Regards paid family leave insurance

hb593_02_PH

As Passed by the House

136th
General Assembly

Regular
Session
Am. H. B. No. 593

2025-2026

Representative Deeter

Cosponsors: Representatives Craig,
Lampton, Hall, D., Abdullahi, Abrams, Barhorst, Brennan, Brent,
Brewer, Brownlee, Bryant Bailey, Cockley, Daniels, Ghanbari,
Glassburn, Grim, Gross, Isaacsohn, John, Johnson, Lawson-Rowe, Lett,
Manning, Mathews, A., Oelslager, Piccolantonio, Richardson, Robb
Blasdel, Robinson, Russo, Schmidt, Sigrist, Sims, Somani, Swearingen,
Sweeney, Thomas, C., Tims, White, A., White, E., Williams, Willis,
Young

To
amend section 3902.02 and to enact sections 3966.01, 3966.02,
3966.03, 3966.04, 3966.05, 3966.06, 3966.07, 3966.08, 3966.09,
3966.10, 3966.11
, and 3966.12

of
the Revised Code
regarding
paid family leave insurance.

BE
IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section
1.
That
section 3902.02 be amended and sections 3966.01, 3966.02, 3966.03,
3966.04, 3966.05, 3966.06, 3966.07, 3966.08, 3966.09, 3966.10,
3966.11
, and 3966.12

of
the Revised Code be enacted to read as follows:

Sec.
3902.02.
As
used in sections 3902.01 to 3902.08 of the Revised Code:

(A)
"Policy" or "policy form" means any policy,
contract, plan or agreement of life insurance and annuities, credit
life insurance and credit disability insurance,
paid
family leave insurance,
and
sickness and accident insurance, and subscriber policies, contracts,
certificates, and agreements of health insuring corporations,
delivered or issued for delivery in this state by any company subject
to sections 3902.01 to 3902.08 of the Revised Code; any certificate,
contract or policy issued by a fraternal benefit society; any
certificate issued pursuant to a group insurance policy delivered or
issued for delivery in this state; and any evidence of coverage
issued by a health insuring corporation.

(B)
"Company" or "insurer" means any entity
authorized to do the business of life insurance and annuities,
paid
family leave insurance,
sickness
and accident insurance, credit life insurance, or credit disability
insurance; a fraternal benefit society; and a health insuring
corporation.

(C)
"Paid family leave insurance" has the same meaning as in
section 3966.01 of the Revised Code.

Sec.
3966.01.
As
used in this chapter:

(A)
"Armed forces of the United States" has the same meaning as
in section 145.30 of the Revised Code.

(B)
"Child" means a person who meets both of the following:

(1)
Is either of the following:

(a)
Under eighteen years of age;

(b)
Is eighteen years of age or older and incapable of self-care because
of a mental or physical disability;

(2)
Is any of the following with regard to a person covered under a
policy of paid family leave insurance:

(a)
A biological, adopted, or foster son or daughter;

(b)
A stepson or stepdaughter;

(c)
A legal ward;

(d)
A son or daughter of a domestic partner;

(e)
A son or daughter of a person to whom the person covered under the
policy stands in loco parentis.

(C)
"Continuing supervision by a health care provider" includes
a period of incapacity that is permanent or long term due to a
condition for which treatment may not be effective and where the
person afflicted by the condition need not be receiving active
treatment by a health care provider.

(D)
"Family leave" is any leave taken by an employee from work
for reasons enumerated in section
3966.05

of
the Revised Code.

(E)
"Family member" includes a child, spouse, or parent as
defined in this section, or any other person defined as a "family
member" in a policy of paid family leave insurance.

(F)
"Health care provider" has the same meaning as in section
3701.74 of the Revised Code.

(G)
"Paid family leave insurance" means an insurance policy
issued to an employer related to a benefit program provided to an
employee to pay for a percentage or portion of the employee's income
loss due to any of the following:

(1)
The birth of a child or adoption of a child by the employee;

(2)
Placement of a child with the employee for foster care;

(3)
Care of a family member of the employee who has a serious health
condition;

(4)
Circumstances arising out of the fact that the employee's family
member who is a service member is on active duty or has been notified
of an impending call or order to active duty.

(H)
"Parent" means a biological, foster, or adoptive parent, a
stepparent, a legal guardian, or other person who stands in loco
parentis to a child.

(I)
"Serious health condition" means an illness, injury,
impairment, or physical or mental condition, including
transplantation preparation and recovery from surgery related to
organ or tissue donation, that involves inpatient care in a hospital,
hospice, or residential health care facility, continuing treatment,
or continuing supervision by a health care provider, as defined in a
policy of paid family leave insurance.

Sec.
3966.02.
(A)
The purpose of this chapter is to create a new line of insurance,
known as paid family leave insurance, under which any insurer
licensed to engage in the business of disability income insurance or
life insurance in this state may issue policies covering against risk
related to paid family leave.

(B)
Insurers offering paid family leave insurance and paid family leave
policies are subject to all other applicable laws, except that the
specific provisions of this chapter supersede any conflicting general
provisions of law that would otherwise apply.

