As Reported by the Senate Insurance, Commerce and Labor Committee 1
122nd General Assembly 4
Regular Session Sub. S. B. No. 154 5
1997-1998 6
SENATORS NEIN-GILLMOR-SUHADOLNIK-RAY 8
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A B I L L
To amend sections 1751.38, 3901.021, 3905.02, 12
3905.06, 3905.07, 3905.08, 3905.18, 3905.20, 13
3905.27, 3905.30, 3905.40, 3905.48, 3905.486, 14
3905.49, 3905.99, 3913.40, 3921.33, 3923.121,
3931.101, 3931.11, 3941.02, 953.21, 3953.23, 15
3960.11, and 4745.01; to amend, for the purpose
of adopting a new section number as indicated in 17
parentheses, section 3905.02 (3905.03); to enact 18
new sections 3905.01, 3905.011, 3905.02, and 19
3905.481 and sections 3905.012, 3905.013,
3905.491, 3905.492, 3905.54, and 3905.55; and to 20
repeal sections 3905.01, 3905.011, 3905.03,
3905.05, 3905.481, and 3905.482 of the Revised 21
Code to revise the Insurance Agents Law; to 22
specify that a fraternal benefit society 23
organized under the laws of another state and 24
admitted to transact business in Ohio may become
a domestic insurer; to provide that an insurer is 26
not prohibited from transferring its domicile to
Ohio because its charter or bylaws contain 27
characteristics of both a mutual and stock
insurance company; and, if Am. Sub. H.B. 248 of 28
the 122nd General Assembly is enacted, to 29
supersede sections 3905.49 and 3905.491 of the
Revised Code as they result from that act. 30
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 32
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Section 1. That sections 1751.38, 3901.021, 3905.02, 34
3905.06, 3905.07, 3905.08, 3905.18, 3905.20, 3905.27, 3905.30, 35
3905.40, 3905.48, 3905.486, 3905.49, 3905.99, 3913.40, 3921.33, 36
3923.121, 3931.101, 3931.11, 3941.02, 3953.21, 3953.23, 3960.11, 38
and 4745.01 be amended; section 3905.02 (3905.03) be amended for 39
the purpose of adopting a new section number as indicated in 40
parentheses; and new sections 3905.01, 3905.011, 3905.02, and 41
3905.481 and sections 3905.012, 3905.013, 3905.491, 3905.492, 42
3905.54, and 3905.55 of the Revised Code be enacted to read as 43
follows:
Sec. 1751.38. (A) As used in this section, "agent" means 53
a person appointed by a health insuring corporation to engage in 54
the solicitation or enrollment of subscribers or enrollees. 55
(B) Agents of health insuring corporations shall be 58
licensed pursuant to section 3905.01 3905.02 or 3905.18 of the 59
Revised Code. 61
(C) Sections 3905.01, 3905.03, 3905.05 3905.02, 3905.16 to 64
3905.18, 3905.181, 3905.19, 3905.23, 3905.40, 3905.41, 3905.42, 65
3905.46 to 3905.48, 3905.481, 3905.482, 3905.486, 3905.49, 66
3905.491, 3905.492, 3905.50, 3905.71 to 3905.79, and 3905.99 of 68
the Revised Code shall apply to health insuring corporations and 69
the agents of health insuring corporations in the same manner in 70
which these sections apply to insurers and agents of insurers. 71
Sec. 3901.021. Two-thirds THREE-FOURTHS of all APPOINTMENT 80
AND OTHER fees collected under section 3905.01, division (E) of 82
section 3905.18, and division (A)(6) of section 3905.26 CHAPTER 84
3905. of the Revised Code shall be paid into the state treasury 86
to the credit of the department of insurance operating fund, 87
which is hereby created. The remaining one-third ONE-FOURTH 88
shall be credited to the general revenue fund. If the 89
superintendent of insurance is authorized by the controlling 90
board to increase the fees pursuant to section 3905.011 of the 92
Revised Code, the board may also direct that an amount equal to 93
the increase, up to three-fourths of all fees collected after the 94
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increase pursuant to section 3905.011 of the Revised Code, shall 96
be credited to the department of insurance operating fund, with 97
the remaining portion to be credited to the general revenue fund. 98
All operating expenses of the department of insurance except 99
those expenses defined under section 3901.07 of the Revised Code 100
shall be paid from the department of insurance operating fund. 101
Sec. 3905.01. (A) NO PERSON SHALL PROCURE AN APPLICATION 104
OR QUOTE PREMIUMS FOR, DISCUSS COVERAGES OF, OR SOLICIT, 105
NEGOTIATE, EFFECT, PROCURE, PLACE, WRITE, DELIVER, RENEW, OR 106
BIND, A POLICY OF INSURANCE THROUGH ANY MEDIUM FOR RISKS 107
RESIDING, LOCATED, OR TO BE PERFORMED IN THIS STATE, UNLESS THE 108
PERSON IS LICENSED BY THE SUPERINTENDENT OF INSURANCE IN 109
ACCORDANCE WITH THIS CHAPTER. 110
(B) DIVISION (A) OF THIS SECTION DOES NOT APPLY TO ANY OF 114
THE FOLLOWING PERSONS:
(1) AN INSURER AS DEFINED IN SECTION 3901.32 OF THE 116
REVISED CODE;
(2) ANY PERSON WHO FURNISHES INFORMATION REGARDING GROUP 118
INSURANCE, ENROLLS INDIVIDUALS IN GROUP INSURANCE PLANS, ISSUES 119
CERTIFICATES UNDER SUCH PLANS, OR OTHERWISE ASSISTS IN 120
ADMINISTERING SUCH PLANS, IF NO COMMISSION OR OTHER FORM OF 121
COMPENSATION RELATED TO PREMIUM OR SALES VOLUME IS PAID FOR SUCH 122
SERVICES; 123
(3) ANY EMPLOYEE OF A CREDITOR WITH RESPECT TO INSURANCE 125
PRODUCTS MADE AVAILABLE ONLY IN CONNECTION WITH A CREDIT 127
TRANSACTION, INCLUDING CREDIT LIFE INSURANCE, CREDIT DISABILITY 128
OR ACCIDENT AND HEALTH INSURANCE, CREDIT PROPERTY INSURANCE,
MORTGAGE LIFE INSURANCE, MORTGAGE ACCIDENT AND HEALTH INSURANCE, 129
INVOLUNTARY UNEMPLOYMENT INSURANCE, INDIVIDUAL LIFE INSURANCE, 130
AND INDIVIDUAL DISABILITY OR ACCIDENT AND HEALTH INSURANCE, IF 131
THE ENTIRE PREMIUM IS FINANCED AS PART OF THE CREDIT TRANSACTION 132
AND THE FOLLOWING CONDITIONS ARE MET:
(a) IF THE INSURANCE PRODUCT IS AN INDIVIDUAL LIFE 134
INSURANCE POLICY, A LICENSED AGENT IS RESPONSIBLE FOR THE 135
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INSURANCE TRANSACTION.
(b) IF THE EMPLOYEE OF THE CREDITOR IS PAID BY THE 137
INSURANCE AGENT OR BY THE INSURANCE COMPANY, THE EMPLOYEE HOLDS A 138
LIMITED AUTHORITY LICENSE. 139
FOR PURPOSES OF DIVISION (B)(3) OF THIS SECTION, "CREDIT 141
PROPERTY INSURANCE" MEANS INSURANCE COVERING RISKS OF LOSS, 142
DAMAGE, AND DESTRUCTION OF PROPERTY USED AS SECURITY FOR A CREDIT 143
TRANSACTION, WHICH INSURANCE MAY ALSO COVER OTHER PROPERTY THAT 145
IS MERELY INCIDENTAL TO THE PROPERTY USED AS SECURITY FOR THE 147
CREDIT TRANSACTION.
