Ohio § 3903.14

§ 3903.14.

(A) The superintendent of insurance as rehabilitator may appoint one or more special

deputies, who shall have all the powers and responsibilities of the rehabilitator

granted under this section, and the superintendent may employ such clerks and assistants

as considered necessary.  The compensation of the special deputies, clerks, and assistants and all expenses

of taking possession of the insurer and of conducting the proceedings shall be fixed

by the superintendent, with the approval of the court and shall be paid out of the

funds or assets of the insurer.  The persons appointed under this section shall serve at the pleasure of the superintendent.  In the event that the property of the insurer does not contain sufficient cash or

liquid assets to defray the costs incurred, the superintendent may advance the costs

so incurred out of any appropriation for the maintenance of the department of insurance.  Any amounts so advanced for expenses of administration shall be repaid to the superintendent

for the use of the department out of the first available money of the insurer. (B) The rehabilitator may take such action as the rehabilitator considers necessary or

appropriate to reform and revitalize the insurer.  The rehabilitator shall have all the powers of the directors, officers, and managers,

whose authority shall be suspended, except as they are redelegated by the rehabilitator.  The rehabilitator shall have full power to direct and manage, to hire and discharge

employees subject to any contract rights they may have, and to deal with the property

and business of the insurer. (C) If it appears to the rehabilitator that there has been criminal or tortious conduct,

or breach of any contractual or fiduciary obligation detrimental to the insurer by

any officer, manager, agent, director, trustee, broker, employee, or other person,

the rehabilitator may pursue all appropriate legal remedies on behalf of the insurer. (D) If the rehabilitator determines that reorganization, consolidation, conversion, reinsurance,

merger, or other transformation of the insurer is appropriate, the rehabilitator shall

prepare a plan to effect such changes.  Upon application of the rehabilitator for approval of the plan, and after such notice

and hearings as the court may prescribe, the court may either approve or disapprove

the plan proposed, or may modify it and approve it as modified.  Any plan approved under this section shall be, in the judgment of the court, fair

and equitable to all parties concerned.  If the plan is approved, the rehabilitator shall carry out the plan.  In the case of a life insurer, the plan proposed may include the imposition of liens

upon the policies of the company, if all rights of shareholders are first relinquished.  A plan for a life insurer may also propose imposition of a moratorium upon loan

and cash surrender rights under policies, for such period and to such an extent as

may be necessary. (E) In the case of a medicaid health insuring corporation that has posted a bond or deposited

securities in accordance with section 1751.271 of the Revised Code , the plan proposed under division (D) of this section may include the use of the

proceeds of the bond or securities to first pay the claims of contracted providers

for covered health care services provided to medicaid recipients, then next to pay

other claimants with any remaining funds, consistent with the priorities set forth

in sections 3903.421 and 3903.42 of the Revised Code . (F) The rehabilitator shall have the power under sections 3903.26 and 3903.27 of the Revised Code to avoid fraudulent transfers. (G) As used in this section: (1) “ Contracted provider ” means a provider with a contract with a medicaid health insuring corporation to

provide covered health care services to medicaid recipients. (2) “ Medicaid recipient ” means a person enrolled in the medicaid program.