Representative LaRe Reinsurance Bill Passes Ohio House

COLUMBUS – State Representative Jeff LaRe (R-Violet Township) today announced the passage of House Bill 528, legislation to amend Ohio’s reinsurance model law imposed on insurers when they reinsure risk.

Reinsurance is when an insurer buys insurance from a separate insurer to cover a portion or all of their potential liabilities. Under Ohio’s current law, insurers that reinsure risk with other insurers that meet certain standards may claim either reduced liabilities or increased assets when the original insurer’s financial stability is assessed.

The legislation, sponsored by LaRe, adds insurers in “reciprocal jurisdictions” to the possible list of eligible reinsurers. It also adds to the criteria that an assuming insurer in a reciprocal jurisdiction must meet to be an eligible reinsurer.

“This bill is necessary to ensure we don’t face preemption by the Director of the Federal Insurance Office,” said LaRe. “It will further allow Ohio to maintain regulatory oversight of our domiciled reinsurers.”

The Ohio Department of Insurance, the Ohio Insurance Institute and the Association of Ohio Life Insurance Companies support LaRe’s legislation.

House Bill 528 passed with a vote of 94-0 and now goes to the Senate for consideration.

-30-

For more information, contact Rep. LaRe’s office at (614) 466-8100 or rep77@ohiohouse.gov