(4) ANY EMPLOYER, OR OFFICER OR EMPLOYEE OF AN EMPLOYER, 150
TO THE EXTENT THAT THE EMPLOYER, OFFICER, OR EMPLOYEE IS ENGAGED 151
IN THE ADMINISTRATION OR OPERATION OF ANY EMPLOYEE BENEFITS 152
PROGRAM INVOLVING THE USE OF INSURANCE FOR THE EMPLOYER'S 153
EMPLOYEES OR THE EMPLOYEES OF A SUBSIDIARY OR AFFILIATE OF THE 154
EMPLOYER, PROVIDED THAT THE EMPLOYER, OFFICER, OR EMPLOYEE IS NOT 156
COMPENSATED, EITHER DIRECTLY OR INDIRECTLY, IN ANY MANNER BY AN 157
INSURANCE AGENT OR BY THE INSURANCE COMPANY ISSUING THE
INSURANCE; 158
(5) AN ADJUSTER EMPLOYED BY OR REPRESENTING AN INSURER IN 161
THE ADJUSTMENT OF CLAIMS OR A PUBLIC INSURANCE ADJUSTER HOLDING A 162
CERTIFICATE OF AUTHORITY ISSUED UNDER CHAPTER 3951. OF THE 164
REVISED CODE WHEN PERFORMING THE DUTIES OF A PUBLIC INSURANCE 166
ADJUSTER.
(C) DIVISION (A) OF THIS SECTION DOES NOT APPLY TO ANY OF 170
THE FOLLOWING ACTIVITIES WHEN PERFORMED BY AN EMPLOYEE OF, AND AT 171
THE DIRECTION OF, AN INSURER OR LICENSED INSURANCE AGENT: 172
(1) THE ACCEPTANCE OF PREMIUMS OTHER THAN THE INITIAL 174
PREMIUM; 175
(2) THE GATHERING OF INFORMATION, SUCH AS NAMES, 177
ADDRESSES, EXPIRATION DATES OF CURRENT INSURANCE, AND NAMES OF 178
CURRENT INSURERS; 179
(3) THE SETTING OF APPOINTMENTS FOR INSURANCE AGENTS, 181
PROVIDED THAT THE PERSON SETTING THE APPOINTMENT DOES NOT 182
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COMMUNICATE ANY INFORMATION ABOUT INSURANCE; 183
(4) THE PROVISION OF INFORMATION ABOUT EXISTING INSURANCE 185
POLICIES ISSUED BY OR THROUGH THE EMPLOYEE'S EMPLOYER, IF THE 186
INFORMATION IS NOT PROVIDED AS PART OF A SOLICITATION; 187
(5) THE PERFORMANCE OF CLERICAL OR MINISTERIAL DUTIES. 190
(D) THE SUPERINTENDENT MAY ADOPT RULES IN ACCORDANCE WITH 193
CHAPTER 119. OF THE REVISED CODE TO SET FORTH THE SPECIFIC ACTS 196
THAT COMPRISE ANY OF THE ACTIVITIES DESCRIBED IN THIS SECTION, 197
THE PERFORMANCE OF WHICH EITHER REQUIRES OR DOES NOT REQUIRE 199
LICENSURE AS AN AGENT.
Sec. 3905.011. (A) AS USED IN THIS SECTION AND SECTIONS 202
3905.012 AND 3905.013 OF THE REVISED CODE, "INSURER" HAS THE SAME 204
MEANING AS IN SECTION 3901.32 OF THE REVISED CODE. 207
(B) ANY PERSON THAT IS LICENSED AS AN AGENT UNDER SECTION 210
3905.02 OR 3905.18 OF THE REVISED CODE IS ELIGIBLE TO BE 212
APPOINTED BY ONE OR MORE INSURERS AUTHORIZED TO DO BUSINESS IN 213
THIS STATE. 214
(C)(1) PRIOR TO APPOINTING AN AGENT, AN INSURER SHALL 217
CERTIFY TO THE SUPERINTENDENT OF INSURANCE, IN ACCORDANCE WITH 218
RULES ADOPTED BY THE SUPERINTENDENT UNDER SECTION 3905.013 OF THE 219
REVISED CODE, THAT THE PERSON IS COMPETENT, FINANCIALLY 221
RESPONSIBLE, AND SUITABLE TO REPRESENT THE INSURER. 222
(2) NO AGENT SHALL REPRESENT TO THE PUBLIC THAT THE AGENT 224
HAS AUTHORITY TO REPRESENT A PARTICULAR INSURER UNTIL THE INSURER 226
HAS ACKNOWLEDGED THAT AUTHORITY BY APPOINTMENT OF THE AGENT IN 227
ACCORDANCE WITH DIVISION (C)(1) OF THIS SECTION. 228
(D)(1) NO INSURER SHALL PAY A COMMISSION, FEE, OR OTHER 231
TYPE OF CONSIDERATION, OR GIVE ANY OTHER THING OF VALUE, TO A 232
PERSON THAT IS REQUIRED TO BE LICENSED BY THE SUPERINTENDENT 233
UNDER THIS CHAPTER FOR THE SALE OF, OR FOR ANY DIRECT OR INDIRECT 234
CONNECTION WITH THE SALE OF, ANY INSURANCE SOLD BY OR ON BEHALF 235
OF THE INSURER, BUT IS NOT SO LICENSED.
(2) NOTHING IN THIS SECTION PROHIBITS AN INSURER FROM 237
ENTERING INTO A COMPENSATION AGREEMENT WITH A CREDITOR WITH 238
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RESPECT TO INSURANCE PRODUCTS MADE AVAILABLE ONLY IN CONNECTION 240
WITH A CREDIT TRANSACTION, INCLUDING CREDIT LIFE INSURANCE,
CREDIT DISABILITY OR ACCIDENT AND HEALTH INSURANCE, CREDIT 241
PROPERTY INSURANCE, MORTGAGE LIFE INSURANCE, MORTGAGE ACCIDENT 242
AND HEALTH INSURANCE, INVOLUNTARY UNEMPLOYMENT INSURANCE, 243
INDIVIDUAL LIFE INSURANCE, AND INDIVIDUAL DISABILITY OR ACCIDENT 244
AND HEALTH INSURANCE, IF THE ENTIRE PREMIUM IS FINANCED AS PART 245
OF THE CREDIT TRANSACTION. FOR PURPOSES OF DIVISION (D)(2) OF 246
THIS SECTION, "CREDIT PROPERTY INSURANCE" HAS THE SAME MEANING AS 247
IN DIVISION (B)(3) OF SECTION 3905.01 OF THE REVISED CODE.
