revised Code and acting under the
authority of those
chapters; (b) In the superintendent's judgment the other regulatory
authorities' personnel, practices, and authority warrant the
superintendent's
reliance. (4) Authorize financial institution regulatory authorities
of
this and other
states, the United States, and other countries
to receive
and use information leading to, arising from, or
obtained in the course of
examinations conducted by the division
of financial institutions in the same
manner and for the purposes
they could use information leading to, arising
from, or obtained
in the course of their own examinations when both of the
following
apply: (a) Pursuant to applicable law, information leading to,
arising
from, or obtained in the course of examinations the other
regulatory
authorities conduct is protected from general
disclosure and may only be
disclosed for purposes similar to those
provided in section 1155.16 of the
Revised Code, which are
principally regulatory in nature, for disclosure of
information
leading to, arising from, or obtained in the course of
examinations conducted by the division; (b) Pursuant to agreement and applicable law, information
leading
to, arising from, or obtained in the course of
examinations conducted by the
division will, in the other
regulatory authorities' possession or the
possession of any
persons to whom the other regulatory authorities disclosed
the
information as a part of examinations of those persons, be
protected from
disclosure to the same extent as information
leading to, arising from, or
obtained in the course of those
regulatory authorities' examinations. (5) Rely on the actions of financial institution regulatory
authorities of
this and
other states, the United States, or other
countries, or
participate with them jointly, in responding to
violations of law, unsafe or
unsound practices, breaches of
fiduciary duty, or other regulatory concerns
affecting savings and
loan associations over which they have concurrent
jurisdiction
when the other regulatory authorities have adequate personnel,
practices, and authority to warrant the reliance; (6) Implement other cooperative arrangements with financial
institution
regulatory authorities of
this and other states, the
United States,
and other countries consistent with safety and
soundness. (B) No person shall use any reliance by the superintendent,
in
whole or in part, on financial institution regulatory
authorities of
this or other
states, the United States, or other
countries in accordance
with division (A) of this section to
support any assertion of either
of the following: (1) Failure of the superintendent or division to properly
administer
Chapters 1151. to 1157. of the Revised Code or fulfill
the duties imposed by
those chapters; (2) Disagreement by the superintendent or division with any
action taken
by financial institution regulatory authorities of
this or other states, the
United States, or other countries. (C) In conducting, participating in, or coordinating
independent,
concurrent, joint, or coordinated examinations of the
records and affairs of
savings and loan associations, the
superintendent may purchase services from
financial institution
regulatory authorities of
this and other states, the
United
States, and other countries, including services
provided by
employees of other financial institution regulatory authorities.
The purchase of services from one or more financial institution
regulatory
authorities of
this and other states, the United
States, and
other
countries is the purchase of services from a
sole source
provider and is not
the employment of any financial
institution
regulatory authority or any of its
employees. The authority to purchase services pursuant to this division
does not
impair the superintendent's authority to purchase
services from any other
source.
Sec. 1155.16. (A)(1) Except as provided in division (B) of
this section, the superintendent of
savings and loan
associations
financial institutions,
the superintendent's agents, and employees
shall keep privileged
and
confidential the examination reports,
information obtained in
an
examination, or any other information
obtained by reason of
their
official position. This section does
not prevent the
superintendent from properly releasing to or
exchanging
information relating to a savings and loan association,
or its
affairs, with the governor, the director of commerce, the
deputy
director of commerce, or representatives of state or
federal
financial institution
regulatory
agencies or governmental
authorities, or prevent such
release by the association or its
officers or directors, in the
conduct of the business of the
association. (2) Any person who receives privileged and confidential
examination reports or other information under the authority of
this section is also subject to the requirements of this section
and such person, knowing that such examination reports or
information are privileged and confidential, shall not purposely
divulge such reports or information in any manner. (3) If the superintendent, an agent of the
superintendent, or
an employee of the
superintendent purposely makes, or
causes to be
made,
any false statements or
reports regarding the affairs or
condition of a savings and loan
association, the act constitutes
falsification under section 2921.13
of the Revised Code. (B) Examination reports, information obtained in an
examination, and any other information obtained by reason of the
official position of the division of
savings and loan
associations
financial institutions
shall not be discoverable from any source,
and shall
not be
introduced into evidence, except in the following
situations: (1) In connection with criminal proceedings; (2) When, in the opinion of the superintendent, it is
necessary for the superintendent or for the agents or
employees of
the superintendent to take enforcement action under
Chapter 1151.,
1153., 1155., or
1157. of the Revised Code regarding the affairs
of the savings
and loan association examined; (3) When litigation has been initiated by the
superintendent
in furtherance of the powers, duties, and
obligations imposed upon
the superintendent by Chapter 1151.,
1153., 1155., or 1157. of the
Revised Code;
(4) When authorized by agreements between the
superintendent and financial institution regulatory authorities of
this and other states, the United States, and other countries
authorized by section 1155.091 of the Revised Code;
(5) When and in the manner authorized in section 1181.25 of
the Revised Code. (C) The discovery of examination reports and other related
material pursuant to divisions (B)(2) and (3) of this section
shall be limited to information that directly relates to the
association that is the subject of the enforcement action or the
litigation.
(D)(1) No person shall fail to comply with division (A)(1),
(2), or (3) of this section.
(2) Whoever violates division (D)(1) of this section is
guilty of a felony of the fourth degree.
Sec. 1163.01. As used in this chapter: (A) "Controlling person" means any person or entity which,
either directly or indirectly, or acting in concert with one or
more other persons or entities, owns, controls, or holds with
power to vote, or holds proxies representing, fifteen per cent or
more of the voting shares or rights of a savings bank, or
controls
in any manner the election or appointment of a majority
of the
directors of a savings bank. However, a director of a
savings
bank is not deemed to be a controlling person of the
savings bank
based upon
his
the director's voting, or acting in
concert with
other directors in voting, proxies obtained in connection with an
annual solicitation of proxies or obtained from savings account
holders and borrowers if the proxies are voted as directed by a
majority of the entire board of directors of the savings bank, or
of a committee of the directors if the committee's composition
and
authority are controlled by a majority vote of the entire
board
and if its authority is revocable by such a majority. (B) "Independent auditor" means an accountant who is
licensed to practice as a certified public accountant or public
accountant by this state, and who is employed or otherwise
retained by a savings bank to audit its accounts. An independent
auditor may not be an employee of the savings bank, its
subsidiaries, or holding company affiliates. (C) "Outside director" means a director of a savings bank
who is not an officer or employee of the savings bank, an
independent auditor of the savings bank, an attorney of the
savings bank, or any other person having a fiduciary
relationship,
other than that of being a director, with the
savings bank. (D) "Holding company affiliate" means a bank holding
company
or a savings and loan holding company of which the
savings bank is
a subsidiary and any other subsidiary of the
holding company other
than a subsidiary of the savings bank.
(E) "Financial institution regulatory authority" includes a
regulator of a business activity in which a savings bank is
engaged, or has applied to engage in, to the extent that the
regulator has jurisdiction over a savings bank engaged in that
business activity. A savings bank is engaged in a business
activity, and a regulator of that business activity has
jurisdiction over the savings bank, whether the savings bank
conducts the activity directly or a subsidiary or affiliate of the
savings bank conducts the activity.
Sec. 1163.121. (A) In administering Chapters 1161. to
1165.
of the Revised Code and fulfilling the duties imposed by those
chapters,
including the duty imposed by section 1163.12 of the
Revised Code, the
superintendent of financial institutions may do
any of the following: (1) Participate with financial institution regulatory
authorities of
this and other
states, the United States, and other
countries in any of the
following: (a) Programs for alternate examinations of the records and
affairs of savings banks over which they have concurrent
jurisdiction; (b) Joint or concurrent examinations of the records and
affairs
of savings banks over which they have concurrent
jurisdiction; (c) Coordinated examinations of the records and affairs of
savings banks over which they have collective jurisdiction. (2) Conduct, participate in, or coordinate independent,
concurrent, joint,
or coordinated examinations of the records and
affairs of savings banks and
otherwise act on behalf of financial
institution regulatory authorities of
this and other states, the
United States, and other countries having
jurisdiction over the
savings banks; (3) Rely on information leading to, arising from, or
obtained in the
course of examinations conducted by financial
institution regulatory
authorities of
this and other states, the
United States, and other
countries when both of the following
apply: (a) Pursuant to agreement and applicable law, the
superintendent
may receive and use the information leading to,
arising from, or obtained in
the course of the other regulatory
authorities' examinations in administering
Chapters 1161. to 1165.
of the Revised Code and acting under the authority of
those
chapters; (b) In the superintendent's judgment the other regulatory
authorities' personnel, practices, and authority warrant the
superintendent's
reliance. (4) Authorize financial institution regulatory authorities
of
this and other
states, the United States, and other countries
to receive
and use information leading to, arising from, or
obtained in the course of
examinations conducted by the division
of financial institutions in the same
manner and for the purposes
they could use information leading to, arising
from, or obtained
in the course of their own examinations when both of the
following
apply: (a) Pursuant to applicable law, information leading to,
arising
from, or obtained in the course of examinations the other
regulatory
authorities conduct is protected from general
disclosure and may only be
disclosed for purposes similar to those
provided in section 1163.20 of the Revised Code,
which are
principally regulatory in nature, for disclosure of information
leading to, arising from, or obtained in the course of
examinations conducted
by the division; (b) Pursuant to agreement and applicable law, information
leading
to, arising from, or obtained in the course of
examinations conducted by the
division will, in the other
regulatory authorities' possession or the
possession of any
persons to whom the other regulatory authorities disclosed
the
information as a part of examinations of those persons, be
protected from
disclosure to the same extent as information
leading to, arising from, or
obtained in the course of those
regulatory authorities' examinations. (5) Rely on the actions of financial institution regulatory
authorities of
this and other states, the United States,
or other
countries, or participate with them jointly, in responding to
violations of law, unsafe or unsound practices, breaches of
fiduciary duty, or
other regulatory concerns affecting savings
banks over which they have
concurrent jurisdiction when the other
regulatory authorities have adequate
personnel, practices, and
authority to warrant the reliance; (6) Implement other cooperative arrangements with financial
institution
regulatory authorities of
this and other states, the
United States,
and other countries consistent with safety and
soundness. (B) No person shall use any reliance by the superintendent,
in
whole or in part, on financial institution regulatory
authorities of
this or other
states, the United States, or other
countries in accordance
with division (A) of this section to
support any assertion of either
of the following: (1) Failure of the superintendent or division to properly
administer
Chapters 1161. to 1165. of the Revised Code or fulfill
the duties imposed by
those chapters; (2) Disagreement by the superintendent or division with any
action taken
by financial institution regulatory authorities of
this or other states, the
United States, or other countries. (C) In conducting, participating in, or coordinating
independent,
concurrent, joint, or coordinated examinations of the
records and affairs of
savings banks, the superintendent may
purchase services from financial
institution regulatory
authorities of
this and other states, the United
States, and other
countries, including services provided by employees
of other
financial institution regulatory authorities. The purchase of
services from one or more financial institution regulatory
authorities of
this and
other states, the United States, and
other countries is the
purchase of services from a sole source
provider and is not the employment of
any financial institution
regulatory authority or any of its employees. The authority to purchase services pursuant to this division
does not
impair the superintendent's authority to purchase
services from any other
source.
Sec. 1163.20. (A)(1) Except as provided in division (B)
of
this section, the superintendent of
savings banks
financial
institutions, his agents,
and
employees shall keep privileged and
confidential the
examination
reports, information obtained in an
examination, or
any other
information obtained by reason of their
official
position. This
section does not prevent the
superintendent from
properly
releasing to or exchanging
information relating to a
savings bank,
or its affairs, with the
governor, the director of
commerce, the
deputy director of
commerce, or representatives of
state or
federal
financial
institution regulatory
agencies or governmental
authorities,
or
prevent such release by the savings bank or its
officers or
directors, in the conduct of the business of the
savings bank. (2) Any person who receives privileged and confidential
examination reports or other information under the authority of
this section also is subject to the requirements of this section.
No person, knowing that the examination reports or information
are
privileged and confidential, shall purposely divulge the
reports
or information in any manner. (3) Neither the superintendent, nor any agent or employee
of
the superintendent, shall purposely make, or cause to be made,
any
false statements or reports regarding the affairs or
condition of
a savings bank. (B) Examination reports, information obtained in an
examination, and any other information obtained by reason of the
official position of the division of
savings banks
financial
institutions shall not be
discoverable from any source, and shall
not be introduced into
evidence, except in the following
situations: (1) In connection with criminal proceedings; (2) When, in the opinion of the superintendent, it is
necessary for the superintendent, his agents, or employees to
take
enforcement action under this chapter or Chapter 1161. or
1165. of
the Revised Code regarding the affairs of the savings
bank
examined; (3) When litigation has been initiated by the
superintendent
in furtherance of the powers, duties, and
obligations imposed upon
the superintendent by this chapter or
Chapter 1161. or 1165. of
the Revised Code;
(4) When authorized by agreements between the
superintendent and financial institution regulatory authorities of
this and other states, the United States, and other countries
authorized by section 1163.121 of the Revised Code; (5) When and in the manner authorized in section 1181.25 of
the Revised Code. (C) The discovery of examination reports and other related
material pursuant to divisions (B)(2) and (3) of this section
shall be limited to information that directly relates to the
savings bank which is the subject of the enforcement action or
the
litigation. (D)(1) No person shall fail to comply with division
(A)(1),
(2), or (3) of this section. (2) Whoever violates division (D)(1) of this section is
guilty of a felony of the fourth degree.
Sec. 1181.25. The superintendent of financial institutions
may introduce into evidence or disclose, or authorize to be
introduced into evidence or disclosed, information that, under
sections 1121.18, 1155.16, 1163.20, 1321.09, 1321.55, 1321.76,
1322.06, 1322.061,
1733.32, 1733.327, and 4727.18 of the Revised
Code, is privileged,
confidential, or otherwise not public
information or a public
record, provided that the superintendent
acts only as provided in
those sections or in the following
circumstances:
(A) When in the opinion of the superintendent, it is
appropriate with regard to any enforcement actions taken and
decisions made by the superintendent under Chapters 1315., 1321.,
1322., 1733., 4712., 4727., and 4728. of the Revised Code or Title
XI of the Revised Code;
(B) When litigation has been initiated by the
superintendent in furtherance of the powers, duties, and
obligations imposed upon the superintendent by Chapters 1315.,
1321., 1322., 1733., 4712., 4727., and 4728. of the Revised Code
or Title XI of the Revised Code;
(C) When in the opinion of the superintendent, it is
appropriate with regard to enforcement actions taken or decisions
made by other financial institution regulatory authorities to whom
the
superintendent has provided the information pursuant to
authority
in Chapters 1315., 1321., 1322., 1733., 4712., 4727.,
and 4728. of
the Revised Code or Title XI of the Revised Code.
Sec. 1321.09. (A) Every licensee shall keep and use in the
licensee's business such books, accounts, and records as will
enable the
division of financial institutions to determine
whether
the licensee is complying with sections 1321.01 to
1321.19 of the
Revised Code and with the orders and rules made by the division
under those sections. Every licensee shall preserve such
books,
accounts,
and records for at least two years after making the
final entry
on any loan recorded therein. Accounting systems
maintained in
whole or in part by mechanical or electronic data
processing
methods that provide information equivalent to that
otherwise
required are acceptable for this purpose. As required by the superintendent of financial institutions,
every
licensee each year
shall file a report with the division
giving such relevant information
concerning the business and
operations, during the preceding calendar year, of
each licensed
place of business conducted by the licensee
within the state. If
a licensee has more than one place of business
within this state
it is optional with the licensee to furnish the
report for each
location, or a composite report for all
locations. Such report
shall be made under oath in the form
prescribed by the division,
which shall make and publish annually
an analysis and
recapitulation of such reports. Such licensee
reports are not
public records and shall only be used by the
division for the
purpose of enforcing sections 1321.01 to 1321.19
of the Revised
Code or any rules or orders made in compliance
with those
sections.
Such licensee reports may be introduced into evidence or
disclosed when and in the manner authorized in section 1181.25 of
the Revised Code, or in connection with criminal proceedings.
This section does not prevent the division from releasing to
or exchanging with other financial institution regulatory
authorities information relating to licensees.
(B) For purposes of this section, "financial institution
regulatory authority" includes a regulator of a business activity
in which a licensee is engaged, or has applied to engage in, to
the extent that the regulator
has jurisdiction over a licensee
engaged in that business
activity. A licensee is engaged in a
business activity, and a
regulator of that business activity has
jurisdiction over the
licensee, whether the licensee conducts the
activity directly or a
subsidiary or affiliate of the licensee
conducts the activity.
Sec. 1321.55. (A) Every registrant shall keep records
pertaining to loans made under
sections 1321.51 to 1321.60 of the
Revised Code. Such records
shall be segregated from records
pertaining to transactions
that are not subject to these sections
of the Revised Code. Every
registrant shall preserve records
pertaining to loans made under sections
1321.51 to 1321.60 of
the
Revised Code for at least two years after making the final
entry
on such records. Accounting systems maintained in whole
or in
part by mechanical or electronic data processing methods
that
provide information equivalent to that otherwise required
are
acceptable for this purpose. At least once each
eighteen-month
cycle, the
division of financial institutions shall make
or cause
to be made an
examination of records pertaining to loans made
under sections 1321.51 to
1321.60 of the Revised Code, for the
purpose of determining whether the
registrant is complying with
these sections and of verifying the
registrant's annual report. (B)(1) As required by the superintendent of financial
institutions, each
registrant shall file with the
division each
year a
report under oath or affirmation, on forms supplied by the
division, concerning the business and operations for the
preceding
calendar year. Whenever a registrant operates two or
more
registered offices or whenever two or more affiliated
registrants
operate registered offices, then a composite report
of the group
of registered offices may be filed in lieu of
individual reports. (2) The division shall publish annually an analysis of the
information required under division (B)(1) of this section, but
the individual reports shall not be public records and shall not
be open to public inspection. (C) All information obtained by the superintendent
or the
superintendent's deputies, examiners, assistants, agents, or
clerks by reason of their official position, including
information
obtained by such persons from the annual report of a
registrant or
in the course of examining a registrant or
investigating an
applicant for a certificate, is privileged and
confidential. All
such information shall remain privileged and
confidential for all
purposes except when it is necessary for
the superintendent and
the superintendent's deputies, examiners,
assistants, agents, or
clerks to take official action regarding
the affairs of the
registrant or in connection with criminal
proceedings.
