122:15-1-05 Payment of loss on DOD guaranteed bond; collection.

(A) A surety shall submit claims for reimbursement of losses on a bond guarantee on a form approved by DOD no later than one year from the date the surety paid the claim. Claims for reimbursement and any additional information submitted are subject to review and audit by DOD.

(B) Unless otherwise notified by DOD to the contrary, the surety must handle and process all claims under the bond, all settlements and all recoveries in the same manner and under the same standards as it uses for non-guaranteed bonds. The surety shall be entitled to reimbursement for the guaranteed share of losses, including financing of the bond principal to avoid an imminent default, as long as it paid the losses in good faith and in accordance with its normal procedures and reasonable industry standards. The surety shall pursue indemnity and recovery on account of such losses in accordance with its normal procedures and reasonable industry standards. DOD shall reimburse the surety for the guaranteed percentage of the cost of such indemnity and recovery efforts, and the surety shall remit to DOD the guaranteed percentage of all indemnity or recovery received by the surety.

(C) The payment by DOD of a surety's claim does not waive, compromise, or invalidate any of the terms, claims and defenses under the EDGE bond guarantee agreement, the Ohio revised code, Ohio administrative code or any other applicable law, regulation or policy. Within thirty days of surety's receipt of notification from DOD that a claim or any portion of a claim should not have been paid to the surety by DOD, the surety shall repay the specified amounts to DOD.

Eff 9-26-03; 10-2-04
Rule promulgated under: RC 119.03
Rule authorized by: RC 122.90(B)
Rule amplifies: RC 122.90
R.C. 119.032 review dates: 10/02/2009