Exclude certain agricultural entities from insurance regulations

(136th General Assembly)

(Amended
Senate Bill Number 100)

AN ACT

To enact section 3901.96 of the
Revised Code to exclude nonprofit agricultural membership
organizations from insurance regulations.

Be
it enacted by the General Assembly of the State of Ohio:

Section
1.
That
section 3901.96 of the Revised Code be enacted to read as follows:

Sec.
3901.96.
(A)
As used in this section:

(1)
"Nonprofit agricultural membership organization" means an
organization or an affiliate of an organization that meets both of
the following:

(a)
The organization was incorporated in this state on or before December
31, 1919, for the purpose of promoting the interests of farmers in
this state.

(b)
The organization provides healthcare benefit coverage exclusively to
members of the organization and the members' families pursuant to
contracts between the members and the organization or its affiliate.

(2)
"Material marketing" means the official written materials
and verbal communications provided to, or directed at, prospective
members and members' families for advertising or marketing purposes.

(B)
Healthcare benefit coverage provided by a nonprofit agricultural
membership organization that meets all of the following is not
subject to Title XXXIX or Chapter 1739., 1751., or 1753. of the
Revised Code and shall not be considered insurance under any law of
this state:

(1)
The healthcare benefit coverage is provided by a nonprofit
agricultural membership organization to the organization's members;

(2)
The application for healthcare benefit coverage and any contract
provided to a member is in writing;

(3)
The application for healthcare benefit coverage and any contract
provided to a member prominently states both of the following:

(a)
The healthcare benefit coverage is not insurance;

(b)
The healthcare benefit coverage is not subject to the laws and rules
of this state governing insurance.

(C)
A nonprofit agricultural membership organization shall not represent
that healthcare benefit coverage provided by the organization is
insurance in any material marketing.

(D)
The risks arising out of healthcare benefit coverage provided by a
nonprofit agricultural membership organization may be assumed or
reinsured by a company authorized to conduct the business of
insurance in this state.

Speaker
___________________ of the House of Representatives.

President
___________________ of the Senate.

Passed
________________________, 20____

Approved
________________________, 20____

Governor.

The section numbering of law
of a general and permanent nature is complete and in conformity with
the Revised Code.

Director, Legislative
Service Commission.

Filed
in the office of the Secretary of State at Columbus, Ohio, on the
____ day of ___________, A. D. 20____.

Secretary of State.

File
No. _________ Effective Date ___________________