Statute Information
Section 3929.41 | Purposes.
The purposes of sections 3929.41 to 3929.49 of the Revised Code are to:
| (A) |
Assure stability in the property insurance market;
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| (B) |
Assure the availability of basic property insurance as defined by sections
3929.41 to 3929.49 of the Revised Code;
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| (C) |
Assure the availability, at the option of the applicant, of homeowners
insurance as defined in division (B) of section 3929.42 of the Revised Code;
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| (D) |
Encourage maximum use, in obtaining basic property insurance, of the normal
insurance market provided by authorized insurers;
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| (E) |
Provide for the equitable distribution among authorized insurers of the
responsibility for insuring eligible property, for which basic property
insurance cannot be obtained through the normal insurance market;
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| (F) |
Authorize the establishment of a FAIR plan (fair access to insurance
requirements), and the Ohio FAIR Plan Underwriting Association.
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Section 3929.42 | Urban homeowners insurance definitions.
As used in sections 3929.41 to 3929.49 of the Revised Code, or any
regulations adopted pursuant thereto:
| (A) |
"Basic property insurance" means insurance against direct loss to property
as defined and limited in standard fire policies and extended coverage
endorsements thereon, as approved by the superintendent of insurance, and
insurance for such types, classes and locations of property against the
perils of vandalism, malicious mischief, burglary, or theft, as the
superintendent shall designate. Such insurance shall not include automobile
insurance nor insurance on such types of manufacturing risks as may be
excluded by the superintendent.
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| (B) |
"Homeowners insurance" means insurance on owner-occupied dwellings providing
personal multi-peril property and liability coverages commonly known as
homeowners insurance, and is subject to such reasonable underwriting
standards, exclusions, deductibles, rates, and conditions as are customarily
used by member insurers for similar coverages.
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| (C) |
"Insurer" includes any insurance company or group of companies under common
ownership which is authorized to engage in the business of property insurance
in this state.
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| (D) |
"Association" means the Ohio FAIR Plan Underwriting Association created by
section 3929.43 of the Revised Code.
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| (E) |
"Fair plan" means a plan to assure fair access to insurance requirements.
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| (F) |
"Premiums written" means gross direct premiums, including that portion of
premium which is attributable to a riot loading or factor, excluding that
portion of premium on risks ceded to the association, charged with respect
to property in the state on all policies of basic property insurance and
homeowners insurance and the basic property insurance premium components of
all multi-peril policies, as computed by the association, covering property
in this state, less all premiums and dividends returned, paid, or credited
to policyholders, or the unused or unabsorbed portions of premium deposits.
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| (G) |
"Inspection bureau" means any fire insurance rating bureau or other
organization designated by the association to assist in the collection of
information necessary to determine eligibility and rating for basic
property insurance or homeowners insurance.
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Section 3929.43 | Ohio FAIR Plan Underwriting Association.
| (A) |
The Ohio FAIR Plan Underwriting Association is hereby created consisting of
all insurers authorized to write within this state, on a direct basis, basic
property insurance or any component thereof in multi-peril policies, to assist
applicants to secure basic property insurance or homeowners
insurance, and to formulate and administer a program for the equitable
apportionment of basic property insurance or homeowners insurance which cannot
be obtained in the normal market. Every such insurer shall be a member of the
association and shall remain a member as a condition of its authority to write
any of such insurance in this state.
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| (B) |
The association, pursuant to sections 3929.41 to 3929.49 of the Revised Code, and the plan
of operation, with respect to basic property insurance or homeowners insurance,
may assume and cede reinsurance on insurable risks written by its members.