Such
information may also be introduced into evidence or disclosed when
and in the manner authorized in section 1181.25 of the Revised
Code.
(D) No person is in violation of sections 1321.51 to 1321.60
of the Revised
Code for any act taken or omission made in reliance
on a written notice,
interpretation, or examination report from
the superintendent.
(E) This section does not prevent the division from
releasing to or exchanging with other financial institution
regulatory authorities information relating to registrants.
(F) For purposes of this section, "financial institution
regulatory authority" includes a regulator of a business activity
in which a registrant is engaged, or has applied to engage in, to
the extent that the regulator
has jurisdiction over a registrant
engaged in that business
activity. A registrant is engaged in a
business activity, and a
regulator of that business activity has
jurisdiction over the
registrant, whether the registrant conducts
the activity directly
or a subsidiary or affiliate of the
registrant conducts the
activity.
Sec. 1321.76. (A) Each licensee shall keep records of its
insurance premium
finance transactions conducted under sections
1321.71 to 1321.83 of the
Revised Code. Such records shall be
maintained separately from any records
pertaining to transactions
that are not subject to those sections. Each
licensee shall
preserve its records pertaining to insurance premium finance
transactions conducted under sections 1321.71 to 1321.83 of the
Revised Code
for at least two years after the final entry on such
records. Preservation of
records by means of accounting systems
maintained in whole or in part by
mechanical or electronic data
processing methods constitutes compliance with
this division. The division of financial institutions for
purposes of
determining whether a
licensee is complying with sections 1321.71
to 1321.83 of the Revised Code,
may make or cause to be made an
examination of records pertaining to insurance
premium finance
transactions conducted under those sections. (B) If a licensee's books, records, data, and other
documents are located
outside this state, the licensee shall, upon
the request of the superintendent
of financial institutions,
deposit with the
division an amount equal to the estimated costs,
as determined by the
superintendent, of an examination of the
licensee conducted outside this
state. After the actual costs of
the examination have been determined and
itemized by the division,
the division shall return to the licensee any amount
it had
deposited in excess of the actual costs. (C) All information obtained by the superintendent or the
superintendent's deputies, examiners, assistants, agents, or
clerks by
reason of their official position, including information
obtained by such
persons in the course of examining a
licensee or
investigating an applicant for a license, is privileged and
confidential. All such information shall remain privileged and
confidential
for all purposes except when, in the opinion of the
superintendent, it is
necessary for the superintendent and the
superintendent's
deputies, examiners, assistants, agents, or
clerks to take official action in
administering and enforcing
sections 1321.71 to 1321.83 of the Revised Code or
in connection
with criminal proceedings.
Such information may also be introduced
into evidence or disclosed when and in the manner authorized in
section 1181.25 of the Revised Code.
(D) This section does not prevent the division from
releasing to or exchanging with other financial institution
regulatory authorities information relating to licensees.
(E) For purposes of this section, "financial institution
regulatory authority" includes a regulator of a business activity
in which a licensee is engaged, or has applied to engage in, to
the extent that the regulator
has jurisdiction over a licensee
engaged in that business
activity. A licensee is engaged in a
business activity, and a
regulator of that business activity has
jurisdiction over the
licensee, whether the licensee conducts the
activity directly or a
subsidiary or affiliate of the licensee
conducts the activity.
Sec. 1322.06. (A) As often as the superintendent of
financial institutions considers it necessary, the superintendent
may
examine the registrant's
records pertaining to business
transacted pursuant to sections 1322.01 to
1322.12 of the Revised
Code. (B) A registrant shall maintain records pertaining to
business transacted
pursuant to sections 1322.01 to 1322.12 of the
Revised Code for two years or
more after the final entry on such
records. No registrant shall fail to
comply with this division. (C)(1) All information obtained by the superintendent or the
superintendent's deputies, examiners, assistants, agents, or
clerks by reason
of their official position, including information
obtained by such persons in
the course of examining a registrant
or investigating an applicant for a
certificate of registration,
is privileged and confidential. All such
information shall remain
privileged and confidential for all purposes except
when it is
necessary for the superintendent
and the superintendent's
deputies,
examiners, assistants, agents, or clerks to take
official action regarding the
affairs of the registrant or in
connection with criminal proceedings.
This information may also be
introduced into evidence or disclosed when and in the manner
authorized by section 1181.25 of the Revised Code. (2) All application information, except social security
numbers, employer identification numbers, financial account
numbers, the identity of the institution where financial accounts
are maintained, personal financial information, fingerprint cards
and the information contained on such cards, and criminal
background information, is a public record as defined in section
149.43 of the Revised Code.
(3) This section does not prevent the division of
financial institutions from releasing to or exchanging with other
financial institution regulatory authorities information relating
to registrants. For this purpose, a "financial institution
regulatory authority" includes a regulator of a business activity
in which a registrant is engaged, or has applied to engage in, to
the extent that the regulator has jurisdiction over a registrant
engaged in that business activity. A registrant is engaged in a
business activity, and a regulator of that business activity has
jurisdiction over the registrant, whether the registrant conducts
the
activity directly or a subsidiary or affiliate of the
registrant
conducts the activity.
(4) This section does not prevent the division from
releasing information relating to registrants to the attorney
general for purposes relating to the attorney general's
administration of Chapter 1345. of the Revised Code. Information
the division releases to the attorney general pursuant to this
section remains privileged and confidential, and the attorney
general may not disclose the information or introduce the
information into evidence unless the superintendent authorizes the
disclosure or introduction into evidence in connection with the
attorney general's administration of Chapter 1345. of the Revised
Code.
Sec. 1322.061. (A)(1) The following information is
privileged and confidential:
(a) Examination information, and any information leading to
or arising from an examination;
(b) Investigation information, and any information arising
from or leading to an investigation.
(2) The information described in division (A)(1) of this
section shall remain privileged and confidential for all purposes
except when it is necessary for the superintendent of financial
institutions to take official action regarding the affairs of a
registrant
or licensee, or in connection with
civil or criminal
investigations
or proceedings
conducted by the attorney general or
a county
prosecutor. The superintendent may share examination and
investigation information with any law enforcement agency or any
other state or federal regulatory agency. Any information shared
with the attorney general, a county prosecutor, or a law
enforcement agency or other state or federal regulatory agency
shall remain privileged and confidential and shall only be used in
connection with an official investigation, proceeding, or action.
This information may also be introduced into evidence or disclosed
when and in the manner authorized by section 1181.25 of the
Revised Code.
(B) All application information, except social security
numbers, employer identification numbers, financial account
numbers, the identity of the institution where financial accounts
are maintained, personal financial information, fingerprint cards
and the information contained on such cards, and criminal
background information, is a public record as defined in section
149.43 of the Revised Code.
(C) This section does not prevent the division of financial
institutions from releasing to or exchanging with other financial
institution regulatory authorities information relating to
registrants and
licensees. For this purpose, a "financial
institution regulatory
authority" includes a regulator of a
business activity in which a
registrant or licensee is engaged, or
has applied to engage in, to the extent
that the regulator has
jurisdiction over a registrant or licensee engaged in
that
business activity. A registrant or licensee is engaged in a
business
activity, and a regulator of that business activity has
jurisdiction over the registrant or licensee, whether the
registrant or licensee conducts the
activity directly or a
subsidiary or affiliate of the registrant or licensee
conducts the
activity.
(D) This section does not prevent the division from
releasing information relating to registrants and licensees to the
attorney
general for purposes relating to the attorney general's
administration of Chapter 1345. of the Revised Code. Information
the division releases to the attorney general pursuant to this
section remains privileged and confidential, and the attorney
general may not disclose the information or introduce the
information into evidence unless the superintendent authorizes the
disclosure or introduction into evidence in connection with the
attorney general's administration of Chapter 1345. of the Revised
Code.
Sec. 1707.092. (A) For the
purposes of selling securities
in this state,
except securities that are the subject matter of
transactions enumerated in section 1707.03 of the
Revised Code, an
investment company, as defined by the
Investment Company Act of
1940, that is registered
or has filed a registration statement
with the securities and
exchange commission under the
Investment
Company Act of 1940, shall file the
following with the division of
securities: (1)
For the purposes of the sale of securities by a
managed
investment company, as defined in the
Investment Company Act of
1940: (a) A notice filing consisting of either of the following:
(i)(a) A copy of the investment
company's federal
registration
statement as filed with the
securities and exchange
commission;
(ii)(b) A form
U-1 or form
NF of the
North American
securities
administrators association
and a copy of the investment
company's
prospectus and statement of additional
information.
(b)(2) Appropriate filing fees consisting of both of the
following:
(i)(a) A flat fee of one hundred dollars;
(ii)(b) A fee calculated at one-tenth of
one per cent of the
aggregate price at which the securities are
to be sold to the
public in this state, which calculated fee,
however, shall in no
case be less than one hundred or more than
one thousand dollars.
(c) Upon the registration of the
securities with the
securities and exchange commission, a
managed investment company
with an initial notice filing on file
with the division shall
submit to the division a copy of its
final prospectus.
(2) For the purposes of the sale of securities by a
non-managed investment company, as defined in the
Investment
Company Act of 1940:
(a) A notice filing consisting of
either a copy of the
investment company's federal registration
statement as filed with
the securities and exchange commission
or a form U-1 or form NF of
the
North American securities administrators association;
(b) Appropriate filing fees, as provided in division
(A)(1)(b) of this section;
(c) Upon the effectiveness of the
registration of the
securities with the securities and exchange
commission, a
non-managed investment company shall submit to the
division a copy
of its final prospectus.
(B)(1) Upon payment of
the maximum filing fees as provided
in division
(A)(1)(b)
or (2)(b)
(A)(2) of this section,
a managed
or
non-managed
an investment company may sell an indefinite amount
of
securities in this state. (2)
A managed or non-managed
An investment company making a
notice filing as provided in this section shall comply with
section 1707.11 of the Revised Code. An investment company
that
previously filed with the division a valid consent to
service of
process pursuant to section 1707.11 of the
Revised Code may
incorporate that
consent by reference. (C)(1) For offerings involving covered securities, as
defined in section 18
of the
"Securities
act
Act of 1933," 15
U.S.C.
77r, that are not subject to section
1707.02, 1707.03,
1707.04,
1707.06,
1707.08,
1707.09, or 1707.091 of the
Revised
Code, or
division
(A) of this section, a notice filing
shall be
submitted
to the division together with a consent to
service of
process
pursuant to section 1707.11 of the
Revised Code
and a
filing fee
as provided in division
(A)(1)(b)(A)(2) of this
section. (2) The notice filing described in division (C)(1) of this
section shall
consist of any document filed with the securities
and exchange
commission pursuant to the Securities Act of 1933,
together with
annual or periodic reports of the value of the
securities sold
or offered to be sold to persons located in this
state. (D) A notice filing submitted under this section shall be
effective for
thirteen months.
Sec. 1707.11. (A) Each person that
is not
organized
under the laws of this state, that is
not licensed under section
1703.03 of the
Revised Code, or that does not
have its principal
place of business in this state, shall
submit to the division of
securities an irrevocable consent to
service of process, as
described in division (B) of this section,
in connection with any
of the following: (1) Filings to claim any of the exemptions enumerated in
division (Q), (W), (X), or (Y) of section
1707.03 of
the Revised
Code; (2) Applications for registration by description,
qualification,
or coordination; (3) Notice filings pursuant to section 1707.092
or 1707.141
of
the Revised Code; (4) Applications for licensure as a securities dealer under
section 1707.15 of the Revised Code;
(5) Applications for licensure as an investment adviser
under
section 1707.151 of the Revised Code.
(B) The irrevocable written consent shall be
executed and
acknowledged by an
individual duly authorized to give the consent
and shall do all of
the following: (1) Designate the secretary of state as agent for service of
process or
pleadings; (2) State that
actions growing out of the sale of such
securities, the giving of
investment advice, or fraud committed by
a person on whose behalf the consent is
submitted may be commenced
against the person, in the
proper court of any county in this
state in which a cause of
action may arise or in which the
plaintiff in the
action may reside, by serving on the secretary of
state any
proper process or pleading authorized by the laws of
this state; (3) Stipulate that service of process
or pleading on the
secretary of state shall be taken in all courts
to be as valid and
binding as if service had been made upon the
person on whose
behalf the consent is
submitted. (C) Service of any process or pleadings may be made on the
secretary of state by duplicate copies, of which one shall be
filed in the office of the secretary of state, and the other
immediately forwarded by the secretary of state by certified mail
to the principal place of business of the person on whose
behalf
the consent is submitted or to the
last known address as shown on
the filing
made with the
division. However, failure to mail
such
copy does
not invalidate the service. (D) Notwithstanding any provision of this chapter, or of any
rule adopted by the division of securities under this chapter,
that requires
the submission of a consent to service of process,
the division may provide by
rule for the electronic filing or
submission of a consent to service of
process.
Sec. 1707.12. (A)
All
Except for offering materials filed
with the division of securities in connection with exempt
transactions under divisions (Q) and (W) of section 1707.03 of the
Revised Code, all applications and other papers filed
with the
division
of securities shall be open to inspection at
all
reasonable times, except for unreasonable or improper
purposes. (B) Information obtained by the division through any
offering materials filed with the division in connection with
exempt transactions under divisions (Q) and (W) of section 1707.03
of the Revised Code or through any
investigation shall be retained
by the division and shall not be
available to inspection by
persons other than those having a
direct economic interest in the
information or the transaction
under investigation, or by
a law
enforcement officer pursuant to
the duties of his office
law
enforcement agencies, state agencies,
federal agencies, and other
entities as set forth by rules adopted
by the division. (C) Confidential law enforcement investigatory records and
trial preparation records of the division of securities or any
other law enforcement or administrative agency which are in the
possession of the division of securities shall in no event be
available to inspection by other than law enforcement agencies,
state agencies, federal agencies, and other entities as set forth
by rules adopted by the division. (D) All public records shall be prepared and made
available
promptly to any member of the general public at all
reasonable
times for inspection. Upon request, the custodian of
public
records shall make copies of the records available at
cost, within
a reasonable period of time. To facilitate public
access, the
division shall maintain public records in such a
manner that they
can be made available pursuant to this section. (E)
No employee or representative of the division or the
department of commerce shall be required to testify concerning any
document or record subject to division (B) or (C) of this
section,
except as set forth by rules adopted by the division.
(F) As used in this section: (1) "Confidential law enforcement investigatory record"
means any record that pertains to a law enforcement matter of a
criminal, quasi-criminal, civil, or administrative nature,
provided that release of the record would create a high
probability of disclosure of any of the following: (a) The identity of a suspect who has not been charged
with
the offense to which the record pertains, or of an
information
source or witness to whom confidentiality reasonably
has been
promised; (b) Information provided by an information source or
witness
to whom confidentiality reasonably has been promised,
which
information reasonably would tend to disclose
his
the
identity
of
the information source or witness; (c) Specific confidential investigatory techniques or
procedures or specific investigatory work product. (2) "Trial preparation record" means any record that
contains information that is specifically compiled in reasonable
anticipation of, or in defense of, a criminal, quasi-criminal,
civil, or administrative action or proceeding, including, but not
limited to, the independent thought processes and personal trial
preparation of an attorney and division personnel, their notes,
diaries, and memoranda.
Sec. 1707.141. (A)
No person shall act as an investment
adviser,
unless
one of the following applies: (1) The person is licensed as an investment adviser by the
division of
securities; however, nothing in this section shall be
construed to
prohibit a person from being licensed by the division
as both an
investment adviser and a dealer or salesperson. (2) The person is registered under section 203 of the
"Investment
Advisers Act of 1940," 15
U.S.C. 80b-3, as an
investment
adviser and is in compliance with the notice filing
requirements of division
(B) of this section. (3) The person has no place of business in this state, and
the person's
only clients in this state are any of the following: (a) Investment companies as defined in the Investment
Company
Act of 1940; (b) Other investment advisers; (e) Insurance companies subject to regulation under
Title
XXXIX of the Revised Code and health insuring corporations
regulated
under Chapter 1751. of the Revised Code; (f) Employee benefit plans with assets of not less than one
million dollars; (g) Government agencies or instrumentalities, whether acting
for
themselves or trustees with investment control; (h) Other institutional investors as the division may
designate
by rule. (4) The person has no place of business in this state, and
during the
preceding twelve-month period, the person has had not
more
than five clients, other than those described in division
(A)(3) of
this section, that are residents of this state. (5) The person is a charitable organization, as defined in
section 3(c)(10) of the "Investment Company Act of 1940," 54 Stat.
797, 15 U.S.C. 80a-3(c)(10), as amended, or is a trustee,
director, officer, employee, or volunteer of such a charitable
organization acting within the scope of the person's employment or
duties with such an organization, whose advice, analysis, or
reports are provided only to one or more of the following:
(a) Any such charitable organization;
(b) A fund that is excluded from the definition of an
investment company under section 3(c)(10)(B) of the "Investment
Company Act of 1940," 54 Stat. 797, 15 U.S.C. 80a-3(c)(10)(B), as
amended;
(c) A trust or other donative instrument described in
section 3(c)(10)(B) of the "Investment Company Act of 1940," 54
Stat. 797, 15 U.S.C. 80a-3(c)(10)(B), as amended, or the trustees,
administrators, settlors and potential settlors, or beneficiaries
of any such trust or other instrument.
(6) The person is a plan described in subsection 414(e) of
the "Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.
414, as amended, any person or entity eligible to establish and
maintain such a plan under Title 26 of the United States Code, or
any trustee, director, officer, or employee of or volunteer for
any such plan or person, if such person or entity, acting in such
capacity, provides investment advice exclusively to, or with
respect to, any plan, person, or entity, or any company, account,
or fund that is excluded from the definition of an investment
company under section 3(c)(14) of the "Investment Company Act of
1940," 54 Stat. 797, 15 U.S.C. 80a-3(c)(14), as amended.
(B)(1)
No
person who is registered under section 203 of the
"Investment
Advisers Act of 1940," 15
U.S.C. 80b-3, as an
investment
adviser
shall act as an investment adviser, unless the
person
has done
both of the following:
(a) Filed with the division
a
consent to service of process
pursuant to section 1707.11 of the Revised Code, together with
either a
notice filing form as specified in rules adopted by the
division
or a copy of those documents that have been filed by the
investment adviser with the securities and exchange commission
as
specified in rules adopted by the
division; (b) Paid the notice filing fee specified in division (B)
of
section 1707.17 of the Revised Code. (2) Upon compliance with division (B)(1) of this section,
the
division shall issue to the person an acknowledgment of notice
filing. (3) The notice filing and fee requirements of division
(B)(1) of
this section do not apply to a person described in
division (A)(3)
or,
(4), (5), or (6) of this section.
