Ohio Code § 3906.05
Ohio Code § 3906.05. Reproduced from the official Ohio Revised Code, with a citation summary, verification link, and related provisions.
§ 3906.05.
(A) An insurer making investments under this chapter shall consider the factors listed
in division (C) of this section along with its business in determining whether an
investment portfolio or investment policy is prudent. (B) The superintendent shall consider the factors listed in division (C) of this section
prior to making a determination that an insurer's investment portfolio or investment
policy is not prudent. (C) Insurers and the superintendent shall consider the following factors according to
divisions (A) and (B) of this section: (1) General economic conditions; (2) The possible effect of inflation or deflation; (3) The expected tax consequences of investment decisions or strategies; (4) The fairness and reasonableness of the terms of an investment considering its probable
risk and reward characteristics and relationship to the investment portfolio as a
whole; (5) The extent of the diversification of the insurer's investments among all of the following: (a) Individual investments; (b) Classes of investments; (c) Industry concentrations; (d) Dates of maturity; (e) Geographic areas. (6) The quality and liquidity of investments in affiliates; (7) The investment exposure to all of the following risks, quantified in a manner consistent
with the insurer's acceptable risk level as described in the insurer's written investment
policy, required under division (H) of section 3906.06 of the Revised Code : (a) Liquidity; (b) Credit and default; (c) Systemic or market; (d) Interest rate; (e) Call, prepayment, and extension; (f) Currency; (g) Foreign sovereign. (8) The amount of the insurer's assets, capital and surplus, premium writings, insurance
in force, and other appropriate characteristics; (9) The amount and adequacy of the insurer's reported liabilities; (10) The relationship of the expected cash flows of the insurer's assets and liabilities,
and the risk of adverse changes in the insurer's assets and liabilities; (11) The adequacy of the insurer's capital and surplus to secure the risks and liabilities
of the insurer; (12) Any other factors relevant to whether an investment is prudent.
Source: official Ohio text · Last verified 2026-08-27
At a glance
- Citation: Ohio Revised Code § 3906.05
- Jurisdiction: Ohio
- Code: Ohio Revised Code
- Text: transcribed from the official source (verify below)
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Statute text is transcribed from the official Ohio Revised Code. Confirm it against the primary source before relying on it:
Not legal advice. Verify against the official source and consult a licensed Ohio attorney.
Common questions
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The text above is transcribed from the Ohio Revised Code, the codified statutes of Ohio. The official publisher link appears under "Verify the text" on this page.
What subject does Ohio Revised Code § 3906.05 address?
It addresses the rule set out in the section text. Read the section together with the surrounding provisions listed under "Nearby provisions" for the full picture.
Is Ohio Revised Code § 3906.05 still in force?
Statutes are amended, repealed, and renumbered every session. Confirm the current version at the official Ohio source before relying on this text.
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