Sec. 3905.012. (A)(1) EXCEPT AS PROVIDED IN DIVISION 251
(A)(2) OF THIS SECTION, ANY PERSON LICENSED AS AN AGENT UNDER 252
SECTION 3905.02 OR 3905.18 OF THE REVISED CODE, OR APPOINTED AS A 254
SOLICITOR UNDER SECTION 3905.03 OF THE REVISED CODE, MAY AT ANY 257
TIME SURRENDER ANY OR ALL LICENSES HELD BY THE PERSON. 258
(2) NO AGENT SHALL SURRENDER THE AGENT'S LICENSES IF THE 261
SUPERINTENDENT OF INSURANCE IS INVESTIGATING ANY ALLEGATION OF 262
WRONGDOING BY THE AGENT OR HAS INITIATED PROCEEDINGS UNDER 263
CHAPTER 119. OF THE REVISED CODE AND NOTICE OF AN OPPORTUNITY FOR
A HEARING HAS BEEN ISSUED TO THE AGENT, AND ANY ATTEMPT TO SO 264
SURRENDER IS INVALID.
(B)(1) IF AN INSURER OR AGENT CANCELS THE APPOINTMENT OF 267
AN AGENT OR SOLICITOR DUE TO SUSPECTED FRAUD, MISREPRESENTATION, 268
THEFT, CONVERSION, OR ANY OTHER CULPABLE MISAPPROPRIATION, THE 269
INSURER OR AGENT SHALL PROMPTLY NOTIFY THE SUPERINTENDENT. THE 270
NOTICE SHALL INCLUDE A COMPLETE STATEMENT OF THE FACTS AND THE 271
REASONS FOR THE CANCELLATION. 272
(2) IN THE ABSENCE OF FRAUD OR ACTUAL MALICE, AN INSURER 274
OR AGENT IS IMMUNE FROM ANY CIVIL LIABILITY THAT OTHERWISE MIGHT 275
BE INCURRED OR IMPOSED AS A RESULT OF ANY ACTION TAKEN BY THE 276
INSURER OR AGENT TO COMPLY WITH DIVISION (B)(1) OF THIS SECTION. 278
(C) IF AN AGENT'S LICENSE IS SURRENDERED, REVOKED, OR 280
SUSPENDED, ALL APPOINTMENTS HELD BY THE AGENT ARE VOID. IF A NEW 282
LICENSE IS ISSUED TO THAT PERSON OR IF THAT PERSON'S PREVIOUS 283
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LICENSE IS REINSTATED, ANY APPOINTMENT OF THE PERSON TO REPRESENT 284
AN INSURER OR AGENT MUST BE MADE IN ACCORDANCE WITH THE 285
REQUIREMENTS OF THIS CHAPTER.
(D) THE SUPERINTENDENT MAY SUSPEND OR REVOKE A LICENSE, OR 288
TAKE ANY OTHER DISCIPLINARY ACTION AUTHORIZED BY THIS CHAPTER, 289
REGARDLESS OF WHETHER THE PERSON IS APPOINTED OR OTHERWISE 290
AUTHORIZED TO REPRESENT AN INSURER OR AGENT. 291
Sec. 3905.013. (A) THE SUPERINTENDENT OF INSURANCE MAY 294
ADOPT RULES IN ACCORDANCE WITH CHAPTER 119. OF THE REVISED CODE 297
FOR PURPOSES OF IMPLEMENTING SECTIONS 3905.01 TO 3905.03 AND 298
3905.18 OF THE REVISED CODE, INCLUDING RULES THAT DO THE 301
FOLLOWING:
(1) SET FORTH REQUIREMENTS AND PROCEDURES FOR THE ISSUANCE 304
OF AN AGENT'S LICENSE;
(2) PROVIDE FOR THE ISSUANCE OF A LIMITED AUTHORITY 307
LICENSE FOR A SPECIFIC LINE OF INSURANCE AND FOR THE APPOINTMENT
OF SUCH A LICENSEE, AND SET FORTH ANY PRELICENSING EDUCATION, 309
EXAMINATION, OR CONTINUING EDUCATION REQUIREMENTS THE
SUPERINTENDENT CONSIDERS APPROPRIATE FOR THE LICENSE; 310
(3) SET FORTH THE CIRCUMSTANCES UNDER WHICH THE 313
SUPERINTENDENT OR THE SUPERINTENDENT'S DESIGNEE MAY REFUSE TO
ISSUE AN AGENT'S LICENSE TO AN APPLICANT. NOTWITHSTANDING 315
CHAPTER 119. OF THE REVISED CODE, AN OPPORTUNITY FOR A HEARING 318
SHALL NOT BE GRANTED TO SUCH AN APPLICANT UNTIL THE
SUPERINTENDENT HAS CONDUCTED AN INVESTIGATION OF THE MATTER. 320
(4) ESTABLISH PROCEDURES FOR CERTIFYING AN INSURER'S 322
APPOINTMENT OF AN AGENT; 323
(5) ESTABLISH PROCEDURES FOR THE SURRENDER OF LICENSES OR 326
APPOINTMENTS.
(B) THE SUPERINTENDENT MAY DIRECT LICENSEES TO PAY ANY 329
FEES TO ANY CONTRACTED VENDOR.
Sec. 3905.02. (A) AN APPLICANT FOR A LICENSE AS AN OTHER 332
THAN LIFE INSURANCE AGENT SHALL SUBMIT AN APPLICATION FOR SUCH A 333
LICENSE TO THE SUPERINTENDENT OF INSURANCE. THE APPLICATION 335
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SHALL BE ON A FORM FURNISHED BY THE SUPERINTENDENT AND BE 336
ACCOMPANIED BY A STATEMENT UNDER OATH BY THE APPLICANT WHICH 337
GIVES THE APPLICANT'S NAME, AGE, RESIDENCE, PRESENT OCCUPATION, 338
OCCUPATION FOR THE FIVE YEARS NEXT PRECEDING THE DATE OF THE 339
APPLICATION, AND SUCH OTHER INFORMATION AS THE SUPERINTENDENT MAY 340
REQUIRE.
THE APPLICANT SHALL ALSO REQUEST A CRIMINAL RECORDS CHECK 342
CONDUCTED BY THE SUPERINTENDENT OF THE BUREAU OF CRIMINAL 344
IDENTIFICATION AND INVESTIGATION IN ACCORDANCE WITH SECTION
109.572 OF THE REVISED CODE, AND DIRECT THAT THE BUREAU'S WRITTEN 346
RESPONSE TO THAT REQUEST BE TRANSMITTED TO THE SUPERINTENDENT OF 347
INSURANCE, OR TO THE SUPERINTENDENT'S DESIGNEE, AS SPECIFIED ON 348
THE FORM PRESCRIBED PURSUANT TO THAT SECTION. IF THE 349
SUPERINTENDENT OF INSURANCE OR THE SUPERINTENDENT'S DESIGNEE
FAILS TO RECEIVE THE BUREAU'S RESPONSE TO THE APPLICANT'S REQUEST 351
FOR A CRIMINAL RECORDS CHECK, THE SUPERINTENDENT MAY REFUSE TO 352
ISSUE A LICENSE UNDER THIS SECTION. THE APPLICANT SHALL PAY ANY 353
FEE REQUIRED BY THE BUREAU FOR CONDUCTING THE CRIMINAL RECORDS 354
CHECK.
