Ohio § 1739.20

§ 1739.20.

(A) No multiple employer welfare arrangement operating a group self-insurance program

shall do any of the following: (1) Refuse, without just cause, to pay proper claims arising under coverage provided

by the arrangement; (2) Compel, without just cause, employee claimants of members or other persons entitled

to the proceeds of the coverage to accept less than the amount due them; (3) Compel, without just cause, employee claimants of members or other persons entitled

to the proceeds of the coverage to bring an action against the arrangement to secure

full payment or settlement thereof; (4) Enroll a member into the group self-insurance program until the arrangement has provided

to the member written notification stating that the member may be required to make

additional payments in the event the program has insufficient funds to cover its liabilities.  The arrangement shall maintain a copy of the notification in its program files to

evidence compliance with this requirement. (B) No officer, director, trustee, third-party administrator, member of any board or

committee, or employee of a multiple employer welfare arrangement operating a group

self-insurance program who is charged with the duty of investing or handling the arrangement's

assets shall do any of the following: (1) Deposit or invest the assets except in the name of the arrangement; (2) Borrow the assets of the arrangement; (3) Have a pecuniary interest in any loan, pledge of deposit, security, investment, sale,

purchase, exchange, reinsurance, or other similar transaction or property of the arrangement; (4) Take or receive for personal use any fee, brokerage, commission, gift, or other consideration

for, or use any fee, brokerage, commission, gift, or other consideration for, or on

account of any transaction made by or on behalf of the arrangement.  Division (B)(4) of this section does not prevent either of the following: (a) The reimbursement of a third-party administrator for administrative services related

to the adjustment and settlement of claims pursuant to a contract with an arrangement; (b) The payment of reasonable compensation to a corporation or firm, which is affiliated

with any of the groups listed in division (A) of section 1739.02 of the Revised Code that establishes, maintains, or operates the arrangement, for necessary services

performed or sales or purchases made to or for the arrangement in the ordinary course

of the arrangement's business. (C) No multiple employer welfare arrangement operating a group self-insurance program

shall guarantee any financial obligation of any of its officers, directors, trustees,

board or committee members, or third-party administrators. (D) This section does not prohibit a trustee, officer, director, member of a board or

committee, or employee of a multiple employer welfare arrangement operating a group

self-insurance program from being covered by the arrangement as a member or an employee

of a member. (E) The superintendent of insurance may allow, by rule, exceptions to division (B) of

this section to allow the payment of reasonable compensation to a trustee or third-party

administrator who is not an officer or employee of the multiple employer welfare arrangement

operating a group self-insurance program or to a corporation or firm with which a

trustee or third-party administrator is affiliated, for necessary services performed

or sales or purchases made to or for the arrangement in the ordinary course of the

arrangement's business and in the usual, private, professional or business capacity

of the trustee, third-party administrator, corporation, or firm.