As Introduced 1
122nd General Assembly 4
Regular Session S. B. No. 154 5
1997-1998 6
SENATORS NEIN-GILLMOR-SUHADOLNIK 8
10
A B I L L
To amend sections 1751.38, 3901.021, 3905.011, 12
3905.02, 3905.06, 3905.07, 3905.18, 3905.20, 13
3905.27, 3905.40, 3905.481, 3905.49, 3923.121, 14
3931.101, 3931.11, 3941.02, 3953.21, 3953.23,
3960.11, and 4745.01; to amend, for the purpose 15
of adopting new numbers as indicated in 16
parentheses, sections 3905.011 (3905.012) and
3905.02 (3905.03); to enact new sections 3905.01, 17
3905.011, and 3905.02 and sections 3905.013, 18
3905.014, 3905.471, 3905.491, 3905.492, and
3905.54; and to repeal sections 3905.01, 3905.03, 19
and 3905.05 of the Revised Code to revise the 20
Insurance Agents Law.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 22
Section 1. That sections 1751.38, 3901.021, 3905.011, 24
3905.02, 3905.06, 3905.07, 3905.18, 3905.20, 3905.27, 3905.40, 26
3905.481, 3905.49, 3923.121, 3931.101, 3931.11, 3941.02, 3953.21, 27
3953.23, 3960.11, and 4745.01 be amended; sections 3905.011
(3905.012) and 3905.02 (3905.03) be amended for the purpose of 29
adopting new section numbers as indicated in parentheses; and new 30
sections 3905.01, 3905.011, and 3905.02 and sections 3905.013, 31
3905.014, 3905.471, 3905.491, 3905.492, and 3905.54 of the 32
Revised Code be enacted to read as follows: 33
Sec. 1751.38. (A) As used in this section, "agent" means 43
a person appointed by a health insuring corporation to engage in 44
the solicitation or enrollment of subscribers or enrollees. 45
2
(B) Agents of health insuring corporations shall be 48
licensed pursuant to section 3905.01 3905.02 or 3905.18 of the 49
Revised Code. 51
(C) Sections 3905.01, 3905.03, 3905.05 3905.02, 3905.16 to 54
3905.18, 3905.181, 3905.19, 3905.23, 3905.40, 3905.41, 3905.42, 55
3905.46 to 3905.48, 3905.481, 3905.482, 3905.486, 3905.49, 56
3905.50, 3905.71 to 3905.79, and 3905.99 of the Revised Code 57
shall apply to health insuring corporations and the agents of 58
health insuring corporations in the same manner in which these 59
sections apply to insurers and agents of insurers. 60
Sec. 3901.021. Two-thirds of all fees collected under 69
section 3905.01 3905.02, division (E) of section 3905.18, and 70
division (A)(6) of section 3905.26 of the Revised Code shall be 72
paid into the state treasury to the credit of the department of 73
insurance operating fund, which is hereby created. The remaining 74
one-third shall be credited to the general revenue fund. If the 75
superintendent of insurance is authorized by the controlling 76
board to increase the fees pursuant to section 3905.011 3905.012 78
of the Revised Code, the board may also direct that an amount 79
equal to the increase, up to three-fourths of all fees collected 80
after the increase pursuant to section 3905.011 3905.012 of the 81
Revised Code, shall be credited to the department of insurance 83
operating fund, with the remaining portion to be credited to the 84
general revenue fund. All operating expenses of the department of 85
insurance except those expenses defined under section 3901.07 of 86
the Revised Code shall be paid from the department of insurance 87
operating fund.
Sec. 3905.01. (A) NO PERSON SHALL PROCURE AN APPLICATION 90
OR QUOTE PREMIUMS FOR, DISCUSS COVERAGES OF, OR SOLICIT, 91
NEGOTIATE, EFFECT, PROCURE, PLACE, WRITE, DELIVER, RENEW, OR 92
BIND, A POLICY OF INSURANCE OR ENGAGE IN DIRECT RESPONSE OR MASS 93
MARKETING ADVERTISING THROUGH ANY MEDIUM FOR RISKS RESIDING, 94
LOCATED, OR TO BE PERFORMED IN THIS STATE, UNLESS THE PERSON IS 95
LICENSED BY THE SUPERINTENDENT OF INSURANCE IN ACCORDANCE WITH 96
3
THIS CHAPTER. 97
(B) DIVISION (A) OF THIS SECTION DOES NOT APPLY TO ANY OF 101
THE FOLLOWING PERSONS:
(1) AN INSURER AS DEFINED IN SECTION 3901.32 OF THE 104
REVISED CODE; 105
(2) ANY PERSON WHO FURNISHES INFORMATION REGARDING GROUP 107
INSURANCE, ENROLLS INDIVIDUALS IN GROUP INSURANCE PLANS, ISSUES 108
CERTIFICATES UNDER SUCH PLANS, OR OTHERWISE ASSISTS IN 109
ADMINISTERING SUCH PLANS, IF NO COMMISSION OR OTHER FORM OF 110
COMPENSATION RELATED TO PREMIUM OR SALES VOLUME IS PAID FOR SUCH 111
SERVICES; 112
(3) ANY EMPLOYEE OF A CREDITOR WHO MAKES INSURANCE 114
PRODUCTS AVAILABLE ONLY IN CONNECTION WITH A CREDIT TRANSACTION, 115
INCLUDING CREDIT LIFE INSURANCE, CREDIT DISABILITY OR ACCIDENT 116
AND HEALTH INSURANCE, CREDIT PROPERTY INSURANCE, INVOLUNTARY 117
UNEMPLOYMENT INSURANCE, INDIVIDUAL LIFE INSURANCE, AND INDIVIDUAL
DISABILITY OR ACCIDENT AND HEALTH INSURANCE, IF THE ENTIRE 118
PREMIUM IS FINANCED AS PART OF THE CREDIT TRANSACTION AND THE 119
FOLLOWING CONDITIONS ARE MET:
(a) IF THE INSURANCE PRODUCT IS AN INDIVIDUAL LIFE 121
INSURANCE POLICY, A LICENSED AGENT IS RESPONSIBLE FOR THE 122
INSURANCE TRANSACTION.
(b) IF THE EMPLOYEE OF THE CREDITOR IS PAID BY THE 124
INSURANCE AGENT OR BY THE INSURANCE COMPANY, THE EMPLOYEE HOLDS A 125
LIMITED AUTHORITY LICENSE. 126
FOR PURPOSES OF DIVISION (B)(3) OF THIS SECTION, "CREDIT 128
PROPERTY INSURANCE" MEANS INSURANCE COVERING REASONABLE RISKS OF 129
LOSS, DAMAGE, AND DESTRUCTION OF PROPERTY USED AS SECURITY FOR A 130
LOAN, WHICH INSURANCE MAY ALSO COVER OTHER PROPERTY THAT IS 131
INCIDENTAL TO THE PROPERTY USED AS SECURITY FOR THE LOAN. 132
(4) ANY EMPLOYER, OR OFFICER OR EMPLOYEE OF AN EMPLOYER, 134
TO THE EXTENT THAT THE EMPLOYER, OFFICER, OR EMPLOYEE IS ENGAGED 135
IN THE ADMINISTRATION OR OPERATION OF ANY EMPLOYEE BENEFITS 136
PROGRAM INVOLVING THE USE OF INSURANCE FOR THE EMPLOYER'S 137
4
EMPLOYEES OR THE EMPLOYEES OF A SUBSIDIARY OR AFFILIATE OF THE 138
EMPLOYER, PROVIDED THAT THE EMPLOYER, OFFICER, OR EMPLOYEE IS NOT 140
COMPENSATED, EITHER DIRECTLY OR INDIRECTLY, IN ANY MANNER BY AN 141
INSURANCE AGENT OR BY THE INSURANCE COMPANY ISSUING THE
INSURANCE. 142
(C) DIVISION (A) OF THIS SECTION DOES NOT APPLY TO ANY OF 146
THE FOLLOWING ACTIVITIES WHEN PERFORMED BY AN EMPLOYEE OF, AND AT 147
THE DIRECTION OF, AN INSURER OR LICENSED INSURANCE AGENT: 148
(1) THE ACCEPTANCE OF PREMIUMS OTHER THAN THE INITIAL 150
PREMIUM; 151
(2) THE GATHERING OF INFORMATION THAT IS NOT REQUIRED OR 153
USED FOR UNDERWRITING PURPOSES, SUCH AS NAMES, ADDRESSES, 154
EXPIRATION DATES OF CURRENT INSURANCE, AND NAMES OF CURRENT 155
INSURERS; 156
(3) THE SETTING OF APPOINTMENTS FOR INSURANCE AGENTS, 158
PROVIDED THAT THE PERSON SETTING THE APPOINTMENT DOES NOT 159
COMMUNICATE ANY INFORMATION ABOUT INSURANCE; 160
(4) THE PROVISION OF INFORMATION ABOUT EXISTING INSURANCE 162
POLICIES, IF THE PERSON DOES NOT PROVIDE ANY ADVICE, SUGGESTIONS, 164
OR RECOMMENDATIONS, EXPLAIN BENEFITS, OR INTERPRET COVERAGE 165
PROVISIONS;
(5) THE PERFORMANCE OF CLERICAL OR MINISTERIAL DUTIES. 168
(D) THE SUPERINTENDENT MAY ADOPT RULES IN ACCORDANCE WITH 171
CHAPTER 119. OF THE REVISED CODE TO SET FORTH THE SPECIFIC ACTS 174
THAT COMPRISE ANY OF THE ACTIVITIES DESCRIBED IN THIS SECTION, 175
THE PERFORMANCE OF WHICH EITHER REQUIRES OR DOES NOT REQUIRE 177
LICENSURE AS AN AGENT.
Sec. 3905.011. (A) AS USED IN THIS SECTION AND SECTIONS 180
3905.013 AND 3905.014 OF THE REVISED CODE, "INSURER" HAS THE SAME 182
MEANING AS IN SECTION 3901.32 OF THE REVISED CODE. 185
(B) ANY PERSON WHO IS LICENSED AS AN AGENT UNDER SECTION 188
3905.02 OR 3905.18 OF THE REVISED CODE IS ELIGIBLE TO BE 190
APPOINTED BY ONE OR MORE INSURERS AUTHORIZED TO DO BUSINESS IN 191
THIS STATE. 192
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(C)(1) PRIOR TO APPOINTING AN AGENT, AN INSURER SHALL 195
CERTIFY TO THE SUPERINTENDENT OF INSURANCE, IN ACCORDANCE WITH 196
RULES ADOPTED BY THE SUPERINTENDENT UNDER SECTION 3905.014 OF THE 197
REVISED CODE, THAT THE PERSON IS COMPETENT, FINANCIALLY 199
RESPONSIBLE, AND SUITABLE TO REPRESENT THE INSURER. 200
(2) NO AGENT SHALL REPRESENT TO THE PUBLIC THAT THE AGENT 202
HAS AUTHORITY TO REPRESENT A PARTICULAR INSURER UNTIL THE INSURER 204
HAS ACKNOWLEDGED THAT AUTHORITY BY APPOINTMENT OF THE AGENT IN 205
ACCORDANCE WITH DIVISION (C)(1) OF THIS SECTION. 206
(D)(1) NO INSURER SHALL PAY A COMMISSION, FEE, OR OTHER 209
TYPE OF CONSIDERATION, OR GIVE ANY OTHER THING OF VALUE, TO A 210
PERSON WHO IS NOT LICENSED BY THE SUPERINTENDENT IN ACCORDANCE 211
WITH THIS CHAPTER FOR THE SALE OF, OR FOR ANY DIRECT OR INDIRECT 212
CONNECTION WITH THE SALE OF, ANY INSURANCE SOLD BY OR ON BEHALF 213
OF THE INSURER.
(2) NOTHING IN THIS SECTION PROHIBITS AN INSURER FROM 215
ENTERING INTO A COMPENSATION AGREEMENT WITH A CREDITOR WHO MAKES 216
INSURANCE PRODUCTS AVAILABLE ONLY IN CONNECTION WITH A CREDIT 217
TRANSACTION, INCLUDING CREDIT LIFE INSURANCE, CREDIT DISABILITY 218
OR ACCIDENT AND HEALTH INSURANCE, CREDIT PROPERTY INSURANCE,
INVOLUNTARY UNEMPLOYMENT INSURANCE, INDIVIDUAL LIFE INSURANCE, 219
AND INDIVIDUAL DISABILITY OR ACCIDENT AND HEALTH INSURANCE, IF 220
THE ENTIRE PREMIUM IS FINANCED AS PART OF THE CREDIT TRANSACTION. 221
FOR PURPOSES OF DIVISION (D)(2) OF THIS SECTION, "CREDIT PROPERTY 222
INSURANCE" HAS THE SAME MEANING AS IN DIVISION (B)(3) OF SECTION 223
3905.01 OF THE REVISED CODE.
Sec. 3905.011 3905.012. The superintendent of insurance 232
may increase the agent's license APPOINTMENT fees imposed on 233
domestic, foreign, and alien insurance companies pursuant to 235
division (B)(C) of section 3905.01 3905.02, division (E) of 237
section 3905.18, and division (E) of section 3905.20 of the 239
Revised Code to not more than twenty dollars, if all of the 240
following conditions are met:
(A) The superintendent submits his A request for the 242
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increase to the following committees HOUSE COMMITTEE AND SENATE 243
COMMITTEE THAT HAVE PRIMARY JURISDICTION OVER INSURANCE ISSUES, 244
for their review and recommendations: 246
(1) The house insurance committee; 248
(2) The senate financial institutions and insurance 250
committee; 251
(3) The insurance/civil justice reform review committee 253
established by Am. Sub. H.B. 1 of the 117th general assembly. 254
(B) The superintendent submits both of the following to 256
the controlling board: 257
(1) The request for the increase; 259
(2) The recommendations of the house insurance committee, 261
the AND senate financial institutions and insurance committee, 262
and the insurance/civil justice reform review committee 264
COMMITTEES DESCRIBED IN DIVISION (A) OF THIS SECTION. 265
(C) On or before January 1, 1990, the controlling board, 267
after receipt of the request for the increase and the 268
recommendations pursuant to division (B) of this section, 269
approves the request for the increase. 270
Sec. 3905.013. (A)(1) EXCEPT AS PROVIDED IN DIVISION 274
(A)(2) OF THIS SECTION, ANY PERSON LICENSED AS AN AGENT UNDER 275
SECTION 3905.02 OR 3905.18 OF THE REVISED CODE, OR APPOINTED AS A 277
SOLICITOR UNDER SECTION 3905.03 OF THE REVISED CODE, MAY AT ANY 280
TIME SURRENDER ANY OR ALL LICENSES OR APPOINTMENTS HELD BY THE 281
PERSON.