Sec. 1707.15. (A)
Application for a dealer's license shall
be made in
accordance with this section and
by filing with the
division of securities the information, materials, and forms
specified in rules
adopted by the division, along with all of the
following information: (1) The name and address of the applicant; (2)
A description of the applicant, including, if the
applicant is a partnership, unincorporated association, or any
similar form of business organization, the names and the
residence
and business addresses of all partners, officers,
directors,
trustees, or managers of the organization, and the
limitation of
the liability of any partner or member; if the
applicant is a
corporation, a list of its executive officers and
directors, and
the residence and business addresses of each;
and
if it is a
foreign corporation, a copy of its articles of
incorporation in
addition thereto; (3) The location and addresses of the principal office and
all other offices of the applicant;
(4)(3) A general description of the business of the
applicant
done prior to the application, including a list of
states
in
which the applicant is a licensed dealer.
(B)
Each applicant shall file an irrevocable consent to
service of process as provided in section 1707.11 of the
Revised
Code. (C)(1) The division may investigate any applicant for a
license,
and may require such additional information as it deems
necessary
to determine the applicant's business repute and
qualifications
to act as a dealer in securities.
(2) If the application for any license involves
investigation
outside of this state, the applicant may be required
by the
division to advance sufficient funds to pay any of the
actual
expenses of such examination. An itemized statement of any
such
expenses which the applicant is required to pay shall be
furnished the
applicant by the division. (D)(C) The division shall by rule require one
natural
person
who is a principal, officer, director, general partner,
manager,
or employee of a dealer to pass an
examination
designated by the
division. Each dealer that is not a natural
person shall notify
the division of the name and relationship to
the
dealer of the
natural person who has passed the examination on
behalf of
the
dealer and who will serve as the designated
principal on
behalf of
the dealer.
(E)(D) Dealers shall employ as salespersons only those
salespersons
who are licensed under this chapter. If at any time
a salesperson
resigns or is discharged or a new salesperson is
added, the dealer
shall promptly notify the division.
(F)(E) If the division finds that the applicant is of good
business repute, appears qualified to act as a dealer in
securities, and has fully complied with this chapter and rules
adopted under this
chapter by the division, the division, upon
payment
of the fees prescribed by division (B) of
section
1707.17 of the Revised Code, shall issue to the
applicant a
license authorizing the applicant to act as a
dealer.
Sec. 1707.151. (A) Application for an investment adviser's
license shall be made in accordance with this section and by
filing with the
division of securities the information, materials,
and forms specified in
rules adopted by the division. (B)
Each applicant shall file an irrevocable consent to
service
of process
as provided in section 1707.11 of the Revised
Code. (C)(1) The division may investigate any applicant for a
license
and may require any additional information as it considers
necessary to
determine the applicant's business repute and
qualifications to act as an
investment adviser.
(2) If the application for any license involves
investigation outside of
this state, the applicant may be required
by the division to advance
sufficient funds to pay any of the
actual expenses of the examination. The
division shall furnish
the applicant with an itemized statement of such
expenses that the
applicant is required to pay. (D)(C) The division shall by rule require
one
a natural
person
who is
a principal, officer, director, general partner,
manager,
or employee of
an
applicant for an investment
adviser
adviser's license to pass an examination
designated by the
division or
achieve a specified
professional
designation.
Each
investment
adviser that is not a natural
person shall notify the
division of the name and
relationship to
the investment adviser of
the natural
person who has passed the
examination or achieved the
specified professional
designation on
behalf of the investment
adviser and who will serve as the
designated principal on behalf
of the investment adviser.
(E)(D) An investment adviser licensed under section 1707.141
of
the Revised Code
shall employ only investment adviser
representatives licensed, or exempted
from licensure, under
section 1707.161 of the Revised Code.
(F)(E) If the division finds that the applicant is of good
business
repute, appears to be qualified to act as an investment
adviser, and has
complied with this chapter and rules adopted
under this chapter by the division, the division, upon payment
of
the fees prescribed by
division (B) of section 1707.17 of the
Revised Code, shall issue to the
applicant a
license authorizing
the applicant to act as an investment adviser.
Sec. 1707.161. (A)
No person shall act as an investment
adviser
representative,
unless one of the following applies: (1) The person is licensed as an investment adviser
representative by the
division of securities. (2) The person is a natural person who is licensed as an
investment
adviser by the division, and does not act as an
investment adviser
representative for another investment adviser;
however, a natural person who
is licensed as an
investment adviser
by the division may act as an investment
adviser representative
for another investment adviser if the
natural person also is
licensed by the division, or is properly
excepted from licensure,
as an investment adviser representative of
the other investment
adviser. (3) The person is employed by or associated with an
investment adviser
registered under section 203 of the
"Investment
Advisers
Act of 1940," 15
U.S.C. 80b-3, and does not have a
place
of business in this state. (4) The person is employed by or associated with an
investment adviser
that is excepted from licensure pursuant to
division
(A)(3)
or, (4), (5), or (6) of
section 1707.141 of the
Revised Code or
excepted from notice filing
pursuant to division
(B)(3) of section
1707.141 of the Revised Code. (B)(1) No investment adviser representative required to be
licensed under this section shall act as an investment adviser
representative for more than two investment advisers. An
investment adviser representative that acts as an investment
adviser representative for two investment advisers shall do so
only after the occurrence of both of the following: (a) Being properly licensed, or
properly excepted from
licensure under this section, as an
investment adviser
representative for both investment
advisers; (b) Complying with the
requirements set forth in rules
adopted by the division
regarding consent of both investment
advisers and notice. (2) Nothing in this section shall be construed to prohibit a
natural
person
from
being licensed by the division as both an
investment adviser and an investment
adviser representative. (3) Nothing in this section shall be construed to
prohibit a
natural person from being licensed by the division as
both a
salesperson and an investment adviser
representative. (4) Nothing in this section shall be construed to prohibit a
natural person from being licensed by the division as both a
dealer and an
investment adviser representative. (C) An investment adviser representative's license issued
under
this section shall not be effective during any period when
the investment
adviser representative is not employed by or
associated with an investment
adviser that is licensed by the
division or that is in compliance with the
notice filing
requirements of
division (B) of section 1707.141 of the Revised
Code.
Notice of the commencement and termination of the
employment or association of
an investment
adviser representative
licensed under this section shall be given to the
division within
thirty days after the commencement or termination by either of
the
following: (1) The investment adviser, in the case of an investment
adviser
representative licensed under this section and employed by
or associated with,
or formerly employed
by or associated with, an
investment adviser licensed under section 1707.141
of the Revised
Code; (2) The investment adviser representative, in the case of an
investment
adviser representative licensed under this section and
employed by or
associated with, or formerly
employed by or
associated with, an investment adviser that is subject to the
notice filings
requirements of division (B) of section 1707.141 of
the Revised Code. (D)(1) Application for an investment adviser representative
license shall be made in accordance with this section and by
filing with the
division the information, materials, and forms
specified in rules adopted by
the division. (2) The division shall by rule require an applicant to pass
an examination
designated by the division or achieve a specified
professional designation. (3) Prior to issuing the investment adviser
representative
license, the division may require the applicant to reimburse
the
division
for the actual expenses incurred in investigating the
applicant. An itemized
statement of any such expenses that
the
applicant is required to pay shall be furnished to the applicant
by the
division. (E) If the division finds that the applicant is of good
business
repute, appears to be qualified to act as an investment
adviser
representative, and has complied with
sections 1707.01 to
1707.45 of the Revised Code and the
rules adopted under those
sections by the division, the division, upon payment
of the fees
prescribed by division (B) of
section 1707.17 of the Revised Code,
shall
issue to the applicant a license authorizing the applicant
to act as an
investment adviser representative for the investment
adviser, or investment
advisers that are under common ownership or
control, named in the application.
Sec. 1707.17. (A)(1) The license of every dealer in and
salesperson of securities shall expire on the thirty-first day of
December of each year, and may be renewed upon the filing with the
division
of securities of an application for renewal, and the
payment of
the fee prescribed in this section, between
the first
day of November and the fifteenth day of December
of each year.
The division
may accept an application for renewal filed between
the
fifteenth and the thirty-first day of December of each year.
The division also may accept an application for renewal received
by the
division not later than the tenth day of January of the
subsequent
calendar year, provided that the
application for
renewal is accompanied by the license renewal
fee and the
additional fee prescribed in division
(B) of this section. The
division
shall give notice, without unreasonable delay, of its
action on
any application for renewal of a dealer's or
salesperson's license. (2) The license of every investment adviser and
investment
adviser representative licensed under section
1707.141 or 1707.161
of the Revised Code shall
expire on the thirty-first day of
December of each year.
The licenses may be renewed upon the
filing with the division of
an application for renewal, and the
payment of the
fee prescribed in division (B) of this section,
between the fifteenth day of October and the thirtieth day of
November of each year.
The division may accept an application for
renewal
filed between the first and thirty-first day of December
of each
year. The division also may accept an application
for
renewal received by the division not later than the tenth day of
January of the subsequent calendar year, provided that
the
application
for renewal is accompanied by the license renewal fee
and the
additional
fee prescribed in division (B) of this section.
The
division shall give notice, without unreasonable delay, of its
action on any application for renewal. (3) An investment adviser required to make a notice filing
under division (B) of section 1707.141 of the
Revised Code
annually shall file with the division
the notice filing and the
fee prescribed in division (B)
of this section, no later than the
thirty-first day of
December of each year.
The division may
accept
a notice
filing received by the division not later than the
tenth
day of
January of the subsequent calendar year, provided
that the
notice
filing is
accompanied by the notice filing fee and
the
additional fee prescribed in
division (B) of this section. (B)(1) The fee for each dealer's license, and for each
annual
renewal thereof
that is received by the division not later
than the
thirty-first day of December of each year, shall be
one
hundred
dollars.
Upon payment of an
additional fee of one-half
of
the
license renewal fee, the
division may accept an application
for
renewal received by the
division between the first and tenth
day of
January of the
subsequent calendar year. The fee for the
examination of
applicant
dealers, when
administered by the
division, shall be
seventy-five dollars. (2) The fee for each salesperson's license,
and for each
annual
renewal thereof, shall be fifty dollars. The fee for the
examination of an applicant salesperson, when
administered by the
division, shall be fifty dollars. (3) The fee for each investment adviser's license, and
for
each annual renewal thereof
that is received by the division not
later
than the thirty-first day of December of each year, shall be
fifty dollars.
Upon the payment of an additional fee
of
one-half
of the license fee,
the division may accept a license
renewal
application
received by the division between the first and
tenth
day
of January of the subsequent
calendar year.
(4) The fee for each investment adviser notice filing
required
by division (B) of section 1707.141 of the Revised
Code
and received by the division not later than the thirty-first day
of December of each year shall be
fifty dollars.
Upon
the
payment
of
an additional fee of one-half of the notice filing
fee,
the
division may
accept a notice filing received by the
division
between the first and tenth
day of January of the
subsequent
calendar year. A notice filing may
be
made at any time
during the
calendar year. In that event, the
notice filing fee
shall not be
reduced.
(5) The fee for each investment adviser representative's
license, and for each annual renewal thereof
that is received by
the division
not later than the thirty-first day of December of
each year, shall
be thirty-five
dollars; however, the fee shall be
waived for the investment
adviser representative designated the
principal of the
investment adviser pursuant to division
(D) of
section 1707.151 of the
Revised Code. Upon the payment of an
additional fee of one-half of the
license fee, the division may
accept a license renewal application
received by the division
between the first and tenth day
of January of the subsequent
calendar year.
(C) A dealer's, salesperson's, investment adviser's, or
investment
adviser representative's license may be issued at any
time for
the remainder of the calendar year. In that event, the
annual
fee shall not be reduced.
Sec. 1707.20. (A) The division of securities may adopt,
amend, and rescind such rules, forms, and orders as are necessary
to carry out sections 1707.01 to 1707.45 of the Revised Code,
including rules and forms governing registration statements,
applications, and reports, and defining any terms, whether or not
used in sections 1707.01 to 1707.45 of the Revised Code, insofar
as the definitions are not inconsistent with these
sections. For
the purpose of rules and forms, the division may
classify
securities, persons, and matters within its
jurisdiction, and
prescribe different requirements for different
classes. (B) No rule, form, or order may be made, amended, or
rescinded unless the division finds that the action
is necessary
or appropriate in the public interest or for the
protection of
investors, clients, or prospective clients and
consistent with the
purposes fairly
intended by the policy and provisions of sections
1707.01 to
1707.45 of the Revised Code. In prescribing rules and
forms and
in otherwise administering sections 1707.01 to 1707.45
of the
Revised Code, the division may cooperate with the
securities administrators of the other states and the securities
and exchange commission with a view of effectuating the policy of
this section to achieve maximum uniformity in the form and
content
of registration statements, applications, reports, and
overall
securities regulation wherever practicable. (C) The division may by rule or order
prescribe: (1) The form and content of financial statements required
under sections 1707.01 to 1707.45 of the Revised Code; (2) The circumstances under which consolidated financial
statements shall be filed; (3) Whether any required financial statements shall be
certified by independent or certified public accountants. All
financial statements shall be prepared in accordance with
generally accepted accounting practices. (D) All rules and forms of the division
shall be published;
and in addition to fulfilling the
requirements of Chapter
119. of
the Revised Code,
the division shall prescribe, and shall publish
and make
available its rules regarding the sale of securities, the
administration of sections 1707.01 to 1707.45 of the Revised
Code,
and the procedure and practice before the division. (E) No provision of sections 1707.01 to 1707.45 of the
Revised Code imposing any liability applies to any act done or
omitted in good faith in conformity with any rule, form, or order
of the division of securities, notwithstanding that the rule,
form, or order may later be amended or rescinded or be determined
by judicial or other authority to be invalid for any reason,
except that the issuance of an order granting effectiveness to a
registration under section 1707.09 or 1707.091 of the Revised
Code
for the purposes of this division shall not be deemed an
order
other than as the establishment of the fact of
registration. (F) Notwithstanding any provision of Revised Code, if
the
"securities act of 1933," the
"Securities Exchange
Act of
1934,"
the
"Investment Company Act of
1940," the
"Investment
Advisers Act
of 1940,"
and any amendments to any of those federal
acts, if any
rule, regulation, release, statement, or position
promulgated or
adopted under the authority of any of those federal
acts, and any
amendments to those federal acts, or if any rule,
regulation, or
guideline of
a self-regulatory organization
registered under the
"Securities and
Exchange Act of 1934," and
any
amendments to that
act, contains a
provision that is not
contained in this chapter or
the rules
adopted under this chapter
and that affects any matter
within the scope of
this
chapter, the
division by rule may
promulgate a similar provision.
A rule adopted under the authority granted in this division
may
delete, modify, or replace an existing rule of the division.
A
rule
adopted under the authority granted in this division
becomes
effective
on the later of the date on which the division
issues
the rule or
the date on which the federal statute or the
rule,
regulation, release,
statement, or position on which the
division's rule
is based becomes effective. The division, upon
thirty days
written notice, may revoke any rule adopted under the
authority
granted in this division. A rule adopted under the
authority
granted in this division, and not revoked by the
commissioner,
lapses and has no further force and effect thirty
months after the
rule's effective date.
Sec. 1707.201. Notwithstanding any provision of the
Revised
Code, if the "Securities Act of 1933," the "Securities
Exchange
Act of 1934," the "Investment Company Act of 1940," the
"Investment Advisers Act of 1940," and any amendments to any of
those federal acts, if any rule, regulation, release, statement,
or position promulgated or adopted under the authority of any of
those federal acts, and any amendments to those federal acts, or
if any rule, regulation, or guideline of a self-regulatory
organization registered under the "Securities Exchange Act of
1934," and any amendments to that act, contains a provision that
is not contained in this chapter or the rules adopted under this
chapter and that affects any matter within the scope of this
chapter, the division of securities by rule may promulgate a
similar provision. A rule adopted under the authority granted in this section
becomes
effective on the later of the date on which the division
issues
the rule or the date on which the federal statute or the
rule,
regulation, release, statement, or position on which the
division's rule is based becomes effective. The division, upon
thirty days' written notice, may revoke any rule adopted under the
authority granted in this section. A rule adopted under the
authority granted in this section, and not revoked by the
commissioner of securities, lapses and has no further force and
effect eighteen months after the rule's effective date.
Sec. 1707.40. Sections 1707.01 to 1707.45 of the Revised
Code create no new
civil liabilities, and do not limit or restrict
common law liabilities for
deception or fraud other than as
specified in sections 1707.042, 1707.043,
1707.41, 1707.42, and
1707.43 of the Revised Code, and there is no civil
liability for
noncompliance with orders, requirements, rules, or regulations
made by the division of securities under sections 1707.19,
1707.20,
1707.201, and
1707.23 of the Revised Code.
