Ohio § 3929.43

§ 3929.43.

(A) The Ohio fair plan underwriting association is hereby created consisting of all insurers

authorized to write within this state, on a direct basis, basic property insurance

or any component thereof in multi-peril policies, to assist applicants to secure basic

property insurance or homeowners insurance, and to formulate and administer a program

for the equitable apportionment of basic property insurance or homeowners insurance

which cannot be obtained in the normal market.  Every such insurer shall be a member of the association and shall remain a member

as a condition of its authority to write any of such insurance in this state. (B) The association, pursuant to sections 3929.41 to 3929.49 of the Revised Code , and the plan of operation, with respect to basic property insurance or homeowners

insurance, may assume and cede reinsurance on insurable risks written by its members. (C) The plan of operation, approved by the superintendent of insurance, shall provide

for economical, fair, and nondiscriminatory administration of a program for the equitable

apportionment among members of basic property insurance or homeowners insurance which

may be afforded to applicants whose property is insurable in accordance with reasonable

underwriting standards, but who are unable to procure such insurance through normal

channels.  The association is under no obligation to issue basic property insurance or homeowners

insurance to any person, unless that person and that person's property would constitute

an insurable risk in accordance with reasonable underwriting standards.  The plan of operation shall provide that the association, in determining whether

the property is insurable, shall give no consideration to the condition of surrounding

property or properties, where such condition is not within the control of the applicant.  Rates for basic property insurance and homeowners insurance shall be subject to

the approval of the superintendent.  The plan of operation may also provide for assessment of all members in amounts

sufficient to operate the association, maximum limits of liability per location to

be placed through the program, reasonable underwriting standards for determining insurability

of a risk, and the commission to be paid to the licensed producer designated by the

applicant.  The superintendent shall adopt such plan and all amendments thereto pursuant to

Chapter 119. of the Revised Code. If amendment of the plan of operation is requested by the superintendent or the board

of governors, the board of governors shall submit to the superintendent, for approval,

such amendments.  If such amendments are not approved by the superintendent, the board of governors

shall, within fifteen days, submit for approval an appropriately revised amendment.  If the board of governors fails to do so, or if the amendment is not approved by

the superintendent, the superintendent shall promulgate such amendment as the superintendent

finds necessary. (D)(1) The plan of operation may provide for periodic advance assessments against member

insurers in amounts considered necessary to cover any deficit or projected deficit

arising out of the operation of the association.  Any provision in the plan for implementation of such advance assessments shall be

approved by the superintendent.  Any such provision in the plan shall also provide for quarterly or other periodic

installment payment of such assessments upon request. (2) Such plan shall provide a method whereby member insurers may recoup assessments levied

by the association.  In order to recoup such assessments the plan may also provide for the calculation

and use of rates or rating factors to be applied to direct premiums for basic property

insurance and homeowners insurance located in this state.  Such a provision is subject to the approval of the superintendent.  Member insurers of the association implementing a change in rates pursuant to this

section shall file such changes with the superintendent.  Such changes shall not increase rates more than the amount authorized by the association

and approved by the superintendent pursuant to the plan.  The association may consult with member insurers or licensed rating bureaus in connection

with the establishment and operation of any such provision. (E) Any insurer which is a member of the association shall participate in the writings,

expenses, profits, and losses of the association in the proportion that its premiums

written bear to the aggregate premiums written by all members of the association,

except that this division shall not be construed to preclude the board of governors

from taking action to adjust assessments in accordance with a program adopted pursuant

to division (I) of this section. (F) Such plan shall require the issuance of a binder or policy providing coverage for

which the applicant tenders an amount equal to the annual premium as estimated by

the association, or an appropriate percentage of that annual premium as determined

by the association.  The binder or policy shall take effect, at the earliest, the day after the association

receives the application, provided that the application meets the underwriting standards

of the association, for such term, and under such conditions as are determined by

the superintendent.  The superintendent may alter such time requirement on a specific risk under such

conditions as the superintendent finds appropriate. (G) The association shall be governed by a board of governors consisting of twelve members,

four of whom shall be appointed by the governor with the advice and consent of the

senate.  One of such members shall be a licensed agent writing basic property insurance for

more than one insurer.  None of the other three such members shall be a director, officer, salaried employee,

agent, or substantial shareholder of any insurance company and not more than two of

these three members shall be members of the same political party.  Terms of office of members appointed by the governor shall be for two years, commencing

on the nineteenth day of September and ending on the eighteenth day of September.  Each member shall hold office from the date of appointment until the end of the

term for which the member was appointed.  Any member appointed to fill a vacancy occurring prior to the expiration of the

term for which the member's predecessor was appointed shall hold office for the remainder

of such term.  Any appointed member shall continue in office subsequent to the expiration date

of the member's term until the member's successor takes office, or until a period

of sixty days has elapsed, whichever occurs first.  The remaining eight members shall be representatives from member companies, at least

five of whom shall be Ohio domiciled members, elected annually by accumulated voting

by members of the association whose votes shall be weighed in accordance with each

member's premiums written during the second preceding calendar year.  Not more than one insurer in a group under the same management or ownership shall

serve on the board of governors at the same time.  The eight representatives of member companies shall be elected at a meeting of the

members or their authorized representatives, which shall be held at a time and place

designated by the superintendent. (H) The plan shall be administered under the supervision of the superintendent. (I) The board of governors shall adopt a written program for decreasing the overall utilization

of the association as a source of insurance.  The program shall set forth actions that the board shall take to decrease such utilization,

including actions intended to reduce the number of policies issued, the number of

persons whose properties are insured, and the total amount and kinds of insurance

written by the association, provided this division does not authorize the board to

take action intended to decrease utilization of the association as a source of insurance

if such action would substantially conflict with the purposes set forth in divisions (A) , (B) , and (D) of section 3929.41 of the Revised Code or the plan of operation of the association. (J)(1) Except as provided in division (J)(2) of this section, records created, held by,

or pertaining to the association are not public records under section 149.43 of the Revised Code , are confidential, and are not subject to inspection or disclosure. (2) Division (J)(1) of this section does not apply to the plan of operation and other

information required to be filed with the superintendent under this chapter unless

otherwise prohibited from release by law.