(2) NO PERSON SHALL SURRENDER THE PERSON'S LICENSES OR 283
APPOINTMENTS IF THE SUPERINTENDENT OF INSURANCE IS INVESTIGATING 284
ANY ALLEGATION OF WRONGDOING BY THE PERSON OR HAS INITIATED 285
PROCEEDINGS UNDER CHAPTER 119. OF THE REVISED CODE AND NOTICE OF 286
AN OPPORTUNITY FOR A HEARING HAS BEEN ISSUED TO THE PERSON, AND 287
ANY ATTEMPT TO SO SURRENDER IS INVALID.
(B)(1) IF AN INSURER OR AGENT CANCELS THE APPOINTMENT OF 290
AN AGENT OR SOLICITOR DUE TO FRAUD, MISREPRESENTATION, THEFT, 291
CONVERSION, OR ANY OTHER CULPABLE MISAPPROPRIATION, THE INSURER 292
7
OR AGENT SHALL PROMPTLY NOTIFY THE SUPERINTENDENT. THE NOTICE 293
SHALL INCLUDE A COMPLETE STATEMENT OF THE FACTS AND THE REASONS 294
FOR THE CANCELLATION. 295
(2) IN THE ABSENCE OF FRAUD OR ACTUAL MALICE, AN INSURER 297
OR AGENT IS IMMUNE FROM ANY CIVIL LIABILITY THAT OTHERWISE MIGHT 298
BE INCURRED OR IMPOSED AS A RESULT OF ANY ACTION TAKEN BY THE 299
INSURER OR AGENT TO COMPLY WITH DIVISION (B)(1) OF THIS SECTION. 301
(C) THE SUPERINTENDENT MAY SUSPEND OR REVOKE A LICENSE OR 304
APPOINTMENT, OR TAKE ANY OTHER DISCIPLINARY ACTION AUTHORIZED BY 305
THIS CHAPTER, REGARDLESS OF WHETHER THE PERSON IS APPOINTED OR 306
OTHERWISE AUTHORIZED TO REPRESENT AN INSURER OR AGENT. 307
Sec. 3905.014. (A) THE SUPERINTENDENT OF INSURANCE MAY 310
ADOPT RULES IN ACCORDANCE WITH CHAPTER 119. OF THE REVISED CODE 313
FOR PURPOSES OF IMPLEMENTING SECTIONS 3905.01 TO 3905.03 AND 314
3905.18 OF THE REVISED CODE, INCLUDING RULES THAT DO THE 317
FOLLOWING:
(1) SET FORTH REQUIREMENTS AND PROCEDURES FOR THE ISSUANCE 320
OF AN AGENT'S LICENSE;
(2) PROVIDE FOR THE ISSUANCE OF A LIMITED AUTHORITY 323
LICENSE FOR A SPECIFIC LINE OF INSURANCE, AND SET FORTH ANY
PRELICENSING EDUCATION, EXAMINATION, OR CONTINUING EDUCATION 324
REQUIREMENTS THE SUPERINTENDENT CONSIDERS APPROPRIATE FOR SUCH A 325
LICENSE;
(3) SET FORTH THE CIRCUMSTANCES UNDER WHICH A TESTING 327
FACILITY MAY REFUSE TO ISSUE AN AGENT'S LICENSE TO AN APPLICANT. 328
NOTWITHSTANDING CHAPTER 119. OF THE REVISED CODE, AN OPPORTUNITY 331
FOR A HEARING SHALL NOT BE GRANTED TO SUCH AN APPLICANT UNTIL THE 332
SUPERINTENDENT HAS CONDUCTED AN INVESTIGATION OF THE MATTER. 334
(4) ESTABLISH PROCEDURES FOR CERTIFYING AN INSURER'S 336
APPOINTMENT OF AN AGENT; 337
(5) ESTABLISH PROCEDURES FOR THE SURRENDER OF LICENSES OR 340
APPOINTMENTS.
(B) THE SUPERINTENDENT MAY CONTRACT WITH ONE OR MORE 343
VENDORS TO PROVIDE ANY SERVICES NECESSARY FOR THE PROCESSING AND 344
8
MAINTAINING OF LICENSING AND APPOINTMENT RECORDS UNDER SECTIONS 345
3905.02, 3905.03, AND 3905.18 OF THE REVISED CODE. 347
Sec. 3905.02. (A) AN APPLICANT FOR A LICENSE AS AN OTHER 350
THAN LIFE INSURANCE AGENT SHALL SUBMIT AN APPLICATION FOR SUCH A 351
LICENSE TO THE SUPERINTENDENT OF INSURANCE. THE APPLICATION 353
SHALL BE ON A FORM FURNISHED BY THE SUPERINTENDENT AND BE 354
ACCOMPANIED BY A STATEMENT UNDER OATH BY THE APPLICANT WHICH 355
GIVES THE APPLICANT'S NAME, AGE, RESIDENCE, PRESENT OCCUPATION, 356
OCCUPATION FOR THE FIVE YEARS NEXT PRECEDING THE DATE OF THE 357
APPLICATION, AND SUCH OTHER INFORMATION AS THE SUPERINTENDENT MAY 358
REQUIRE.
THE APPLICANT SHALL ALSO REQUEST A CRIMINAL RECORDS CHECK 360
CONDUCTED BY THE SUPERINTENDENT OF THE BUREAU OF CRIMINAL 362
IDENTIFICATION AND INVESTIGATION IN ACCORDANCE WITH SECTION
109.572 OF THE REVISED CODE, AND SUBMIT THE BUREAU'S WRITTEN 364
RESPONSE TO THAT REQUEST, ON A FORM ACCEPTABLE TO THE 365
SUPERINTENDENT OF INSURANCE, WITH THE APPLICATION. THE FAILURE 366
OF AN APPLICANT TO SUBMIT THE BUREAU'S RESPONSE TO THE
APPLICANT'S REQUEST FOR A CRIMINAL RECORDS CHECK IS GROUNDS TO 367
REFUSE TO ISSUE A LICENSE UNDER THIS SECTION. THE APPLICANT 369
SHALL PAY ANY FEE REQUIRED BY THE BUREAU FOR CONDUCTING THE 370
CRIMINAL RECORDS CHECK.
IF THE APPLICANT WITHIN THE PRECEDING TWO YEARS HAS NOT 372
BEEN LICENSED AS AN INSURANCE AGENT, THE APPLICANT SHALL SUBMIT 373
TO A HEARING AND EXAMINATION AS TO THE QUALIFICATIONS SET FORTH 374
IN DIVISION (B) OF THIS SECTION. THE EXAMINATION AND HEARING 376
SHALL BE HELD AND A DECISION RENDERED BY THE SUPERINTENDENT OF 377
INSURANCE WITHIN FORTY-FIVE DAYS AFTER THE DATE OF APPLICATION 378
FOR A LICENSE.
(B) THE SUPERINTENDENT OF INSURANCE SHALL ISSUE TO AN 381
APPLICANT A LICENSE THAT STATES IN SUBSTANCE THAT THE PERSON IS 382
AUTHORIZED TO DO THE BUSINESS OF AN OTHER THAN LIFE INSURANCE 383
AGENT IN THIS STATE, IF THE SUPERINTENDENT IS SATISFIED THAT THE 384
APPLICANT IS A SUITABLE PERSON AND INTENDS TO HOLD SELF OUT IN 385
9
GOOD FAITH AS AN AGENT; THAT THE APPLICANT IS HONEST, 386
TRUSTWORTHY, AND UNDERSTANDS THE DUTIES AND OBLIGATIONS OF AN 387
AGENT, AND IS FAMILIAR WITH THE INSURANCE LAWS OF THIS STATE AND 388
WITH THE TERMS AND PROVISIONS OF THE POLICIES AND CONTRACTS OF 389
INSURANCE THE APPLICANT PROPOSES TO EFFECT; THAT IN APPLYING FOR 390
THE LICENSE IT IS NOT THE APPLICANT'S PURPOSE OR INTENTION 391
PRINCIPALLY TO SOLICIT OR PLACE INSURANCE ON THE APPLICANT'S OWN 392
PROPERTY OR THAT OF RELATIVES, EMPLOYERS, OR EMPLOYEES OR THAT 393
FOR WHICH THEY OR THE APPLICANT IS AGENT, CUSTODIAN, VENDOR, 394
BAILEE, TRUSTEE, OR PAYEE; AND THAT THE APPLICANT HAS COMPLETED 395
THE EDUCATIONAL REQUIREMENTS SET FORTH IN SECTION 3905.48 OF THE 396
REVISED CODE.
THE SUPERINTENDENT MAY SUSPEND OR REVOKE SUCH A LICENSE AS 398
PROVIDED IN SECTION 3905.482 OF THE REVISED CODE, AND MAY 401
SUSPEND, REVOKE, REFUSE TO CONTINUE, OR REFUSE TO ISSUE SUCH A 402
LICENSE AS PROVIDED IN SECTION 3905.49 OF THE REVISED CODE. 405
UNLESS REVOKED OR SUSPENDED BY THE SUPERINTENDENT OR SURRENDERED 406
BY THE AGENT, SUCH A LICENSE CONTINUES IN FORCE FOR THE LIFE OF 407
THE AGENT.
(C)(1) EACH INSURANCE COMPANY SHALL CERTIFY TO THE 410
SUPERINTENDENT OF INSURANCE BEFORE THE THIRTIETH DAY OF JUNE EACH 411
YEAR THE NAMES AND ADDRESSES OF THE AGENTS FOR WHOM IT REQUESTS 412
APPOINTMENTS OR THE CONTINUANCE OF APPOINTMENTS. EXCEPT AS 413
PROVIDED IN SECTION 3905.012 OF THE REVISED CODE, ALL DOMESTIC, 415
FOREIGN, AND ALIEN COMPANIES SHALL PAY TO THE SUPERINTENDENT A 416
FEE OF TWENTY DOLLARS FOR EVERY SUCH APPOINTMENT WHEN ISSUED AND 417
FOR EACH CONTINUANCE THEREAFTER. SUCH AN APPOINTMENT, UNLESS 418
CANCELED BY THE INSURANCE COMPANY, MAY BE CONTINUED IN FORCE PAST 420
THE THIRTIETH DAY OF JUNE NEXT AFTER ITS ISSUE AND AFTER THE 421
THIRTIETH DAY OF JUNE OF EACH SUCCEEDING YEAR PROVIDED THAT THE 423
APPOINTEE IS LICENSED AND IS ELIGIBLE FOR THE APPOINTMENT. 424
(2) AN INSURANCE COMPANY SHALL BE BOUND BY THE ACTS OF THE 427
PERSON NAMED IN THE APPOINTMENT WITHIN THAT PERSON'S APPARENT 428
AUTHORITY AS ITS AGENT.
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(3) DIVISION (C) OF THIS SECTION DOES NOT APPLY TO LIFE 431
INSURANCE COMPANIES, INCLUDING FRATERNALS, NOR TO DOMESTIC MUTUAL 432
PROTECTIVE ASSESSMENT FIRE ASSOCIATIONS AS DEFINED IN SECTION 433
3939.01 OF THE REVISED CODE. 435
(D) EACH LICENSED AGENT SHALL NOTIFY THE SUPERINTENDENT OF 438
INSURANCE OF ANY CHANGE IN THE AGENT'S RESIDENTIAL OR BUSINESS 439
ADDRESS NO LATER THAN THIRTY DAYS AFTER THE CHANGE. 440
(E) THE SUPERINTENDENT OF INSURANCE MAY PRESCRIBE THE 443
FORMS TO BE USED AS EVIDENCE OF THE ISSUANCE OF LICENSES AND 444
APPOINTMENTS UNDER THIS SECTION AND MAY ISSUE ONE OR MORE 445
CERTIFICATES, IN A FORM SUITABLE FOR OFFICE DISPLAY, TO COVER ANY 446
NUMBER OF INSURANCE COMPANIES WITH WHICH AN AGENT HAS 447
APPOINTMENTS.
(F)(1) THE SUPERINTENDENT OF INSURANCE SHALL NOT ISSUE OR 450
CONTINUE THE LICENSE OF A CORPORATION, PARTNERSHIP, OR LIMITED 451
LIABILITY COMPANY ORGANIZED UNDER THE LAWS OF THIS OR ANY OTHER 452
STATE UNLESS THE CORPORATION, PARTNERSHIP, OR LIMITED LIABILITY 453
COMPANY IS QUALIFIED TO DO BUSINESS IN THIS STATE UNDER THE 454
APPLICABLE PROVISIONS OF TITLE XVII OF THE REVISED CODE. 458
(2) THE FAILURE OF A CORPORATION, PARTNERSHIP, OR LIMITED 461
LIABILITY COMPANY TO BE IN GOOD STANDING WITH THE SECRETARY OF 462
STATE OR TO MAINTAIN A VALID APPOINTMENT OF STATUTORY AGENT IS 463
GROUNDS FOR SUSPENSION OR REVOCATION OF ITS LICENSE. 464
(3) BY APPLYING FOR A LICENSE AS AN AGENT UNDER THIS 466
SECTION, AN INDIVIDUAL, CORPORATION, PARTNERSHIP, OR LIMITED 467
LIABILITY COMPANY CONSENTS TO THE JURISDICTION OF THE COURTS OF 468
THIS STATE. 469
Sec. 3905.02 3905.03. (A) Any agent authorized and 478
licensed as provided in section 3905.01 3905.02 of the Revised 480
Code, and representing APPOINTED TO REPRESENT one or more 482
insurance corporations within this state, may employ APPOINT as 484
many solicitors as the agent desires to represent the agent and
the agent's agency, but such THE solicitors shall not represent 485
themselves, by advertisement or otherwise, as agents of insurance 487
11
companies for which their employer may be the authorized agent, 488
and such THE solicitors shall in all instances represent 489
themselves only as solicitors for said THE agent. Upon 490
EACH AGENT THAT EMPLOYS A PERSON AS A SOLICITOR SHALL 493
CERTIFY TO THE SUPERINTENDENT OF INSURANCE THAT THE PERSON IS 494
COMPETENT, FINANCIALLY RESPONSIBLE, AND SUITABLE TO REPRESENT THE 495
AGENT. UPON written notice by any such agent that the agent has 497
employed such a person as a solicitor, the superintendent of 498
insurance shall issue to the solicitor a license AN APPOINTMENT 499
in the form prepared by the superintendent, if the superintendent 501
is satisfied that: 502
(1) The applicant is a suitable person and intends to hold 504
self out in good faith as a solicitor;. 505
(2) The applicant is honest and trustworthy;. 507
(3) The applicant has training or instruction in the 509
business and understands the duties and obligations of a 510
solicitor;. 511
(4) The applicant IS LICENSED UNDER SECTION 3905.02 OF THE 513
REVISED CODE, is familiar with the insurance laws, and IS 515
FAMILIAR with the provisions of the policies and contracts of
insurance the applicant proposes to solicit;. 517
(5) In applying for such license it IT is not THE 519
appointee's purpose or intention principally to solicit or place 521
insurance on THE appointee's own property or that of relatives, 522
employers, or employees or that for which they or the appointee 523
is agent, custodian, vendor, bailee, trustee, or payee. Notice 524
(6) ON AND AFTER JULY 1, 1987, THE APPLICANT HAS COMPLETED 528
THE PRELICENSING EDUCATIONAL REQUIREMENTS SET FORTH IN SECTION 529
3905.48 OF THE REVISED CODE. 531
NOTICE shall be upon a form furnished by the superintendent 535
and shall be accompanied by a statement under oath by the 536
solicitor which shall give GIVES the applicant's SOLICITOR'S 537
name, age, residence, present occupation, the applicant's 540
SOLICITOR'S occupation for the five years next preceding the date 541
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of the notice, the kinds of insurance for which the applicant 542
SOLICITOR wishes license to solicit, and such other information 544
as the superintendent requires, upon a blank furnished by the 545
superintendent.