Sec. 1707.44. (A)(1) No person shall engage in any act or
practice that
violates division (A), (B), or (C) of section
1707.14 of the Revised
Code, and no salesperson shall sell
securities in this state without
being licensed pursuant to
section 1707.16 of the Revised Code. (2) No person shall engage in any act or practice that
violates
division (A) of section 1707.141 or section 1707.161 of
the Revised Code. (B) No person shall knowingly make or cause to be made any
false representation concerning a material and relevant fact, in
any oral statement or in any prospectus, circular, description,
application, or written statement, for any of the following
purposes: (1)
Registering securities or transactions, or
exempting
securities or transactions from registration, under this
chapter; (2) Securing the qualification of any securities under
this
chapter; (3) Procuring the licensing of any dealer,
salesperson,
investment adviser, or investment adviser
representative
under
this chapter; (4) Selling any securities in this state; (5) Advising for compensation, as to the value of securities
or as to the
advisability of investing in, purchasing, or selling
securities;
(6) Submitting a notice filing to the division under section
1707.092 or 1707.141 of the Revised Code. (C) No person shall knowingly
and intentionally sell,
cause
to be sold, offer for sale, or cause to be offered for
sale, any
security which comes under any of the following
descriptions: (1) Is not exempt under section 1707.02 of the Revised
Code,
nor the subject matter of one of the transactions exempted
in
section 1707.03, 1707.04, or
1707.34 of the Revised Code,
has not
been registered by
coordination or
qualification,
and is not the
subject matter of a transaction
that has been
registered by
description; (2) The prescribed fees for registering by description, by
coordination, or by qualification have not been paid in respect
to
such security; (3) Such person has been notified by the division, or has
knowledge of the notice, that the right to buy, sell, or
deal in
such security has been suspended or revoked, or that the
registration by description, by coordination, or by qualification
under which it may be sold has been suspended or revoked; (4) The offer or sale is accompanied by a statement that
the
security offered or sold has been or is to be in any manner
indorsed by the division. (D) No person who is an officer, director, or trustee of,
or
a dealer for, any issuer, and who knows such issuer to be
insolvent in that the liabilities of the issuer exceed its
assets,
shall sell any securities of or for any such issuer,
without
disclosing the fact of the insolvency to the
purchaser. (E) No person with intent to aid in the sale of any
securities on behalf of the issuer, shall knowingly make any
representation not authorized by such issuer or at material
variance with statements and documents filed with the division by
such issuer. (F) No person, with intent to deceive, shall sell, cause
to
be sold, offer for sale, or cause to be offered for sale, any
securities of an insolvent issuer, with knowledge that such
issuer
is insolvent in that the liabilities of the issuer
exceed
its
assets, taken at their fair market value. (G) No person in purchasing or selling securities shall
knowingly
engage in any act or practice that is, in this chapter,
declared
illegal, defined as fraudulent, or prohibited. (H) No licensed dealer shall refuse to buy from, sell to,
or
trade with any person because the person appears on a
blacklist
issued by, or is being boycotted by, any foreign
corporate or
governmental entity, nor sell any securities of or
for any issuer
who is known in relation to the issuance or sale
of such
securities to have engaged in such practices. (I) No dealer in securities, knowing that the dealer's
liabilities exceed the reasonable value of the dealer's
assets,
shall accept money or securities, except in payment of or as
security
for an existing debt, from a customer who is ignorant of
the dealer's insolvency, and thereby cause the customer
to lose
any part of the customer's securities or the value
of those
securities, by doing
either of the following without the
customer's consent: (1) Pledging, selling, or otherwise disposing of such
securities, when the dealer has no lien on or any
special property
in such securities; (2) Pledging such securities for more than the amount due,
or otherwise disposing of such securities for the dealer's
own
benefit,
when the dealer has a lien or indebtedness on such
securities. It is an affirmative defense to a charge under this
division
that, at the time the securities involved were pledged,
sold, or
disposed of, the dealer had in the dealer's
possession
or control,
and available for delivery, securities of the same
kinds and in
amounts sufficient to satisfy all customers entitled
to the
securities, upon demand and tender of any amount
due on the
securities. (J) No person, with purpose to deceive, shall make, issue,
publish, or cause to be made, issued, or published any statement
or advertisement as to the value of securities, or as to alleged
facts affecting the value of securities, or as to the financial
condition of any issuer of securities, when the person knows
that
such statement or advertisement is false in any material
respect. (K) No person, with purpose to deceive, shall make,
record,
or publish or cause to be made, recorded, or published, a
report
of any transaction in securities which is false in any
material
respect. (L) No dealer shall engage in any act that violates the
provisions of section
15(c) or 15(g) of the
"Securities Exchange
Act of 1934," 48 Stat. 881, 15
U.S.C.A. 78o(c) or (g), or any rule
or regulation promulgated by the
securities and exchange
commission thereunder. If, subsequent to
October 11, 1994,
additional amendments to section 15(c) or 15(g) are adopted, or
additional
rules or regulations are promulgated pursuant to such
sections, the division
of securities shall, by rule, adopt the
amendments, rules, or regulations,
unless the division finds that
the amendments, rules, or regulations are not
necessary for the
protection of investors or in the public interest. (M)(1) No investment adviser or investment adviser
representative shall do any of the following: (a) Employ any device, scheme, or artifice to defraud
any
person; (b) Engage in any act, practice, or course of business
that
operates or would operate as a fraud or deceit upon any
person; (c) In acting as principal for the investment adviser's or
investment adviser representative's own account, knowingly sell
any security to or purchase any security from a client, or in
acting as salesperson for a person other than such client,
knowingly effect any sale or purchase of any security for the
account of such client, without disclosing to the client in
writing before the completion of the transaction the capacity in
which the investment adviser or investment adviser
representative
is acting and obtaining the consent of the client
to the
transaction. Division (M)(1)(c)
of this section does not apply to
any investment adviser
registered with the securities and exchange
commission under
section 203 of the
"Investment Advisers Act of
1940," 15 U.S.C. 80b-3, or to
any transaction with a customer
of a
licensed dealer or salesperson if the licensed dealer or
salesperson is not acting as an investment adviser or investment
adviser representative in relation to the transaction. (d) Engage in any act, practice, or
course of business that
is fraudulent, deceptive, or
manipulative. The division of
securities may adopt rules
reasonably designed to prevent such
acts, practices, or courses
of business as are fraudulent,
deceptive, or manipulative.
(2) No investment adviser or investment adviser
representative licensed or required to be licensed under this
chapter shall take or have custody of any securities or funds of
any person, except as provided in rules adopted by the division. (3) In the solicitation of clients or prospective clients,
no
person shall make any untrue statement of a material fact or
omit to state a material fact necessary in order to make the
statements made not misleading in light of the circumstances
under
which the statements were made.
Sec. 1733.01. As used in this chapter, unless the context
otherwise requires: (A) "Credit union" means a corporation organized and
qualified as such under this chapter. In addition to the powers
enumerated in this chapter and unless restricted in this chapter,
every credit union has the general powers conferred upon
corporations by Chapter 1701. of the Revised Code. A credit
union
is a nonprofit cooperative financial institution and as
such is
organized and operates for the mutual benefit and general
welfare
of its members with the earnings, savings, benefits, or
services
of the credit union being distributed to its members as
patron
savers and borrowers and not to its members as
individuals. (B) "Corporate credit union" means a credit union,
eligibility for membership in which is being a credit union
qualified to do business in this state. Such credit union shall
use the term "corporate" in its official name. (C) "Foreign credit union" means a credit union formed
under
the laws of another state which are substantially similar
to this
chapter. (D) "Member" means a person who is a member of a credit
union. (E) "Association member" means any member of a credit
union
other than a credit union or an individual member. (F) "Voting member" means an association member or an
individual member who is qualified to vote as provided by law,
the
articles, or the regulations. (G) "Person" includes, without limitation, an individual,
a
corporation, an unincorporated society or association, or any
other organization of individuals. (H) "Articles" includes original articles of
incorporation,
agreements of merger, amended articles, and
amendments to any of
these. (I) "Regulations" includes the code of regulations of a
credit union and any amendments thereto or an amended code of
regulations and any amendments thereto. (J) Persons having a "common bond of association" include
those persons and their families. (K) "Membership share" means a share of the credit union,
the subscription to which shall be a prerequisite for membership
in the credit union. (L) "Share account" means an account established for a
member for which no share certificates are issued but which are
included in the registry of shares, which includes all
transactions of the credit union pertaining to such shares. (M) "Undivided earnings" consist of all accumulated net
earnings and reserves required under division (B) of section
1733.31 of the Revised Code. (N) "State" means the United States, any state, territory,
insular possession, or other political subdivision of the United
States, including the District of Columbia. (O) An "emergency" exists when an emergency exists for
other
corporations as the same is defined and described in
section
1701.01 of the Revised Code. (P) "Superintendent of credit unions" means the "division
of
financial institutions" or the "superintendent of
the division of
financial institutions of this state"; and whenever
the context
requires it, may be
read as "director of commerce" or as "chief of
the division of
financial institutions." Whenever the division or
superintendent of credit unions is referred to or designated in
any statute,
rule, contract, or other document, the reference or
designation shall be
deemed
to refer to the division or
superintendent of financial institutions, as the
case may be. (Q) "Outside auditor" means an accountant who is licensed
to
practice as a certified public accountant or public accountant
by
this state, and who is retained by a credit union to audit its
accounts, but who is not otherwise employed by the credit union. (R) "Regulated individual" means a director, committee
member, officer, or employee of a credit union.
(S) "Financial institution regulatory authority" includes a
regulator of business activity in which a credit union is engaged,
or has applied to engage in,
to the extent that the regulator has
jurisdiction over a credit
union engaged in that business
activity. A credit union is engaged in a business activity, and a
regulator of that business activity has jurisdiction over the
credit union, whether the credit union conducts the activity
directly or a subsidiary or affiliate of the credit union conducts
the activity.
Sec. 1733.32. (A)(1) The superintendent of financial
institutions
shall see that the laws relating to
credit unions are
executed and enforced.
(2) The deputy superintendent for credit unions
shall be the
principal supervisor of credit unions. In that
position the
deputy superintendent for credit unions shall,
notwithstanding
division (A)(3)
of this section, be responsible for conducting
examinations and
preparing examination reports under that
division. In addition,
the deputy superintendent for credit
unions shall,
notwithstanding sections 1733.191, 1733.41,
1733.411, and 1733.412 of the
Revised
Code, have the authority to
adopt rules in accordance with those sections, and,
notwithstanding section
1733.05 of the Revised Code, shall have
the
authority to approve issues and matters
pertaining to fields
of membership. In performing or
exercising any of the
examination, rule-making, or other
regulatory functions, powers,
or duties vested by division
(A)(2) of this section in the
deputy
superintendent for credit unions, the deputy
superintendent for
credit unions shall be subject to the
control
of the
superintendent of financial institutions. (3) The superintendent shall develop and implement a system
for
evaluating the safety and soundness of credit unions and for
determining when examinations and supervisory actions are
necessary. Credit unions shall be subject to periodic
examinations, as specified in rules adopted by the
superintendent,
and their books, records, and accounts shall be
open to the
inspection of the superintendent at all times. For
the purpose of
such examination or inspection, the superintendent
may subpoena
witnesses, administer oaths, receive testimony, and
order the
submission of documents. (B) Every credit union shall prepare and submit, on forms
provided by the superintendent, a financial report to the
superintendent showing its assets and liabilities whenever
requested to do so by the superintendent. Every financial report
shall be verified by the oaths of the two principal officers in
charge of the affairs of the credit union at the time of such
verification and shall be submitted to the superintendent within
thirty days after the superintendent requests the financial
report. (C) An annual financial report of the affairs and business
of the credit union, showing its condition as of the thirty-first
day of December unless otherwise authorized by the
superintendent,
shall be filed with the superintendent not later
than the date
authorized in the rules adopted by the
superintendent. (D) If a financial report or an annual financial report is
not filed with the superintendent in accordance with division (B)
or (C) of this section, the superintendent may do both of the
following: (1) Assess a fine, determined by rule adopted by the
superintendent, for each day the report is in arrears; (2) If the superintendent gives written notice to the
president of the credit union of the superintendent's
intention to
do so, issue an
order revoking the credit union's articles of
incorporation and
appointing a liquidating agent to liquidate the
credit union in
accordance with section 1733.37 of the Revised
Code. (E)(1) Except as provided in division (E)(2) of this
section, each credit union doing business in this state shall
remit, semiannually and within fifteen days after billing, to the
treasurer of state, a supervisory fee in an amount determined by
the superintendent
and confirmed by the credit union council. The
supervisory fee
described in division (E)(1) of this section shall
be
based on a percentage of the gross assets of
the credit union
as shown by its last annual financial report
filed with the
superintendent in accordance with division (C) of
this section.
The minimum supervisory fee shall be determined by
the
superintendent
and confirmed by the credit union council. (2) Each corporate credit union doing business in this
state
shall remit, semiannually and within fifteen days after
billing,
to the treasurer of state, a supervisory fee determined
by rule
adopted by the superintendent
and confirmed by the credit union
council. The aggregate annual
amount of the fee shall not exceed
the annual operating fee that
the national credit union
administration charges a federally
chartered credit union pursuant
to the "Federal Credit Union
Act," 84 Stat. 994 (1970), 12
U.S.C.A. 1751. (3) The superintendent annually shall present to the credit
union council
for
confirmation the supervisory fees to
be billed
credit unions and corporate credit unions pursuant to division
(E)
of this section. (4) If any supervisory fee is not remitted in accordance
with division (E)(1) or (2) of this section, the superintendent
may assess a fine, determined by rule adopted by the
superintendent, for each day that each fee is in arrears. (5)(a) Subject to division (E)(5)(b) of
this section, the
total amount of each semiannual billing to all
credit unions and
corporate credit unions combined shall equal
one-half of the
appropriation made by the main operating
appropriation act,
including any modifications made by the
controlling board, to the
division of financial institutions for the
regulation of credit
unions for the
fiscal year in which the billings occur, except
that the
superintendent, in determining the supervisory fees, may
take
into consideration any funds lapsed from the appropriation
made
in the previous fiscal year. (b) If during the period between the credit union council's
confirmation of supervisory fees and when supervisory fees
described in this section are collected, the credit union council
determines additional money is required to adequately fund the
operations of the division of financial institutions for that
fiscal year, the credit union council may, by the affirmative vote
of five of its members, increase the supervisory fees
billed. The
superintendent promptly shall notify each credit
union and
corporate credit union of the increased supervisory
fees, and each
credit union or corporate credit union shall pay
the increased
supervisory fees billed by the superintendent.
(6) The fees or fines collected pursuant to this section
shall be credited to the credit unions fund created
in section
1733.321 of the Revised Code. (F) A report of such examination shall be forwarded to the
president of each credit union after the completion of the
examination. Such report may contain comments relative to the
management of the affairs of the credit union and also as to the
general condition of its assets. Within thirty days of the
receipt of such report, a meeting of the directors shall be
called
to consider matters contained in the report, and the
president
shall notify the superintendent of any action taken at
such
meeting. (G)(1) The superintendent shall furnish reports of
examinations or other appropriate information to any organization
referred to in section 1733.041 of the Revised Code when
requested
by such organization and authorized by the credit
union. The
superintendent may charge a fee for such reports and
other
information as may be established by rules adopted by the
superintendent. (2) A report of examination furnished pursuant to division
(G)(1) of this section is the property of the division of credit
unions and may be used by the examined credit union only in the
conduct of its business. Under no circumstances may the credit
union, its current or former directors, officers, employees,
agents, shareholders, participants in the conduct of its affairs,
or their agents disclose or make public, in any manner, a report
of examination or its contents. (H) Except as provided in this division, information
obtained by the superintendent of
credit unions
financial
institutions and the
superintendent's employees
as a result of or
arising out of the
examination or independent
audit of a credit
union, from required
reports, or because of
their official
position, shall be
confidential. Such information
may be
disclosed only in
connection with criminal proceedings or,
subject
to section
1733.327 of the Revised Code, when it is
necessary for
the
superintendent to take official action pursuant
to Chapter
1733.
of the Revised Code and the rules adopted
thereunder
regarding the
affairs of the credit union examined.
Such
information may also be
introduced into evidence or disclosed when
and in the manner
authorized in section 1181.25 of the Revised
Code. This division
does not prevent the superintendent from
properly
exchanging
information relating to an examined credit
union
pursuant to
division (F) or (G) of this section or with
officials
of properly
authorized state or federal
supervisory
financial institution
regulatory authorities
or with any insurer
recognized under
section 1733.041 or any
surety recognized under
section 1733.23 of
the Revised Code.
This division also does not
prevent the
superintendent from
disclosing information contained
in the
financial reports or
annual financial reports described in
division (B) or (C) of this
section to recognized credit union
trade associations.
Sec. 1733.327. (A) All conferences and administrative
proceedings under sections 1733.324 and 1733.325 of the Revised
Code, the fact of their actual or anticipated occurrence, and all
notices, agreements, hearings, orders, records, evidence,
transcripts, and other writings, happenings, or things pertaining
to those conferences or proceedings, shall be kept confidential
as
among the superintendent of
credit unions
financial institutions,
the director of
commerce, the deputy director of financial
institutions, the
governor, the credit union or regulated
individual who is party
to
the conference or proceedings,
witnesses in the conference or
proceedings, and other persons
specifically designated by the
superintendent or director. In
designating specific persons who
may be present or acquire
knowledge of matters made confidential
by this division, the
superintendent and director shall not
exclude attorneys or other
suitable representatives of the credit
union, or of any regulated
individual, who is party to the
conference or proceedings. If the
conference or proceedings
apply
to a regulated individual, the
superintendent and director
shall
not exclude suitable
representatives of the credit union of
which
such regulated
individual is an officer, director, or
employee. (B) Division (A) of this section ceases to apply upon the
occurrence of any of the following: (1) An action is brought to recover a forfeiture for the
violation of an agreement concluded, or a final or summary
cease-and-desist order issued, under section 1733.324 or 1733.325
of the Revised Code. A forfeiture, in the absence of such an
action for recovery, does not waive division (A) of this section
except insofar as the forfeiture must be reflected or reported in
the financial records or reports of the credit union or regulated
individual. (2) Information made confidential by division (A) of this
section is needed as evidence in a criminal proceeding; in
proceedings under section 1733.37 of the Revised Code; or in the
work of a committee of the general assembly;. (3) The superintendent furnishes information made
confidential by division (A) of this section to the applicable
insurer recognized under section 1733.041 of the Revised Code.
(4) The superintendent furnishes information made
confidential by division (A) of this section to financial
institution regulatory authorities as authorized in section
1733.32 of the Revised Code.
(5) Information made confidential by division (A) of this
section is disclosed when and in the manner authorized in section
1181.25 of the Revised Code. (C) No officer or employee of the division of credit
unions,
of the department of commerce or any of its other
divisions, or of
the governor's office shall violate division (A)
of this section.
Sec. 1751.19. (A) A health insuring corporation shall
establish
and maintain a complaint system that has been approved
by the
superintendent of insurance to provide adequate and
reasonable
procedures for the expeditious resolution of written
complaints
initiated by subscribers or enrollees concerning any
matter
relating to services provided, directly or indirectly, by
the
health insuring corporation, including, but not limited to,
complaints regarding cancellations or nonrenewals of coverage.
Complaints regarding a health insuring corporation's decision to
deny, reduce, or terminate coverage for health care services are
subject to section 1751.83 of the Revised Code. (B) A health insuring corporation shall provide a timely
written
response to each written complaint it receives.
(C)(1) Copies of complaints and responses, including medical
records
related to those complaints, shall be available to the
superintendent and the director of health for inspection for three
years. Any document or information provided to the superintendent
pursuant to this division that contains a medical record is
confidential, and is not a public record subject to
section 149.43
of the Revised Code. (2) Notwithstanding division (C)(1) of this section, the
superintendent may share documents and information that contain a
medical record in connection with the investigation or prosecution
of any illegal or criminal activity with the chief deputy
rehabilitator, the chief
deputy liquidator, other deputy
rehabilitators and liquidators,
and any other person employed by,
or acting on behalf of, the
superintendent pursuant to Chapter
3901. or 3903. of the Revised
Code, with other local, state,
federal, and international
regulatory and law enforcement
agencies, with local, state, and
federal prosecutors, and with the
national association of
insurance commissioners and its affiliates
and subsidiaries,
provided that the recipient agrees to maintain
the confidential or
privileged status of the confidential or
privileged document or
information and has authority to do so. (3)
Nothing in this section shall prohibit the superintendent
from receiving documents and information in accordance with
section 3901.045 of the Revised Code.
