Ohio the latest state to throw its hat into the ring
Ohio is the latest US state set to enter the captive area, with its senate anticipated to pass a new captive law in the fall.
Captive International spoke with Cassandra Mendoza, associate at law firm Porter Wright, about the likely progress of the legislation and Ohio interest in developing a home-state captive insurance sector.
What is driving Ohio's interest in establishing a captive law?
A captive law would benefit Ohio by keeping Ohio business in Ohio, bringing lost Ohio business back to Ohio, and establishing an environment that is supportive of captives through the various insurance professionals working in Ohio.
Is the law expected to pass?
Yes. Although the bill has many sponsors, John Carney has been a huge supporter, and his backing has been instrumental in getting the bill introduced. Since introduction, the bill passed quickly in the House and is expected to be approved by the Ohio Senate after the summer recess. The Ohio Department of Insurance and its superintendent, the Lieutenant Governor of Ohio, are strongly in support of the bill. As far as we know, the Ohio insurance industry generally is also supportive of the bill.
How significant has the NRRA been in this decision?
The NRRA has not been involved at all in the introduction and passage of the bill. The initiative was actually launched about 2½ years ago by Mark Koogler at Porter Wright Morris & Arthur LLP, who drafted the first version of the bill and secured the support of the Ohio House insurance committee and the Ohio Department of Insurance.
Do you anticipate Ohio pushing the home state advantage to local captive parents?
Absolutely. We expect that Ohio will make a huge effort to motivate foreign captives to redomesticate in Ohio, especially where Ohio businesses are concerned.