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House Passes Bill to Protect Ohio Businesses, Create Jobs

June 4, 2013
Republican Newsroom

The Ohio House of Representatives today passed legislation that would help keep Ohio businesses competitive and create jobs by assisting companies in having their risks insured.

House Bill 117, sponsored by Rep. Bob Hackett (R-London) and Rep. Michael Stinziano (D-Columbus), allows pure captive and protected cell captive insurance companies to be formed in Ohio. These entities are created to provide insurance on the risks of a parent company that is unable to self-insure or purchase from a commercial insurance company.

“This legislation is another tool to keep Ohio businesses strong and promote their growth,” Rep. Hackett said. “Allowing the formation of captive insurance companies in our state does that very thing while protecting our state’s commercial lines insurance market, and I’m pleased that the members of the House supported the bill.”

Allowing the formation of the captive companies would provide the Ohio Department of Insurance with the ability to look into the companies’ financial stability and ensure that they can remain solvent. It would also provide the department with the authority to regulate and take necessary action on companies that are experiencing financial difficulties.

Because captive companies have been formed in other states, Ohio must currently depend on financial stability rules and guidelines developed by outside regulators. There are currently more than 30 states that allow the formation of captive insurance companies.

House Bill 117 will now move to the Ohio Senate for further consideration.