AN APPLICANT FOR A LICENSE SHALL SUBMIT TO AN EXAMINATION 357
AS TO THE QUALIFICATIONS SET FORTH IN DIVISION (B) OF THIS 358
SECTION. 359
(B) THE SUPERINTENDENT OF INSURANCE SHALL ISSUE TO AN 362
APPLICANT A LICENSE THAT STATES IN SUBSTANCE THAT THE PERSON IS 363
AUTHORIZED TO DO THE BUSINESS OF AN OTHER THAN LIFE INSURANCE 364
AGENT IN THIS STATE, IF THE SUPERINTENDENT IS SATISFIED THAT THE 365
APPLICANT IS A SUITABLE PERSON AND INTENDS TO HOLD SELF OUT IN 366
GOOD FAITH AS AN AGENT; THAT THE APPLICANT IS HONEST, 367
TRUSTWORTHY, AND UNDERSTANDS THE DUTIES AND OBLIGATIONS OF AN 368
AGENT, AND IS FAMILIAR WITH THE INSURANCE LAWS OF THIS STATE AND 369
WITH THE TERMS AND PROVISIONS OF THE POLICIES AND CONTRACTS OF 370
INSURANCE THE APPLICANT PROPOSES TO EFFECT; THAT IN APPLYING FOR 371
THE LICENSE IT IS NOT THE APPLICANT'S PURPOSE OR INTENTION 372
PRINCIPALLY TO SOLICIT OR PLACE INSURANCE ON THE APPLICANT'S OWN 373
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PROPERTY OR THAT OF RELATIVES, EMPLOYERS, OR EMPLOYEES OR THAT 374
FOR WHICH THEY OR THE APPLICANT IS AGENT, CUSTODIAN, VENDOR, 375
BAILEE, TRUSTEE, OR PAYEE; AND THAT THE APPLICANT HAS COMPLETED 376
THE EDUCATIONAL REQUIREMENTS SET FORTH IN SECTION 3905.48 OF THE 377
REVISED CODE.
THE SUPERINTENDENT MAY SUSPEND, REVOKE, REFUSE TO CONTINUE, 380
OR REFUSE TO ISSUE SUCH A LICENSE AS PROVIDED IN SECTION 3905.49 381
OF THE REVISED CODE. UNLESS REVOKED OR SUSPENDED BY THE 383
SUPERINTENDENT OR SURRENDERED BY THE AGENT, SUCH A LICENSE
CONTINUES IN FORCE FOR THE LIFE OF THE AGENT, IN THE CASE OF AN 384
INDIVIDUAL, OR UNTIL THE CORPORATION, PARTNERSHIP, OR LIMITED 385
LIABILITY COMPANY CEASES TO EXIST. 386
(C)(1) EACH INSURANCE COMPANY SHALL CERTIFY TO THE 389
SUPERINTENDENT OF INSURANCE BEFORE THE THIRTIETH DAY OF JUNE EACH 390
YEAR THE NAMES AND ADDRESSES OF THE AGENTS FOR WHOM IT REQUESTS 391
APPOINTMENTS OR THE CONTINUANCE OF APPOINTMENTS. ALL DOMESTIC, 392
FOREIGN, AND ALIEN COMPANIES SHALL PAY TO THE SUPERINTENDENT A 393
FEE OF TWENTY DOLLARS FOR EVERY SUCH APPOINTMENT WHEN ISSUED AND 394
FOR EACH CONTINUANCE THEREAFTER. SUCH AN APPOINTMENT, UNLESS 395
CANCELED BY THE INSURANCE COMPANY, MAY BE CONTINUED IN FORCE PAST 397
THE THIRTIETH DAY OF JUNE NEXT AFTER ITS ISSUE AND AFTER THE 398
THIRTIETH DAY OF JUNE OF EACH SUCCEEDING YEAR PROVIDED THAT THE 400
APPOINTEE IS LICENSED AND IS ELIGIBLE FOR THE APPOINTMENT. 401
(2) AN INSURANCE COMPANY SHALL BE BOUND BY THE ACTS OF THE 404
PERSON NAMED IN THE APPOINTMENT WITHIN THAT PERSON'S APPARENT 405
AUTHORITY AS ITS AGENT.
(3) DIVISION (C) OF THIS SECTION DOES NOT APPLY TO LIFE 408
INSURANCE COMPANIES, INCLUDING FRATERNALS, NOR TO DOMESTIC MUTUAL 409
PROTECTIVE ASSESSMENT FIRE ASSOCIATIONS AS DEFINED IN SECTION 410
3939.01 OF THE REVISED CODE. 412
(D) THE SUPERINTENDENT OF INSURANCE MAY PRESCRIBE THE 415
FORMS TO BE USED AS EVIDENCE OF THE ISSUANCE OF LICENSES AND 416
APPOINTMENTS UNDER THIS SECTION AND MAY ISSUE ONE OR MORE 417
CERTIFICATES, IN A FORM SUITABLE FOR OFFICE DISPLAY, TO COVER ANY 418
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NUMBER OF INSURANCE COMPANIES WITH WHICH AN AGENT HAS 419
APPOINTMENTS.
(E)(1) THE SUPERINTENDENT OF INSURANCE SHALL NOT ISSUE OR 422
CONTINUE THE LICENSE OF A CORPORATION, PARTNERSHIP, OR LIMITED 423
LIABILITY COMPANY ORGANIZED UNDER THE LAWS OF THIS OR ANY OTHER 424
STATE UNLESS THE CORPORATION, PARTNERSHIP, OR LIMITED LIABILITY 425
COMPANY IS QUALIFIED TO DO BUSINESS IN THIS STATE UNDER THE 426
APPLICABLE PROVISIONS OF TITLE XVII OF THE REVISED CODE. 430
(2) THE FAILURE OF A CORPORATION, PARTNERSHIP, OR LIMITED 433
LIABILITY COMPANY TO BE IN GOOD STANDING WITH THE SECRETARY OF 434
STATE OR TO MAINTAIN A VALID APPOINTMENT OF STATUTORY AGENT IS 435
GROUNDS FOR SUSPENSION OR REVOCATION OF ITS LICENSE. 436
(3) BY APPLYING FOR A LICENSE AS AN AGENT UNDER THIS 438
SECTION, AN INDIVIDUAL, CORPORATION, PARTNERSHIP, OR LIMITED 439
LIABILITY COMPANY CONSENTS TO THE JURISDICTION OF THE COURTS OF 440
THIS STATE. 441
Sec. 3905.02 3905.03. (A) Any agent authorized and 450
licensed as provided in section 3905.01 3905.02 of the Revised 452
Code, and representing APPOINTED TO REPRESENT one or more 454
insurance corporations within this state, may employ APPOINT as 456
many solicitors as the agent desires to represent the agent and
the agent's agency, but such THE solicitors shall not represent 457
themselves, by advertisement or otherwise, as agents of insurance 459
companies for which their employer may be the authorized agent, 460
and such THE solicitors shall in all instances represent 461
themselves only as solicitors for said THE agent. Upon 462
EACH AGENT THAT EMPLOYS A PERSON AS A SOLICITOR SHALL 465
CERTIFY TO THE SUPERINTENDENT OF INSURANCE THAT THE PERSON IS 466
COMPETENT, FINANCIALLY RESPONSIBLE, AND SUITABLE TO REPRESENT THE 467
AGENT. UPON written notice by any such agent that the agent has 469
employed such a person as a solicitor, the superintendent of 470
insurance shall issue to the solicitor a license AN APPOINTMENT 471
in the form prepared by the superintendent, if the superintendent 473
is satisfied that: 474
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(1) The applicant SOLICITOR is a suitable person and 476
intends to hold self out in good faith as a solicitor;. 478
(2) The applicant SOLICITOR is honest and trustworthy;. 481
(3) The applicant SOLICITOR has training or instruction in 483
the business and understands the duties and obligations of a 484
solicitor;. 485
(4) The applicant SOLICITOR IS LICENSED UNDER SECTION 487
3905.02 OF THE REVISED CODE, is familiar with the insurance laws, 489
and IS FAMILIAR with the provisions of the policies and contracts 490
of insurance the applicant SOLICITOR proposes to solicit;. 492
(5) In applying for such license it IT is not appointee's 495
THE SOLICITOR'S purpose or intention principally to solicit or 496
place insurance on appointee's THE SOLICITOR'S own property or 497
that of relatives, employers, or employees or that for which they 499
or the appointee SOLICITOR is agent, custodian, vendor, bailee, 501
trustee, or payee. Notice
(6) ON AND AFTER JULY 1, 1987, THE SOLICITOR HAS COMPLETED 505
THE PRELICENSING EDUCATIONAL REQUIREMENTS SET FORTH IN SECTION 506
3905.48 OF THE REVISED CODE. 508
NOTICE shall be upon a form furnished by the superintendent 512
and shall be accompanied by a statement under oath by the 513
solicitor which shall give GIVES the applicant's SOLICITOR'S 514
name, age, residence, present occupation, the applicant's 517
SOLICITOR'S occupation for the five years next preceding the date 518
of the notice, the kinds of insurance for which the applicant 519
SOLICITOR wishes license to solicit, and such other information 521
as the superintendent requires, upon a blank furnished by the 522
superintendent.