(6) On and after July 1, 1987, the applicant has completed 547
the pre-licensing educational requirements set forth in section 548
3905.48 of the Revised Code. 549
(B) If such THE appointee within the preceding two years 551
has not been appointed as a licensed IN THIS STATE AS AN 552
insurance solicitor or has not had an appointment as a licensed 554
insurance solicitor continued by an insurance agent licensed in 555
this state FOR OTHER THAN LIFE INSURANCE UNDER SECTION 3905.02 OF 556
THE REVISED CODE, the appointee shall submit to a hearing and 557
examination as to the qualifications set forth in divisions 558
(A)(1) to (5) of this section.
(C) For the purpose of licensing solicitors, insurance 560
shall be considered as of three classes: fire insurance, 561
including marine and inland transportation; casualty insurance; 562
and surety insurance. A solicitor who did not hold a license as 563
solicitor prior to January 1, 1967, may be licensed APPOINTED 564
only if the solicitor is qualified for the same class or classes 567
of insurance for which the agent employing the solicitor is 568
licensed. Each solicitor's license shall state the class or 570
classes A SOLICITOR MAY SOLICIT ONLY THOSE LINES OF INSURANCE for 571
which issued and no BOTH THE solicitor shall be licensed for AND 572
the same kind of insurance by more than one APPOINTING agent ARE 574
LICENSED. Unless such license NO SOLICITOR SHALL BE APPOINTED BY 576
MORE THAN ONE AGENT. 577
UNLESS THE SOLICITOR'S LICENSE is revoked or suspended by 580
the superintendent or unless the agent by written notice to the 581
superintendent cancels the solicitor's authority as such
solicitor, or unless such license is canceled by the 582
superintendent upon written notice from the solicitor that the 583
solicitor's authority has been canceled by the agent, such 584
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license and any other license issued to a solicitor APPOINTMENT 585
may, in the discretion of the superintendent, and at the request 587
of the agent who employs the solicitor and the payment of the 588
required fee, be continued past the thirtieth day of June next 589
after its issue and after the thirtieth day of June each 590
succeeding year. Each agent shall certify, to the superintendent 591
of insurance, before the thirtieth day of June each year, the 592
names and addresses of the solicitors the agent has employed 593
during the preceding year, indicating those for whom the agent 594
wishes licenses APPOINTMENTS to be continued. 595
The agent giving written notice shall pay to the 597
superintendent a fee of twenty dollars for every such license 598
APPOINTMENT and for each continuance thereof. The issuance of a 600
solicitor's license APPOINTMENT shall be limited to a natural 601
person who is a resident of this state or to a natural person who 603
is employed by a licensed resident agent and is conducting 604
business only from within this state.
The superintendent may suspend or revoke such a license as 606
provided in section 3905.482 of the Revised Code, and may 607
suspend, revoke, refuse to continue or renew, or refuse to issue 608
such a license as provided in section 3905.49 of the Revised 609
Code.
Sec. 3905.06. Sections 3905.01 to 3905.06 of the Revised 618
Code do not apply to companies or associations transacting the 619
business of life insurance or their agent or to associations 621
organized and operating under sections 3939.01 to 3939.09 of the 622
Revised Code.
Sec. 3905.07. No person shall act in this state as special 631
representative, state agent, field representative, state, 632
district, or local manager, or in any similar capacity by 633
whatever title designated, unless the person is licensed by the 634
superintendent of insurance. Upon written notice by an insurance 635
company authorized to transact business in this state of its 636
employment of a person to act as such representative and that the 637
14
person's duties are to appoint, supervise, or dismiss agents, to 638
aid them in soliciting, negotiating, and receiving applications 639
of and handling orders for insurance, and to aid the employer 640
generally in the transaction of its business in this state, but 641
not to solicit insurance on that person's own behalf, the 642
superintendent shall issue a license as special representative to 643
such THE person. Such THE license shall state in substance that 645
the company is authorized to do business in this state and that 646
the person named therein IN THE LICENSE is a constituted special 648
representative of the company in this state in the transaction of 649
such business within the person's apparent authority as the 650
company is authorized to transact therein. If such THE special 651
representative signs policies for the company, the special 653
representative must qualify as an agent under section 3905.01 654
3905.02 of the Revised Code. Unless the company, by written 655
notice to the superintendent, cancels the special 656
representative's authority to act for it, such license may, in 657
the discretion of the superintendent and at the request of the 658
company and payment of the required fee, be continued past the 659
thirtieth day of June next after issue and the thirtieth day of 660
June of each succeeding year. Each company shall pay a fee of 661
five dollars for each such license and each continuance thereof. 662
Sec. 3905.18. (A) Upon written notice by AN APPLICANT FOR 671
A LICENSE AS a life insurance company authorized to transact 673
business in this state of its appointment of a person to act as 674
its agent in this state, and upon issuance of the certificate 675
verified by an executive officer or managing agent thereof, that 676
such company has investigated the character and record of such 677
person and satisfied itself that he is trustworthy and qualified 678
to act as its agent, and that he has completed the educational 680
requirements set forth in section 3905.48 of the Revised Code, 681
SHALL SUBMIT TO the superintendent of insurance shall, on receipt 683
of such certification, furnish to the agent an application for AN 684
agent's license, which shall contain such questions touching the 685
15
applicant's fitness to be licensed as an agent as the 686
superintendent determines. If such appointee THE APPLICATION 687
SHALL BE ACCOMPANIED BY A STATEMENT UNDER OATH BY THE APPLICANT 688
THAT GIVES THE APPLICANT'S NAME, AGE, RESIDENCE, PRESENT 689
OCCUPATION, OCCUPATION FOR THE FIVE YEARS NEXT PRECEDING THE DATE 690
OF THE APPLICATION, AND SUCH OTHER INFORMATION AS THE 691
SUPERINTENDENT MAY REQUIRE.
THE APPLICANT SHALL ALSO REQUEST A CRIMINAL RECORDS CHECK 693
CONDUCTED BY THE SUPERINTENDENT OF THE BUREAU OF CRIMINAL 695
IDENTIFICATION AND INVESTIGATION IN ACCORDANCE WITH SECTION
109.572 OF THE REVISED CODE, AND SUBMIT THE BUREAU'S WRITTEN 697
RESPONSE TO THAT REQUEST, ON A FORM ACCEPTABLE TO THE 698
SUPERINTENDENT OF INSURANCE, WITH THE APPLICATION. THE FAILURE 699
OF AN APPLICANT TO SUBMIT THE BUREAU'S RESPONSE TO THE
APPLICANT'S REQUEST FOR A CRIMINAL RECORDS CHECK IS GROUNDS TO 700
REFUSE TO ISSUE A LICENSE UNDER THIS SECTION. THE APPLICANT 702
SHALL PAY ANY FEE REQUIRED BY THE BUREAU FOR CONDUCTING THE 703
CRIMINAL RECORDS CHECK.
IF THE APPLICANT within the preceding two years has not 707
been appointed as a licensed AS A life insurance agent or has not 709
had his appointment as a licensed life insurance agent continued 711
by an insurance company authorized to transact business in this 712
state, the appointee APPLICANT shall submit to an examination as 714
to his THE APPLICANT'S knowledge of life and sickness and 715
accident insurance and the laws of this state governing his 716
activities as a life insurance agent. Unless 717
(B) UNLESS it appears that the appointee APPLICANT is not 722
of good reputation and character, is not a trustworthy person, is 723
not suitable to be licensed, or has not completed such THE 724
educational requirements SET FORTH IN SECTION 3905.48 OF THE 725
REVISED CODE, the superintendent OF INSURANCE shall issue to him 726
THE APPLICANT a license which shall state, in substance, that the 728
company PERSON is authorized to do THE business OF A LIFE 730
INSURANCE AGENT in this state, and that the person named therein 732
16
is a constituted agent of the company in this state for the 733
transaction of such business. Each notice and certificate shall 734
be upon forms furnished by the superintendent and shall be 735
accompanied by a statement under oath by the appointee which 736
shall give his name, age, residence, present occupation, 738
occupation for the five years next preceding the date of the 739
notice, and such other information as the superintendent
requires, upon a blank furnished by him. 740
(B) The superintendent may suspend or revoke such a 742
license as provided in section 3905.482 of the Revised Code, and 743
may suspend, revoke, refuse to continue or renew, or refuse to 744
issue such a license as provided in section 3905.49 of the 745
Revised Code. Every such UNLESS REVOKED OR SUSPENDED BY THE 746
SUPERINTENDENT OR SURRENDERED BY THE AGENT, SUCH A LICENSE 747
CONTINUES IN FORCE FOR THE LIFE OF THE AGENT. 748
EACH insurance company shall, upon the termination of the 751
employment APPOINTMENT of any such agent, forthwith file with the 753
superintendent a statement of the termination of such employment 754
THE APPOINTMENT.
(C) Upon written notice by a life insurance company 756
authorized to transact business in this state of its appointment 757
of a corporation, PARTNERSHIP, OR LIMITED LIABILITY COMPANY to 758
act as its agent in this state, the superintendent of insurance 760
shall furnish such THE corporation, PARTNERSHIP, OR LIMITED 761
LIABILITY COMPANY with an application for agent's license which 762
shall contain such questions as will enable the superintendent to 763
determine that such THE corporation, PARTNERSHIP, OR LIMITED 764
LIABILITY COMPANY was organized for the purpose of acting as an 765
insurance agent,; that each employee of such THE corporation, 767
PARTNERSHIP, OR LIMITED LIABILITY COMPANY who will negotiate for, 768
place, or renew policies or agreements of life insurance on 769
behalf of such THE corporation, PARTNERSHIP, OR LIMITED LIABILITY 770
COMPANY has been issued a life insurance agent's license pursuant 771
to division (A) of this section; that the voting shares of such 772
17
corporation are beneficially owned by natural persons who are 773
residents of this state; that such THE corporation, PARTNERSHIP, 774
OR LIMITED LIABILITY COMPANY and such THE life insurance company 776
have executed a written agreement whereby the rights and duties 777
of each are set forth; and that in applying for such THE license 778
it is not the appointee's purpose or intention principally to 780
solicit or place insurance on the lives of the appointee's 781
officers, employees, or shareholders, or the lives of relatives 782
of such officers, employees, or shareholders, or upon the lives 783
of persons for whom they, their relatives, or the appointee is 784
agent, custodian, vendor, bailee, trustee, or payee. Unless it 785
appears that such THE corporation, PARTNERSHIP, OR LIMITED 787
LIABILITY COMPANY was not organized for such purpose or that each 788
such employee has not been so licensed or that the voting shares 789
of such corporation are not so beneficially owned or that such a 790
written agreement has not been executed, the superintendent shall 791
issue to such THE corporation, PARTNERSHIP, OR LIMITED LIABILITY 792
COMPANY a license which shall state STATES, in substance, that 793
such THE corporation, PARTNERSHIP, OR LIMITED LIABILITY COMPANY 794
is a life insurance agent. 795
(D) If the superintendent of insurance, at any time 797
subsequent to the issuance of a life insurance agent's license to 798
a corporation, PARTNERSHIP, OR LIMITED LIABILITY COMPANY, finds 799
that such THE corporation, PARTNERSHIP, OR LIMITED LIABILITY 801
COMPANY has ceased to have as its purpose acting as an insurance 802
agent or that each employee of such THE corporation, PARTNERSHIP, 803
OR LIMITED LIABILITY COMPANY who negotiates for, places, or 804
renews policies or agreements of life insurance on behalf of such 806
THE corporation, PARTNERSHIP, OR LIMITED LIABILITY COMPANY has 807
not been issued a life insurance agent's license or that the 808
voting shares of such corporation are not beneficially owned by 809
natural persons who are residents of this state or that the 810
principal use of such THE license has been to solicit, place, or 812
effect insurance on the lives of the appointee's officers, 813
18
employees, or shareholders, or on the lives of the relatives of 814
such officers, employees, or shareholders, or upon the lives of 815
persons for whom they, or their relatives, or the appointee is 816
agent, custodian, vendor, bailee, trustee, or payee, or for any 817
other cause shown he, THE SUPERINTENDENT may after hearing revoke 819
the life insurance agent's license issued to such THE 821
corporation, PARTNERSHIP, OR LIMITED LIABILITY COMPANY or suspend 822
such THE license until such condition as he THE SUPERINTENDENT 823
finds existing ceases to exist. The finding of the 826
superintendent, either in refusing to grant a license or in 827
revoking a license, shall be in writing, and shall state the 828
facts upon which his THE action is based. The action of the 830
superintendent in granting, revoking, continuing, or refusing to 831
grant, revoke, or continue such THE license, shall be subject to 833
review in accordance with Chapter 119. of the Revised Code. 834
(E) Unless THE AGENT'S LICENSE IS revoked OR SUSPENDED by 836
the superintendent OF INSURANCE, or unless the company by written 838
notice to the superintendent cancels the agent's authority to act 839
for it, a life insurance agent's license, and any other license 840
issued to an agent APPOINTMENT may, in the discretion of the 842
superintendent and at the request of the company and payment of 843
the required fee, be continued past the thirtieth day of June 844
next after its issue and after the thirtieth day of June in each 845
succeeding year. Except as provided in section 3905.011 3905.012 846
of the Revised Code, all domestic, foreign, and alien companies 848
shall pay a fee of twenty dollars for every such license 849
APPOINTMENT and for each continuance thereafter. While such 851
license AN APPOINTMENT remains in force, a foreign company shall 853
be bound by the acts of the person named therein IN THE 854
APPOINTMENT, within his THE PERSON'S APPARENT authority as its 857
acknowledged agent.