(4) The superintendent may enter into agreements governing
the sharing and use of documents and information consistent with
the requirements of this section.
(5) No waiver of any applicable privilege or claim of
confidentiality in the documents and information described in
division (C)(1) of this section occurs as a result of sharing or
receiving documents and information as authorized in divisions
(C)(2) and (3) of this section.
(D) A health insuring corporation shall establish and
maintain a
procedure to accept complaints over the telephone or in
person.
These complaints are not subject to the reporting
requirement
under division (C) of section 1751.32 of the Revised
Code. (E) A health insuring corporation may comply with this
section
and section 1751.83 of the Revised Code by establishing
one system
for receiving and reviewing complaints and requests for
internal
review from enrollees and subscribers if the system meets
the
requirements of both sections.
Sec. 3901.045. (A) The superintendent of insurance may
receive
documents and information, including otherwise
confidential or
privileged documents and information, from local,
state, federal,
and international regulatory and law enforcement
agencies, from
local, state, and federal prosecutors, and from the
national
association of insurance commissioners and its affiliates
and
subsidiaries, provided that the superintendent maintains as
confidential or privileged any document or information received
with notice or the understanding that the document or information
is confidential or privileged under the laws of the jurisdiction
that is the source of the document or information. (B) The
superintendent may also receive documents and
information,
including otherwise confidential or privileged
documents and
information, from the chief deputy rehabilitator,
the chief deputy
liquidator, other deputy rehabilitators and
liquidators, and from
any other person employed by, or acting on
behalf of, the
superintendent pursuant to Chapter 3901. or 3903.
of the Revised
Code, provided that the superintendent maintains as
confidential
or privileged any document or information received
with the
notice or understanding that the document or information
is
confidential or privileged, except that the superintendent may
share and disclose such a document or information when authorized
by other sections of the Revised Code. (C) The superintendent has the authority to maintain as
confidential or privileged the documents and information received
pursuant to this section. (D) The superintendent's
authority to receive documents and
information under this section,
from the persons and subject to
the conditions listed in this
section, is not limited in any way
by section 1751.19, 3901.36,
3901.44, 3901.48, 3901.70, 3901.83,
3903.11, 3903.72, 3903.88,
3905.492, 3905.50, or 3999.36 of the
Revised Code.
Sec. 3901.36. (A) All information, documents, and copies
thereof obtained by or disclosed to the superintendent
of
insurance or any
other person in the course of an examination or
investigation
made pursuant to section 3901.35 of the Revised Code
and all
information reported pursuant to section 3901.33 of the
Revised
Code shall be given confidential
and privileged treatment
and shall not be
subject to subpoena or be made public by the
superintendent or
any other person, except to insurance regulatory
authorities of
other states, without the prior written consent of
the insurer to
which it pertains, unless the superintendent, after
giving the
insurer and its affiliates who would be affected
thereby notice
and opportunity to be heard, determines that the
interests of
policyholders, shareholders, or the public will be
served by the
publication thereof, in which event he may
publish
all or any part thereof in such manner as he considers
appropriate.
(B) Notwithstanding division (A) of this section, the
superintendent may do any of the following: (1) Disclose documents and information that are the subject
of this section upon obtaining prior written consent from the
insurer to which the documents and information pertain;
(2) Disclose documents and information that are the subject
of this section in such a manner as the superintendent considers
appropriate, after giving the insurer and those affiliates that
are the subject of the documents and information notice
and an
opportunity to
be heard in accordance with Chapter 119. of
the
Revised Code, if
the superintendent determines that the
interests
of policyholders,
shareholders, or the public will be
served by
the disclosure;
(3) Share documents and information that are the subject of
this section with the chief deputy rehabilitator, the chief deputy
liquidator, other deputy rehabilitators and liquidators, and any
other person employed by, or acting on behalf of, the
superintendent pursuant to Chapter 3901. or 3903. of the Revised
Code, with other local, state, federal, and international
regulatory and law enforcement agencies, with local, state, and
federal prosecutors, and with the national association of
insurance commissioners and its affiliates and subsidiaries,
provided that the recipient agrees to maintain the confidential or
privileged status of the confidential or privileged document or
information and has authority to do so;
(4) Disclose documents and information that are the subject
of this section in the furtherance of any regulatory or legal
action brought by or on behalf of the superintendent or the state,
resulting from the exercise of the superintendent's
official
duties.
(C) Notwithstanding divisions (A) and (B) of this section,
the superintendent may authorize the national association of
insurance commissioners and its affiliates and subsidiaries by
agreement to share confidential or privileged documents or
information received pursuant to division (B)(3) of this section
with local, state, federal, and international regulatory and law
enforcement agencies and with local, state, and federal
prosecutors, provided that the recipient agrees to maintain the
confidential or privileged status of the confidential or
privileged document or information and has authority to do so.
(D) Notwithstanding divisions (A) and (B) of this section,
the chief deputy rehabilitator, the chief deputy liquidator, and
other deputy rehabilitators and liquidators may disclose documents
and information that are the subject of this section in the
furtherance of any regulatory or legal action brought by or on
behalf of the superintendent, the rehabilitator, the liquidator,
or the state resulting from the
exercise of the superintendent's
official duties in any capacity.
(E) Nothing in this section shall prohibit the
superintendent from receiving documents and information in
accordance with section 3901.045 of the Revised Code.
(F) The superintendent may enter into agreements governing
the sharing and use of documents and information consistent with
the requirements of this section.
(G)(1) No waiver of any applicable privilege or claim of
confidentiality in the documents and information described in this
section shall occur as a result of sharing or receiving documents
and information as authorized in divisions (B)(3), (C), and (E) of
this section.
(2) The disclosure of a document or information in
connection with a regulatory or legal action pursuant to
divisions
(B)(4) and (D) of this section does not prohibit an
insurer or any
other person from taking steps to limit the dissemination of the
document or information to persons not involved in or the subject
of the regulatory or legal action on the basis of any recognized
privilege
arising under any other section of the Revised Code or
the common law.
Sec. 3901.44. (A) As used in this section, "insurance fraud
investigation"
means any investigation conducted by the
superintendent of
insurance or a designee of the superintendent
that relates to a
fraudulent insurance act as defined in section
3999.31 of the
Revised Code. (B) All
papers, documents, reports, and
evidence in the
possession of the superintendent or the superintendent's
designee
that pertain to an insurance fraud investigation
are confidential
law
enforcement investigatory records under section 149.43 of the
Revised Code. Notwithstanding such section, the
superintendent
shall
not prohibit public inspection of such records that pertain
to an insurance
fraud
investigation after the expiration of all
federal and state
statutes of limitations applicable to the
particular offense to
which the papers, documents, reports, and
evidence relate. (C) All
papers, documents, reports, and evidence in
the
possession of the superintendent
that do not pertain
to such an
insurance fraud investigation are public records under
section
149.43
of the Revised Code, and are not by such possession alone
confidential law enforcement investigatory records. (D) All
papers, documents, reports, and evidence in the
possession of the superintendent or the
superintendent's designee
that pertain to
such an insurance fraud investigation are not
subject to subpoena in
civil
actions by any court of this state
until opened for public
inspection by the superintendent in
accordance with
division (B) of
this section or with section
149.43 of the Revised Code, unless
the superintendent or the
superintendent's
designee consents, or
until after reasonable
notice to the superintendent and
opportunity for
hearing, the
court determines the superintendent would
not be hindered
unnecessarily by such subpoena. (E)
Notwithstanding divisions (B), (C), and (D) of this
section, the superintendent may do either of the following: (1) Share documents, reports, and evidence that are the
subject of this section with the chief deputy rehabilitator, the
chief deputy liquidator, other deputy rehabilitators and
liquidators, and any other person employed by, or acting on behalf
of, the superintendent pursuant to Chapter 3901. or 3903. of the
Revised Code, with other local, state, federal, and international
regulatory and law enforcement agencies, with local, state, and
federal prosecutors, with the national association of insurance
commissioners and its affiliates and subsidiaries, with insurers,
and with investigators hired by insurers, provided that the
recipient agrees to maintain the confidential or privileged status
of the confidential or privileged document, report, or evidence
and has authority to do so; (2) Disclose documents, reports, and evidence that are the
subject of this section in the furtherance of any regulatory or
legal action brought by or on behalf of the superintendent or the
state, resulting from the exercise of the superintendent's
official duties. (F) Notwithstanding divisions (B), (C), (D), and (E) of this
section, the superintendent may authorize the national association
of insurance commissioners and its affiliates and subsidiaries by
agreement to share confidential or privileged documents, reports,
and evidence received pursuant to division (E)(1) of this section
with local, state, federal, and international regulatory and law
enforcement agencies and with local, state, and federal
prosecutors, provided that the recipient agrees to maintain the
confidential or privileged status of the confidential or
privileged document, report, or evidence and has authority to do
so. (G) Notwithstanding divisions (B), (C), (D), and (E) of this
section, the chief deputy rehabilitator, the chief deputy
liquidator, and other deputy rehabilitators and liquidators may
disclose documents, reports, and evidence that are the subject of
this section in the furtherance of any regulatory or legal action
brought by or on behalf of the superintendent, the rehabilitator,
the liquidator, or the state
resulting from the exercise of the
superintendent's official
duties in any capacity. (H) Nothing in this section shall prohibit the
superintendent from receiving documents, reports, and evidence in
accordance with section 3901.045 of the Revised Code. (I) The superintendent may enter into agreements governing
the sharing and use of documents, reports, and evidence consistent
with the requirements of this section. (J)(1) No waiver of any applicable privilege or claim of
confidentiality in the documents, reports, and evidence described
in this section shall occur as a result of sharing or receiving
documents, reports, and evidence as authorized in divisions
(E)(1), (F), and (H) of this section. (2) The disclosure of a document, report, or evidence in
connection with a regulatory or legal action pursuant to
divisions
(E)(2) and (G) of this section does not prohibit an
insurer or any
other person from taking steps to limit the dissemination of the
document, report, or evidence to persons not involved in or the
subject of the regulatory or legal action on the basis of any
recognized
privilege arising under any other section of the
Revised Code or the common law. (K) The superintendent and the superintendent's designee are
not subject to subpoena in civil actions by any court of this
state to testify concerning any matter of which they have
knowledge pursuant to a pending insurance fraud investigation by
the superintendent.
Sec. 3901.48. (A) The original work papers of a certified
public accountant performing an audit of an insurance company
or
health insuring corporation doing business in this state that is
required by rule or by any
section of the Revised Code to file an
audited financial report
with the superintendent of insurance
shall remain the property of
the certified public accountant. Any
copies of these work papers
voluntarily given to the
superintendent shall be the property of
the superintendent. The
original work papers or any copies of
them, whether in possession
of the certified public accountant or
the department of insurance,
are confidential
and privileged and are not a public
record as
defined in section 149.43 of the Revised Code.
The original work
papers and any copies of them are not
subject to subpoena and
shall not be made public by the
superintendent or any other
person.
However, the original work
papers and any copies of them
may be released by the
superintendent to the insurance regulatory
authority of any
other state if that authority agrees to maintain
the
confidentiality of the work papers or copies and if the work
papers and copies are not public records under the laws of that
state. (B) The work papers of the superintendent or of the person
appointed by the superintendent, resulting from the conduct
of an
examination
made pursuant to section 3901.07 of the Revised Code
or from the conduct of a financial analysis of any entity subject
to examination by the superintendent, including but not limited to
any insurance company, health insuring corporation, fraternal
benefit society, or multiple employer welfare arrangement, are
confidential
and privileged and
are not a public record as defined
in section 149.43 of the Revised Code.
The original work papers
and any copies of them are not
subject to subpoena and shall not
be made public by the
superintendent or any other person.
However,
the original work
papers and any copies of them may be released by
the
superintendent to the insurance regulatory authority of any
other state if that authority agrees to maintain the
confidentiality of the work papers or copies and if the work
papers and copies are not public records under the laws of that
state. (C) The work papers of the superintendent or of any person
appointed by the
superintendent, resulting from the conduct of a
performance
regulation examination made pursuant to authority
granted under section
3901.011 of the Revised Code, are
confidential
and privileged and are not a public record as
defined
in section 149.43 of the Revised Code. The original work papers
and
any copies of them are not subject to subpoena and shall not
be made public by the superintendent or any other person.
However,
the original work papers and any copies of them may be
released by
the superintendent to the insurance regulatory
authority of any
other state if that authority agrees to
maintain the
confidentiality of the work papers or copies and if
the work
papers and copies are not public records under the laws
of that
state.
(D) Notwithstanding divisions (A), (B), and (C) of this
section, the superintendent may do either of the following: (1) Share work papers that are the subject of this section
with the chief deputy rehabilitator, the chief deputy liquidator,
other deputy rehabilitators and liquidators, and any other person
employed by, or acting on behalf of, the superintendent pursuant
to Chapter 3901. or 3903. of the Revised Code, with other local,
state, federal, and international regulatory and law enforcement
agencies, with local, state, and federal prosecutors, and with the
national association of insurance commissioners and its affiliates
and subsidiaries, provided that the recipient agrees to maintain
the confidential or privileged status of the confidential or
privileged work paper and has authority to do so; (2) Disclose work papers that are the subject of this
section in the furtherance of any regulatory or legal action
brought by or on behalf of the superintendent or the state,
resulting from the exercise of the superintendent's official
duties. (E) Notwithstanding divisions (A), (B), (C), and (D) of this
section, the superintendent may authorize the national association
of insurance commissioners and its affiliates and subsidiaries by
agreement to share confidential or privileged work papers
received
pursuant to division (D)(1) of this section with local,
state,
federal, and international regulatory and law enforcement
agencies
and with local, state, and federal prosecutors, provided
that the
recipient agrees to maintain the confidential or
privileged status
of the confidential or privileged work paper and
has authority to
do so. (F) Notwithstanding divisions (A), (B), (C), and (D) of this
section, the chief deputy rehabilitator, the chief deputy
liquidator, and other deputy rehabilitators and liquidators may
disclose work papers that are the subject of this section in the
furtherance of any regulatory or legal action brought by or on
behalf of the superintendent, the rehabilitator, the liquidator,
or the state resulting from the
exercise of the superintendent's
official duties in any capacity. (G) Nothing in this section shall prohibit the
superintendent from receiving work papers in accordance with
section 3901.045 of the Revised Code. (H) The superintendent may enter into agreements governing
the sharing and use of work papers consistent with the
requirements of this section. (I)(1) No waiver of any applicable privilege or claim of
confidentiality in the work papers, or copies thereof, that are
the subject of this section shall occur as a result of sharing or
receiving work papers as authorized in divisions (D)(1), (E), and
(G) of this section. (2) The disclosure of work papers in connection with a
regulatory or legal action pursuant to divisions (D)(2) and
(F) of
this section does not prohibit an insurer or any other person from
taking steps
to limit the dissemination of the work papers to
persons not
involved in or the subject of the regulatory or legal
action on
the basis of any recognized privilege arising under any
other section of the
Revised Code or the common law.
Sec. 3901.70. (A) Each report obtained by or
disclosed to
the superintendent of insurance pursuant to
sections 3901.67 to
3901.70 of the Revised Code is confidential
and privileged and is
not
subject to subpoena. Except as provided in
divisions
division
(B)
and (C) of this
section, the report shall not be made public
by the superintendent, the
national association of insurance
commissioners, or any other persons. (B)
A report may be provided by the superintendent to the
insurance regulatory authority of another state or to the national
association
of insurance commissioners without first obtaining the
written consent of the
insurer to which it pertains. (C) The superintendent, after conducting a hearing in
accordance with Chapter
119. of the Revised
Code, may determine
that the
interest of policyholders, shareholders, or the public
will be
served by the publication of the report and may publish
all or
any part of the report in such manner as the superintendent
may
consider appropriate.
Notwithstanding division (A) of this
section, the superintendent may do any of the following:
(1) Disclose a report that is the subject of this section
upon obtaining a prior written consent from the insurer to which
the report pertains; (2) Share a report that is the subject of this section with
the chief deputy rehabilitator, the chief deputy liquidator,
other deputy rehabilitators and liquidators, and any other person
employed by, or acting on behalf of, the superintendent pursuant
to Chapter 3901. or 3903. of the Revised Code, with other local,
state, federal, and international regulatory and law enforcement
agencies, with local, state, and federal prosecutors, and with the
national association of insurance commissioners and its affiliates
and subsidiaries, provided that the recipient agrees to maintain
the confidential or privileged status of the confidential or
privileged report and has authority to do so; (3) Disclose a report that is the subject of this section in
the furtherance of any regulatory or legal action brought by or on
behalf of the superintendent or the state, resulting from
the
exercise of the superintendent's official duties; (4) Disclose or publish all or any part of a report that is
the subject of this section in such a manner as the superintendent
considers appropriate after conducting a hearing in accordance
with Chapter 119. of the Revised Code and determining that the
interests of policyholders, shareholders, or the public will be
served by the disclosure or publication of the report. (C) Notwithstanding divisions (A) and (B) of this section,
the superintendent may authorize the national association of
insurance commissioners and its affiliates and subsidiaries by
agreement to share confidential or privileged reports received
pursuant to division (B)(2) of this section with local, state,
federal, and international regulatory and law enforcement agencies
and with local, state, and federal prosecutors, provided that the
recipient agrees to maintain the confidential or privileged status
of the confidential or privileged report and has authority to do
so. (D) Notwithstanding divisions (A) and (B) of this section,
the chief deputy rehabilitator, the chief deputy liquidator, and
other deputy rehabilitators and liquidators may disclose a report
that is the subject of this section in the furtherance of any
regulatory or legal action brought by or on behalf of the
superintendent, the rehabilitator, the liquidator, or the state
resulting from the exercise of the
superintendent's official
duties in any capacity. (E) Nothing in this section shall prohibit the
superintendent from receiving reports in accordance with section
3901.045 of the Revised Code. (F) The superintendent may enter into agreements governing
the sharing, use, and disclosure of reports consistent with the
requirements of this section. (G)(1) No waiver of any applicable privilege or claim of
confidentiality in the reports that are the subject of this
section shall occur as a result of sharing or receiving reports as
authorized in divisions (B)(2), (C), and (E) of this section. (2) The disclosure of a report in connection with a
regulatory or legal action pursuant to divisions (B)(3) and
(D) of
this section does not prohibit an insurer or any other person from
taking steps
to limit the dissemination of the report to persons
not involved
in or the subject of the regulatory or legal action
on the basis
of any recognized privilege arising under any other
section of the Revised
Code or the common law.
