SB140 Summary: Insurance Regulatory Modernization Act

• Creates Chapter 3906 establishing the "Ohio Insurer Investment Act" allowing insurers to make broader alternative investments (real estate, derivatives, foreign investments) beyond traditional options, subject to superintendent approval and prudent investment standards.

• Revises life insurance reserve valuation requirements by adopting the National Association of Insurance Commissioners (NAIC) Valuation Manual as the minimum standard, replacing existing statutory reserve methodologies and mortality tables.

• Establishes requirements for insurance holding company systems including registration, annual enterprise risk reporting by ultimate controlling persons, supervisory colleges for international operations, and enhanced information sharing with regulators.

• Implements own risk and solvency assessment (ORSA) requirements for insurers to conduct internal risk evaluations and file confidential summary reports with the superintendent, with exemptions for smaller insurers.

• Permits electronic delivery of insurance documents and notices through automated transactions when insureds consent, and allows automated transactions for insurance business conducted between two or more parties.

• Revises reinsurance credit provisions by creating "accredited" and "certified" reinsurer categories with reduced security requirements, replacing prior trust fund methodology.

• Authorizes use of derivative instruments (options, swaps, forwards, futures) for hedging, income generation, and replication purposes subject to board-approved derivative use plans and superintendent notification requirements.