(6) On and after July 1, 1987, the applicant has completed 524
the pre-licensing educational requirements set forth in section 525
3905.48 of the Revised Code. 526
(B) If such appointee THE SOLICITOR within the preceding 528
two years has not been appointed as a licensed IN THIS STATE AS 530
AN insurance solicitor or has not had an appointment as a 532
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licensed insurance solicitor continued by an insurance agent 533
licensed in this state FOR OTHER THAN LIFE INSURANCE UNDER 534
SECTION 3905.02 OF THE REVISED CODE, the appointee SOLICITOR 535
shall submit to a hearing and AN examination as to the 536
qualifications set forth in divisions (A)(1) to (5) of this 538
section.
(C) For the purpose of licensing solicitors, insurance 540
shall be considered as of three classes: fire insurance, 541
including marine and inland transportation; casualty insurance; 542
and surety insurance. A solicitor who did not hold a license as 543
solicitor prior to January 1, 1967, may be licensed APPOINTED 544
only if the solicitor is qualified for the same class or classes 547
of insurance for which the agent employing the solicitor is 548
licensed. Each solicitor's license shall state the class or 550
classes A SOLICITOR MAY SOLICIT ONLY THOSE LINES OF INSURANCE for 551
which issued and no BOTH THE solicitor shall be licensed for AND 552
the same kind of insurance by more than one APPOINTING agent ARE 554
LICENSED. Unless such license NO SOLICITOR SHALL BE APPOINTED BY 556
MORE THAN ONE AGENT. 557
UNLESS THE SOLICITOR'S LICENSE is revoked or suspended by 560
the superintendent or unless the agent by written notice to the 561
superintendent cancels the solicitor's authority as such
solicitor, or unless such license is canceled by the 562
superintendent upon written notice from the solicitor that the 563
solicitor's authority has been canceled by the agent, such 564
license and any other license issued to a solicitor APPOINTMENT 565
may, in the discretion of the superintendent, and at the request 567
of the agent who employs the solicitor and the payment of the 568
required fee, be continued past the thirtieth day of June next 569
after its issue and after the thirtieth day of June each 570
succeeding year. Each agent shall certify, to the superintendent 571
of insurance, before the thirtieth day of June each year, the 572
names and addresses of the solicitors the agent has employed 573
during the preceding year, indicating those for whom the agent 574
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wishes licenses APPOINTMENTS to be continued. 575
The agent giving written notice shall pay to the 577
superintendent a fee of twenty dollars for every such license 578
APPOINTMENT and for each continuance thereof. The issuance of a 580
solicitor's license APPOINTMENT shall be limited to a natural 581
person who is a resident of this state or to a natural person who 584
is employed by a licensed resident agent and is conducting 585
business only from within this state.
The superintendent may suspend or revoke such a license as 587
provided in section 3905.482 of the Revised Code, and may 588
suspend, revoke, refuse to continue or renew, or refuse to issue 589
such a license as provided in section 3905.49 of the Revised 590
Code.
Sec. 3905.06. Sections 3905.01 to 3905.06 of the Revised 599
Code do not apply to companies or associations transacting the 600
business of life insurance or their agent or to associations 602
organized and operating under sections 3939.01 to 3939.09 of the 603
Revised Code.
Sec. 3905.07. No person shall act in this state as special 612
representative, state agent, field representative, state, 613
district, or local manager, or in any similar capacity by 614
whatever title designated, unless the person is licensed by the 615
superintendent of insurance. Upon written notice by an insurance 616
company authorized to transact business in this state of its 617
employment of a person to act as such representative and that the 618
person's duties are to appoint, supervise, or dismiss agents, to 619
aid them in soliciting, negotiating, and receiving applications 620
of and handling orders for insurance, and to aid the employer 621
generally in the transaction of its business in this state, but 622
not to solicit insurance on that person's own behalf, the 623
superintendent shall issue a license as special representative to 624
such THE person. Such THE license shall state in substance that 626
the company is authorized to do business in this state and that 627
the person named therein IN THE LICENSE is a constituted special 629
14
representative of the company in this state in the transaction of 630
such business within the person's apparent authority as the 631
company is authorized to transact therein. If such THE special 632
representative signs policies for the company, the special 634
representative must qualify as an agent under section 3905.01 635
3905.02 of the Revised Code. Unless the company, by written 636
notice to the superintendent, cancels the special 637
representative's authority to act for it, such license may, in 638
the discretion of the superintendent and at the request of the 639
company and payment of the required fee, be continued past the 640
thirtieth day of June next after issue and the thirtieth day of 641
June of each succeeding year. Each company shall pay a fee of 642
five dollars for each such license and each continuance thereof. 643
Sec. 3905.08. If it appears from the written notice given 652
to the superintendent of insurance pursuant to sections 3905.01, 653
3905.02, and 3905.18 of the Revised Code that the appointment 655
APPLICATION of any person to act as an agent, or the employment 657
of any person to act as a solicitor, is only for the purpose of 659
having such agent or such solicitor procure PROCURING, receive 661
RECEIVING, or forward FORWARDING applications for insurance 663
against accidents to or sickness of persons, or on the health of
individuals and against personal injury, disablement, or death 664
resulting from traveling or general accidents by land and water, 665
then the scope of any hearing or examination, or questions in any 666
application for license, as provided for in any of said THOSE 667
sections, shall be limited to that type of insurance only. If 669
any such person appointed as agent or employed as a solicitor is 670
otherwise qualified under said THOSE sections, the superintendent 671
shall issue to such THE person an appropriate agent's or 672
solicitor's license bearing an imprint across its face "accident 674
and health insurance license." Such license only entitles the 675
holder to procure applications for such insurance and forward the 676
same to the company or agent that he THE HOLDER is licensed 678
APPOINTED to represent. Such sections apply to any person 679
15
appointed as an agent or employed as a solicitor, except to the 680
extent that they are modified and amended by this section. No 681
agent or solicitor licensed under this section shall procure, 682
receive, or forward applications for any kind of insurance except 683
the kinds enumerated in this section. Any violation of this 684
section, by any AN agent or solicitor licensed under this section 686
is cause for the revocation of said THE license and any other 688
licenses issued by the superintendent to said THE agent or 689
solicitor. 690
The acceptance by any insurance company from any AN agent 692
licensed under this section, or the acceptance by any insurance 694
agent, whether licensed under this or any other section of the 696
Revised Code, from any solicitor licensed under this section, of 697
an application for any kind of insurance except the kinds
enumerated in this section, is cause for the revocation of the 698
license of said THE company or agent and for the revocation of 700
any other licenses issued by the superintendent to said THE 702
company or agent.