(F) The superintendent OF INSURANCE may prescribe the 859
forms to be used as evidence of the issuance of licenses AND 860
APPOINTMENTS under this section and may issue one or more 862
19
certificates, in a form suitable for office display, to cover any 863
number of insurance companies with which an agent is licensed HAS 864
APPOINTMENTS.
(G)(1) THE SUPERINTENDENT OF INSURANCE SHALL NOT ISSUE OR 867
CONTINUE THE LICENSE OF A CORPORATION, PARTNERSHIP, OR LIMITED 868
LIABILITY COMPANY ORGANIZED UNDER THE LAWS OF THIS OR ANY OTHER 869
STATE UNLESS THE CORPORATION, PARTNERSHIP, OR LIMITED LIABILITY 870
COMPANY IS QUALIFIED TO DO BUSINESS IN THIS STATE UNDER THE 871
APPLICABLE PROVISIONS OF TITLE XVII OF THE REVISED CODE. 875
(2) THE FAILURE OF A CORPORATION, PARTNERSHIP, OR LIMITED 878
LIABILITY COMPANY TO BE IN GOOD STANDING WITH THE SECRETARY OF 879
STATE OR TO MAINTAIN A VALID APPOINTMENT OF STATUTORY AGENT IS 880
GROUNDS FOR SUSPENSION OR REVOCATION OF ITS LICENSE. 881
(3) BY APPLYING FOR A LICENSE AS AN AGENT UNDER THIS 883
SECTION, AN INDIVIDUAL, CORPORATION, PARTNERSHIP, OR LIMITED 884
LIABILITY COMPANY CONSENTS TO THE JURISDICTION OF THE COURTS OF 885
THIS STATE. 886
Sec. 3905.20. (A) Any person licensed as a life insurance 895
agent for a life insurance company authorized to deliver or issue 896
for delivery in this state SHALL, UPON SATISFACTORY COMPLETION OF 898
AN EXAMINATION AS TO THE PERSON'S KNOWLEDGE OF policies, 900
annuities, or AND other contracts providing variable or fixed and 901
variable benefits or contractual payments ISSUED BY LIFE 902
INSURANCE COMPANIES pursuant to section 3911.011 of the Revised 903
Code shall, upon written application of such company, 904
satisfactory completion of an examination as to his knowledge of 906
such policies, annuities, and contracts and the nature thereof, 907
payment of the required fee, and compliance with the 908
pre-licensing PRELICENSING educational requirements of section 909
3905.48 of the Revised Code, be licensed by the superintendent of 911
insurance as a variable contract agent. 912
(B) The superintendent may suspend or revoke such a 914
license as provided in section 3905.482 of the Revised Code, and 915
may suspend, revoke, refuse to continue or renew, or refuse to 916
20
issue such a license as provided in section 3905.49 of the 917
Revised Code. Revocation of such THE person's license as a life 918
insurance agent or failure to renew such license is cause for 919
revoking such THE person's license as a variable contract agent. 920
Every such UNLESS REVOKED OR SUSPENDED BY THE SUPERINTENDENT OR 921
SURRENDERED BY THE AGENT, A VARIABLE CONTRACT AGENT'S LICENSE 922
CONTINUES IN FORCE FOR THE LIFE OF THE AGENT. 923
EACH LIFE insurance company shall, upon termination of the 925
employment APPOINTMENT of any such person as a variable contract 926
agent, forthwith file with the superintendent a statement of the 928
termination of such employment THE APPOINTMENT. 929
(C) Any corporation, PARTNERSHIP, OR LIMITED LIABILITY 931
COMPANY licensed as a life insurance agent for AND APPOINTED BY a 933
life insurance company authorized to deliver or issue for 935
delivery in this state policies, annuities, or other contracts 936
providing variable or fixed and variable benefits or contractual 937
payments pursuant to section 3911.011 of the Revised Code, may, 938
upon written application of such company and upon a proper 939
showing that all of such THE corporation's, PARTNERSHIP'S, OR 941
LIMITED LIABILITY COMPANY'S employees who will negotiate for, 942
place, or renew any such policies, annuities, or contracts on 943
behalf of such THE corporation, PARTNERSHIP, OR LIMITED LIABILITY 944
COMPANY have been issued licenses as variable contract agents 946
pursuant to division (A) of this section, be licensed by the 947
superintendent of insurance as a variable contract agent. 948
(D) The superintendent of insurance may, for cause shown 950
and after hearing, revoke the variable contract agent's license 951
issued to such corporation, PARTNERSHIP, OR LIMITED LIABILITY 952
COMPANY, or suspend such THE license until such condition as he 955
THE SUPERINTENDENT finds existing ceases to exist. The 956
revocation or suspension of such THE corporation's, 957
PARTNERSHIP'S, OR LIMITED LIABILITY COMPANY'S license as a life 958
insurance agent or failure to renew such license shall be cause 960
for revoking or suspending, as the case may be, such THE 961
21
corporation's, PARTNERSHIP'S, OR LIMITED LIABILITY COMPANY'S 962
license as a variable contract agent. The finding of the 963
superintendent, either in refusing to grant a license or in 964
revoking a license, shall be in writing and state the facts upon 965
which his THE SUPERINTENDENT'S action is based. The action of 966
the superintendent in granting, revoking, continuing, or refusing 968
to grant, revoke, or continue such license, shall be subject to 969
review in accordance with Chapter 119. of the Revised Code. 970
(E) Unless revoked or suspended by the superintendent OR 972
SURRENDERED BY THE CORPORATION, PARTNERSHIP, OR LIMITED LIABILITY 973
COMPANY, or unless the company by written notice to the 974
superintendent cancels the agent's authority to act for it, a 975
variable contract agent's license, and any other license issued 976
to an agent may, in the discretion of the superintendent and at 977
the request of the company and payment of the required fee, be 978
CONTINUES IN FORCE UNTIL THE CORPORATION, PARTNERSHIP, OR LIMITED 979
LIABILITY COMPANY CEASES TO EXIST. 980
(F) EACH LIFE INSURANCE COMPANY SHALL CERTIFY TO THE 983
SUPERINTENDENT BEFORE THE THIRTIETH DAY OF JUNE EACH YEAR THE 985
NAMES AND ADDRESSES OF THE VARIABLE CONTRACT AGENTS FOR WHOM IT 986
REQUESTS APPOINTMENTS OR THE CONTINUANCE OF APPOINTMENTS. SUCH 987
AN APPOINTMENT, UNLESS CANCELED BY THE INSURANCE COMPANY, MAY BE 988
continued IN FORCE past the thirtieth day of June next after its 990
issue and after the thirtieth day of June in each succeeding 991
year. Except as provided in section 3905.011 3905.012 of the 992
Revised Code, all domestic, foreign, and alien companies shall 994
pay a fee of twenty dollars for every such license APPOINTMENT 995
WHEN ISSUED and for each continuance thereafter. While such 997
license APPOINTMENT remains in force, a foreign company shall be 999
bound by the acts of the person named therein IN THE APPOINTMENT, 1,001
within his THE PERSON'S APPARENT authority as its authorized 1,003
agent.
Sec. 3905.27. The superintendent of insurance may open an 1,012
account in the name of each insurance company authorized to do 1,013
22
business in this state and in the name of any authorized 1,014
insurance agent, and charge said THE accounts with all fees 1,015
incurred by such companies or agents in accordance with sections 1,017
3905.01, 3905.02, 3905.03, 3905.07, 3905.26, 3919.26, and 3931.03 1,018
of the Revised Code, and other statutes imposing fees. The 1,020
statutory fee for each service requested shall be charged against 1,021
the proper account forthwith upon the rendition of the service. 1,022
Not later than the tenth day of each calendar month the 1,024
superintendent shall render an itemized statement to each company 1,025
or agent whose account has been charged during the month next 1,026
preceding, showing the amount of all fees charged during said 1,027
THAT month and demanding that payment thereof be made not later 1,029
than the first day of the month next following. 1,030
The failure of any insurance company within said THAT time 1,032
to pay the amount of such fees in accordance with such THE 1,033
monthly statement, or, if said THE statement or account is found 1,034
to be incorrect, in accordance with a corrected monthly statement 1,035
rendered by the superintendent, is grounds for the revocation of 1,036
its certificate of authority to do business in this state. In 1,037
the event of such an order of revocation, the superintendent 1,038
shall forthwith cause a notice thereof to be published once in at 1,039
least one newspaper at the seat of the government and also, if a 1,040
domestic company, once in at least one newspaper published in the 1,041
county where its home office is located, or, if a foreign or 1,042
alien company, once in at least one newspaper published in a 1,043
county of this state where an agency of such THE company is 1,044
located. After the publication of such THE notice, no agent of 1,046
such THE company shall procure applications for insurance or 1,048
issue policies.
In the event of the failure of any agent within the time 1,050
fixed to pay the amount of fees charged against his THE AGENT'S 1,051
account in accordance with the monthly statement rendered by the 1,053
superintendent, such THE agent's license may be revoked in the 1,054
manner provided by sections 3905.01 3905.02 and 3905.18 of the 1,056
23
Revised Code. 1,057
Sec. 3905.40. The superintendent of insurance shall issue 1,066
no A NONRESIDENT license to any person as agent of an insurance 1,068
company if such person WHO is a resident of a ANOTHER state 1,070
which, by its laws, prohibits residents of this state from acting
as agents of insurance companies in such state; if the 1,071
superintendent is satisfied that any person holding a license as 1,072
such agent is a resident of such state, he shall revoke such 1,074
license OR A PROVINCE OF CANADA, IF THE PERSON DEMONSTRATES 1,076
COMPLIANCE WITH THE RELEVANT LAWS OF THAT STATE OR PROVINCE AND 1,077
IF THE LAWS OF THAT STATE OR PROVINCE PROVIDE FOR THE ISSUANCE OF 1,078
A SIMILAR LICENSE TO AN OHIO RESIDENT WHO DEMONSTRATES COMPLIANCE 1,080
WITH THE RELEVANT LAWS OF THIS STATE.
Sec. 3905.471. (A) NO INDIVIDUAL, CORPORATION, 1,082
PARTNERSHIP, LIMITED LIABILITY COMPANY, OR ASSOCIATION SHALL ACT 1,083
AS AN INSURANCE AGENT, OR ADVERTISE OR ASSUME TO ACT AS AN 1,084
INSURANCE AGENT, WITHOUT FIRST BEING LICENSED IN ACCORDANCE WITH 1,085
THIS CHAPTER.
(B) WHOEVER VIOLATES THIS SECTION IS GUILTY OF A 1,087
MISDEMEANOR OF THE FIRST DEGREE. 1,088
Sec. 3905.481. (A)(1) Except as provided in division (B) 1,097
of this section, each person who is issued a license as an agent 1,098
or solicitor on and OR after July 1, 1993, THE EFFECTIVE DATE OF 1,100
THIS AMENDMENT shall complete in accordance with division (A)(1) 1,101
of this section at least thirty hours of continuing education 1,102
instruction offered in a course or program of study approved by 1,103
the superintendent of insurance in consultation with the 1,104
insurance agent education advisory council. The person shall 1,105
complete the initial thirty hours of continuing education 1,107
instruction during a period not to exceed twenty-four months 1,108
commencing on the first day of January of PERSON'S BIRTHDAY IN 1,109
the year immediately following the year of the issuance of the 1,110
license and ending on the thirty-first day of December of 1,111
PERSON'S BIRTHDAY IN the second THIRD year following the year of 1,113
24
the issuance of the license. Thereafter, the person shall 1,114
complete at least thirty hours of continuing education 1,115
instruction in every subsequent twenty-four-month period 1,116
commencing on the first day of January and ending on the
thirty-first day of December of the following year. 1,117
(2) Except as provided in division (B) of this section, 1,119
each person who, on July 1, 1993 THE EFFECTIVE DATE OF THIS 1,120
AMENDMENT, holds a license as an agent or solicitor issued prior 1,122
to that date shall complete, no later than December 31, 1995, at 1,123
least thirty hours of continuing education instruction offered in 1,124
a course or program of study approved by the superintendent in 1,125
consultation with the council, AS FOLLOWS:
(a) IF THE PERSON HAS BEEN LICENSED CONTINUOUSLY SINCE AT 1,127
LEAST DECEMBER 31, 1993, THIRTY HOURS OF CONTINUING EDUCATION 1,128
BETWEEN JANUARY 1, 1996, AND THE PERSON'S BIRTHDAY IN 1998; 1,129
(b) IF THE PERSON WAS FIRST LICENSED IN 1994 OR 1996 AND 1,131
HAS BEEN LICENSED CONTINUOUSLY SINCE THEN, THIRTY HOURS OF 1,132
CONTINUING EDUCATION BETWEEN JANUARY 1, 1997, AND THE PERSON'S 1,133
BIRTHDAY IN 1999;
(c) IF THE PERSON WAS FIRST LICENSED IN 1995 AND HAS BEEN 1,135
CONTINUOUSLY LICENSED SINCE THEN, THIRTY HOURS OF CONTINUING 1,136
EDUCATION BETWEEN JANUARY 1, 1998, AND THE PERSON'S BIRTHDAY IN 1,137
2000. Thereafter 1,138
THEREAFTER, the person shall complete at least thirty hours 1,141
of such continuing education instruction in every subsequent 1,142
twenty-four-month period commencing on the first day of January 1,143
of every even-numbered year and ending on the thirty-first day of 1,144
December of every odd-numbered year PERSON'S BIRTHDAY. 1,145
(B) Division (A) of this section does not apply to any 1,147
person or class of persons, as determined by the superintendent 1,148
in consultation with the council. 1,149
(C) A person may comply with division (A) of this section 1,151
by demonstrating to the council that the person has completed the 1,154
minimum number of hours required by that division in a 1,155
25
substantially similar course or program of study offered in 1,156
another state.
Sec. 3905.49. (A) AS USED IN THIS SECTION: 1,166
(1) "INSURER" HAS THE SAME MEANING AS IN SECTION 3901.32 1,169
OF THE REVISED CODE. 1,170
(2) "REFUSAL TO ISSUE OR RENEW" MEANS THE DECISION OF THE 1,173
SUPERINTENDENT OF INSURANCE NOT TO PROCESS EITHER THE INITIAL 1,174
APPLICATION FOR A LICENSE OR APPOINTMENT AS AN AGENT OR
SOLICITOR, OR THE RENEWAL OF SUCH A LICENSE OR APPOINTMENT. 1,176
(3) "REVOCATION" MEANS THE PERMANENT TERMINATION OF ALL 1,179
AUTHORITY TO HOLD ANY LICENSE OR APPOINTMENT AS AGENT OR
SOLICITOR IN THIS STATE. 1,180
(4) "SURRENDER FOR CAUSE" MEANS THE VOLUNTARY TERMINATION 1,183
OF ALL AUTHORITY TO HOLD ANY LICENSE OR APPOINTMENT AS AGENT OR 1,184
SOLICITOR IN THIS STATE, IN LIEU OF A REVOCATION OR SUSPENSION 1,185
ORDER.