Sec.
3966.03.
Paid
family leave insurance coverage may include any of the following:

(A)
Participation in providing care, including physical or psychological
care, for a family member of the employee made necessary by a serious
health condition of the family member;

(B)
Bonding with the employee's child during the first twelve months
after the child's birth, or the first twelve months after the
placement of the child for adoption or foster care with the employee;

(C)
Addressing a qualifying exigency as interpreted under the "Family
and Medical Leave Act," 29 U.S.C. 2612(a)(1)(e), and related
regulations, arising out of the fact that the spouse, child, or
parent of the employee is on active duty, or has been notified of an
impending call or order to active duty, in the armed forces of the
United States;

(D)
Caring for a family service member injured in the line of duty;

(E)
Taking other leave to provide care for a family member or other
family leave as specified in the policy of paid family leave
insurance.

Sec.
3966.04.
A
policy of paid family leave insurance shall set forth all details and
requirements with regard to coverage for each form of family leave
covered under the policy.

Sec.
3966.05.
(A)
A policy of paid family leave insurance shall set forth the length of
family leave benefits available for each form of family leave covered
under the policy.

(B)
The length of family leave benefits provided in a policy of paid
family leave insurance shall not be less than two weeks during a
period of fifty-two consecutive calendar weeks.

(C)
Fifty-two consecutive calendar weeks may be calculated by any of the
following methods:

(1)
A calendar year;

(2)
Any fixed period starting on a particular date such as the effective
or anniversary date of a policy of paid family leave insurance;

(3)
The period measured forward from the employee's first day of family
leave;

(4)
A rolling period measured by looking back from the employee's first
day of family leave;

(5)
Any other method that is specified in the policy of paid family leave
insurance.

Sec.
3966.06.
(A)
If a policy of paid family leave insurance imposes a waiting period
before benefits will be paid, the policy must set forth the terms and
conditions of the waiting period.

(B)
The terms and conditions of the waiting period may include all of the
following:

(1)
Whether the waiting period runs over a consecutive calendar day
period;

(2)
Whether the waiting period is included when determining the
availability of the annual allotment of family leave benefits or if
it is excluded when determining the availability of the annual
allotment of family leave benefits;

(3)
Whether the waiting period must be met only once per benefit year or
must be met for each separate claim for benefits;

(4)
Whether the employee may work or receive paid time off or other
compensation by the employer during the waiting period.

Sec.
3966.07.
(A)
A policy of paid family leave insurance must set forth all of the
following:

(1)
The amount of benefits that will be paid for covered family leave
reasons;

(2)
The wages or other income upon which the amount of family leave
benefits will be based;

(3)
How benefits based on the wages or other income will be calculated.

(B)
If paid family leave benefits are subject to offsets for wages or
other income received or for which the insured may be eligible, the
policy shall set forth both of the following:

(1)
All the wages or other income that may be offset;

(2)
The circumstances under which the wages or other income may be
offset.

Sec.
3966.08.
(A)
Eligibility for benefits under a policy of paid family leave
insurance may be limited, excluded, or reduced, but any limitations,
exclusions, or reductions shall be set forth in the policy.

(B)
Permissible limitations, exclusions, or reductions may include any of
the following:

(1)
Any period of family leave wherein any required notice or medical
certification required under the policy has not been provided;

(2)
Any family leave related to a serious health condition or other harm
to a family member brought about by the willful intention of the
employee;

(3)
Any period of family leave during which the employee performed work
for remuneration or profit;

(4)
Any period of family leave for which the employee is eligible to
receive from the employee's employer, or from a fund to which the
employer has contributed, remuneration or maintenance;

(5)
Any period of family leave in which the employee is eligible to
receive benefits under any other statutory or employer-sponsored
program, including unemployment insurance benefits, worker's
compensation benefits, statutory disability benefits, statutory paid
leave benefits, or any paid time off under an employer's paid leave
policy;

(6)
Any period of family leave commencing before the employee becomes
eligible for family leave benefits under the policy;

(7)
Any period of family leave where more than one person seeks family
leave for the same family member.

Sec.
3966.09.
(A)
Except as provided in division (B) of this section, benefits provided
under a policy of paid family leave insurance shall be paid
periodically and promptly.

(B)
An insurer is not required to comply with division (A) of this
section with regard to a period of family leave contested for any of
the reasons prescribed in section
3966.08
of the Revised Code
while
the matter is being resolved.

(C)
If a contested period of family leave is determined to be eligible
for benefits under a policy of paid family leave insurance, the
insurer shall comply with division (A) of this section as soon as is
practicable after the matter has been resolved.

Sec.
3966.10.
(A)
Policies of paid family leave insurance may provide coverage for paid
family leave benefits or may provide paid family leave benefits as an
amendment or rider to a policy of disability income or life insurance
in accordance with the requirements of this chapter and any
applicable chapter of the Revised Code.

(B)
Premiums for policies or riders providing paid family leave benefits
in accordance with the residential state supplement program for
disabled individuals provided for under section 5119.41 of the
Revised Code or with life insurance policies issued under Chapter
3915. of the Revised Code shall be calculated in accordance with this
chapter and all applicable sections governing insurance in the
Revised Code.

Sec.
3966.11.
Purchase
of paid family leave insurance for employees is voluntary. Nothing in
this chapter shall be construed as requiring employers to purchase
paid family leave insurance for their workers.

Sec.
3966.12.
The
superintendent of insurance may adopt rules as necessary in
accordance with Chapter 119. of the Revised Code
for
the purposes of administering and enforcing
this
chapter.

Section
2.
That
existing section 3902.02 of the Revised Code is hereby repealed.