Sec. 3905.18. (A) Upon written notice by AN APPLICANT FOR 711
A LICENSE AS a life insurance company authorized to transact 713
business in this state of its appointment of a person to act as 714
its agent in this state, and upon issuance of the certificate 715
verified by an executive officer or managing agent thereof, that 716
such company has investigated the character and record of such 717
person and satisfied itself that he is trustworthy and qualified 718
to act as its agent, and that he has completed the educational 720
requirements set forth in section 3905.48 of the Revised Code, 721
SHALL SUBMIT TO the superintendent of insurance shall, on receipt 723
of such certification, furnish to the agent an application for AN 724
agent's license, which shall contain such questions touching the 725
applicant's fitness to be licensed as an agent as the 726
superintendent determines. If such appointee within the 728
preceding two years has not been appointed as a licensed life 729
insurance agent or has not had his appointment as a licensed life 731
16
insurance agent continued by an insurance company authorized to 732
transact business in this state, the appointee THE APPLICATION 733
SHALL BE ACCOMPANIED BY A STATEMENT UNDER OATH BY THE APPLICANT 736
THAT GIVES THE APPLICANT'S NAME, AGE, RESIDENCE, PRESENT 737
OCCUPATION, OCCUPATION FOR THE FIVE YEARS NEXT PRECEDING THE DATE 738
OF THE APPLICATION, AND SUCH OTHER INFORMATION AS THE 739
SUPERINTENDENT MAY REQUIRE.
THE APPLICANT SHALL ALSO REQUEST A CRIMINAL RECORDS CHECK 741
CONDUCTED BY THE SUPERINTENDENT OF THE BUREAU OF CRIMINAL 743
IDENTIFICATION AND INVESTIGATION IN ACCORDANCE WITH SECTION
109.572 OF THE REVISED CODE, AND DIRECT THAT THE BUREAU'S WRITTEN 745
RESPONSE TO THAT REQUEST BE TRANSMITTED TO THE SUPERINTENDENT OF 746
INSURANCE, OR TO THE SUPERINTENDENT'S DESIGNEE, AS SPECIFIED ON 747
THE FORM PRESCRIBED PURSUANT TO THAT SECTION. IF THE 748
SUPERINTENDENT OF INSURANCE OR THE SUPERINTENDENT'S DESIGNEE
FAILS TO RECEIVE THE BUREAU'S RESPONSE TO THE APPLICANT'S REQUEST 750
FOR A CRIMINAL RECORDS CHECK, THE SUPERINTENDENT MAY REFUSE TO 751
ISSUE A LICENSE UNDER THIS SECTION. THE APPLICANT SHALL PAY ANY 752
FEE REQUIRED BY THE BUREAU FOR CONDUCTING THE CRIMINAL RECORDS 753
CHECK.
AN APPLICANT FOR A LICENSE shall submit to an examination 758
as to his THE APPLICANT'S knowledge of life and sickness and 759
accident insurance and the laws of this state governing his 760
activities as a life insurance agent. Unless 761
(B) UNLESS it appears that the appointee APPLICANT is not 766
of good reputation and character, is not a trustworthy person, is 767
not suitable to be licensed, or has not completed such THE 768
educational requirements SET FORTH IN SECTION 3905.48 OF THE 769
REVISED CODE, the superintendent OF INSURANCE shall issue to him 770
THE APPLICANT a license which shall state, in substance, that the 772
company PERSON is authorized to do THE business OF A LIFE 774
INSURANCE AGENT in this state, and that the person named therein 776
is a constituted agent of the company in this state for the 777
transaction of such business. Each notice and certificate shall 778
17
be upon forms furnished by the superintendent and shall be 779
accompanied by a statement under oath by the appointee which 780
shall give his name, age, residence, present occupation, 782
occupation for the five years next preceding the date of the 783
notice, and such other information as the superintendent
requires, upon a blank furnished by him. 784
(B) The superintendent may suspend or revoke such a 786
license as provided in section 3905.482 of the Revised Code, and 787
may suspend, revoke, refuse to continue or renew, or refuse to 788
issue such a license as provided in section 3905.49 of the 789
Revised Code. Every such UNLESS REVOKED OR SUSPENDED BY THE 790
SUPERINTENDENT OR SURRENDERED BY THE AGENT, SUCH A LICENSE 791
CONTINUES IN FORCE FOR THE LIFE OF THE AGENT, IN THE CASE OF AN 792
INDIVIDUAL, OR UNTIL THE CORPORATION, PARTNERSHIP, OR LIMITED 793
LIABILITY COMPANY CEASES TO EXIST.
EACH insurance company shall, upon the termination of the 796
employment APPOINTMENT of any such agent, forthwith file with the 798
superintendent a statement of the termination of such employment 799
THE APPOINTMENT.