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| (C) |
The plan of operation, approved by the superintendent of insurance, shall provide for
economical, fair, and nondiscriminatory administration of a program for the equitable
apportionment among members of basic property insurance or homeowners insurance which
may be afforded to applicants whose property is insurable in accordance with reasonable
underwriting standards, but who are unable to procure such insurance through normal
channels. The association is under no obligation to issue basic property insurance or
homeowners insurance to any person, unless that person and that person's property
would constitute an insurable risk in accordance with reasonable underwriting
standards. The plan of operation shall provide that the association, in determining
whether the property is insurable, shall give no consideration to the condition of
surrounding property or properties, where such condition is not within the control
of the applicant. Rates for basic property insurance and homeowners insurance shall
be subject to the approval of the superintendent. The plan of operation may also provide
for assessment of all members in amounts sufficient to operate the association, maximum
limits of liability per location to be placed through the program, reasonable
underwriting standards for determining insurability of a risk, and the commission to be
paid to the licensed producer designated by the applicant. The superintendent shall
adopt such plan and all amendments thereto pursuant to Chapter 119. of the Revised Code.
If amendment of the plan of operation is requested by the superintendent or the
board of governors, the board of governors shall submit to the superintendent, for
approval, such amendments. If such amendments are not approved by the superintendent,
the board of governors shall, within fifteen days, submit for approval an
appropriately revised amendment. If the board of governors fails to do so, or if the
amendment is not approved by the superintendent, the superintendent shall promulgate
such amendment as the superintendent finds necessary.
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| (D) |
| (1) |
The plan of operation may provide for periodic advance assessments against
member insurers in amounts considered necessary to cover any deficit or
projected deficit arising out of the operation of the association. Any
provision in the plan for implementation of such advance assessments
shall be approved by the superintendent. Any such provision in the plan
shall also provide for quarterly or other periodic installment payment of
such assessments upon request.
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| (2) |
Such plan shall provide a method whereby member insurers may recoup
assessments levied by the association. In order to recoup such assessments
the plan may also provide for the calculation and use of rates or rating
factors to be applied to direct premiums for basic property insurance and
homeowners insurance located in this state. Such a provision is subject to
the approval of the superintendent. Member insurers of the association
implementing a change in rates pursuant to this section shall file such
changes with the superintendent. Such changes shall not increase rates
more than the amount authorized by the association and approved by the
superintendent pursuant to the plan. The association may consult with
member insurers or licensed rating bureaus in connection with the
establishment and operation of any such provision.
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| (E) |
Any insurer which is a member of the association shall participate in the writings,
expenses, profits, and losses of the association in the proportion that its premiums
written bear to the aggregate premiums written by all members of the association,
except that this division shall not be construed to preclude the board of governors
from taking action to adjust assessments in accordance with a program adopted
pursuant to division (I) of this section.
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| (F) |
Such plan shall require the issuance of a binder or policy providing coverage for
which the applicant tenders an amount equal to the annual premium as estimated by
the association, or an appropriate percentage of that annual premium as determined
by the association. The binder or policy shall take effect, at the earliest, the
day after the association receives the application, provided that the application
meets the underwriting standards of the association, for such term, and under such
conditions as are determined by the superintendent. The superintendent may alter
such time requirement on a specific risk under such conditions as the superintendent
finds appropriate.
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| (G) |
The association shall be governed by a board of governors consisting of twelve
members, four of whom shall be appointed by the governor with the advice and consent
of the senate. One of such members shall be a licensed agent writing basic property
insurance for more than one insurer. None of the other three such members shall be a
director, officer, salaried employee, agent, or substantial shareholder of any
insurance company and not more than two of these three members shall be members of
the same political party. Terms of office of members appointed by the governor shall
be for two years, commencing on the nineteenth day of September and ending on the
eighteenth day of September. Each member shall hold office from the date of appointment
until the end of the term for which the member was appointed. Any member appointed to
fill a vacancy occurring prior to the expiration of the term for which the member's
predecessor was appointed shall hold office for the remainder of such term. Any
appointed member shall continue in office subsequent to the expiration date of the
member's term until the member's successor takes office, or until a period of sixty
days has elapsed, whichever occurs first. The remaining eight members shall be
representatives from member companies, at least five of whom shall be Ohio domiciled
members, elected annually by accumulated voting by members of the association whose
votes shall be weighed in accordance with each member's premiums written during the
second preceding calendar year. Not more than one insurer in a group under the same
management or ownership shall serve on the board of governors at the same time. The
eight representatives of member companies shall be elected at a meeting of the members
or their authorized representatives, which shall be held at a time and place designated
by the superintendent.
