State Representative Mike Henne (R-Clayton) has announced that the Ohio House yesterday passed House Bill 341 to improve the fiscal strength of fraternal benefit societies and to protect Ohio consumers from potential fraternal insolvencies.
A fraternal benefit society is a non-profit, mutual aid organization often funded in part by the sale of life insurance, annuities and other service products to their members. As the products offered by fraternals grow more complex and modern, it is important that Ohio insurance law reflect these changes to ensure greater solvency, policyholder protection, and the long-term stability of the fraternal insurance market.
Currently, there are 58 Fraternal Benefit Societies that conduct business in Ohio, 10 of which are headquartered in Ohio.
“House Bill 341 will provide consumer protection safeguards for Ohioans who may purchase products from Fraternals, while also establishing fair standards for both Fraternal Benefit Societies and insurance companies,” Rep. Henne said.
House Bill 341 passed unanimously and will now be sent to the Ohio Senate for further consideration.