(C) Upon written notice by a life insurance company 801
authorized to transact business in this state of its appointment 802
of a corporation, PARTNERSHIP, OR LIMITED LIABILITY COMPANY to 803
act as its agent in this state, the superintendent of insurance 805
shall furnish such THE corporation, PARTNERSHIP, OR LIMITED 806
LIABILITY COMPANY with an application for agent's license which 807
shall contain such questions as will enable the superintendent to 808
determine that such THE corporation, PARTNERSHIP, OR LIMITED 809
LIABILITY COMPANY was organized for the purpose of acting as an 810
insurance agent,; that each employee of such THE corporation, 812
PARTNERSHIP, OR LIMITED LIABILITY COMPANY who will negotiate for, 813
place, or renew policies or agreements of life insurance on 814
behalf of such THE corporation, PARTNERSHIP, OR LIMITED LIABILITY 815
COMPANY has been issued a life insurance agent's license pursuant 816
to division (A) of this section; that the voting shares of such 817
18
corporation are beneficially owned by natural persons who are 818
residents of this state; that such THE corporation, PARTNERSHIP, 819
OR LIMITED LIABILITY COMPANY and such THE life insurance company 821
have executed a written agreement whereby the rights and duties 822
of each are set forth; and that in applying for such THE license 823
it is not the appointee's purpose or intention principally to 825
solicit or place insurance on the lives of the appointee's 826
officers, employees, or shareholders, or the lives of relatives 827
of such officers, employees, or shareholders, or upon the lives 828
of persons for whom they, their relatives, or the appointee is 829
agent, custodian, vendor, bailee, trustee, or payee. Unless it 830
appears that such THE corporation, PARTNERSHIP, OR LIMITED 832
LIABILITY COMPANY was not organized for such purpose or that each 833
such employee has not been so licensed or that the voting shares 834
of such corporation are not so beneficially owned or that such a 835
written agreement has not been executed, the superintendent shall 836
issue to such THE corporation, PARTNERSHIP, OR LIMITED LIABILITY 837
COMPANY a license which shall state STATES, in substance, that 838
such THE corporation, PARTNERSHIP, OR LIMITED LIABILITY COMPANY 839
is a life insurance agent. 840
(D) If the superintendent of insurance, at any time 842
subsequent to the issuance of a life insurance agent's license to 843
a corporation, PARTNERSHIP, OR LIMITED LIABILITY COMPANY, finds 844
that such THE corporation, PARTNERSHIP, OR LIMITED LIABILITY 846
COMPANY has ceased to have as its purpose acting as an insurance 847
agent or that each employee of such THE corporation, PARTNERSHIP, 848
OR LIMITED LIABILITY COMPANY who negotiates for, places, or 849
renews policies or agreements of life insurance on behalf of such 851
THE corporation, PARTNERSHIP, OR LIMITED LIABILITY COMPANY has 852
not been issued a life insurance agent's license or that the 853
voting shares of such corporation are not beneficially owned by 854
natural persons who are residents of this state or that the 855
principal use of such THE license has been to solicit, place, or 857
effect insurance on the lives of the appointee's officers, 858
19
employees, or shareholders, or on the lives of the relatives of 859
such officers, employees, or shareholders, or upon the lives of 860
persons for whom they, or their relatives, or the appointee is 861
agent, custodian, vendor, bailee, trustee, or payee, or for any 862
other cause shown he, THE SUPERINTENDENT may after hearing revoke 864
the life insurance agent's license issued to such THE 866
corporation, PARTNERSHIP, OR LIMITED LIABILITY COMPANY or suspend 867
such THE license until such condition as he THE SUPERINTENDENT 868
finds existing ceases to exist. The finding of the 871
superintendent, either in refusing to grant a license or in 872
revoking a license, shall be in writing, and shall state the 873
facts upon which his THE action is based. The action of the 875
superintendent in granting, revoking, continuing, or refusing to 876
grant, revoke, or continue such THE license, shall be subject to 878
review in accordance with Chapter 119. of the Revised Code. 879
(E) Unless THE AGENT'S LICENSE IS revoked OR SUSPENDED by 881
the superintendent OF INSURANCE, or unless the company by written 883
notice to the superintendent cancels the agent's authority to act 884
for it, a life insurance agent's license, and any other license 885
issued to an agent APPOINTMENT may, in the discretion of the 887
superintendent and at the request of the company and payment of 888
the required fee, be continued past the thirtieth day of June 889
next after its issue and after the thirtieth day of June in each 890
succeeding year. Except as provided in section 3905.011 of the 891
Revised Code, all ALL domestic, foreign, and alien companies 893
shall pay a fee of twenty dollars for every such license 894
APPOINTMENT and for each continuance thereafter. While such 896
license AN APPOINTMENT remains in force, a foreign company shall 898
be bound by the acts of the person named therein IN THE 899
APPOINTMENT, within his THE PERSON'S APPARENT authority as its 902
acknowledged agent.
(F) The superintendent OF INSURANCE may prescribe the 904
forms to be used as evidence of the issuance of licenses AND 905
APPOINTMENTS under this section and may issue one or more 907
20
certificates, in a form suitable for office display, to cover any 908
number of insurance companies with which an agent is licensed HAS 909
APPOINTMENTS.
(G)(1) THE SUPERINTENDENT OF INSURANCE SHALL NOT ISSUE OR 912
CONTINUE THE LICENSE OF A CORPORATION, PARTNERSHIP, OR LIMITED 913
LIABILITY COMPANY ORGANIZED UNDER THE LAWS OF THIS OR ANY OTHER 914
STATE UNLESS THE CORPORATION, PARTNERSHIP, OR LIMITED LIABILITY 915
COMPANY IS QUALIFIED TO DO BUSINESS IN THIS STATE UNDER THE 916
APPLICABLE PROVISIONS OF TITLE XVII OF THE REVISED CODE. 920
(2) THE FAILURE OF A CORPORATION, PARTNERSHIP, OR LIMITED 923
LIABILITY COMPANY TO BE IN GOOD STANDING WITH THE SECRETARY OF 924
STATE OR TO MAINTAIN A VALID APPOINTMENT OF STATUTORY AGENT IS 925
GROUNDS FOR SUSPENSION OR REVOCATION OF ITS LICENSE. 926
(3) BY APPLYING FOR A LICENSE AS AN AGENT UNDER THIS 928
SECTION, AN INDIVIDUAL, CORPORATION, PARTNERSHIP, OR LIMITED 929
LIABILITY COMPANY CONSENTS TO THE JURISDICTION OF THE COURTS OF 930
THIS STATE. 931
Sec. 3905.20. (A) Any person licensed as a life insurance 940
agent for a life insurance company authorized to deliver or issue 941
for delivery in this state SHALL, UPON SATISFACTORY COMPLETION OF 943
AN EXAMINATION AS TO THE PERSON'S KNOWLEDGE OF policies, 945
annuities, or AND other contracts providing variable or fixed and 946
variable benefits or contractual payments ISSUED BY LIFE 947
INSURANCE COMPANIES pursuant to section 3911.011 of the Revised 948
Code shall, upon written application of such company, 949
satisfactory completion of an examination as to his knowledge of 951
such policies, annuities, and contracts and the nature thereof, 952
payment of the required fee, and compliance with the 953
pre-licensing PRELICENSING educational requirements of section 954
3905.48 of the Revised Code, be licensed by the superintendent of 956
insurance as a variable contract agent. 957
(B) The superintendent may suspend or revoke such a 959
license as provided in section 3905.482 of the Revised Code, and 960
may suspend, revoke, refuse to continue or renew, or refuse to 961
21
issue such a license as provided in section 3905.49 of the 962
Revised Code. Revocation of such THE person's license as a life 963
insurance agent or failure to renew such license is cause for 964
revoking such THE person's license as a variable contract agent. 965
Every such UNLESS REVOKED OR SUSPENDED BY THE SUPERINTENDENT OR 966
SURRENDERED BY THE AGENT, A VARIABLE CONTRACT AGENT'S LICENSE 967
CONTINUES IN FORCE FOR THE LIFE OF THE AGENT. 968
EACH LIFE insurance company shall, upon termination of the 970
employment APPOINTMENT of any such person as a variable contract 971
agent, forthwith file with the superintendent a statement of the 973
termination of such employment THE APPOINTMENT. 974