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| (H) |
The plan shall be administered under the supervision of the superintendent.
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| (I) |
The board of governors shall adopt a written program for decreasing the overall
utilization of the association as a source of insurance. The program shall set forth
actions that the board shall take to decrease such utilization, including actions
intended to reduce the number of policies issued, the number of persons whose properties
are insured, and the total amount and kinds of insurance written by the association,
provided this division does not authorize the board to take action intended to decrease
utilization of the association as a source of insurance if such action would substantially
conflict with the purposes set forth in divisions (A), (B), and (D) of section 3929.41 of
the Revised Code or the plan of operation of the association.
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| (J) |
| (1) |
Except as provided in division (J)(2) of this section, records created, held
by, or pertaining to the association are not public records under section
149.43 of the Revised Code, are confidential, and are not subject to
inspection or disclosure.
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| (2) |
Division (J)(1) of this section does not apply to the plan of operation and
other information required to be filed with the superintendent under
this chapter unless otherwise prohibited from release by law.
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Section 3929.44 | Application by person unable to obtain basic property or homeowners insurance.
| (A) |
Any person having an insurable interest in real property or tangible personal
property, or both, at a fixed location, who has been unable to obtain basic
property insurance or homeowners insurance may apply to the Ohio FAIR Plan
Underwriting Association.
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| (B) |
The association may engage an inspection bureau or other organization to
assist in collection of information necessary to underwrite risk for basic
property insurance or homeowners insurance.
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| (C) |
The association, if it finds the property to be insurable by meeting the reasonable
underwriting standards contained in the plan of operation approved by the
superintendent of insurance, shall cause a policy or binder of basic property
insurance or homeowners insurance to be issued to the applicant upon payment of the
premium.
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| (D) |
As part of an application for a policy of basic property insurance or homeowners
insurance, an applicant shall, in accordance with procedures and requirements set
forth in rules promulgated by the superintendent, certify at least two insurance
companies had been contacted and from whom coverage was not available.
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| (E) |
As a condition of the issuance of a binder or policy of basic property insurance
or homeowners insurance, an applicant shall, in accordance with procedures and
requirements set forth in rules promulgated by the superintendent, certify to the
association that there are no outstanding taxes, assessments, penalties, or
charges with respect to the property to be insured.
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| (F) |
An applicant shall, in accordance with rules promulgated by the superintendent,
certify to the association whether or not the applicant has received written notice
from an authorized public entity stating that the applicant's property is in violation
of any building, housing, air pollution, sanitation, health, fire, or safety code,
ordinance, or rule. If the applicant has received such written notice of any such
violation, the applicant shall also submit to the association a detailed plan that
indicates the manner and estimated period of time in which such violations will be
corrected. If the association is satisfied that the violations are subject to
correction within a reasonable period of time and that the applicant otherwise meets
the requirements of this section, it may cause a policy or binder of basic property
insurance or homeowners insurance to be issued to the applicant on the condition that
the plan be implemented on schedule. The form of the plan submitted by the applicant
and the manner in which this division is implemented shall be in accordance with rules
promulgated by the superintendent. Nothing in this division shall be construed to make
the association responsible for the detection of any violation of a code, ordinance,
or rule of the type described in this division.
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Section 3929.45 | Examination into operation of association.
The superintendent of insurance or any person designated by him may
visit and examine into the operation of the Ohio FAIR Plan Underwriting
Association and shall have free access to all the books, records, files,
papers, and documents that relate to the operation of the association,
and may summon, qualify, and examine as witnesses all persons having
knowledge of such operations, including officers, agents, or employees
thereof.
