As independent agents, you know firsthand how legal system abuse and an overly litigious environment can negatively impact the affordability of insurance for Ohio families and businesses. Increased litigation costs ultimately make their way through the system, leading to higher premiums, higher costs for consumers, and making it more challenging for employers to grow and invest in their communities. 

That is why third-party litigation funding (TPLF) reform has been a major priority for agents, the insurance industry, and the broader business community. For years, advocates have pushed for greater transparency surrounding who is financing lawsuits, greater accountability in the legal process, and reforms that strengthen confidence in Ohio’s judicial system. Just as importantly, these efforts are aimed at preserving an environment where small businesses can succeed.  

This General Assembly, OIA made a major push in support of TPLF reform legislation with House Bill 105. OIA members stepped up in a meaningful way throughout the legislative process; Brent Phelan and Jeff Sargent provided written testimony in support of the bill, and we were fortunate to have Bill Bishop testify before the Senate Judiciary Committee in support of the legislation. Additionally, OIA Government Affairs submitted testimony on behalf of the association. 

Together, these witnesses created a powerful argument for HB 105: 

• Brent Phelan provided valuable insight as both an attorney and insurance agent, helping establish the legal, transparency, and fairness rationale for third-party litigation funding (TPLF) reform. 

• Jeff Sargeant, OIA’s Advocacy Committee Chairman, explained the insurance market and consumer cost impacts when our legal system lacks transparency.  

• Bill Bishop testified before the Judiciary Committee and demonstrated the positive economic and small-business implications of TPLF reform.  

Advocacy from independent agents was critical on this important issue, and we are proud to announce that House Bill 105 was signed into law by Governor DeWine on July 7th. 

This legislation represents an important victory for reinforcing Ohio’s stance as a state that is open for business while helping keep costs lower for everyday Ohioans. CNBC recently named Ohio the No. 1 State for Business, recognizing the state’s commitment to economic growth, workforce development, and a competitive business environment. Reforms that improve transparency and help reduce unnecessary litigation strengthen that reputation and position Ohio for continued success in the years ahead. Ohio for continued success in the years ahead. 

House Bill 105 is an important step in broader tort reform efforts designed to strengthen Ohio’s business climate while curbing an increasingly litigious environment. By promoting transparency and accountability within the legal system, this legislation helps protect Ohio’s economic competitiveness while supporting a fair legal environment for businesses, consumers, and job creators alike. 

What House Bill 105 Does 

House Bill 105 is groundbreaking legislation that makes Ohio the first state in the nation to prohibit foreign investment in lawsuits, applying to both commercial and consumer litigation funding arrangements which closes potential avenues for undisclosed foreign influence in the state’s judicial system. The law also requires litigation financiers to register with the Ohio Attorney General’s Office, providing greater transparency into who is funding lawsuits in Ohio courts.  

Importantly, the legislation does not prevent Americans, businesses, or organizations from pursuing legitimate legal claims. Instead, it targets undisclosed third parties that may invest significant sums in litigation in an effort to influence outcomes for financial gain.  

OIA and other proponents of the legislation pushed for greater transparency surrounding litigation funding arrangements and the parties financing lawsuits in Ohio. The compromise ultimately adopted in House Bill 105 requires disclosure of funding agreements after a case is resolved, marking a meaningful advancement in transparency and accountability. For the first time, litigation financing arrangements that previously operated largely out of public view will be subject to disclosure requirements, providing greater insight into their role within Ohio’s legal system.  

National Momentum 

Ohio is not the only state that has effectively enacted legislation that reforms TPLF. States across the country are increasingly pursuing these reforms focused on transparency and balance in the legal system.   

• North Carlina enacted legislation this year and became the first state to prohibit TPLF for commercial litigation.  

• West Virginia passed significant TPLF reforms in 2024 that required disclosure of litigation funding agreements while limiting funder influence over cases.  

• Georgia enacted legislation in 2025 that requires litigation funders to register with the state, subjects funding agreements to discovery, and bans foreign adversary involvement in litigation financing. 

As TPLF reform efforts continue across the country, other states can now look to Ohio as an example of how to win on this key issue.  

House Bill 105 is a major step forward for Ohio because it increases transparency, guards against foreign influence in the courts, and strengthens the state’s legal climate. This win also shows the value of independent agent involvement in the legislative process. When agents share their expertise, explain real-world impacts, and engage with lawmakers, they can help move important public policy across the finish line.  

If you would like to learn more about OIA’s other advocacy efforts or see how you can get involved, please reach out to George Christy, george@ohioinsuranceagents.com. 

About the Author:

George Christy joined the Ohio Insurance Agents (OIA) as the new Government Affairs Manager in January 2025. George brings experience from his previous roles at the Ohio Department of Transportation (ODOT). At ODOT, he was part of the communications team, and he worked on legislative and regulatory issues with the Legislative Affairs team. George brings experience from his work on state legislative campaigns, his time as a Legislative Aide in the Ohio House of Representatives, and his roles at a state agency. George grew up in Delaware County and is a graduate of The Ohio State University where he studied Political Science and Economics.