HB 575 Summary

• Creates new section 3921.102 requiring domestic fraternal benefit societies with authorized control level RBC or compliance failures to present a transfer plan to the superintendent within 45 days, transferring all members, certificates, and assets to another fraternal benefit society or insurer through merger, consolidation, or assumption.

• Allows a society's board of directors to approve transfers by majority vote without requiring member or supreme governing body approval, though amendments to society laws must be made at the next governing body meeting and members must be notified within 30 days.

• Permits the board to suspend or modify membership qualifications with superintendent approval to facilitate transfers, and nullifies certificate terms related to society solvency maintenance when transferred to non-fraternal benefit society insurers.

• Enacts section 3921.32 governing liquidation proceedings for domestic fraternal benefit societies, requiring liquidators to attempt transferring policies or certificates to another fraternal benefit society or insurer to conserve assets and avoid assessments.

• Amends section 3921.19 to extend the notice period for imposing assessments on certificate owners from 30 to 90 days before implementation, requiring superintendent notification and opportunity for disapproval.