Sec. 3901.83.
(A) When a record containing information
pertaining to
the medical history, diagnosis, prognosis, or
medical condition of
an enrollee of a health insuring corporation,
insured of an
insurer, or plan member of a public employee benefit
plan is
provided to the superintendent of insurance for any reason
under
sections 1751.77 to 1751.88, 3923.66 to 3923.70, or 3923.75
to
3923.79 of the Revised Code, regardless of the source, the
superintendent shall maintain the confidentiality of the record.
The record in the superintendent's possession is not a public
record under section 149.43 of the Revised Code, except to the
extent that information from the record is used in preparing
reports under section 3901.82 of the Revised Code.
(B) Notwithstanding division (A) of this section, the
superintendent may share a record that is the subject of this
section
in connection with the investigation or prosecution of
any
illegal or criminal activity with the chief deputy
rehabilitator,
the chief deputy
liquidator, other deputy
rehabilitators and
liquidators, and any
other person employed by,
or acting on behalf
of, the
superintendent pursuant to Chapter
3901. or 3903. of the
Revised
Code, with other local, state,
federal, and international
regulatory and law enforcement
agencies, with local, state, and
federal prosecutors, and with the
national association of
insurance commissioners and its affiliates
and subsidiaries,
provided that the recipient agrees to maintain
the confidential or
privileged status of the confidential or
privileged record and has
authority to do so. (C) Nothing in this section shall prohibit the
superintendent from receiving records in accordance with section
3901.045 of the Revised Code. (D) The superintendent may enter into agreements governing
the sharing and use of records consistent with the requirements of
this section. (E) No waiver of any applicable privilege or claim of
confidentiality in the records that are the subject of this
section shall occur as a result of sharing or receiving records as
authorized in divisions (B) and (C) of this section.
Sec. 3903.11.
(A) In all proceedings and judicial reviews
thereof under sections
3903.09 and 3903.10 of the Revised Code,
all records of the insurer, other
documents, and all department of
insurance files and court records
and papers, so far as they
pertain to or are a part of the record of the
proceedings, shall
be and remain confidential
and privileged except as is necessary
to
enforce compliance with those sections, unless and until the
court of common
pleas, after hearing arguments from the parties in
chambers, shall order
otherwise, or unless the insurer requests in
writing that the matter be made
public. Until such court order or
such request from the insurer, all papers
filed with the clerk of
the court shall be held by the clerk in a confidential
file.
(B) Notwithstanding division (A) of this section, the
superintendent may do either of the following: (1) Share the documents and information that are the subject
of this section with the chief deputy rehabilitator, the chief
deputy liquidator, other deputy rehabilitators and liquidators,
and
any other person employed by, or acting on behalf of, the
superintendent pursuant to Chapter 3901. or 3903. of the Revised
Code, with other local, state, federal, and international
regulatory and law enforcement agencies, with local, state, and
federal prosecutors, and with the national association of
insurance commissioners and its affiliates and subsidiaries,
provided that the recipient agrees to maintain the confidential or
privileged status of the confidential or privileged document or
information and has authority to do so; (2) Disclose documents and information that are the subject
of this section in the furtherance of any regulatory or legal
action brought by or on behalf of the superintendent or the state,
resulting from the exercise of the superintendent's
official
duties.
(C) Notwithstanding divisions (A) and (B) of this section,
the superintendent may authorize the national association of
insurance commissioners and its affiliates and subsidiaries by
agreement to share confidential or privileged documents or
information received pursuant to division (B)(1) of this section
with local, state, federal, and international regulatory and law
enforcement agencies and with local, state, and federal
prosecutors, provided that the recipient agrees to maintain the
confidential or privileged status of the confidential or
privileged document or information and has authority to do so. (D) Notwithstanding divisions (A) and (B) of this section,
the chief deputy rehabilitator, the chief deputy liquidator, and
other deputy rehabilitators and liquidators may disclose
documents
and information that are the subject of this section in
the
furtherance of any regulatory or legal action brought by or on
behalf of the superintendent, the rehabilitator, the liquidator,
or the state resulting from
the
exercise of the superintendent's
official duties in any capacity. (E) Nothing in this section shall prohibit the
superintendent from receiving documents or information in
accordance with section 3901.045 of the Revised Code. (F) The superintendent may enter into agreements governing
the sharing and use of documents and information consistent with
the requirements of this section. (G)(1) No waiver of any applicable privilege or claim of
confidentiality in the documents and information described in this
section shall occur as a result of sharing or receiving documents
and information as authorized in divisions (B)(1), (C), and (E) of
this section. (2) The disclosure of documents or information in connection
with a regulatory or legal action pursuant to divisions (B)(2)
and
(D) of this section does not prohibit an insurer or any other
person from taking
steps to limit the dissemination of the
document or information to
persons not involved in or the subject
of the regulatory or legal
action on the basis of any recognized
privilege arising under any other section
of the Revised Code or
the common law.
Sec. 3903.72. (A) The superintendent of insurance shall
annually value, or cause to be valued, the reserve liabilities,
referred to in this section as reserves, for all outstanding life
insurance policies and annuity and pure endowment contracts of
every life insurance company doing business in this state. The
superintendent may certify the amount of such reserves,
specifying
the mortality tables, rates of interest, and net level
premium
method and other methods used to calculate reserves. In
calculating reserves, the superintendent may use group methods
and
approximate averages for fractions of a year or otherwise.
The
valuation of the reserves of a company organized under the
laws of
a foreign government shall be limited to its United
States
business. In lieu of a valuation of the reserves of a foreign
company,
the superintendent may accept the valuation made, or
caused to be
made, by the insurance supervisory official of any
state or other
jurisdiction when such valuation complies with the
minimum
standards required by this section, provided such
official accepts
the certificate of valuation of the
superintendent when such
certificate states that the valuation
was made in a specified
manner and when such valuation complies
with the minimum standards
required by the law of that state or
jurisdiction. A company, which adopts a standard of valuation producing
aggregate reserves greater than those required by this section,
may adopt a lower standard of valuation with the approval of the
superintendent, but not lower than the minimum provided by this
section. However, the holding of additional reserves previously
determined by a qualified actuary to be necessary for the
actuary
to render the opinions required by divisions (B)(1) and (2) of
this
section shall not be deemed to be the adoption of a higher
standard of
valuation. (B)(1) Every life insurance company doing
business in this
state shall annually submit to the
superintendent the opinion of a
qualified actuary as to whether
the reserves and related actuarial
items held in support of the
policies and contracts specified by
rule by the superintendent
are computed appropriately, are based
on assumptions that
satisfy contractual provisions, and are
consistent with prior
reported amounts. The opinion shall be
submitted no later than
March 1, 1996, and no later than the first
day of March of
each year thereafter. The superintendent shall
adopt rules establishing
the form and content of this opinion, and
may require the life
insurance company to supply information in
addition to that
contained in the actuarial opinion. As used in this section, a "qualified actuary" means a
person
who is a member in good standing of the American academy of
actuaries
and who meets the requirements set by rule by the
superintendent. (2)(a) Every life insurance company, except as exempted by
rule adopted by
the superintendent, shall also include in the
annual opinion required by
division (B)(1) of this section an
opinion of the same qualified actuary as to
whether the reserves
and related actuarial items held in support of the policies and
contracts specified by rule by the superintendent, when
considered
in light of the assets held by the
company with respect to the
reserves and related actuarial
items, including, but not limited
to, the investment earnings on
the assets and the considerations
anticipated to be received and
retained under the policies and
contracts, make adequate
provision for the company's obligations
under the policies and
contracts, including, but not limited to,
the benefits under and
the expenses associated with the policies
and contracts. (b) The superintendent may provide by
rule for a transition
period for establishing any higher
reserves that the qualified
actuary may consider necessary to
render the opinion required by
division (B) of this section. (c) Each opinion required by division (B) of this section
shall be supported
by a memorandum prepared in form and content as
specified by rule by the superintendent. (d) If a life insurance company fails
to provide a
supporting memorandum within the period of time
specified by rule
by the superintendent, or if the
superintendent determines that a
supporting memorandum fails to
meet the standards set out in the
rule, or is otherwise
unacceptable to the superintendent, the
superintendent may
employ, at the expense of the insurance
company, a qualified
actuary to review the opinion and the basis
for the opinion and
prepare such supporting memorandum as is
required by the
superintendent. (3) Every opinion required by division (B) of this section
is governed
by the following: (a) The opinion shall be submitted
with the annual statement
reflecting the valuation of the
reserve liabilities. (b) The opinion shall apply to all
business in force
including individual and group health
insurance plans. (c) The opinion shall be based on standards adopted from
time to time by the
actuarial standards board of the American
academy of actuaries and on such
additional standards as the
superintendent may prescribe by rule. (d) In the case of an opinion required
to be submitted by a
foreign or alien life insurance company,
the superintendent may
accept the opinion filed by that company
with the insurance
regulatory authority of another state if the
superintendent
determines that the opinion reasonably meets the
requirements
applicable to a company domiciled in this state. (e) Except in cases of fraud or
willful misconduct, the
qualified actuary is not liable for
damages in any civil action to
any person, other than the
insurance company and the
superintendent, for any act, error,
omission, decision, or conduct
with respect to the actuary's
opinion. (f) The superintendent shall establish
by rule penalties for
an insurance company's or qualified
actuary's failure to comply
with this section. (g) The superintendent shall keep
as confidential
and
privileged any memorandum received in support of a qualified
actuary's opinion and also any other
material provided by the
insurance company to the superintendent
in connection with the
opinion. The memorandum and other
materials shall not be made
public, and shall not be subject to
subpoena other than for the
purpose of defending an action
required by this section or rules
adopted under this section.
However,
the memorandum and other
materials may be released by
the superintendent with the written
consent of the company, and
may be released to the American
academy of actuaries upon the superintendent's receipt of a
request from the academy stating that the memorandum and other
materials are required for the purpose of professional
disciplinary proceedings. A request from the
American academy of
actuaries
shall set forth the procedures to be used by the academy
for
preserving the confidentiality of the memorandum and other
materials, which procedures shall be satisfactory to the
superintendent prior to the superintendent's release of the
memorandum and other materials. If
if any portion of a
confidential
and privileged memorandum is cited by the company in
its
marketing, is cited before any governmental agency other than
a
state insurance regulatory authority, or is released by the
company to the news media, the entire memorandum shall no longer
be confidential
and privileged.
(h) Notwithstanding division (B)(3)(g) of this section, the
superintendent may do any of the following: (i) Disclose memoranda and other materials described in this
section upon obtaining prior written consent from the insurer to
which the memorandum or other materials pertain; (ii) Disclose memoranda and other materials described in
this section to the American academy of actuaries upon receipt of
a written request from the academy stating that a memorandum or
other material is required for the purpose of professional
disciplinary proceedings. A request from the American academy of
actuaries shall set forth the procedures to be used by the academy
for preserving the confidential and privileged status of the
memorandum or other
material. If the procedures set forth are not
satisfactory to the
superintendent, the superintendent shall not
release the
memorandum or other material to the academy. (iii) Share memoranda and other materials described in this
section with the chief deputy rehabilitator, the chief deputy
liquidator, other deputy rehabilitators and liquidators, and any
other person employed by, or acting on behalf of, the
superintendent pursuant to Chapter 3901. or 3903. of the Revised
Code, with other local, state, federal, and international
regulatory and law enforcement agencies, with local, state, and
federal prosecutors, and with the national association of
insurance commissioners and its affiliates and subsidiaries,
provided that the recipient agrees to maintain the confidential or
privileged status of any confidential or privileged memorandum or
other material and has authority to do so; (iv) Disclose memoranda and other materials described in
this section in the furtherance of any regulatory or legal action
brought by or on behalf of the superintendent or the state,
resulting from the exercise of the superintendent's official
duties. (i) Notwithstanding divisions (B)(3)(g) and (h) of this
section, the superintendent may authorize the national association
of insurance commissioners and its affiliates and subsidiaries by
agreement to share confidential or privileged memoranda and other
material received pursuant to division (B)(3)(h)(iii) of this
section with local, state, federal, and international regulatory
and law enforcement agencies and with local, state, and federal
prosecutors, provided that the recipient agrees to maintain the
confidential or privileged status of the confidential or
privileged memorandum or other material and has authority to do
so. (j) Notwithstanding divisions (B)(3)(g) and (h) of this
section, the chief deputy rehabilitator, the chief deputy
liquidator, and other deputy rehabilitators and liquidators may
disclose memoranda and other material described in this section in
the furtherance of any regulatory or legal action brought by or on
behalf of the superintendent, the rehabilitator, the liquidator,
or the state resulting from
the exercise of the superintendent's
official duties in any capacity. (k) Nothing in this section shall prohibit the
superintendent from receiving memoranda and other material in
accordance with section 3901.045 of the Revised Code. (l) The superintendent may enter into agreements governing
the sharing and use of memoranda and materials consistent with the
requirements of this section. (m)(i) No waiver of any applicable privilege or claim of
confidentiality in the memoranda and materials described in this
section shall occur as a result of sharing or receiving memoranda
and material as authorized in divisions (B)(3)(h)(ii) and (iii),
(B)(3)(i), and (B)(3)(k) of this section. (ii) The disclosure of any memorandum or material in
connection with a regulatory or legal action pursuant to
divisions
(B)(3)(h)(iv) and (B)(3)(j) of this section does not
prohibit an
insurer or any other person from taking steps to limit the
dissemination
of the memorandum or material to persons not
involved in or the
subject of the regulatory or legal action on
the basis of any recognized
privilege arising under any other
section of the Revised Code or the common law.
(C) Except in the case of policies and contracts to which
division (D) of this section applies, the minimum standard for
the
valuation of reserves shall be the method set forth in
section
3915.04 of the Revised Code, using four per cent interest
and the
American experience table of mortality; provided that in
no event
shall a company's aggregate reserves for policies and
contracts
which guarantee nonforfeiture benefits be less than the
aggregate
reserves calculated in accordance with the standard
used in
calculating nonforfeiture benefits for such policies and
contracts. Reserves for such policies and contracts may be calculated
according to standards which produce aggregate reserves greater
than the minimum reserves required by this division. (D) This division applies to all life insurance policies
and
annuity and pure endowment contracts issued on and after
November
5, 1959, or each earlier date not before July 17, 1947,
elected by
the company for one or more of such policies or
contracts as the
date on which it would comply with the
provisions of the
nonforfeiture law for life insurance provided
in section 3915.07
of the Revised Code or with the provisions of
this division. The
minimum standard for the valuation of all
such policies and
contracts shall be the commissioners reserve
valuation method
defined in division (E), (F), (H), or (K) of
this section and the
following tables and interest rates: (1) For ordinary life insurance policies, excluding
disability and accidental death benefits, issued on the standard
basis: (a) On and after November 5, 1959, or an earlier date, not
before July 17, 1947, specified in a written notice by the
company
to the superintendent of its election to use this table
and before
division (D)(1)(b) of this section became operative
for subsequent
policy issues, the commissioners 1941 standard
ordinary mortality
table and three and one-half per cent
interest; (b) On and after January 1, 1966, or an earlier date, not
before November 5, 1959, specified in a written notice by the
company to the superintendent of its election to use this table
and before division (D)(1)(c) of this section becomes operative
for subsequent policy issues, the commissioners 1958 standard
ordinary mortality table and three and one-half per cent interest
before January 1, 1975; four per cent interest on and after
January 1, 1975 and before January 1, 1979; and four and one-half
per cent interest on and after January 1, 1979; provided that
modified premiums and present values for female risks may be
calculated at an age three years younger than the actual age of
the insured for policies issued before January 1, 1979, and at an
age six years younger for policies issued on and after January 1,
1979. (c) On and after January 1, 1989, or an earlier date, not
before January 1, 1983, specified in a written notice by the
company to the superintendent of its election to use this table,
the commissioners 1980 standard ordinary mortality table and the
applicable valuation interest rate as defined in section 3903.721
of the Revised Code. The company may elect to use the
commissioners 1980 standard ordinary mortality table with
ten-year
select mortality factors for any specified plan of life
insurance.
The superintendent may approve the use of any
ordinary mortality
table adopted after 1980 by the national
association of insurance
commissioners for determining the
minimum standard for the
valuation of such policies. (2) For industrial life insurance policies, excluding
disability and accidental death benefits, issued on the standard
basis: (a) On and after November 5, 1959, or an earlier date, not
before July 17, 1947, specified in a written notice by the
company
to the superintendent of its election to use this table
and before
division (D)(2)(b) of this section became operative
for subsequent
policy issues, the 1941 standard industrial
mortality table and
three and one-half per cent interest; (b) On and after January 1, 1968, or an earlier date, not
before September 2, 1963, specified in a written notice by the
company to the superintendent of its election to use this table,
the commissioners 1961 standard industrial mortality table and
three and one-half per cent interest before January 1, 1975; four
per cent interest on and after January 1, 1975 and before January
1, 1979; four and one-half per cent interest on and after January
1, 1979 and before January 1, 1989, or before an earlier date,
not
before January 1, 1983, specified in a written notice by the
company to the superintendent of its election to issue such
policies pursuant to the provisions of the nonforfeiture law for
life insurance provided in section 3915.071 of the Revised Code.