(5) "SUSPENSION" MEANS THE TERMINATION OF ALL AUTHORITY TO 1,188
HOLD ANY LICENSE OR APPOINTMENT AS AGENT OR SOLICITOR IN THIS 1,189
STATE, FOR EITHER A SPECIFIED PERIOD OF TIME OR AN INDEFINITE 1,190
PERIOD OF TIME AND UNDER ANY TERMS OR CONDITIONS DETERMINED BY 1,191
THE SUPERINTENDENT.
(B) The superintendent of insurance may suspend, revoke, 1,195
refuse to continue or renew, or refuse to issue OR RENEW any 1,196
license as an agent, SURPLUS LINE BROKER, or solicitor LIMITED 1,197
INSURANCE REPRESENTATIVE, OR IMPOSE ANY OTHER SANCTION AUTHORIZED 1,198
under this chapter, if the superintendent finds any FOR one or 1,200
more of the following REASONS: 1,201
(1) The person has made a false OBTAINING OR ATTEMPTING TO 1,204
OBTAIN ANY LICENSE OR APPOINTMENT THROUGH MISREPRESENTATION OR 1,205
FRAUD, INCLUDING MAKING ANY MATERIALLY UNTRUE statement with 1,207
respect to a material matter in the license AN application FOR A 1,208
LICENSE OR APPOINTMENT; 1,209
(2) Any cause for which issuance of the license could have 1,211
been refused had it existed and been known to the superintendent 1,212
26
at the time of issuance; 1,213
(3) The person has violated VIOLATING or failed FAILING to 1,216
comply with any insurance law or any lawful, rule, SUBPOENA, 1,217
CONSENT AGREEMENT, or order of the superintendent or the 1,219
commissioner of insurance of another state;
(4) The person has obtained or attempted to obtain any 1,221
such license through mispresentation or fraud; 1,222
(5) The person has improperly withheld, misappropriated,; 1,224
(3) MISAPPROPRIATING or converted CONVERTING to the 1,227
person's own use any moneys belonging to policyholders, insurers 1,229
PROSPECTIVE POLICYHOLDERS, beneficiaries, INSURANCE COMPANIES, or 1,230
others received in the course of the person's insurance business; 1,231
(4) FAILING TO TIMELY SUBMIT AN APPLICATION FOR INSURANCE. 1,234
FOR PURPOSES OF DIVISION (B)(4) OF THIS SECTION, A SUBMISSION IS 1,236
CONSIDERED TIMELY IF IT OCCURS WITHIN THE TIME PERIOD EXPRESSLY 1,237
PROVIDED FOR BY THE INSURER, OR WITHIN SEVEN DAYS AFTER THE AGENT 1,238
ACCEPTS A PREMIUM OR AN ORDER TO BIND FROM A POLICYHOLDER OR 1,239
APPLICANT, WHICHEVER IS LATER.
(6) The person has knowingly misrepresented (5) KNOWINGLY 1,242
MISREPRESENTING the terms, BENEFITS, VALUE, COST, OR EFFECTIVE 1,243
DATES of any actual or proposed insurance policy or contract; 1,244
(7) The person has been (6) BEING convicted of a felony. 1,247
If a person has been convicted of a felony based on evidence of 1,249
acts or omissions related to the insurance business, the 1,250
superintendent shall revoke any license issued to such person for 1,251
a period of not less than two years. If the person did not hold 1,252
a license at the time of the conviction, no license shall be 1,253
issued to the person for a period of two years after the date of 1,254
the conviction.; 1,255
(8) The person is guilty of (7) BEING CONVICTED OF A 1,257
MISDEMEANOR THAT INVOLVES THE MISUSE OR THEFT OF MONEY OR 1,259
PROPERTY BELONGING TO ANOTHER, FRAUD, FORGERY, DISHONEST ACTS, OR 1,260
BREACH OF A FIDUCIARY DUTY, OR THAT IS BASED ON ANY ACT OR 1,261
OMISSION RELATING TO THE BUSINESS OF INSURANCE, SECURITIES, OR 1,262
27
FINANCIAL SERVICES;
(9)(8) COMMITTING an unfair or deceptive trade act 1,266
practice or fraud under any section of Title XXXIX of the Revised 1,267
Code OR ANY RULE ADOPTED THEREUNDER;
(9) In the conduct of the person's affairs under a 1,269
license, the person has used fraudulent, coercive, or dishonest 1,270
practices, or is incompetent, untrustworthy, or financially 1,271
irresponsible; 1,272
(10) The person's HAVING AN INSURANCE license has been 1,274
suspended or revoked in any other state, province, district, or 1,276
territory;
(11) The person has forged (10) FORGING OR CAUSING THE 1,278
FORGERY OF another's name to ANY DOCUMENT RELATED TO OR USED IN 1,280
an application for insurance TRANSACTION; 1,281
(12) The person has cheated (11) POSSESSING OR USING ANY 1,284
UNAUTHORIZED MATERIALS DURING A LICENSING OR CONTINUING EDUCATION 1,285
EXAMINATION OR CHEATING on an A LICENSING OR CONTINUING EDUCATION 1,286
examination for an insurance license 1,287
(B) The license of a partnership or corporation may be 1,289
suspended, revoked, or refused if the superintendent finds, after 1,290
notice and hearing under Chapter 119. of the Revised Code, that 1,291
an individual licensee's violation was known or should have been 1,292
known by one or more of the partners, officers, directors, or 1,293
managers acting on behalf of the partnership or corporation and 1,294
such violation was not reported to the department of insurance or 1,295
corrective action taken in relation to the violation; 1,296
(12) FAILING TO DISCLOSE TO AN APPLICANT FOR INSURANCE OR 1,299
POLICYHOLDER UPON ACCEPTING A PREMIUM OR AN ORDER TO BIND 1,300
COVERAGE FROM THE APPLICANT OR POLICYHOLDER, THAT THE PERSON HAS 1,301
NOT BEEN APPOINTED AS AGENT BY THE INSURER AND IS NOT AN 1,302
APPOINTED SOLICITOR OF AN APPOINTED AGENT;
(13) HAVING ANY PROFESSIONAL LICENSE SUSPENDED OR REVOKED 1,305
AS A RESULT OF A MISHANDLING OF FUNDS OR BREACH OF FIDUCIARY 1,306
RESPONSIBILITIES; 1,307
28
(14) CAUSING OR PERMITTING A POLICYHOLDER OR APPLICANT FOR 1,310
INSURANCE TO DESIGNATE THE PERSON OR THE PERSON'S SPOUSE, PARENT, 1,311
CHILD, OR SIBLING AS THE BENEFICIARY OF A POLICY OR ANNUITY SOLD 1,312
BY THE PERSON, UNLESS THE PERSON OR A RELATIVE OF THE PERSON IS 1,313
THE INSURED OR APPLICANT;
(15) FAILING TO PROVIDE A WRITTEN RESPONSE TO THE 1,315
DEPARTMENT OF INSURANCE WITHIN THIRTY DAYS AFTER RECEIPT OF ANY 1,317
WRITTEN INQUIRY FROM THE DEPARTMENT;
(16) FAILING TO PROVIDE THE DEPARTMENT WITH WRITTEN NOTICE 1,320
OF ANY CHANGE IN THE PERSON'S RESIDENTIAL OR BUSINESS ADDRESS 1,321
WITHIN THIRTY DAYS AFTER THE CHANGE OCCURS; 1,322
(17) TRANSFERRING OR PLACING INSURANCE WITH AN INSURER 1,324
OTHER THAN THE INSURER EXPRESSLY CHOSEN BY THE APPLICANT FOR 1,325
INSURANCE OR POLICYHOLDER WITHOUT THE PRIOR CONSENT OF THE 1,326
APPLICANT OR POLICYHOLDER OR ABSENT EXTENUATING CIRCUMSTANCES; 1,327
(18) ENGAGING IN ANY FRAUDULENT COERCIVE PRACTICE IN 1,330
CONNECTION WITH THE BUSINESS OF INSURANCE;
(19) FAILING TO INFORM A POLICYHOLDER OR APPLICANT FOR 1,332
INSURANCE OF THE IDENTITY OF THE INSURER OR INSURERS, OR THE 1,333
IDENTITY OF ANY OTHER INSURANCE AGENCY, GENERAL AGENT, SURPLUS 1,334
LINE BROKER, OR LICENSEE KNOWN TO BE INVOLVED IN PROCURING, 1,335
PLACING, OR CONTINUING THE INSURANCE FOR THE POLICYHOLDER OR 1,336
APPLICANT, UPON THE BINDING OF THE COVERAGE; 1,337
(20) IN THE CASE OF AN AGENT THAT IS A CORPORATION, 1,339
LIMITED LIABILITY COMPANY, OR PARTNERSHIP, FAILING TO REPORT AN 1,340
INDIVIDUAL LICENSEE'S VIOLATION TO THE DEPARTMENT WHEN THE 1,341
VIOLATION WAS KNOWN OR SHOULD HAVE BEEN KNOWN BY ONE OR MORE OF 1,342
THE PARTNERS, OFFICERS, MANAGERS, OR MEMBERS OF THE CORPORATION, 1,343
LIMITED LIABILITY COMPANY, OR PARTNERSHIP; 1,344
(21) SUBMITTING OR USING A DOCUMENT IN THE CONDUCT OF THE 1,347
BUSINESS OF INSURANCE WHEN THE PERSON KNEW OR SHOULD HAVE KNOWN 1,348
THAT THE DOCUMENT CONTAINED THE FORGED SIGNATURE OF ANOTHER 1,349
PERSON;
(22) MISREPRESENTING THE PERSON'S QUALIFICATIONS OR USING 1,352
29
IN ANY WAY A PROFESSIONAL DESIGNATION THAT HAS NOT BEEN CONFERRED 1,353
UPON THE PERSON BY THE APPROPRIATE ACCREDITING ORGANIZATION; 1,354
(23) OBTAINING A PREMIUM LOAN OR CAUSING A PREMIUM LOAN TO 1,357
BE MADE TO OR IN THE NAME OF AN INSURED WITHOUT THAT PERSON'S 1,358
KNOWLEDGE AND WRITTEN AUTHORIZATION;
(24) FAILING TO NOTIFY THE SUPERINTENDENT OF ANY 1,360
DISCIPLINARY ACTION TAKEN BY THE INSURANCE AUTHORITY OF ANOTHER 1,361
STATE WITHIN SIXTY DAYS AFTER THE ACTION WAS TAKEN; 1,362
(25) FAILING TO FILE ANY OF THE REPORTS OR NOTICES 1,364
REQUIRED UNDER THIS CHAPTER; 1,365
(26) SUBMITTING AN APPLICATION FOR INSURANCE, OR CAUSING 1,368
THE ISSUANCE OF AN INSURANCE POLICY OR CONTRACT, ON BEHALF OF AN 1,369
APPLICANT WHO DID NOT REQUEST OR AUTHORIZE THE INSURANCE. 1,370
DIVISION (B)(26) OF THIS SECTION DOES NOT APPLY TO ANY POLICY 1,371
ISSUED BY AN OTHER THAN LIFE INSURANCE COMPANY.
(27) USING PAPER, SOFTWARE, OR ANY OTHER MATERIALS OF OR 1,374
PROVIDED BY AN INSURER AFTER THE INSURER HAS TERMINATED THE
AUTHORITY OF THE LICENSEE, IF THE USE OF SUCH MATERIALS WOULD 1,375
CAUSE A REASONABLE PERSON TO BELIEVE THAT THE LICENSEE WAS ACTING 1,377
ON BEHALF OF OR OTHERWISE REPRESENTING THE INSURER; 1,378
(28) PROVIDING MISLEADING, DECEPTIVE, OR UNTRUE 1,380
INFORMATION TO AN APPLICANT FOR INSURANCE OR A POLICYHOLDER 1,381
REGARDING A PARTICULAR INSURANCE AGENT, COMPANY, OR PRODUCT; 1,383
(29) SOLICITING, PROCURING AN APPLICATION FOR, OR PLACING, 1,386
EITHER DIRECTLY OR INDIRECTLY, ANY INSURANCE POLICY WHEN THE 1,387
PERSON IS NOT AUTHORIZED UNDER THIS CHAPTER TO ENGAGE IN SUCH 1,388
ACTIVITY;
(30) SOLICITING, MARKETING, OR SELLING ANY PRODUCT OR 1,390
SERVICE THAT OFFERS BENEFITS SIMILAR TO INSURANCE BUT IS NOT 1,391
REGULATED BY THE SUPERINTENDENT, WITHOUT FULLY DISCLOSING TO THE 1,392
PROSPECTIVE PURCHASER THAT THE PRODUCT OR SERVICE IS NOT 1,393
INSURANCE AND IS NOT REGULATED BY THE SUPERINTENDENT; 1,394
(31) FAILING TO FULFILL A REFUND OBLIGATION IN A TIMELY 1,396
MANNER. FOR PURPOSES OF DIVISION (B)(31) OF THIS SECTION, A 1,398
30
REBUTTABLE PRESUMPTION EXISTS THAT A REFUND OBLIGATION IS NOT 1,399
FULFILLED IN A TIMELY MANNER UNLESS IT IS FULFILLED WITHIN ONE OF 1,400
THE FOLLOWING TIME PERIODS: 1,401
(a) THIRTY DAYS AFTER THE DATE THE POLICYHOLDER, 1,404
APPLICANT, OR INSURER TAKES OR REQUESTS ACTION RESULTING IN A 1,405
REFUND;
(b) THIRTY DAYS AFTER THE DATE OF THE INSURER'S REFUND 1,408
CHECK, IF THE AGENT IS EXPECTED TO ISSUE A PORTION OF THE TOTAL 1,409
REFUND;
(c) FORTY-FIVE DAYS AFTER THE DATE OF THE AGENT'S 1,412
STATEMENT OF ACCOUNT ON WHICH THE REFUND FIRST APPEARS. 1,413
(C) Before denying, revoking, suspending, or refusing to 1,415
continue or renew ISSUE any license or imposing any penalty under 1,417
this section OR SECTION 3905.482 OF THE REVISED CODE, the 1,418
superintendent shall provide THE LICENSEE OR APPLICANT WITH 1,420
notice and an opportunity for hearing, under AS PROVIDED IN 1,421
Chapter 119. of the Revised Code, to the licensee or applicant 1,423
and any insurer represented by the licensee or applicant EXCEPT 1,425
AS FOLLOWS:
(1)(a) ANY NOTICE OF OPPORTUNITY FOR HEARING, THE HEARING 1,427
OFFICER'S FINDINGS AND RECOMMENDATIONS, OR THE SUPERINTENDENT'S 1,429
ORDER SHALL BE SERVED BY CERTIFIED MAIL AT THE LAST KNOWN ADDRESS 1,430
OF THE LICENSEE OR APPLICANT. SERVICE SHALL BE EVIDENCED BY 1,431
RETURN RECEIPT SIGNED BY ANY PERSON.