Section 3929.46 | Superintendent may require reports from insurers.
The superintendent of insurance may require such reports from insurers concerning risks
insured under any plan approved pursuant to sections 3929.41 to 3929.49 of the Revised
Code, as he finds necessary.
Section 3929.47 | Appeals - judicial review.
Any person or insurer aggrieved by any action or decision of the administrator
of the plan, the Ohio FAIR Plan Underwriting Association, or of any insurer as
a result of its participation therein, may appeal to the board of governors.
The decision of the board of governors may be appealed to the superintendent of
insurance within thirty days from the date of the action or the decision. The
superintendent shall, after hearing held upon proper notice, issue an order
approving or disapproving the action or decision, with respect to the matter
which is the subject of appeal. All final orders and decisions of the
superintendent are subject to judicial review as provided in Chapter 119.
of the Revised Code.
Section 3929.48 | Immunity.
There shall be no liability on the part of, and no cause of action of any
nature shall arise against any insurer, inspection bureau, or the Ohio fair
plan underwriting association, or a director, agent, or employee of any of
these, or the superintendent of insurance or his authorized representatives,
for any inspections undertaken or statements made by any of them concerning
the property to be insured, or any acts or omissions in connection therewith.
Any reports and communications in connection therewith are not public
documents.
Section 3929.481 | Issuing fair plan policies.
The Ohio FAIR Plan Underwriting Association is authorized to issue fair plan
policies of insurance in its own name and to perform acts relative thereto in
accordance with the plan of operation. The association is exempt from all
license fees, and income, franchise, premium, and privilege taxes levied or
assessed by this state or any political subdivision of this state, except that
premium receipts from policies issued directly by the association are subject to
the tax imposed by section 3737.71 of the Revised Code, computed upon the basis
of a statement to be filed annually on or before the first day of March by the
association with the superintendent of insurance in the form prescribed by the
superintendent.
Section 3929.482 | Contracts to provide administrative and claims adjusting services.
| (A) |
The Ohio FAIR Plan Underwriting Association by action of its board of governors,
with the approval of the superintendent of insurance, is authorized to enter
into a contract with the Ohio mine subsidence insurance underwriting association
to provide administrative and claims adjusting services required by it. Such
contract shall provide indemnification by the Ohio mine subsidence insurance
underwriting association to the Ohio FAIR Plan Underwriting Association, its
members, members of its board of governors, and its officers, employees, and
agents against all liability, loss, and expense resulting from acts done or
omitted in good faith in performing such contract. Such contract shall also
provide that the Ohio FAIR Plan Underwriting Association will be reimbursed for
its actual expenses incurred in performing such services. Common expenses
applicable both to the Ohio FAIR Plan and to the mine subsidence insurance
underwriting association shall be allocated between them on an equitable basis
approved by the superintendent of insurance.
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| (B) |
The Ohio FAIR Plan Underwriting Association by action of its board of governors,
with the approval of the superintendent of insurance, is authorized to enter into
a contract with the Ohio commercial joint underwriting association to provide
administrative and claims adjusting services required by it. Such contract shall
provide indemnification by the Ohio commercial joint underwriting association to
the Ohio FAIR Plan Underwriting Association, its members, members of its board of
governors, and its officers, employees, and agents against all liability, loss,
and expenses resulting from acts done or omitted in good faith in performing such
contract. Such contract shall also provide that the Ohio FAIR Plan Underwriting
Association will be reimbursed for its actual expenses incurred in performing such
services. Common expenses applicable both to the Ohio FAIR Plan and to the Ohio
commercial joint underwriting association shall be allocated between them on an
equitable basis approved by the superintendent of insurance.
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Section 3929.49 | Furnishing information to show compliance with law.
The superintendent of insurance may, at any time, require any property insurer to furnish
him with such information as he finds necessary in order to determine whether such insurer
is complying with sections 3929.41 to 3929.49 of the Revised Code.
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