On and after
January 1, 1989, or such earlier date, the interest
rate to be used in calculating the minimum reserve for such
policies is the applicable valuation interest rate as defined in
section 3903.721 of the Revised Code. The superintendent may
approve the use of any industrial mortality table adopted after
1980 by the national association of insurance commissioners for
determining the minimum standard for the valuation of such
policies. (3) For all individual annuity and pure endowment
contracts,
excluding disability and accidental death benefits,
issued: (a) On and after November 5, 1959, or an earlier date, not
before July 17, 1947, as of which the company elected to comply
with this division (D)(3)(a) and before division (D)(3)(b) of
this
section became operative for subsequent contract issues, the
1937
standard annuity mortality table, or, at the option of the
company, the annuity mortality table for 1949, ultimate, or any
modification of either table approved by the superintendent and
three and one-half per cent interest; (b) On and after January 1, 1979, or an earlier date, not
before January 1, 1975, specified by the company in a written
notice to the superintendent of its election to use this table,
the 1971 individual annuity mortality table or any modification
of
that table approved by the superintendent and four per cent
interest on and after January 1, 1975 and before January 1, 1979;
four and one-half per cent interest on and after January 1, 1979,
and before January 1, 1983; and the valuation interest rate as
defined in section 3903.721 of the Revised Code on and after
January 1, 1983, except that on and after January 1, 1975, and
before January 1, 1979, the interest rate is six per cent for
single premium immediate contracts and on and after January 1,
1979, and
before January 1, 1983, the interest rate is five and
one-half
per cent for single premium deferred contracts and seven
and
one-half per cent for single premium immediate contracts. The
superintendent may approve the use of any individual annuity
mortality table adopted after 1980 by the national association of
insurance commissioners, either as adopted or as modified by the
superintendent, for determining the minimum standard for the
valuation of such contracts. (4) For all annuity and pure endowment contracts,
excluding
disability and accidental death benefits, purchased
under group
annuity and pure endowment contracts: (a) On and after November 5, 1959, or an earlier date, not
before July 17, 1947, as of which the company elected to comply
with this division (D)(4)(a) and before division (D)(4)(b) of
this
section became operative for subsequent contract purchases,
the
group annuity mortality table for 1951, any modification of
this
table approved by the superintendent, or either of the
tables, or
modification of either of them, specified in division
(D)(3)(a) of
this section for individual annuity and pure
endowment contracts
and three and one-half per cent interest; (b) On and after January 1, 1979, or an earlier date, not
before January 1, 1975, specified by the company in a written
notice to the superintendent of its election to use this table,
the 1971 group annuity mortality table, or any modification of
that table approved by the superintendent, and six per cent
interest on and after January 1, 1975, and before January 1,
1979;
seven and one-half per cent interest on and after January
1, 1979,
and before January 1, 1983, and the valuation interest
rate as
defined in section 3903.721 of the Revised Code on and
after
January 1, 1983. The superintendent may approve the use of
any
group annuity mortality table adopted after 1980 by the
national
association of insurance commissioners, either as
adopted or as
modified by the superintendent, for determining the
minimum
standard for the valuation of such contracts. (5) For total and permanent disability benefits in or
supplementary to ordinary policies and contracts issued: (a) On and after July 17, 1947, and before January 1,
1961,
the class (3) disability table (1926) and three and
one-half per
cent interest. This table, for active lives, shall
be combined
with a mortality table permitted for calculating the
reserves for
life insurance policies. (b) On and after January 1, 1961, the tables of period 2
disablement rates and the 1930 to 1950 termination rates of the
1952 disability study of the society of actuaries, with due
regard
for the type of benefit; except that a company may, at its
option,
use the class (3) disability table (1926) for policies
and
contracts issued on and after January 1, 1961, and before
January
1, 1966. Any such table, for active lives, shall be
combined with
a mortality table permitted for calculating the
reserves for life
insurance policies. The interest rate to be
used in calculating
minimum reserves for such benefits may not
exceed the applicable
rate specified in division (D)(1) of this
section for ordinary
life insurance policies. The superintendent
may approve the use
of any table of disablement rates and
termination rates adopted
after 1980 by the national association
of insurance commissioners
for determining the minimum standard
for the valuation of such
total and permanent benefits. (6) For accidental death benefits in or supplementary to
policies issued: (a) On and after July 17, 1947, and before January 1,
1961,
the inter-company double indemnity mortality table and
three and
one-half per cent interest. This table shall be
combined with a
mortality table permitted for calculating the
reserves for life
insurance policies. (b) On and after January 1, 1961, the 1959 accidental
death
benefits table; except that a company may, at its option,
use the
inter-company double indemnity mortality table for
policies issued
on and after January 1, 1961, and before January
1, 1966. Either
table shall be combined with a mortality table
permitted for
calculating the reserves for life insurance
policies. The
interest rate to be used in calculating the
minimum reserves for
such benefits may not exceed the applicable
rate specified in
division (D)(1) of this section for ordinary
life insurance
policies. The superintendent may approve the use
of any
accidental death benefits table adopted after 1980 by the
national
association of insurance commissioners for determining
the minimum
standard for the valuation of such accidental death
benefits. (7) For group life insurance, life insurance issued on the
substandard basis and all other special benefits, such tables as
may be approved by the superintendent and interest not to exceed
the applicable rate used in division (D)(1) of this section
for
ordinary life insurance policies. (E) This division defines the commissioners reserve
valuation method for all policies, riders, and supplemental
policy
provisions, with life insurance or endowment benefits, or
both,
providing for uniform amounts of life insurance and
requiring
uniform premiums. Reserves for such policies, riders,
and
provisions, except as otherwise provided in divisions
(F) and (K)
of this section, shall be
the excess, if any, of the present
value
on the valuation date of the future guaranteed benefits
over the
present value on that date of the future modified net
premiums.
The modified net premium is a uniform percentage of
each contract
premium specified for the guaranteed benefits such
that the
present value, at the date of issue, of all modified net
premiums
shall be equal to the present value, on the date of
issue, of the
future guaranteed benefits plus the excess of
division (E)(1) over
division (E)(2) of
this section, as follows: (1) A net level annual premium equal to the present value,
at the date of issue, of such benefits provided for after the
first policy year, divided by the present value, at the date of
issue, of an annuity of one per annum payable on the first and
each subsequent anniversary of the policy on which a premium
falls
due; provided that such net level annual premium shall not
exceed
the net level annual premium on the nineteen-year premium
whole
life plan for insurance of the same amount at an age one
year
higher than the age at issue of the policy. (2) A net one-year term premium for such benefits provided
for in the first policy year. (F) This division defines the commissioners reserve
valuation method for all life insurance policies issued on or
after January 1, 1989, that have a first year premium in excess
of
the premium for the second policy year and for which excess no
comparable benefit is provided in the first year and that provide
either an endowment benefit or cash surrender value, or both, in
an amount greater than the excess. Reserves for such policies
before the assumed ending date shall be the greater of the amount
calculated in accordance with division (E) of this section and
the
reserve calculated in accordance with that division but with
the
following changes: (1) The value defined in division (E)(1) of this section
shall be reduced by fifteen per cent of the amount of such excess
first-year premium; (2) All present values of benefits and premiums shall be
determined without reference to premiums and benefits provided
for
by the policy after the assumed ending date; (3) The policy shall be assumed to mature on the assumed
ending date in the amount of its endowment benefits and cash
surrender value. The assumed ending date is the first policy
anniversary on which the sum of any endowment benefit and any
cash
surrender value then available is greater than such excess
first-year premium. On and after the assumed ending date, the reserve for such
policies shall be calculated in accordance with division
(E) of
this section. (G) Reserves according to the commissioners reserve
valuation method for: (1) All policies, riders, and supplemental policy
provisions
providing varying amounts of life insurance or
requiring payment
of varying premiums; (2) Group annuity and pure endowment contracts purchased
under a retirement plan or plan of deferred compensation,
established or maintained by an employer, including a partnership
or sole proprietorship, or by an employee organization, or by
both, other than a plan providing individual retirement accounts
or individual retirement annuities under section 408 of the
Internal Revenue Code of 1954, as amended; (3) Disability and accidental death benefits in all
policies
and contracts; and (4) All other benefits, except life insurance and
endowment
benefits in life insurance policies and benefits
provided by all
other annuity and pure endowment contracts, shall
be calculated by
a method consistent with the principles of
division (E) of this
section. Extra premiums charged because of impairments or special
hazards shall be disregarded in determining modified net
premiums. (H) This division defines the commissioners annuity reserve
valuation method for all annuity and pure endowment contracts
other than group annuity and pure endowment contracts purchased
under a retirement plan or plan of deferred compensation,
established or maintained by an employer, including a partnership
or sole proprietorship, or by an employee organization, or by
both, other than a plan providing individual retirement accounts
or individual retirement annuities under section 408 of the
Internal Revenue Code of 1954, as amended. Reserves for benefits under such contracts, excluding
disability and accidental death benefits, shall be the greatest
of
the respective excesses of the present values, at the date of
valuation, of the future guaranteed benefits, including
guaranteed
nonforfeiture benefits, provided for by such contract
at the end
of each respective contract year, over the present
value, at the
date of valuation, of any future valuation
considerations derived
from future gross considerations required
by the terms of the
contract that become payable prior to the end
of each such
respective contract year. The future guaranteed
benefits shall be
determined by using the mortality table, if
any, and the interest
rate, or rates, specified in such contracts
for determining
guaranteed benefits. The valuation
considerations are the
portions of the respective gross
considerations applied under the
terms of such contracts to
determine nonforfeiture values. (I) In no event shall a company's aggregate reserves for
all
life insurance policies, to which division (D) of this
section
applies, excluding disability and accidental death
benefits, be
less than the aggregate reserves calculated in
accordance with the
method set forth in divisions (E), (F),
(G), (K), and (L) of this
section and the mortality table or tables
and rate or rates of
interest used in calculating nonforfeiture
benefits for such
policies. In no event shall the aggregate reserves for all policies,
contracts, and benefits be less than the aggregate reserves
determined by the qualified actuary to be necessary to render
the
opinion required by division (B) of this section. (J) Reserves for any category of policies, contracts, or
benefits as established by the superintendent may be calculated,
at the option of the company, according to any standards which
produce aggregate reserves for such category greater than those
calculated according to the minimum standards provided in this
section, but the rate or rates of interest used for policies and
contracts, other than annuity and pure endowment contracts, shall
not be higher than the corresponding rate or rates of interest
used in calculating any nonforfeiture benefits provided for in
such standards. (K) If in any contract year the valuation net premium
calculated by the method used in calculating the reserve for a
policy or contract but using the minimum valuation standards of
mortality and rate of interest is more than the gross premium for
such policy or contract, the minimum reserve required for such
policy or contract shall be the greater of either the reserve
calculated according to the mortality table, rate of interest,
and
method actually used for such policy or contract, or the
reserve
calculated by such method but using the minimum valuation
standards of mortality and rate of interest and replacing the
valuation net premium by the actual gross premium in each
contract
year for which the valuation net premium exceeds the
actual gross
premium. The minimum valuation standards of
mortality and rate of
interest referred to in this division are
those required by
division (D) of this section. For the purposes of this division, the minimum reserve for
any policy to which the provisions of division (F) of this
section
apply shall be calculated as if the method used in
calculating the
reserve for such policy were the method defined
in division (E) of
this section. The minimum reserve for
such policy shall be the
greater of the reserve calculated in
accordance with division (F)
of this section and in
accordance with this division. (L) Methods for determining the reserves for plans of life
insurance or annuity which are of such a nature that minimum
reserves cannot be determined by the methods described in this
section shall be promulgated by rule adopted by the
superintendent. The reserves to be held under such plans must be
appropriate in relation to the benefits and the pattern of
premiums for each plan and must be computed by methods which are
consistent with the principles of this section. This division
applies to any plan of life insurance which provides for future
premium determination, the amounts of which are to be determined
by the company on the basis of an estimate of future experience
made at the time of any such determination. (M) The superintendent shall adopt
rules specifying minimum
reserve standards for the valuation of
individual and group health
plans.
Sec. 3903.83. (A) For purposes of sections 3903.81 to
3903.93 of the Revised
Code, a "company action level event" is any
of the following events: (1) A domestic or foreign insurer's filing of an
RBC report
that indicates that
the insurer's total adjusted capital is
greater than or equal to
its regulatory action level RBC but less
than its company action
level RBC; (2) A life or health insurer's filing of an RBC report that
indicates that the insurer's total adjusted capital is greater
than or equal
to its company action level RBC but less than the
product of 2.5 and
its authorized control level RBC, and that
indicates a negative
trend; (3) The notification by the superintendent of insurance to
an insurer of an adjustment to the insurer's RBC report, which
adjusted RBC report shows the insurer's total adjusted capital
within
the range described in either division (A)(1) or (2) of
this section, provided
that the insurer does not challenge the
adjusted RBC report under
section 3903.87 of the Revised Code; (4) The superintendent's notification to an insurer,
following the hearing required under section 3903.87 of the
Revised Code, that the superintendent has rejected the insurer's
challenge to
an adjusted
RBC report showing the insurer's total
adjusted capital within the
range described in either division
(A)(1) or (2) of this section. (B) In the case of a company action level event, the insurer
shall prepare
and submit to the superintendent an RBC plan that
shall: (1) Identify the conditions that contributed to the
company
action level event; (2) Contain proposals of corrective actions that the
insurer
intends to take to eliminate the conditions leading to
the company
action level event; (3) Provide projections of the insurer's financial results
in the current year and at least the four succeeding years, both
in the absence of the proposed corrective actions and giving
effect to the proposed corrective actions. The projections
shall
include projections of statutory operating income, net
income,
capital, and surplus. Projections for both new and
renewal
business may include separate projections for each major
line of
business, and may separately identify each significant
income,
expense, and benefit component of the projection. (4) Identify the key assumptions impacting the insurer's
projections made pursuant to division (B)(3) of this section, and
describe the sensitivity of the projections to the assumptions; (5) Identify the quality of, and problems associated with,
the insurer's business, including, but not limited to, its assets,
anticipated business growth and associated surplus strain,
extraordinary exposure to risk, mix of business, and use of
reinsurance. (C) The RBC plan shall be submitted within forty-five days
after a
company action level event. However, if an insurer has
challenged an adjusted
RBC report pursuant to section 3903.87 of
the Revised Code, the
RBC plan need not be submitted until after
the hearing required under
section 3903.87 of the Revised Code.
If
the superintendent rejects the
insurer's challenge, the RBC
plan
shall be submitted within
forty-five days after the
superintendent's notification to the insurer of the
rejection of
the challenge. (D)(1) Within sixty days after an insurer submits an RBC
plan to the superintendent, the superintendent shall either
require the insurer to implement the RBC plan or shall notify the
insurer that the RBC plan is unsatisfactory in the judgment of the
superintendent. If the superintendent has determined that the RBC
plan is unsatisfactory, the notification to the insurer shall set
forth the
reasons for the determination, and may set forth
proposed revisions that will
render the RBC plan satisfactory in
the judgment of the
superintendent. Upon such notification from
the superintendent, the insurer
shall prepare and submit a revised
RBC plan,
which may incorporate by reference any revisions
proposed by the
superintendent. (2) If an insurer challenges, under section 3903.87 of the
Revised Code, a notification from the Superintendent that the
insurer's
RBC plan or a revised RBC plan is unsatisfactory,
submission
of a revised RBC plan need not be made unless the
superintendent
rejects the insurer's challenge following the
hearing required by section
3903.87 of the Revised Code and then
notifies the insurer of this rejection. (3) An insurer shall submit a revised RBC plan to the
superintendent
within forty-five days after receiving notification
from the superintendent
that its RBC plan is unsatisfactory, or,
that its challenge to a
notification made under division (D)(1) of
this section has been rejected, as applicable. (E) Notwithstanding division (D) of this section, if the
superintendent
notifies an insurer that its RBC plan or revised
RBC plan is
unsatisfactory, the superintendent may, at the
superintendent's discretion,
but subject to the insurer's right to
a hearing under section 3903.87 of the
Revised Code, specify in
the notification that the notification constitutes a
regulatory
action level event. (F) Every domestic insurer that submits an RBC
plan or
revised RBC plan to the superintendent shall file a copy of
the
RBC plan or revised RBC plan with the insurance
regulatory
authority of every state in which the insurer is authorized to do
business upon receiving the insurance regulatory authority's
written request
for a copy of the plan, if the state has a
confidentiality law
with provisions substantially
similar to
those
set forth in divisions (A) and (B) of section 3903.88 of the
Revised Code. The insurer shall file the
copy in that state no
later than the later of: (1) Fifteen days after receiving the request for a copy of
the plan; (2) The date on which the
RBC plan or revised RBC plan is
filed pursuant to division
(C) or (D) of this section.
Sec. 3903.88. (A) The
superintendent of insurance shall
keep all of the following
confidential: (1) An RBC report, to the
extent that information contained
in the report is not required
to be included in an annual
statement available to the public; (3) The results of, or a report on, an examination or
analysis conducted pursuant to division (B)(2) of section 3903.84
of the
Revised Code, and a corrective order
issued pursuant to
division (B)(3) of section 3903.84 of the Revised Code. (B) The plans, reports, information, and orders described in
division (A) of
this section
shall
are confidential and privileged
and not
be subject to subpoena, except for use by the
superintendent in accordance with the insurance laws of this
state. (C)
Notwithstanding divisions (A) and (B) of this section,
the superintendent may do any of the following: (1) Use the plans, reports, information, and orders that are
the subject of this section in accordance with the insurance laws
of this state; (2) Share the plans, reports, information, and orders that
are the subject of this section with the chief deputy
rehabilitator, the chief deputy liquidator, other deputy
rehabilitators and liquidators, and any other person employed by,
or acting on behalf of, the superintendent pursuant to Chapter
3901. or 3903. of the Revised Code, with other local, state,
federal, and international regulatory and law enforcement
agencies, with local, state, and federal prosecutors, and with the
national association of insurance commissioners and its affiliates
and subsidiaries, provided that the recipient agrees to maintain
the confidential or privileged status of the confidential or
privileged plan, report, information, or order and has authority
to do so; (3) Disclose plans, reports, information, and orders that
are the subject of this section in the furtherance of any
regulatory or legal action brought by or on behalf of the
superintendent or the state, resulting from the exercise of the
superintendent's official duties. (D) Notwithstanding divisions (A), (B), and (C) of this
section, the superintendent may authorize the national association
of insurance commissioners and its affiliates and subsidiaries by
agreement to share confidential or privileged plans, reports,
information, and orders received pursuant to division (C)(2) of
this section with local, state, federal, and international
regulatory and law enforcement agencies and with local, state, and
federal prosecutors, provided that the recipient agrees to
maintain the confidential or privileged status of the confidential
or privileged plan, report, information, or order and has
authority to do so. (E) Notwithstanding divisions (A), (B), and (C) of this
section, the chief deputy rehabilitator, the chief deputy
liquidator, and other deputy rehabilitators and liquidators may
disclose plans, reports, information, and orders that are the
subject of this section in the furtherance of any regulatory or
legal action brought by or on behalf of the superintendent, the
rehabilitator, the liquidator, or the state resulting from the
exercise of the superintendent's
official duties in any capacity. (F) Nothing in this section shall prohibit the
superintendent from receiving plans, reports, information, and
orders in accordance with section 3901.045 of the Revised Code. (G) The superintendent may enter into agreements governing
the sharing and use of plans, reports, information, and orders
consistent with the requirements of this section. (H)(1) No waiver of any applicable privilege or claim of
confidentiality in the plans, reports, information, and orders
that are the subject of this section shall occur as a result of
sharing or receiving plans, reports, information, and orders as
authorized in divisions (C)(2), (D), and (F) of this section. (2) The disclosure of a plan, report, information, or order
in connection with a regulatory or legal action pursuant to
divisions (C)(3) and (E) of this section does not prohibit an
insurer or any other person from taking steps to limit the
dissemination of the plan,
report, information, or order to
persons not involved in or the
subject of the regulatory or legal
action on the basis of any recognized
privilege arising under any
other section of the Revised Code or the common law. (I) The comparison of an insurer's total adjusted capital to
any of its
RBC levels shall not be used to rank insurers. (D)(J) RBC instructions, RBC reports, adjusted RBC
reports,
RBC plans, and revised RBC plans, shall not be used
by the
superintendent for ratemaking, considered or introduced as
evidence in any rate proceeding, or used by the superintendent
to
calculate or derive any elements of an appropriate premium level
or rate of
return for any line of insurance that an
insurer or any
affiliate is authorized to write.
