On behalf of its 98 member companies domiciled in Ohio, the National Association of Mutual Insurance Cos. (NAMIC) commended Ohio Gov. Bob Taft for signing HB 301 into law. The bill addresses concerns regarding the ability of a mutual insurance company to extend or renew a lien on property it insures.
Many farm mutual insurance companies domiciled in Ohio utilize current law (ORC 3929.18) allowing mutual insurance companies to file liens on property they insure when premiums are not paid. Preserving this tool is critical to the continued solvency and prosperity of many farm mutual insurance companies, the carrier-funded group said in a statement.
Ohio’s farm mutual industry plays an important role in ensuring that property/casualty insurance remains available and affordable in Ohio’s small towns and rural communities, NAMIC said.
NAMIC supported changes recommended in HB 301 to limit the duration of a mutual insurance company’s lien on property it insures to five years from the date of filing while providing for the renewal of the lien every five years for another five-year period, if necessary, and; allowing that any lien in existence prior to HB 301 becoming law will be effective for five years after the effective date of the bill. The law goes into effect in 90 days.
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