Ohio § 3906.05
Full text of Ohio Ohio Revised Code § 3906.05, with citation guidance and answers to common questions.
§ 3906.05.
(A) An insurer making investments under this chapter shall consider the factors listed
in division (C) of this section along with its business in determining whether an
investment portfolio or investment policy is prudent. (B) The superintendent shall consider the factors listed in division (C) of this section
prior to making a determination that an insurer's investment portfolio or investment
policy is not prudent. (C) Insurers and the superintendent shall consider the following factors according to
divisions (A) and (B) of this section: (1) General economic conditions; (2) The possible effect of inflation or deflation; (3) The expected tax consequences of investment decisions or strategies; (4) The fairness and reasonableness of the terms of an investment considering its probable
risk and reward characteristics and relationship to the investment portfolio as a
whole; (5) The extent of the diversification of the insurer's investments among all of the following: (a) Individual investments; (b) Classes of investments; (c) Industry concentrations; (d) Dates of maturity; (e) Geographic areas. (6) The quality and liquidity of investments in affiliates; (7) The investment exposure to all of the following risks, quantified in a manner consistent
with the insurer's acceptable risk level as described in the insurer's written investment
policy, required under division (H) of section 3906.06 of the Revised Code : (a) Liquidity; (b) Credit and default; (c) Systemic or market; (d) Interest rate; (e) Call, prepayment, and extension; (f) Currency; (g) Foreign sovereign. (8) The amount of the insurer's assets, capital and surplus, premium writings, insurance
in force, and other appropriate characteristics; (9) The amount and adequacy of the insurer's reported liabilities; (10) The relationship of the expected cash flows of the insurer's assets and liabilities,
and the risk of adverse changes in the insurer's assets and liabilities; (11) The adequacy of the insurer's capital and surplus to secure the risks and liabilities
of the insurer; (12) Any other factors relevant to whether an investment is prudent.
Frequently Asked Questions About Ohio § 3906.05
What does Ohio Revised Code § 3906.05 cover?
Section 3906.05 is part of the Ohio Revised Code, the codified statutory law of Ohio. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Ohio § 3906.05?
A common citation format is "Ohio Revised Code § 3906.05" (Ohio). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Ohio law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Ohio official source linked on this page or consult a licensed Ohio attorney.
How does Ohio § 3906.05 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Ohio can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Ohio.