ODI Letter

24 May, 2016

Tynesia Dorsey Chief Administrative Officer/Director of Consumer Relations Ohio Department of Insurance 50 West Town Street Third Floor — Suite 301 Columbus, OH 43215–4186

RE: XXXXXXXXXXX

Dear Ms Dorsey,

Thank you for your reply of my inquiry on how the ODI is funded. While I don’t doubt that your response is entirely factual, I found it less than forthright. I believe the Lt. Governor knew exactly what I was asking, even as I admit that perhaps my original question was less than thorough.

If you will indulge me, I will make another attempt.

I read through Title 39 of the Ohio Revised Code as referenced as well as the as well as the relevant sections regarding budgets. I also read through the 2015 ODI Annual Report.

I’m not a lawyer — just a simple small businessman — but from my reading, this is what I have deduced as a more complete answer to my question. Unless refuted by your office, we agree then to allow the following to stand as a more complete answer:

1. The ODI collects fees paid into a fund by the INSURANCE COMPANIES based on the volume of insurance they write on Ohio residents and other entities that conduct business in Ohio

2. It is in the best interest of the insurance companies to extract the maximum amount the market will bear in premiums from the people/companies obtaining insurance.

3. The ODI oversees the insurance companies on which it relies for fees by which to operate.

4. The fees cover the OPERATIONAL expenses, which most likely do not pay the salaries and benefits of the approximately 248 full-time permanent staff, who appear to be employed by the State of Ohio.

5. It is also unclear how the office space used by the ~248 employees is paid for. I will assume the space is owned or rented by the State of Ohio and paid for with tax dollars, not fees.

Absent a more detailed explanation by the ODI, I am going to assume the fees collected by the insurance companies pay for the operating expenses and the salaries, benefits and office space are paid by Ohio taxpayers.

Thank you for your attention to my inquiry.

Regards,

Gerard McLean Attachment cc: Senator Sherrod Brown