(E)(K) Except as otherwise required under Title XXXIX of the
Revised Code, it is
an unfair and
deceptive act or practice in the
business of insurance for any
person, as defined in division (A)
of section 3901.19 of the
Revised Code, to make, publish,
disseminate, circulate, or place before the public, or to cause,
directly or indirectly, to be made, published, disseminated,
circulated, or placed before the public, in a newspaper,
magazine,
or other publication, in the form of a notice,
circular, pamphlet,
letter, or poster, or over any radio or
television station, or in
any other manner, an advertisement,
announcement, or statement,
written or oral, that contains an
assertion, representation, or
statement, regarding the
RBC levels of any insurer or
any
component derived in the calculation of the
RBC levels.
(F)(L) If any materially
false statement is published
comparing an insurer's total
adjusted capital to its RBC
levels,
or any inappropriate comparison of any other amount to
any of the
insurers' RBC levels
is published, and the insurer is able to
demonstrate to the
superintendent with substantial proof the
falsity of the
statement or the inappropriateness of the
comparison, then the
insurer may publish with the superintendent's
approval an
announcement in a written publication to rebut the
materially
false statement or inappropriate comparison.
Sec. 3905.492. (A)(1) All records and other information
obtained by the superintendent of insurance or the
superintendent's deputies, examiners, assistants, or other
employees, or
agents relating to an investigation of an applicant
for licensure under
this chapter, or of an agent, solicitor,
broker, or other person
licensed under this chapter or Chapter
3951., 3957., or 3959. of the Revised
Code,
are confidential and
are not public records as defined in section 149.43
of
the Revised
Code
until the applicant or licensee is provided
notice and
opportunity for hearing
pursuant to Chapter 119. of the
Revised
Code with respect to such records or
information. If no
administrative action is initiated with respect to a
particular
matter about which the superintendent obtained records or other
information as part of an investigation, all such records and
information
relating to that matter shall remain confidential for
three years after the
file on the matter is
closed. (2) Division (A)(1)
of this section applies only to
investigations that could result
in administrative action under
Title
XVII or
XXXIX or
Chapter 119. of the
Revised
Code. (B) The records and other information
described in division
(A) of
this section shall remain confidential for
all
purposes
except when it is appropriate for the superintendent
and
the
superintendent's deputies, examiners, assistants, or other
employees, or
agents
to take official action regarding the affairs
of the applicant
or licensee or in connection with actual or
potential criminal
proceedings. (C)
Employees or agents of the
department of insurance shall
not be required by any court in
this state to testify in a civil
action, if such testimony
concerns any matter related to records
or any other information considered
confidential under this
section of which they have
knowledge. (D) This section does not apply to any complaint or action
under
section 3905.04 of the Revised Code.
Notwithstanding
divisions (A) and (B) of this section, the superintendent may do
either of the following:
(1) Share records and other information that are the subject
of this section with the chief deputy rehabilitator, the chief
deputy liquidator, other deputy rehabilitators and liquidators,
and any other person employed by, or acting on behalf of, the
superintendent pursuant to Chapter 3901. or 3903. of the Revised
Code, with other local, state, federal, and international
regulatory and law enforcement agencies, with local, state, and
federal prosecutors, and with the national association of
insurance commissioners and its affiliates and subsidiaries,
provided that the recipient agrees to maintain the confidential
status of the confidential record or
other information and has
authority to do so; (2) Disclose records and other information that are the
subject of this section in the furtherance of any regulatory or
legal action brought by or on behalf of the superintendent or the
state, resulting from the exercise of the superintendent's
official duties. (D) Notwithstanding divisions (A), (B), and (C) of this
section, the superintendent may authorize the national association
of insurance commissioners and its affiliates and subsidiaries by
agreement to share confidential records and other
information
received pursuant to division (C)(1) of this section
with local,
state, federal, and international regulatory and law
enforcement
agencies and with local, state, and federal
prosecutors, provided
that the recipient agrees to maintain the
confidential status of
the confidential record or other information and has authority to
do so. (E) Notwithstanding divisions (A), (B), and (C) of this
section, the chief deputy rehabilitator, the chief deputy
liquidator, and other deputy rehabilitators and liquidators may
disclose records and other information that are the subject of
this section in the furtherance of any regulatory or legal action
brought by or on behalf of the superintendent, the rehabilitator,
the liquidator, or the state
resulting from the exercise of the
superintendent's official
duties in any capacity. (F) Nothing in this section shall prohibit the
superintendent from receiving records and other information in
accordance with section 3901.045 of the Revised Code. (G)(1) No waiver of any applicable privilege or claim of
confidentiality in the records and other information that are the
subject of this section shall occur as a result of sharing or
receiving records or other information as authorized in divisions
(C)(1), (D), and (F) of this section. (2) The disclosure of records or other information in
connection with a regulatory or legal action pursuant to
divisions
(C)(2) and (E) of this section does not prohibit an
insurer or any
other person from taking steps to limit the dissemination of the
record
or other information to persons not involved in or the
subject of
the regulatory or legal action on the basis of any
recognized privilege arising
under any other section of the
Revised Code or the common law. (H) Employees or agents of the department of insurance shall
not be required by any court in this state to testify in a civil
action, if the testimony concerns any matter related to records or
other information considered confidential under this
section of
which they have knowledge.
Sec. 3905.50. (A)(1) Except as provided in division
(A)(2)
or (3) of this section, this section applies to every
contract of
agency between a property and casualty insurance
company and an
independent insurance agent, as defined in
division (A) of section
3905.47 of the Revised Code, which has
been in effect for not less
than two years. (2) This section does not apply to a contract of exclusive
employment by, or an exclusive agency contract with, a single
insurer or group of insurers under common ownership or control. (3) This section does not apply to an agent whose license
has been suspended or revoked by the superintendent of insurance,
an agent who has demonstrated gross incompetence, or an agent
whose contract has been terminated for insolvency, abandonment,
gross or willful misconduct, or failure to pay to the insurer, in
accordance with the agency contract, moneys due to the insurer
upon written demand of the insurer. (B) No insurer shall terminate an independent insurance
agent contract of agency except by mutual agreement of the
parties
or upon one hundred eighty days' written notice to the
independent
insurance agent. (1) Such notice shall include specific reasons for the
termination of the agent. (2) Such notice shall be sent by certified mail, return
receipt requested, to the last known address of the agency. (C) During the one hundred eighty day notice period, an
independent insurance agent shall not write or bind any new
policies on behalf of an insurer without written approval from
the
insurer. However, during such period, an independent
insurance
agent, subject to the current underwriting rules,
guidelines,
commission rates, and practices of the insurer, may
renew or
effect any necessary changes or endorsements of
outstanding
policies of insurance that are in force prior to the
date of
receipt of the notice of termination. (D) None of the following constitutes an acceptable reason
for the termination of a contract of agency: (1) Claims experience of the agent in a single year; (2) Claims experience due to
catastrophies
catastrophes of
nature covered by a policy; (3) Claims experience under uninsured and underinsured
motorist coverages. (E) An agent aggrieved by the conduct of an insurer in its
breach or termination of a contract of agency may file with the
superintendent a request that the superintendent review the
action
to determine whether it is in accord with this section and
the
lawful provisions of the contract of agency and send a copy
of the
request to the insurer at the address of the office
issuing the
notice of termination. Upon receipt of such a
request, an insurer
shall promptly provide the independent
insurance agent and
superintendent with documentation in support
of the insurer's
stated reason for termination. (F) The superintendent shall promptly investigate the
allegation. If the superintendent has reasonable cause to
believe
that this section or the lawful provisions of the
contract of
agency have been violated,
he
the superintendent
shall, within
thirty days of receipt of a request for review, conduct an
adjudication hearing subject to Chapter 119. of the Revised Code,
held upon
not less than ten days' written notice to the agent and
the
insurer. Pending a final order in the adjudication hearing,
the
superintendent may take such interim action as necessary to
protect the parties or the public. During the pendency of the
proceeding before the superintendent, the contract of agency
subject to the proceeding continues in force and divison (C) of
this section applies. The superintendent shall, within thirty
days following such hearing, issue an order approving or
disapproving the action of the insurer. All final orders and
decisions of the superintendent are subject to judicial review as
provided in Chapter 119. of the Revised Code. (G) An insurer shall not cancel or nonrenew any policy of
insurance written through an agent upon the sole ground of the
termination of the agency until the expiration of the policy term
or the twelve-month period following the effective date of the
termination of the contract of agency, whichever is earlier.
However, during such period, an independent insurance agent may,
subject to the current underwriting rules, guidelines, commission
rates, and practices of the insurer, effect any necessary changes
or endorsements to outstanding policies of insurance that are in
force prior to the date of termination. This section does not abridge, restrict, or supersede the
rights of an agent to the ownership of expirations provided for
in
any contract with an insurer. (H) Any information or documentation provided to an agent
or
the superintendent by an insurer under this section is
confidential and shall be used by the
superintendent only in the
exercise of the proper functions
authorized by this section. No
insurer is liable for furnishing
information or documentation in
compliance with this section if
the insurer acts without malice
and in the reasonable belief that
such information or
documentation is warranted by this section.
(I) Notwithstanding division (H) of this section, the
superintendent may do either of the following: (1) Share the information or documentation that is the
subject of this section with the chief deputy rehabilitator, the
chief deputy liquidator, other deputy rehabilitators and
liquidators, and any other person employed by, or acting on behalf
of, the superintendent pursuant to Chapter 3901. or 3903. of the
Revised Code, with other local, state, federal, and international
regulatory and law enforcement agencies, with local, state, and
federal prosecutors, and with the national association of
insurance commissioners and its affiliates and subsidiaries,
provided that the recipient agrees to maintain the confidential
status of the confidential information or
documentation and has
authority to do so; (2) Disclose any information or documentation that is the
subject of this section in the furtherance of any regulatory or
legal action brought by or on behalf of the superintendent or the
state, resulting from the exercise of the superintendent's
official duties. (J) Notwithstanding divisions (H) and (I) of this section,
the superintendent may authorize the national association of
insurance commissioners and its affiliates and subsidiaries by
agreement to share confidential information and
documentation
received pursuant to division (I)(1) of this section
with local,
state, federal, and international regulatory and law
enforcement
agencies and with local, state, and federal
prosecutors, provided
that the recipient agrees to maintain the
confidential status of
the confidential information or documentation and has authority to
do
so. (K) Notwithstanding divisions (H) and (I) of this section,
the chief deputy rehabilitator, the chief deputy liquidator, and
other deputy rehabilitators and liquidators may disclose
information and documentation that is the subject of this section
in the furtherance of any regulatory or legal action brought by or
on behalf of the superintendent, the rehabilitator, the
liquidator, or the state resulting
from the exercise of the
superintendent's official duties in any capacity. (L) Nothing in this section shall prohibit the
superintendent from receiving information and documentation in
accordance with section 3901.045 of the Revised Code. (M) The superintendent may enter into agreements governing
the sharing and use of information and documentation consistent
with the requirements of this section. (N)(1) No waiver of any applicable privilege or claim of
confidentiality in the information and documentation that is the
subject of this section shall occur as a result of sharing or
receiving information and documentation as authorized in divisions
(I)(1), (J), and (L) of this section. (2) The disclosure of information or documentation in
connection with a regulatory or legal action pursuant to
divisions
(I)(2) and (K) of this section does not prohibit an
insurer or any
other person from taking steps to limit the dissemination of the
information or documentation to persons not involved in or the
subject of the regulatory or legal action on the basis of any
recognized
privilege arising under any other section of the
Revised Code or the common law.
Sec. 3999.36. (A) As used in this section and sections
3999.37 and 3999.38 of the Revised Code: (1) "Insurer" means any person that is authorized to
engage
in the business of insurance in this state under
Title XXXIX of
the Revised Code, any health
insuring
corporation,
or
any other
person engaging either directly or indirectly in this
state in the
business of insurance or entering into contracts
substantially
amounting to insurance under section 3905.42 of the
Revised Code. (2) "Impaired" or "impairment" means a financial situation
in which the insurer's assets are less than the sum of the
insurer's minimum required capital, minimum required surplus, and
all liabilities, as determined in accordance with the
requirements
for the preparation and filing of the insurer's
annual financial
statement. (3) "Chief executive officer" means the person,
irrespective
of the person's title, designated by the board
of directors
or
trustees of an insurer as the person charged with the
responsibility of administering and implementing the insurer's
policies and procedures. (B) Whenever a chief executive officer of an insurer knows
or has reason to know that the insurer is impaired, the chief
executive officer shall
provide written notice of the impairment
to the superintendent of
insurance and to each member of the board
of directors or
trustees of the insurer. The chief executive
officer shall
provide the notice as soon as reasonably possible,
but no later
than thirty days after the chief executive officer
knows or
has reason to know of the
impairment. No chief executive
officer shall fail to provide
notice in compliance with this
division. (C) The notice received by the superintendent under
division
(B) of this section is
confidential and is not a
public record
under section
149.43 of the Revised Code.
(D) Notwithstanding division (C) of this section, the
superintendent may do any of the following: (1) Disclose the notice upon obtaining prior written consent
from the insurer to which the notice pertains; (2) Share the notice that is the subject of this section
with the chief deputy rehabilitator, the chief deputy liquidator,
other deputy rehabilitators and liquidators, and any other person
employed by, or acting on behalf of, the superintendent pursuant
to Chapter 3901. or 3903. of the Revised Code, with other local,
state, federal, and international regulatory and law enforcement
agencies, with local, state, and federal prosecutors, and with the
national association of insurance commissioners and its affiliates
and subsidiaries, provided that the recipient agrees to maintain
the confidential status of the notice and has
authority to do so; (3) Disclose the notice in the furtherance of any regulatory
or legal action brought by or on behalf of the superintendent or
the state, resulting from the exercise of the
superintendent's
official duties. (E) Notwithstanding divisions (C) and (D) of this section,
the superintendent may authorize the national association of
insurance commissioners and its affiliates and subsidiaries by
agreement to share confidential notices received
pursuant to
division (D)(2) of this section with local, state,
federal, and
international regulatory and law enforcement agencies
and with
local, state, and federal prosecutors, provided that the
recipient
agrees to maintain the confidential status
of the notice and has
authority to do so. (F) Notwithstanding divisions (C) and (D) of this section,
the chief deputy rehabilitator, the chief deputy liquidator and
other deputy rehabilitators and liquidators may disclose notices
in the furtherance of any regulatory or legal action brought by or
on behalf of the superintendent, the rehabilitator, the
liquidator, or the state resulting
from the exercise of the
superintendent's official duties in any capacity. (G) Nothing in this section shall prohibit the
superintendent from receiving notices in accordance with section
3901.045 of the Revised Code.
(H) The superintendent may enter into agreements
governing
the sharing and use of notices consistent with the
requirements of
this section. (I)(1) No waiver of any applicable privilege or claim of
confidentiality in the notices that are the subject of this
section shall occur as a result of sharing or receiving notices as
authorized in divisions (D)(2), (E), and (G) of this section. (2) The disclosure of a notice in connection with a
regulatory or legal action pursuant to divisions (D)(3) and
(F) of
this section does not prohibit an insurer or any other person from
taking steps
to limit the dissemination of the notice to persons
not involved
in or the subject of the regulatory or legal action
on the basis
of any recognized privilege arising under any other
section of the Revised
Code or the common law.
Sec. 4727.18. (A) Except as
otherwise provided in
this
division
(C) of this section,
any information arising from,
obtained by, or
contained
in an investigation of a person licensed
as a pawnbroker under
this
chapter performed
by the superintendent
of financial
institutions is confidential
information and is not a
public
record under section 149.43 of the Revised Code.
The
superintendent, however, may
share investigation information with
a law enforcement agency. (B) Except as
otherwise provided in
this division
(C) of
this section, any
information arising from, obtained by, or
contained in an
investigation by the superintendent of any person
the
superintendent
reasonably suspects has violated or is
violating
this chapter is
confidential information and not a
public record
under section 149.43 of the Revised Code.
The
superintendent,
however, may share investigation information with
a law
enforcement
agency.
(C) Information made confidential by division (A) or (B) of
this section may only be disclosed, discovered, or introduced into
evidence as follows: (1) To a law enforcement agency; (2) In connection with criminal proceedings; (3) In any action taken or litigation by or against the
superintendent in connection with the powers, duties, and
obligations imposed upon the superintendent by this chapter; (4) When and in the manner authorized in section 1181.25 of
the Revised Code.
Section 2. That existing sections 111.15, 119.01, 1121.01,
1121.11, 1121.18,
1155.01, 1155.091, 1155.16, 1163.01, 1163.121,
1163.20, 1321.09,
1321.55, 1321.76, 1322.06, 1322.061, 1707.092,
1707.11, 1707.12, 1707.141,
1707.15, 1707.151, 1707.161, 1707.17,
1707.20, 1707.40, 1707.44, 1733.01, 1733.32, 1733.327,
1751.19, 3901.36,
3901.44, 3901.48, 3901.70, 3901.83, 3903.11,
3903.72, 3903.83,
3903.88, 3905.492, 3905.50, 3999.36, and 4727.18
of the Revised
Code are hereby repealed.
Section 3. Section 1322.061 of the Revised Code, as enacted
by Am. Sub. S.B. 76 of the 124th General Assembly (effective May
2, 2002), and as amended by this act, shall take effect May 2,
2002.
Section 4. Section 1322.06 of the Revised Code, as amended by
this act, is repealed, effective May 2, 2002. The section is
superseded by section 1322.06 of the Revised Code as it results
from Am. Sub. S.B. 76 of the 124th General Assembly, which is
scheduled to take effect May 2, 2002.
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