While the Presidential, U.S. Senate, and Congressional races will receive more money and attention this election season, the Ohio Supreme Court election is arguably more important to the independent agency system than any of the aforementioned races.

With Ohio’s General Election Day scheduled for Tuesday, November 5, 2024, your political views on high-profile candidates are not as important as the judicial candidates’ impact on our industry. Choosing candidates who have a strict constructionist judicial philosophy will help ensure a fair and stable insurance environment, ultimately benefiting consumers, businesses, independent agents, and the insurance industry.

The Ohio Independent Agent Slate Card for the Ohio Supreme Court: Deters, Shanahan, & Hawkins

Anytime there are potential changes to the majority of the Ohio Supreme Court, independent insurance agents need to be aware of how these roles could impact our industry. Historically, the Ohio Supreme Court has been relatively balanced and deferential to the legislature in its decision-making and interpretation of statutes. However, there have been instances of judicial activism, and no case exemplifies this more than the infamous 1999 decision in the Scott-Pontzer case, which significantly affected the insurance industry.

Selecting the right judicial candidates for the Ohio Supreme Court is crucial because the court’s decisions can significantly influence insurance regulations, contractual interpretations, and nuclear verdicts. The Ohio Supreme Court impacts our industry in multiple ways, including:

1. Regulation and Interpretation of Insurance Laws: The Ohio Supreme Court plays a crucial role in interpreting state insurance laws and regulations. Its decisions can either support or challenge existing regulatory frameworks, affecting how insurance companies and agencies operate.
2. Precedent Setting: Supreme Court decisions often set legal precedents that lower courts must follow. This means the court’s rulings on insurance-related cases can create long-lasting impacts on how insurance disputes are resolved and how insurance laws are applied across the state. A ruling favoring certain types of coverage or claim procedures can influence the broader legal environment, forcing you to navigate murky legal waters to protect your clients.
3. Consumer Protection: The Court’s decisions can directly affect consumer rights and protections. For example, how the court interprets policy language, determines the fairness of claim denials, or addresses issues of bad faith can impact how insurance companies handle claims and how you interact with your clients. Deters, Shanahan, and Hawkins support a judicial philosophy of interpreting the plain meaning of policy language, ensuring that subjective feelings do not influence the interpretation of policies.
4. Litigation Environment: The Ohio Supreme Court can influence the overall litigation climate by determining the extent to which your clients can be held liable for various claims. This includes decisions on punitive damages and coverage disputes. Ohio has some of the strongest tort reform statutes in the country, creating a stable and predictable legal environment. The Court has upheld these statutes in numerous decisions; however, if the balance of the Court shifts, these tort reform measures could be at risk. The Court’s stance on these issues can affect the cost of doing business for insurers and ultimately influence insurance premiums and availability.
5. Economic Impact: Insurance is a significant component of the economy, affecting your clients, businesses, and industries that rely on insurance coverage. The Court’s decisions can impact the stability and predictability of the insurance market, which, in turn, can affect economic growth and business operations.

The justices of the Ohio Supreme Court will shape the legal environment in which insurance companies operate, impacting how you serve your clients.

The Ohio Insurance Agents Political Action Committee (OIAPAC) has vetted the candidates for these seats and has supported the retention of Justice Joseph Deters, as well as the election of Judge Megan Shanahan and Judge Dan Hawkins. These candidates interpret the law as written and do not insert their own opinions or interpretations into statutory language, contracts, insurance policies, or other legal documents.

Deters, Shanahan, and Hawkins understand the complexities of insurance law and are committed to fairness and stability. They will help ensure a balanced approach that supports a healthy insurance market and a stable Ohio economy.

About the Author:

Jeffrey S. Smith, JD, CIC, CAE serves as Chief Executive Officer for Ohio Insurance Agents Association (OIA) and IA Valuations. He is responsible for leading the organization’s strategic initiatives and day to day operations.

As CEO of IA Valuations, Smith has consulted and reviewed over 200 agency valuations for independent agents across the US. IA Valuations serves independent agencies as a trusted advisor and strategic business partner as they implement strategies to increase their agency value, grow their businesses and transition their agencies. Smith provides insights into the agency’s operations, risk factors and legal guidance on how to perpetuate and maximize value in a sale.