FOR PURPOSES OF THIS SECTION, THE "LAST KNOWN ADDRESS" IS 1,433
THE ADDRESS THAT APPEARS IN THE LICENSING RECORDS OF THE 1,434
DEPARTMENT OF INSURANCE.
(b) IF THE CERTIFIED MAIL ENVELOPE IS RETURNED WITH AN 1,437
ENDORSEMENT SHOWING THAT SERVICE WAS REFUSED, OR THAT THE 1,438
ENVELOPE WAS UNCLAIMED, THE NOTICE AND ALL SUBSEQUENT NOTICES
REQUIRED BY CHAPTER 119. OF THE REVISED CODE MAY BE SERVED BY 1,439
ORDINARY MAIL TO THE LAST KNOWN ADDRESS OF THE LICENSEE OR 1,440
APPLICANT. THE MAILING SHALL BE EVIDENCED BY A CERTIFICATE OF 1,441
MAILING. SERVICE IS DEEMED COMPLETE AS OF THE DATE OF SUCH 1,442
31
CERTIFICATE PROVIDED THAT THE ORDINARY MAIL ENVELOPE IS NOT 1,443
RETURNED BY THE POSTAL AUTHORITIES WITH AN ENDORSEMENT SHOWING 1,444
FAILURE OF DELIVERY. THE TIME PERIOD IN WHICH TO REQUEST A 1,445
HEARING, AS PROVIDED IN CHAPTER 119. OF THE REVISED CODE, BEGINS 1,448
TO RUN ON THE DATE OF MAILING. 1,449
(c) IF SERVICE BY ORDINARY MAIL FAILS, THE SUPERINTENDENT 1,452
MAY CAUSE A SUMMARY OF THE SUBSTANTIVE PROVISIONS OF THE NOTICE 1,453
TO BE PUBLISHED ONCE A WEEK FOR THREE CONSECUTIVE WEEKS IN A 1,454
NEWSPAPER OF GENERAL CIRCULATION IN THE COUNTY WHERE THE LAST 1,455
KNOWN PLACE OF RESIDENCE OR BUSINESS OF THE PARTY IS LOCATED. 1,456
THE NOTICE IS CONSIDERED SERVED ON THE DATE OF THE THIRD 1,457
PUBLICATION.
(d) ANY NOTICE REQUIRED TO BE SERVED UNDER CHAPTER 119. OF 1,460
THE REVISED CODE SHALL ALSO BE SERVED UPON THE PARTY'S ATTORNEY 1,463
BY ORDINARY MAIL IF THE ATTORNEY HAS ENTERED AN APPEARANCE IN THE 1,464
MATTER.
(e) THE SUPERINTENDENT MAY, AT ANY TIME, PERFECT SERVICE 1,467
ON A PARTY BY PERSONAL DELIVERY OF THE NOTICE BY AN EMPLOYEE OF 1,468
THE DEPARTMENT.
(f) NOTICES REGARDING THE SCHEDULING OF HEARINGS AND ALL 1,471
OTHER MATTERS NOT DESCRIBED IN DIVISION (C)(1)(a) OF THIS SECTION 1,473
SHALL BE SENT BY ORDINARY MAIL TO THE PARTY AND TO THE PARTY'S 1,474
ATTORNEY.
(2) ANY SUBPOENA FOR THE APPEARANCE OF A WITNESS OR THE 1,477
PRODUCTION OF DOCUMENTS OR OTHER EVIDENCE AT A HEARING, OR FOR 1,478
THE PURPOSE OF TAKING TESTIMONY FOR USE AT A HEARING, SHALL BE 1,479
SERVED BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED, BY AN
ATTORNEY OR BY AN EMPLOYEE OF THE DEPARTMENT DESIGNATED BY THE 1,480
SUPERINTENDENT. SUCH SUBPOENAS SHALL BE ENFORCED IN THE MANNER 1,481
PROVIDED IN SECTION 119.09 OF THE REVISED CODE. NOTHING IN THIS 1,484
SECTION SHALL BE CONSTRUED AS LIMITING THE SUPERINTENDENT'S OTHER 1,485
STATUTORY POWERS TO ISSUE SUBPOENAS. 1,486
(D) The IF THE superintendent DETERMINES THAT A VIOLATION 1,488
DESCRIBED IN THIS SECTION HAS OCCURRED, THE SUPERINTENDENT may 1,489
32
modify any order under this section and restore a license of or 1,491
issue a license to a person if the superintendent finds, after 1,492
notice and opportunity for hearing provided to affected parties, 1,493
that the person can demonstrate all DO ANY of the following: 1,494
(1) The person has made restitution for all pecuniary 1,496
losses caused by his ASSESS A CIVIL FORFEITURE IN AN AMOUNT NOT 1,497
EXCEEDING TWENTY-FIVE THOUSAND DOLLARS PER violation; 1,498
(2) The person's character and reputation have been 1,500
rehabilitated so that the person possesses the personal 1,501
qualifications required for the initial issuance of a license; 1,502
ASSESS ADMINISTRATIVE COSTS TO COVER THE EXPENSES INCURRED BY THE 1,504
DEPARTMENT IN THE ADMINISTRATIVE ACTION, INCLUDING COSTS INCURRED 1,505
IN THE INVESTIGATION AND HEARING PROCESSES. ANY COSTS COLLECTED 1,506
SHALL BE PAID INTO THE STATE TREASURY TO THE CREDIT OF THE 1,507
DEPARTMENT OF INSURANCE OPERATING FUND CREATED IN SECTION
3901.021 OF THE REVISED CODE. 1,509
(3) If the order was an order of revocation based on a 1,511
conviction for felony based on evidence of acts or omissions 1,512
related to the insurance business, that two years have elapsed 1,513
since the effective date of the order, or if the order was an 1,514
order denying a license because of such a conviction, that two 1,515
years have elapsed since the date of the conviction SUSPEND ALL 1,517
OF THE PERSON'S LICENSES FOR ALL LINES OF INSURANCE FOR EITHER A 1,518
SPECIFIED PERIOD OF TIME OR AN INDEFINITE PERIOD OF TIME AND 1,519
UNDER SUCH TERMS AND CONDITIONS AS THE SUPERINTENDENT MAY 1,520
DETERMINE;
(4) If required by the superintendent, the person passes 1,522
the examination required for an initial issuance of the license 1,523
PERMANENTLY REVOKE ALL OF THE PERSON'S LICENSES FOR ALL LINES OF 1,525
INSURANCE;
(5) REFUSE TO ISSUE A LICENSE; 1,527
(6) REFUSE TO RENEW A LICENSE; 1,529
(7) PROHIBIT THE PERSON FROM BEING EMPLOYED IN ANY 1,531
CAPACITY IN THE BUSINESS OF INSURANCE AND FROM HAVING ANY 1,532
33
FINANCIAL INTEREST IN ANY INSURANCE AGENCY, COMPANY, OR 1,533
THIRD-PARTY ADMINISTRATOR IN THIS STATE. THE SUPERINTENDENT MAY, 1,535
IN THE SUPERINTENDENT'S DISCRETION, DETERMINE THE NATURE,
CONDITIONS, AND DURATION OF SUCH RESTRICTIONS. 1,536
(8) ORDER CORRECTIVE ACTIONS IN LIEU OF OR IN ADDITION TO 1,539
THE OTHER PENALTIES LISTED IN DIVISION (D) OF THIS SECTION. SUCH 1,540
AN ORDER MAY PROVIDE FOR THE SUSPENSION OF CIVIL FORFEITURES, 1,541
LICENSE REVOCATION, LICENSE SUSPENSION, OR REFUSAL TO ISSUE OR 1,542
RENEW A LICENSE IF THE LICENSEE COMPLIES WITH THE TERMS AND 1,543
CONDITIONS OF THE CORRECTIVE ACTION ORDER. 1,544
(9) ACCEPT A SURRENDER FOR CAUSE OFFERED BY THE LICENSEE, 1,547
WHICH SHALL BE FOR AT LEAST FIVE YEARS AND SHALL PROHIBIT THE 1,548
LICENSEE FROM SEEKING ANY LICENSE AUTHORIZED UNDER THIS CHAPTER 1,549
DURING THAT TIME PERIOD. A SURRENDER FOR CAUSE MAY ALSO INCLUDE 1,550
A CORRECTIVE ACTION ORDER AS PROVIDED IN DIVISION (D)(8) OF THIS 1,551
SECTION.
(E) The superintendent shall MAY consider the following 1,553
standards FACTORS in denying a license, imposing suspensions, 1,554
revocations, FINES, or refusals of continuations or renewals of 1,556
licenses OTHER PENALTIES, AND ISSUING ORDERS UNDER THIS SECTION: 1,557
(1) Whether the person acted in good faith and without 1,559
knowledge of his violation and; 1,560
(2) WHETHER THE PERSON makes restitution for any pecuniary 1,563
losses suffered by other persons as a result of his THE PERSON'S 1,564
actions. In such cases, the maximum suspension shall be ninety 1,565
days. 1,566
(2) Whether, within the meanings defined in section 1,568
2901.22 of the Revised Code, the person acted purposely, 1,569
knowingly, recklessly, or negligently; 1,570
(3) Whether the amount of money or the nature of the 1,572
property involved in the violation would, if it were the subject 1,573
of a criminal offense, make a theft offense a misdemeanor or a 1,574
felony THE ACTUAL HARM OR POTENTIAL FOR HARM TO OTHERS; 1,575
(4) The degree of trust placed in the person by, and the 1,577
34
incompetency, inexperience, or susceptibility to undue influence 1,578
or duress VULNERABILITY of, any other person involved PERSONS WHO 1,580
WERE OR COULD HAVE BEEN ADVERSELY AFFECTED BY THE PERSON'S
ACTIONS; 1,581
(5) The effect of the violation upon the perception by 1,583
insureds and insurance customers of the ethics and integrity of 1,584
the insurance industry WHETHER THE PERSON WAS THE SUBJECT OF ANY 1,585
PREVIOUS ADMINISTRATIVE ACTIONS BY THE SUPERINTENDENT; 1,586
(6) The extent to which NUMBER OF INDIVIDUALS ADVERSELY 1,588
AFFECTED BY the person's conduct departed from the customary and 1,590
usual ethical standards of persons engaged in the insurance 1,591
business ACTS OR OMISSIONS;
(7) WHETHER THE PERSON VOLUNTARILY REPORTED THE VIOLATION, 1,593
AND THE EXTENT OF THE PERSON'S COOPERATION AND ACCEPTANCE OF 1,594
RESPONSIBILITY; 1,595
(8) WHETHER THE PERSON OBSTRUCTED OR IMPEDED, OR ATTEMPTED 1,598
TO OBSTRUCT OR IMPEDE, THE SUPERINTENDENT'S INVESTIGATION; 1,599
(9) THE PERSON'S EFFORTS TO CONCEAL THE MISCONDUCT; 1,602
(10) REMEDIAL EFFORTS TO PREVENT FUTURE VIOLATIONS; 1,605
(11) IF THE PERSON WAS CONVICTED OF A CRIMINAL OFFENSE, 1,608
THE NATURE OF THE OFFENSE, WHETHER THE CONVICTION WAS BASED ON 1,609
ACTS OR OMISSIONS TAKEN UNDER ANY PROFESSIONAL LICENSE, WHETHER 1,610
THE OFFENSE INVOLVED THE BREACH OF A FIDUCIARY DUTY, THE AMOUNT 1,611
OF TIME THAT HAS PASSED, AND THE PERSON'S ACTIVITIES SUBSEQUENT 1,612
TO THE CONVICTION;
(12) Such other factors as the superintendent determines 1,614
to be appropriate under the circumstances. 1,615
(F)(1) A VIOLATION DESCRIBED IN DIVISION (B)(1), (2), (3), 1,618
(5), (6), (7), (8), (9), (10), (11), (12), (13), (14), (17), 1,619
(18), (19), (20), (21), (22), (23), (25), (26), (27), (28), (29), 1,621
(30), OR (31) OF THIS SECTION IS A CLASS A OFFENSE FOR WHICH THE 1,622
SUPERINTENDENT MAY IMPOSE ANY PENALTY SET FORTH IN DIVISION (D) 1,624
OF THIS SECTION.
(2) A VIOLATION DESCRIBED IN DIVISION (B)(4), (15), (16), 1,627
35
OR (24) OF THIS SECTION IS A CLASS B OFFENSE FOR WHICH THE 1,629
SUPERINTENDENT MAY IMPOSE ANY PENALTY SET FORTH IN DIVISION 1,631
(D)(1), (2), (8), OR (9) OF THIS SECTION. 1,632
(G) IF A VIOLATION DESCRIBED IN THIS SECTION HAS CAUSED, 1,635
IS CAUSING, OR IS ABOUT TO CAUSE SUBSTANTIAL AND MATERIAL HARM, 1,636
THE SUPERINTENDENT MAY ISSUE AN ORDER REQUIRING THAT PERSON TO 1,637
CEASE AND DESIST FROM ENGAGING IN THE VIOLATION. NOTICE OF THE 1,638
ORDER SHALL BE MAILED BY CERTIFIED MAIL, RETURN RECEIPT 1,639
REQUESTED, OR SERVED IN ANY OTHER MANNER PROVIDED FOR IN THIS 1,640
SECTION, IMMEDIATELY AFTER ITS ISSUANCE TO THE PERSON SUBJECT TO 1,641
THE ORDER AND TO ALL PERSONS KNOWN TO BE INVOLVED IN THE 1,642
VIOLATION. THE SUPERINTENDENT MAY THEREAFTER PUBLICIZE OR 1,643
OTHERWISE MAKE KNOWN TO ALL INTERESTED PARTIES THAT THE ORDER HAS 1,644
BEEN ISSUED.
