Substitute House Bill 117 Summary

• Establishes comprehensive regulatory framework for captive insurance companies in Ohio, allowing companies to insure only risks of their parent or affiliated companies across specified lines including commercial multiple peril, ocean/inland marine, medical malpractice, and workers' compensation indemnification.

• Creates two specialized captive types: protected cell captive insurance companies that segregate participant risks into separate cells with independent asset/liability accounting, and special purpose financial captive insurance companies that reinsure life insurance risks through securitization arrangements.

• Requires minimum capital and surplus of $250,000 for standard captives and $500,000 for protected cell captives, with annual licensing fees of $500 and premium-based fees ranging from $7,500-$250,000 depending on premiums written.

• Establishes the Department of Insurance's authority to license, examine, and supervise captive insurers, with confidentiality protections for submitted documents and discretionary authority to share information with regulatory and law enforcement agencies.

• Amends workers' compensation law to allow self-insuring employers to be indemnified by captive insurance companies and to participate in the self-insuring employers' guaranty fund.