Ohio § 3906.04

§ 3906.04.

(A) Subject to this chapter, an insurer making investments under this chapter may loan

or invest its funds, and may buy, sell, hold title to, possess, occupy, pledge, convey,

manage, protect, insure, and deal with its investments, property, and other assets

to the same extent as any other person or corporation under the laws of this state

and of the United States. (B) With respect to all of the insurer's investments, the board of directors of an insurer

making investments under this chapter shall exercise the judgment and care, under

the circumstances then prevailing, that persons of reasonable prudence, discretion,

and intelligence would exercise in the management of a like enterprise, not in regard

to speculating but in regard to the permanent disposition of their funds, considering

the probable income as well as the probable safety of their capital.  Investments shall be of sufficient value, liquidity, and diversity to assure the

insurer's ability to meet its outstanding obligations based on reasonable assumptions

as to new business production for current lines of business.  As part of its exercise of judgment and care, the board of directors shall take

into account the prudence evaluation criteria of division (C) of section 3906.05 of the Revised Code .  The exercise of judgment and care by the board of directors under this section shall

also be governed by sections 1701.59 and 1702.30 of the Revised Code , as applicable. (C) An insurer making investments under this chapter shall establish and implement internal

controls and procedures to assure compliance with investment policies and procedures

to assure that all of the following are met: (1) The insurer's investment staff and any consultants used are reputable and capable. (2) A periodic evaluation and monitoring process occurs for assessing the effectiveness

of investment policy and strategies. (3) Management's performance is assessed in meeting the stated objectives within the

investment policy through periodic presentations to the board of directors. (4) Appropriate analyses are undertaken on the degree to which asset cash flows are adequate

to meet liability cash flows under different economic environments.  These analyses shall be conducted at least annually and make specific reference

to the economic conditions considered.