THE NOTICE SHALL SPECIFY THE PARTICULAR ACT, OMISSION, 1,646
PRACTICE, OR TRANSACTION THAT IS SUBJECT TO THE CEASE-AND-DESIST 1,647
ORDER AND SHALL SET A DATE, NOT MORE THAN FIFTEEN DAYS AFTER THE 1,648
DATE OF THE ORDER, FOR A HEARING ON THE CONTINUATION OR 1,649
REVOCATION OF THE ORDER. THE PERSON SHALL COMPLY WITH THE ORDER 1,650
IMMEDIATELY UPON RECEIPT OF NOTICE OF THE ORDER. 1,651
THE SUPERINTENDENT MAY, UPON THE APPLICATION OF A PARTY AND 1,654
FOR GOOD CAUSE SHOWN, CONTINUE THE HEARING. CHAPTER 119. OF THE 1,655
REVISED CODE APPLIES TO SUCH HEARINGS TO THE EXTENT THAT THAT 1,658
CHAPTER DOES NOT CONFLICT WITH THE PROCEDURES SET FORTH IN THIS 1,659
SECTION. THE SUPERINTENDENT SHALL, WITHIN FIFTEEN DAYS AFTER 1,660
OBJECTIONS ARE SUBMITTED TO THE HEARING OFFICER'S REPORT AND 1,661
RECOMMENDATION, ISSUE A FINAL ORDER EITHER CONFIRMING OR REVOKING 1,662
THE CEASE-AND-DESIST ORDER. THE FINAL ORDER MAY BE APPEALED AS 1,663
PROVIDED UNDER SECTION 119.12 OF THE REVISED CODE. 1,665
THE REMEDY UNDER THIS DIVISION IS CUMULATIVE AND CONCURRENT 1,668
WITH THE OTHER REMEDIES AVAILABLE UNDER THIS SECTION, AND MAY BE 1,669
ENFORCED BY THE ATTORNEY GENERAL AT THE REQUEST OF THE 1,670
SUPERINTENDENT AS PROVIDED IN DIVISION (H) OF THIS SECTION. 1,671
(H) IF THE SUPERINTENDENT HAS REASONABLE CAUSE TO BELIEVE 1,674
36
THAT AN ORDER ISSUED UNDER THIS SECTION HAS BEEN VIOLATED IN 1,675
WHOLE OR IN PART, THE SUPERINTENDENT MAY REQUEST THE ATTORNEY 1,676
GENERAL TO COMMENCE AND PROSECUTE ANY APPROPRIATE ACTION OR 1,677
PROCEEDING IN THE NAME OF THE STATE AGAINST SUCH PERSON. 1,678
THE COURT MAY, IN AN ACTION BROUGHT PURSUANT TO THIS 1,680
DIVISION, IMPOSE ANY OF THE FOLLOWING: 1,681
(1) FOR EACH VIOLATION, A CIVIL PENALTY OF NOT MORE THAN 1,684
TWENTY-FIVE THOUSAND DOLLARS;
(2) INJUNCTIVE RELIEF; 1,686
(3) RESTITUTION; 1,688
(4) ANY OTHER APPROPRIATE RELIEF. 1,690
(I) THIS SECTION APPLIES TO BOTH RESIDENT AND NONRESIDENT 1,693
AGENTS WHO ARE LICENSED UNDER THIS CHAPTER. 1,694
(J) NOTHING IN THIS SECTION SHALL BE CONSTRUED TO CREATE 1,697
OR IMPLY A PRIVATE CAUSE OF ACTION AGAINST AN AGENT, SOLICITOR, 1,698
OR INSURER.
Sec. 3905.491. (A) UPON WRITTEN APPLICATION OF A PERSON 1,701
WHOSE LICENSE WAS SUSPENDED, REVOKED, OR SURRENDERED FOR CAUSE 1,702
UNDER SECTION 3905.49 OF THE REVISED CODE, THE SUPERINTENDENT OF 1,704
INSURANCE SHALL HOLD A HEARING TO DETERMINE WHETHER THE 1,705
ADMINISTRATIVE ACTION IMPOSING SUCH SUSPENSION, REVOCATION, OR 1,706
SURRENDER SHOULD BE MODIFIED, PROVIDED THAT ALL OF THE FOLLOWING 1,707
CONDITIONS ARE MET: 1,708
(1) AT LEAST FIVE YEARS HAVE ELAPSED SINCE THE DATE OF THE 1,711
ADMINISTRATIVE ACTION SOUGHT TO BE MODIFIED;
(2) AT LEAST TWO YEARS HAVE ELAPSED SINCE ANY PREVIOUS 1,713
REQUEST FOR A MODIFICATION WAS MADE UNDER THIS SECTION; 1,714
(3) THE BURDEN OF PROOF IS ON THE PERSON REQUESTING THE 1,717
MODIFICATION.
(B) THE MODIFICATION OF AN ORDER ISSUED OR CONSENT 1,720
AGREEMENT ENTERED INTO UNDER SECTION 3905.49 OF THE REVISED CODE 1,722
IS AT THE DISCRETION OF THE SUPERINTENDENT. THE SUPERINTENDENT 1,723
MAY MODIFY SUCH AN ORDER OR AGREEMENT IF THE SUPERINTENDENT FINDS 1,724
ALL OF THE FOLLOWING: 1,725
37
(1) AT LEAST FIVE YEARS HAVE ELAPSED SINCE THE DATE OF THE 1,728
ADMINISTRATIVE ACTION;
(2) THE PERSON IS OF GOOD BUSINESS REPUTE AND IS SUITABLE 1,731
TO BE AN INSURANCE AGENT;
(3) THE PERSON HAS MADE RESTITUTION FOR ALL PECUNIARY 1,733
LOSSES SUFFERED BY ANY PERSON AS A RESULT OF THE CONDUCT THAT 1,734
GAVE RISE TO THE ADMINISTRATIVE ACTION; 1,735
(4) THE PERSON HAS NOT BEEN CONVICTED OF ANY FELONY OR OF 1,738
ANY MISDEMEANOR DESCRIBED IN DIVISION (B)(7) OF SECTION 3905.49 1,739
OF THE REVISED CODE UNLESS THE CONVICTION WAS THE SUBJECT OF A 1,742
PREVIOUS ADMINISTRATIVE ACTION BY THE SUPERINTENDENT; 1,743
(5) THE CIRCUMSTANCES SURROUNDING THE PREVIOUS VIOLATION 1,746
ARE SUCH THAT IT IS UNLIKELY THE PERSON WOULD COMMIT SUCH 1,747
OFFENSES IN THE FUTURE;
(6) THE PERSON'S CHARACTER HAS BEEN REHABILITATED. 1,750
(C) THE ISSUANCE OF ANY LICENSE PURSUANT TO A MODIFICATION 1,753
UNDER THIS SECTION SHALL BE CONDITIONED UPON THE SUCCESSFUL 1,754
COMPLETION OF ALL PRELICENSING EDUCATION AND EXAMINATION 1,755
REQUIREMENTS.
Sec. 3905.492. (A)(1) ALL RECORDS AND OTHER INFORMATION 1,757
OBTAINED BY THE SUPERINTENDENT OF INSURANCE OR THE 1,758
SUPERINTENDENT'S DEPUTIES, EXAMINERS, ASSISTANTS, OR OTHER 1,759
EMPLOYEES, OR AGENTS RELATING TO AN INVESTIGATION OF AN APPLICANT 1,760
FOR LICENSURE UNDER THIS CHAPTER, OR AN AGENT, SOLICITOR, BROKER, 1,761
OR OTHER PERSON LICENSED UNDER THIS CHAPTER OR CHAPTER 3951., 1,762
3957., OR 3959. OF THE REVISED CODE, ARE CONFIDENTIAL AND ARE NOT 1,763
PUBLIC RECORDS AS DEFINED IN SECTION 149.43 OF THE REVISED CODE
UNTIL THE APPLICANT OR LICENSEE IS PROVIDED NOTICE AND 1,764
OPPORTUNITY FOR HEARING PURSUANT TO CHAPTER 119. OF THE REVISED 1,765
CODE WITH RESPECT TO SUCH RECORDS OR INFORMATION. IF NO 1,766
ADMINISTRATIVE ACTION IS INITIATED WITH RESPECT TO A PARTICULAR 1,767
MATTER ABOUT WHICH THE SUPERINTENDENT OBTAINED RECORDS OR OTHER
INFORMATION AS PART OF AN INVESTIGATION, ALL SUCH RECORDS AND 1,768
INFORMATION RELATING TO THAT MATTER SHALL REMAIN CONFIDENTIAL FOR 1,769
38
THREE YEARS AFTER THE FILE ON THE MATTER IS CLOSED. 1,771
(2) DIVISION (A)(1) OF THIS SECTION APPLIES ONLY TO 1,774
INVESTIGATIONS THAT COULD RESULT IN ADMINISTRATIVE ACTION UNDER 1,776
TITLE XVII OR XXXIX OR CHAPTER 119. OF THE REVISED CODE. 1,781
(B) THE RECORDS AND OTHER INFORMATION DESCRIBED IN 1,784
DIVISION (A) OF THIS SECTION SHALL REMAIN CONFIDENTIAL FOR ALL 1,785
PURPOSES EXCEPT WHEN IT IS APPROPRIATE FOR THE SUPERINTENDENT AND 1,786
THE SUPERINTENDENT'S DEPUTIES, EXAMINERS, ASSISTANTS, OR OTHER 1,787
EMPLOYEES, OR AGENTS TO TAKE OFFICIAL ACTION REGARDING THE 1,789
AFFAIRS OF THE APPLICANT OR LICENSEE OR IN CONNECTION WITH ACTUAL 1,790
OR POTENTIAL CRIMINAL PROCEEDINGS. 1,791
(C) EMPLOYEES OR AGENTS OF THE DEPARTMENT OF INSURANCE 1,794
SHALL NOT BE REQUIRED BY ANY COURT OF THIS STATE TO TESTIFY IN A 1,795
CIVIL ACTION, IF SUCH TESTIMONY CONCERNS ANY MATTER RELATED TO 1,796
RECORDS OR ANY OTHER INFORMATION CONSIDERED CONFIDENTIAL UNDER 1,797
THIS SECTION OF WHICH THEY HAVE KNOWLEDGE. 1,798
(D) THIS SECTION DOES NOT APPLY TO ANY COMPLAINT OR ACTION 1,800
UNDER SECTION 3905.04 OF THE REVISED CODE. 1,801
Sec. 3905.54. EACH AGENT LICENSED UNDER THIS CHAPTER SHALL 1,804
NOTIFY THE SUPERINTENDENT OF INSURANCE IN WRITING OF ALL OF THE 1,805
FOLLOWING, AS APPLICABLE:
(A) ANY CHANGE IN THE AGENT'S RESIDENTIAL OR BUSINESS 1,808
ADDRESS, WITHIN THIRTY DAYS AFTER THE CHANGE OCCURS; 1,809
(B) ANY FELONY CONVICTION, OR ANY MISDEMEANOR CONVICTION 1,812
DESCRIBED IN DIVISION (B)(7) OF SECTION 3905.49 OF THE REVISED 1,815
CODE, WITHIN THIRTY DAYS AFTER SENTENCING. THE NOTICE SHALL 1,816
INCLUDE THE NAME OF THE COURT HAVING JURISDICTION OVER THE 1,817
MATTER, THE CASE NUMBER, THE OFFENSE CHARGED, THE SENTENCE 1,818
IMPOSED, AND A COPY OF THE JUDGMENT ENTRY. 1,819
(C) ANY DISCIPLINARY ACTION TAKEN BY THE INSURANCE 1,822
AUTHORITY OF ANOTHER STATE, WITHIN SIXTY DAYS AFTER THE ACTION IS 1,823
TAKEN.
Sec. 3923.121. (A) As used in this section: 1,832
(1) "Association" means a voluntary unincorporated 1,834
39
association of insurers formed for the sole purpose of enabling 1,835
cooperative action to provide sickness and accident insurance in 1,836
accordance with this section. 1,837
(2) "Insurer" means any insurance company authorized to do 1,839
the business of sickness and accident insurance in this state. 1,840
(3) "Insured" means a person covered under a group policy 1,842
issued pursuant to this section. 1,843
(B) Any insurer may join with one or more other insurers, 1,845
in an association, to offer, sell, and issue to a policyholder 1,846
selected by the association a policy of group insurance against 1,847
major financial loss from sickness and accident covering 1,848
residents of this state who are sixty-five years of age or older 1,849
and the spouses of such residents. The insurance shall be 1,850
offered, issued, and administered in the name of the association. 1,851
Membership in the association shall be open to any insurer and 1,852
each insurer which participates shall be liable for a specified 1,853
percentage of the risks. The policy may be executed on behalf of 1,854
the association by a duly authorized person and need not be 1,855
countersigned by an agent. 1,856
(C) The persons eligible for coverage under the policy 1,858
shall be all residents of this state who are sixty-five years of 1,859
age or older and their spouses, subject to reasonable 1,860
underwriting restrictions to be set forth in the plan of the 1,861
association. The policy may provide basic hospital and surgical 1,862
coverage, basic medical coverage, major medical coverage, and any 1,863
combination of these; provided that it shall not be required as a 1,864
condition for obtaining major medical coverage that any basic 1,865
coverage be taken. 1,866
(D) The association shall file with the superintendent of 1,868
insurance any policy, contract, certificate, or other evidence of 1,869
insurance, application, or other forms pertaining to such 1,870
insurance together with the premium rates to be charged therefor. 1,871
The superintendent may approve, disapprove, and withdraw approval 1,872
of the forms in accordance with section 3923.02 of the Revised 1,873
40
Code, or the premium rates if by reasonable assumptions such 1,874
rates are excessive in relation to the benefits provided. In 1,875
determining whether such rates by reasonable assumptions are 1,876
excessive in relation to the benefits provided the superintendent 1,877
shall give due consideration to past and prospective claim 1,878
experience, within and outside this state, and to fluctuations in 1,879
such claim experience, to a reasonable risk charge, to 1,880
contribution to surplus and contingency funds, to past and 1,881
prospective expenses, both within and outside this state, and to 1,882
all other relevant factors within and outside this state, 1,883
including any differing operating methods of the insurers joining 1,884
in the issuance of the policy. In reviewing the forms the 1,885
superintendent shall not be bound by the requirements of sections 1,886
3923.04 to 3923.07 of the Revised Code with respect to standard 1,888
provisions to be included in sickness and accident policies or 1,889
forms.
(E) The association may enroll eligible persons for 1,891
coverage under the policy through any insurance agent licensed to 1,892
sell sickness and accident insurance pursuant to section 3905.01 1,893
3905.02, 3905.08, 3905.18, or 3941.02 of the Revised Code. 1,895
(F) The association shall file annually with the 1,897
superintendent on such date and in such form as the 1,898
superintendent may prescribe, a financial summary of its 1,899
operations.
