Ohio § 3965.02

§ 3965.02.

(A) Each licensee shall develop, implement, and maintain a comprehensive written information

security program based on the licensee's risk assessment.  The program shall be commensurate with the size and complexity of the licensee,

the nature and scope of the licensee's activities including its use of third-party

service providers, and the sensitivity of the nonpublic information used by the licensee

or in the licensee's possession, custody, or control. (B) The information security program shall contain administrative, technical, and physical

safeguards for the protection of nonpublic information and the licensee's information

system and shall be designed to do all of the following: (1) Protect the security and confidentiality of nonpublic information and the security

of the information system; (2) Protect against any threats or hazards to the security or integrity of nonpublic

information and the information system; (3) Protect against unauthorized access to or use of nonpublic information and minimize

the likelihood of harm to any consumer; (4) Define and periodically reevaluate a schedule for retention of nonpublic information

and a mechanism for its destruction when no longer needed. (C) The licensee shall do all of the following: (1) Designate one or more persons or entities to act on behalf of the licensee and be

responsible for the information security program; (2) Identify reasonably foreseeable internal or external threats that could result in

unauthorized access, transmission, disclosure, misuse, alteration, or destruction

of nonpublic information, including threats to the security of information systems

and nonpublic information that are accessible to, or held by, third-party service

providers; (3) Assess the likelihood and potential damage of the threats described in division (C)(2)

of this section, taking into consideration the sensitivity of the nonpublic information; (4) Assess the sufficiency of policies, procedures, information systems, and other safeguards

in place to manage the threats described in division (C)(2) of this section, including

consideration of such threats in each relevant area of the licensee's operations,

including all of the following: (a) Employee training and management; (b) Information systems, including network and software design, as well as information

classification, governance, processing, storage, transmission, and disposal; (c) Detecting, preventing, and responding to attacks, intrusions, or other systems failures. (5) Implement information safeguards to manage the threats identified in its ongoing

assessment; (6) Not less than annually, assess the effectiveness of the safeguards' key controls,

systems, and procedures. (D) Based on its risk assessment, the licensee shall do all of the following: (1) Design its information security program to mitigate the identified risks in a way

that is commensurate with the size and complexity of the licensee, the nature and

scope of the licensee's activities including its use of third-party service providers,

and the sensitivity of the nonpublic information used by the licensee or in the licensee's

possession, custody, or control; (2) Determine which of the following security measures are appropriate and implement

such security measures: (a) Place access controls on information systems, including controls to authenticate

and permit access only to authorized individuals, to protect against the unauthorized

acquisition of nonpublic information; (b) Identify and manage the data, personnel, devices, systems, and facilities that enable

the organization to achieve business purposes in accordance with their relative importance

to business objectives and the organization's risk strategy; (c) Restrict access at physical locations containing nonpublic information to authorized

individuals; (d) Protect by encryption or other appropriate means all nonpublic information while

such information is being transmitted over an external network and all nonpublic information

stored on a laptop computer or other portable computing or storage device or media; (e) Adopt secure development practices for in-house developed applications utilized by

the licensee and procedures for evaluating, assessing, or testing the security of

externally developed applications utilized by the licensee; (f) Modify the information system in accordance with the licensee's information security

program; (g) Utilize effective controls, which may include multifactor authentication procedures

for accessing nonpublic information; (h) Regularly test and monitor systems and procedures to detect actual and attempted

attacks on, or intrusions into, information systems; (i) Include audit trails within the information security program designed to detect and

respond to cybersecurity events and designed to reconstruct material financial transactions

sufficient to support normal operations and obligations of the licensee; (j) Implement measures to protect against destruction, loss, or damage of nonpublic information

due to environmental hazards, such as fire and water damage or other catastrophes

or technological failures; (k) Develop, implement, and maintain procedures for the secure disposal of nonpublic

information in any format. (3) Include cybersecurity risks in the licensee's enterprise risk management process; (4) Stay informed regarding emerging threats or vulnerabilities and utilize reasonable

security measures when sharing information relative to the character of the sharing

and the type of information shared; (5) Provide its personnel with cybersecurity awareness training that is updated as necessary

to reflect risks identified by the licensee in the risk assessment. (E) If the licensee has a board of directors, the board or an appropriate committee of

the board shall, at a minimum, do all of the following: (1) Require the licensee's executive management or its delegates to develop, implement,

and maintain the licensee's information security program; (2) Require the licensee's executive management or its delegates to report in writing

at least annually, all of the following information: (a) The overall status of the information security program and the licensee's compliance

with this chapter; (b) Material matters related to the information security program, addressing issues such

as risk assessment, risk management and control decisions, third-party service provider

arrangements, results of testing, cybersecurity events or violations and management's

responses thereto, and recommendations for changes in the information security program. (3) If executive management delegates any of its responsibilities under this section,

it shall oversee the development, implementation, and maintenance of the licensee's

information security program prepared by the delegates and shall require the delegates

to submit a report that complies with the requirements of division (E)(2) of this

section. (F)(1) A licensee shall exercise due diligence in selecting its third-party service provider. (2) A licensee shall require a third-party service provider to implement appropriate

administrative, technical, and physical measures to protect and secure the information

systems and nonpublic information that are accessible to, or held by, the third-party

service provider. (G) The licensee shall monitor, evaluate, and adjust, as appropriate, the information

security program consistent with all of the following: (1) Any relevant changes in technology; (2) The sensitivity of its nonpublic information; (3) Internal or external threats to information; (4) The licensee's own changing business arrangements, such as mergers and acquisitions,

alliances and joint ventures, outsourcing arrangements, and changes to information

systems. (H)(1) As part of its information security program, each licensee shall establish a written

incident response plan designed to promptly respond to, and recover from, any cybersecurity

event that compromises the confidentiality, integrity, or availability of nonpublic

information in its possession, the licensee's information systems, or the continuing

functionality of any aspect of the licensee's business or operations. (2) The incident response plan described in division (H)(1) of this section shall address

all of the following areas: (a) The internal process for responding to a cybersecurity event; (b) The goals of the incident response plan; (c) The definition of clear roles, responsibilities, and levels of decision-making authority; (d) External and internal communications and information sharing; (e) Identification of requirements for the remediation of any identified weaknesses in

information systems and associated controls; (f) Documentation and reporting regarding cybersecurity events and related incident response

activities; (g) The evaluation and revision as necessary of the incident response plan following

a cybersecurity event. (I)(1) By the fifteenth day of February of each year, unless otherwise permitted to file

on the first day of June in division (I)(2) of this section, each insurer domiciled

in this state shall submit to the superintendent of insurance a written statement

certifying that the insurer is in compliance with the requirements set forth in this

section.  Each insurer shall maintain for examination by the department of insurance all records,

schedules, and data supporting this certificate for a period of five years.  To the extent an insurer has identified areas, systems, or processes that require

material improvement, updating, or redesign, the insurer shall document the identification

and the remedial efforts planned and underway to address such areas, systems, or processes.  Such documentation must be available for inspection by the superintendent. (2) Notwithstanding division (I)(1) of this section, an insurer domiciled in this state

and licensed exclusively to conduct business in this state and no other state shall

be permitted to submit to the superintendent of insurance a written statement certifying

that the insurer is in compliance with the requirements set forth in this section

as part of the insurer's corporate governance annual disclosure required by section 3901.073 of the Revised Code . (J) A licensee that meets the requirements of this chapter shall be deemed to have implemented

a cybersecurity program that reasonably conforms to an industry-recognized cybersecurity

framework for the purposes of Chapter 1354. of the Revised Code.