Ohio § 3964.07

§ 3964.07.

(A) A captive insurance company shall not be required to make any annual report except

as required by this section. (B)(1) The chief financial officer and at least one additional executive officer of a captive

insurance company, or a majority of the directors of a captive insurance company annually,

on the first day of January, or within sixty days thereafter prepare under oath and

deposit in the office of the superintendent, a statement showing the financial condition

of the captive insurance company on the thirty-first day of the December next preceding.  An actuarial opinion from a qualified actuary regarding the adequacy of the company's

required reserves to make full provision for the company's liabilities, insured or

reinsured, shall be included in this statement.  The qualified actuary shall submit a memorandum to the superintendent detailing

the support for that opinion. (2) All captive insurance companies shall have an annual audit by an independent certified

public accountant and shall file an audited financial report with the superintendent

on or before the first day of June as a supplement to the annual statement required

under division (B)(1) of this section. (C) Each captive insurance company shall report using generally accepted accounting principles,

unless the superintendent requires, approves, or accepts the use of statutory accounting

principles or other comprehensive basis accounting, any appropriate, necessary modifications

or adaptations required or approved or accepted by the superintendent for each type

of insurance or kind of insurance company that makes such a report, and as supplemented

by additional information required by the superintendent. (D) Captive insurance companies shall prepare, at a minimum, internal quarterly financial

statements.  These statements shall be made available upon request to the superintendent. (E) The superintendent shall adopt by rule the prescribed forms, instructions, and manuals

by which captive insurance companies shall make the reports required under this section,

as the superintendent considers necessary. (F) Division (H) of section 3964.03 of the Revised Code shall apply to each report filed under this section. (G)(1) Special purpose financial captive insurance companies are subject to sections 3903.81 to 3903.93 of the Revised Code . (2)(a) Notwithstanding division (G)(1) of this section, the superintendent shall establish

an acceptable total capital and surplus requirement for a special purpose financial

captive insurance company that is permitted by the superintendent to use an alternative

reserve basis pursuant to division (E)(2) of section 3964.03 of the Revised Code if there is an inherent inconsistency between the approved alternative reserve basis

and sections 3903.81 to 3903.93 of the Revised Code . (b) The total capital and surplus requirement as established by the superintendent shall

be determined in accordance with a minimum required total capital and surplus methodology

that meets both of the following: (i) Is consistent with current risk-based capital principles; (ii) Takes into account all material risks and obligations, as well as the assets, of

the special purpose financial captive insurance company.