(G) The association may sue and be sued in its associate 1,901
name and for such purposes only shall be treated as a domestic 1,902
corporation. Service of process against such THE association 1,903
made upon a managing agent, any member thereof, or any agent 1,905
authorized by appointment to receive service of process, shall 1,906
have the same force and effect as if such THE service had been 1,907
made upon all members of the association. 1,909
(H) Under any policy issued as provided in this section, 1,911
the policyholder, or such person as the policyholder shall 1,912
designate, shall alone be a member of each domestic mutual 1,913
41
insurance company joining in the issue of the policy and shall be 1,914
entitled to one vote by virtue of such policy at the meetings of 1,915
each such mutual insurance company. Notice of the annual 1,916
meetings of each such mutual insurance company may be given by 1,917
written notice to the policyholder or as otherwise prescribed in 1,918
said THE policy. 1,919
Sec. 3931.101. The provisions of sections 3905.01 to 1,928
3905.05, inclusive, 3905.04 of the Revised Code, relating to the 1,930
appointment, licensing, qualification and regulation of insurance 1,931
agents, brokers and solicitors shall apply to all persons 1,932
authorized to solicit powers of attorney or applications for
contracts of indemnity for any reciprocal exchange, insurance 1,933
exchange or attorney in fact as provided for in Chapter 3931,. of 1,934
the Revised Code, except a traveling full time salaried 1,936
non-commission employee of an attorney whose duties as such
employee are primarily the performance of inspection 1,937
underwriting, loss prevention engineering and claim services 1,938
shall be exempt from this section and shall be regulated solely 1,939
by section 3931.11 of the Revised Code.
Sec. 3931.11. Every attorney shall certify to the 1,948
superintendent of insurance the names and addresses of the 1,949
attorney's traveling full time salaried non-commission employees, 1,950
primarily engaged in performing underwriting, loss prevention 1,951
engineering and claim services, authorized by the attorney to 1,952
solicit powers of attorney or applications for contracts of 1,953
indemnity specified in section 3931.01 of the Revised Code. The 1,954
authority of such persons shall continue until the first day of 1,955
the next April, unless it is cancelled by the attorney and the 1,956
certificate of such cancellation is filed with the 1,957
superintendent, or unless the license of the attorney or 1,958
authority of such person is revoked or suspended by the 1,959
superintendent. Expiring certificates of authority of such 1,960
persons may be renewed in like manner to continue until the first 1,961
day of the next April. The superintendent shall record the names 1,962
42
and addresses of such persons so that their names may 1,963
conveniently be inspected and shall thereupon certify and deliver 1,964
to the attorney a list of the names of all persons so recorded. 1,965
If the superintendent finds that any such person has 1,967
wilfully WILLFULLY violated, or failed to comply with, sections 1,968
3931.01 to 3931.12, inclusive, of the Revised Code, or has been 1,970
convicted of a felony in the United States, or in this or any 1,971
state, or has been guilty of any act or acts which if performed 1,972
by an agent licensed under section 3905.01 3905.02 of the Revised 1,973
Code would constitute statutory grounds for the revocation of 1,975
such agent's license, the superintendent may refuse or revoke the 1,976
authority of such THE person and cancel the person's name on the 1,978
superintendent's records, and the superintendent shall thereupon 1,980
notify such THE person and the attorney of such THE revocation. 1,981
Thereafter such THE person shall not act as representative of any 1,982
attorney until a new certificate of authority by the attorney 1,983
thereafter appointing such THE person is filed with and approved 1,984
by the superintendent. 1,985
No such person shall act for any attorney in placing 1,987
insurance or making such contracts of indemnity, unless the 1,988
attorney has the license required by section 3931.10 of the 1,989
Revised Code, nor unless the unexpired, unrevoked, and 1,990
unsuspended certificate of such person's authority is filed with 1,991
the superintendent. Any such person shall be individually liable 1,992
on any contract of indemnity made, issued, or accepted through 1,993
that person as representing any attorney who is not licensed by 1,995
the superintendent to make such contracts of indemnity.
Sec. 3941.02. (A) A domestic mutual company may be 2,004
organized by not less than twenty persons, to carry on the 2,005
business of mutual insurance and to reinsure and to accept 2,006
reinsurance as authorized by law and its articles of 2,007
incorporation. Such persons shall execute articles of 2,008
incorporation which, if not inconsistent with the constitution 2,009
and laws of this state and of the United States, shall be 2,010
43
approved by the attorney general and the secretary of state. The 2,011
articles and the certificate of approval by the attorney general 2,012
shall be recorded by the secretary of state who shall deposit a 2,013
copy thereof with the superintendent of insurance. 2,014
(B) If the articles of incorporation of a domestic, 2,016
foreign, or alien, mutual or stock insurance company empower it, 2,017
or if the power of attorney or subscribers' agreement empowers 2,018
the attorney in fact of a reciprocal or interinsurance exchange, 2,019
to transact any of the kinds of insurance described in division 2,020
(A) of section 3929.01 of the Revised Code, such company or 2,021
attorney may apply to the superintendent for the appropriate 2,022
license or certificate of authority, as provided in section 2,023
3925.11, 3927.01, 3931.10, or 3941.06 of the Revised Code, which 2,024
application shall state which of the kinds of insurance it 2,025
proposes to transact, and the superintendent shall act thereon in 2,026
the manner prescribed by that section. 2,027
(C) An Ohio agent shall be licensed, upon written notice 2,030
of appointment by a domestic, foreign, or alien, mutual or stock 2,031
insurance company, to procure, receive, or forward application 2,032
for the kinds of insurance the company is authorized to transact 2,033
in this state if the agent is then licensed to write all of the 2,034
kinds of insurance described in division (A) of section 3929.01 2,035
of the Revised Code, either for the company or for any other 2,036
company or companies authorized to transact insurance business in 2,037
this state. An Ohio agent not so licensed shall not procure, 2,038
receive, or forward applications for any kind of insurance for 2,039
the company until qualified and licensed to procure, receive, or 2,040
forward applications for all of the kinds of insurance described 2,041
in division (A) of section 3929.01 of the Revised Code, in 2,042
accordance with the applicable provisions of Chapter 3905. of the 2,043
Revised Code and in accordance with such rules as the 2,044
superintendent may adopt in connection therewith; provided any 2,045
company, irrespective of the kinds of insurance it is authorized 2,046
to transact, may apply for and obtain the renewal of licenses of 2,047
44
its agents who were licensed on or before July 1, 1945, to 2,048
procure, receive, or forward applications for any of the kinds of 2,049
insurance described in division (A) of section 3929.01 of the 2,050
Revised Code, and such agents shall not be required to be 2,051
licensed for all the kinds of insurance transacted by the company 2,052
making the applications for such renewals. Nothing in this 2,053
section shall be construed to authorize an agent whose license is 2,054
renewed under these provisions to procure, receive, or forward 2,055
applications for any kind or kinds of insurance other than the 2,056
kind or kinds for which the agent was authorized to procure, 2,057
receive, or forward applications on July 1, 1945; provided, the 2,059
procuring, receiving, or forwarding of applications by such an 2,060
agent for any kind or kinds of insurance other than the kind or 2,061
kinds the agent was authorized to procure, receive, or forward, 2,063
as of July 1, 1945, is cause for revocation of the license of the 2,064
agent by the superintendent and the acceptance by any insurance 2,065
company licensed to do business in this state of an application 2,066
for any kind of insurance other than the kind or kinds that the 2,067
agent was authorized to procure, receive, or forward, as of July 2,068
1, 1945, is cause for revocation of the license of the company by 2,069
the superintendent. Nothing in this section shall be construed 2,070
to alter the provisions of sections 2301.373, 3905.05, 3931.101, 2,071
and 3931.11 of the Revised Code. 2,072
Sec. 3953.21. (A) Every title insurance company 2,081
authorized to transact business within this state shall certify 2,082
annually to the superintendent of insurance the names of all 2,083
title insurance agents representing it in this state in 2,084
accordance with section 3905.01 3905.02 of the Revised Code. 2,085
(B) No bank, trust company, bank and trust company, or 2,087
other lending institution, mortgage service, brokerage, mortgage 2,088
guaranty company, escrow company, real estate company or any 2,089
subsidiaries thereof or any individuals so engaged shall be 2,090
permitted to act as an agent for a title insurance company.
Sec. 3953.23. (A) Every title insurance agent shall keep 2,099
45
his books of account and record and vouchers pertaining to the 2,101
business of title insurance in such manner that the title 2,102
insurance company may readily ascertain from time to time whether 2,103
the agent has complied with this chapter.
(B) A title insurance agent may engage in the business of 2,105
handling escrows of real property transactions directly connected 2,106
with the business of title insurance, provided that the agent 2,107
shall maintain a separate record of all receipts and 2,108
disbursements of escrow funds and shall not commingle any such
funds with agent's own funds or with funds held by agent in any 2,109
other capacity; and if at any time the superintendent of 2,110
insurance determines that an agent has failed to comply with any 2,111
of the provisions of this section, the superintendent may revoke 2,112
the license of said THE agent pursuant to section 3905.01 3905.02 2,114
of the Revised Code, subject to review as provided for in 2,115
sections 119.01 to 119.13, inclusive, CHAPTER 119. of the Revised 2,117
Code. All agents shall be covered by a fidelity bond in an 2,119
amount and with a company satisfactory to the principal. 2,120
Sec. 3960.11. (A) No person shall act or aid in any 2,129
manner in soliciting, negotiating, or procuring liability 2,130
insurance in this state from a risk retention group unless the 2,131
person is licensed as an insurance agent or broker in accordance 2,132
with section 3905.01, 3905.03, 3905.02 or 3905.30 of the Revised 2,134
Code.
(B) No person shall act or aid in any manner in 2,136
soliciting, negotiating, or procuring liability insurance in this 2,137
state for a purchasing group from an authorized insurer or a risk 2,138
retention group chartered in a state unless the person is 2,139
licensed as an insurance agent or broker in accordance with 2,140
section 3905.01, 3905.03, 3905.02 or 3905.30 of the Revised Code. 2,142
(C) No person shall act or aid in any manner in 2,144
soliciting, negotiating, or procuring liability insurance 2,145
coverage in this state for any member of a purchasing group under 2,146
a purchasing group's policy unless the person is licensed as an 2,147
46
insurance agent or broker in accordance with section 3905.01, 2,148
3905.03, 3905.02 or 3905.30 of the Revised Code. 2,149
(D) No person shall act or aid in any manner in 2,151
soliciting, negotiating, or procuring liability insurance from an 2,152
insurer not authorized to do business in this state on behalf of 2,153
a purchasing group located in this state unless the person is 2,154
licensed as an insurance agent or surplus lines LINE broker in 2,155
accordance with section 3905.01, 3905.03, 3905.02 or 3905.30 of 2,157
the Revised Code. 2,158
Sec. 4745.01. (A) "Standard renewal procedure," as used 2,167
in Chapters 905., 907., 909., 911., 913., 915., 917., 918., 921., 2,168
923., 927., 942., 943., 953., 1321., 3710., 3713., 3717., 3719., 2,169
3731., 3742., 3748., 3769., 3783., 3905., 3921., 3951., 4104., 2,170
4105., 4143., 4169., 4561., 4701., 4703., 4707., 4709., 4713., 2,171
4715., 4717., 4723., 4725., 4727., 4728., 4729., 4731., 4733., 2,172
4734., 4735., 4739., 4741., 4747., 4749., 4753., 4755., 4757., 2,173
4759., 4761., 4766., and 4773. of the Revised Code, means the 2,174
license renewal procedures specified in this chapter. 2,175
(B) "Licensing agency," as used in this chapter, means any 2,177
department, division, board, section of a board, or other state 2,178
governmental unit subject to the standard renewal procedure, as 2,179
defined in this section, and authorized by the Revised Code to 2,180
issue a license to engage in a specific profession, occupation, 2,181
or occupational activity, or to have charge of and operate 2,182
certain specified equipment, machinery, or premises. 2,183
(C) "License," as used in this chapter, means a license, 2,185
certificate, permit, card, or other authority issued or conferred 2,186
by a licensing agency by authority of which the licensee has or 2,187
claims the privilege to engage in the profession, occupation, or 2,188
occupational activity, or to have control of and operate certain 2,189
specific equipment, machinery, or premises, over which the 2,190
licensing agency has jurisdiction. 2,191
(D) "Licensee," as used in this chapter, means either the 2,193
person to whom the license is issued or renewed by a licensing 2,194
47
agency, or the person, partnership, or corporation at whose 2,195
request the license is issued or renewed. 2,196
(E) "Renewal" and "renewed," as used in this chapter and 2,198
in the chapters of the Revised Code specified in division (A) of 2,199
this section, includes the continuing licensing procedure 2,200
provided in Chapter 3748. of the Revised Code and rules adopted 2,202
under it and in sections 1321.05, 3905.01, 3905.02, 3905.07, 2,203
3905.18, and 3921.33 of the Revised Code, and as applied to those 2,204
continuing licenses any reference in this chapter to the date of 2,206
expiration of any license shall be construed to mean the due date 2,207
of the annual or other fee for the continuing license. 2,208
Section 2. That existing sections 1751.38, 3901.021, 2,210
3905.011, 3905.02, 3905.06, 3905.07, 3905.18, 3905.20, 3905.27, 2,212
3905.40, 3905.481, 3905.49, and 3923.121, 3931.101, 3931.11,
3941.02, 3953.21, 3953.23, 3960.11, and 4745.01 and sections 2,213
3905.01, 3905.03, and 3905.05 of the Revised Code are hereby 2,214
repealed.
Section 3. Sections 1 and 2 of this act, except for 2,216
sections 3905.011, 3905.013, 3905.02, 3905.03, 3905.18, and 2,217
3905.20 of the Revised Code, shall take effect at the earliest 2,218
time permitted by law. Sections 3905.011, 3905.013, 3905.02, 2,219
3905.03, 3905.18, and 3905.20 of the Revised Code, as amended or 2,220
enacted by this act, shall take effect July 1, 1998.
Section 4. It is the intent of the General Assembly that 2,222
the Superintendent of Insurance take any action necessary to 2,223
administer the Insurance Agents Law, as amended by this act, and 2,224
to provide for an orderly transition for those persons licensed 2,225
or appointed under that Law as it existed prior to the effective 2,226
date of this act. 2,227
Section 5. The Department of Insurance shall, no later 2,229
than July 1, 1999, issue a new license to each person who, on 2,230
July 1, 1998, holds a license as an agent. Any license 2,231
application that is pending on July 1, 1998, or that is received 2,232
by the Department on or after that date, shall be reviewed in
48
accordance with this act. 2,233
Section 6. Section 3941.02 of the Revised Code is 2,235
presented in this act as a composite of the section as amended by 2,236
both Sub. H.B. 167 and Am. Sub. S.B. 259 of the 121st General 2,237
Assembly, with the new language of neither of the acts shown in 2,239
capital letters. This is in recognition of the principle stated 2,240
in division (B) of section 1.52 of the Revised Code that such 2,241
amendments are to be harmonized where not substantively 2,242
irreconcilable and constitutes a legislative finding that such is 2,243
the resulting version in effect prior to the effective date of 2,244
this act.