(C) Any corporation, PARTNERSHIP, OR LIMITED LIABILITY 976
COMPANY licensed as a life insurance agent for AND APPOINTED BY a 978
life insurance company authorized to deliver or issue for 980
delivery in this state policies, annuities, or other contracts 981
providing variable or fixed and variable benefits or contractual 982
payments pursuant to section 3911.011 of the Revised Code, may, 983
upon written application of such company and upon a proper 984
showing that all of such THE corporation's, PARTNERSHIP'S, OR 986
LIMITED LIABILITY COMPANY'S employees who will negotiate for, 987
place, or renew any such policies, annuities, or contracts on 988
behalf of such THE corporation, PARTNERSHIP, OR LIMITED LIABILITY 989
COMPANY have been issued licenses as variable contract agents 991
pursuant to division (A) of this section, be licensed by the 992
superintendent of insurance as a variable contract agent. 993
(D) The superintendent of insurance may, for cause shown 995
and after hearing, revoke the variable contract agent's license 996
issued to such corporation, PARTNERSHIP, OR LIMITED LIABILITY 997
COMPANY, or suspend such THE license until such condition as he 1,000
THE SUPERINTENDENT finds existing ceases to exist. The 1,001
revocation or suspension of such THE corporation's, 1,002
PARTNERSHIP'S, OR LIMITED LIABILITY COMPANY'S license as a life 1,003
insurance agent or failure to renew such license shall be cause 1,005
for revoking or suspending, as the case may be, such THE 1,006
22
corporation's, PARTNERSHIP'S, OR LIMITED LIABILITY COMPANY'S 1,007
license as a variable contract agent. The finding of the 1,008
superintendent, either in refusing to grant a license or in 1,009
revoking a license, shall be in writing and state the facts upon 1,010
which his THE SUPERINTENDENT'S action is based. The action of 1,011
the superintendent in granting, revoking, continuing, or refusing 1,013
to grant, revoke, or continue such license, shall be subject to 1,014
review in accordance with Chapter 119. of the Revised Code. 1,015
(E) Unless revoked or suspended by the superintendent OR 1,017
SURRENDERED BY THE CORPORATION, PARTNERSHIP, OR LIMITED LIABILITY 1,018
COMPANY, or unless the company by written notice to the 1,019
superintendent cancels the agent's authority to act for it, a 1,020
variable contract agent's license, and any other license issued 1,021
to an agent may, in the discretion of the superintendent and at 1,022
the request of the company and payment of the required fee, be 1,023
CONTINUES IN FORCE UNTIL THE CORPORATION, PARTNERSHIP, OR LIMITED 1,024
LIABILITY COMPANY CEASES TO EXIST. 1,025
(F) EACH LIFE INSURANCE COMPANY SHALL CERTIFY TO THE 1,028
SUPERINTENDENT BEFORE THE THIRTIETH DAY OF JUNE EACH YEAR THE 1,030
NAMES AND ADDRESSES OF THE VARIABLE CONTRACT AGENTS FOR WHOM IT 1,031
REQUESTS APPOINTMENTS OR THE CONTINUANCE OF APPOINTMENTS. SUCH 1,032
AN APPOINTMENT, UNLESS CANCELED BY THE INSURANCE COMPANY, MAY BE 1,033
continued IN FORCE past the thirtieth day of June next after its 1,035
issue and after the thirtieth day of June in each succeeding 1,036
year. Except as provided in section 3905.011 of the Revised 1,037
Code, all ALL domestic, foreign, and alien companies shall pay a 1,039
fee of twenty dollars for every such license APPOINTMENT WHEN 1,040
ISSUED and for each continuance thereafter. While such license 1,042
APPOINTMENT remains in force, a foreign company shall be bound by 1,045
the acts of the person named therein IN THE APPOINTMENT, within 1,046
his THE PERSON'S APPARENT authority as its authorized agent. 1,048
Sec. 3905.27. The superintendent of insurance may open an 1,057
account in the name of each insurance company authorized to do 1,058
business in this state and in the name of any authorized 1,059
23
insurance agent, and charge said THE accounts with all fees 1,060
incurred by such companies or agents in accordance with sections 1,062
3905.01, 3905.02, 3905.03, 3905.07, 3905.26, 3919.26, and 3931.03 1,063
of the Revised Code, and other statutes imposing fees. The 1,065
statutory fee for each service requested shall be charged against 1,066
the proper account forthwith upon the rendition of the service. 1,067
Not later than the tenth day of each calendar month the 1,069
superintendent shall render an itemized statement to each company 1,070
or agent whose account has been charged during the month next 1,071
preceding, showing the amount of all fees charged during said 1,072
THAT month and demanding that payment thereof be made not later 1,074
than the first day of the month next following. 1,075
The failure of any insurance company within said THAT time 1,077
to pay the amount of such fees in accordance with such THE 1,078
monthly statement, or, if said THE statement or account is found 1,079
to be incorrect, in accordance with a corrected monthly statement 1,080
rendered by the superintendent, is grounds for the revocation of 1,081
its certificate of authority to do business in this state. In 1,082
the event of such an order of revocation, the superintendent 1,083
shall forthwith cause a notice thereof to be published once in at 1,084
least one newspaper at the seat of the government and also, if a 1,085
domestic company, once in at least one newspaper published in the 1,086
county where its home office is located, or, if a foreign or 1,087
alien company, once in at least one newspaper published in a 1,088
county of this state where an agency of such THE company is 1,089
located. After the publication of such THE notice, no agent of 1,091
such THE company shall procure applications for insurance or 1,093
issue policies.
In the event of the failure of any agent within the time 1,095
fixed to pay the amount of fees charged against his THE AGENT'S 1,096
account in accordance with the monthly statement rendered by the 1,098
superintendent, such THE agent's license may be revoked in the 1,099
manner provided by sections 3905.01 3905.02 and 3905.18 of the 1,101
Revised Code. 1,102
24
Sec. 3905.30. The superintendent of insurance may issue a 1,111
surplus line broker's license to any natural person who is a 1,113
citizen of the United States and has been a resident of this OR 1,115
ANY OTHER state OR A PROVINCE OF CANADA, OR TO ANY CORPORATION, 1,116
PARTNERSHIP, OR LIMITED LIABILITY COMPANY THAT IS ORGANIZED UNDER 1,117
THE LAWS OF THIS OR ANY OTHER STATE OR A PROVINCE OF CANADA. THE 1,118
APPLICANT MUST HAVE BEEN LICENSED AS A MULTIPLE LINE AGENT for at
least two years prior to making application for the SURPLUS LINE 1,121
BROKER'S license. The applicant shall also have met the 1,122
standards and passed the test provided for the issuance of a 1,124
multiple line agent's license. A surplus line broker's license 1,125
permits the person named in the license to negotiate for and 1,126
obtain insurance, other than life insurance, on property or 1,128
persons in this state in insurers not authorized to transact 1,129
business in this state. Each such license expires on the
thirty-first day of January next after the year in which it is 1,130
issued, and may be then renewed. 1,131
Sec. 3905.40. The superintendent of insurance shall MAY 1,140
issue no A license to any person as agent of an insurance company 1,142
if such person INDIVIDUAL WHO is a resident of a ANOTHER state 1,145
which, by its laws, prohibits residents of this state from acting
as agents of insurance companies in such state; if the 1,146
superintendent is satisfied that any person holding a license as 1,147
such agent is a resident of such state, he shall revoke such 1,149
license OR A PROVINCE OF CANADA, OR TO ANY CORPORATION, 1,150
PARTNERSHIP, OR LIMITED LIABILITY COMPANY THAT IS ORGANIZED UNDER 1,151
THE LAWS OF ANOTHER STATE OR A PROVINCE OF CANADA. FOR THE 1,152
PURPOSE OF ACCORDING SUCH AN APPLICANT THE FULL PRIVILEGES OF AN 1,154
INSURANCE AGENT IN THIS STATE, THE SUPERINTENDENT SHALL ACCEPT 1,155
THE LICENSING OBLIGATIONS, PROHIBITIONS, AND REQUIREMENTS THAT 1,156
ARE IMPOSED UPON THE APPLICANT BY THE INSURANCE AUTHORITY AND 1,157
LAWS OF THE STATE OR OF THE PROVINCE OF CANADA OF WHICH THE 1,159
APPLICANT IS A RESIDENT, OR UNDER WHICH THE APPLICANT IS
ORGANIZED, AS SATISFYING THE LICENSING OBLIGATIONS, PROHIBITIONS, 1,161
25
AND REQUIREMENTS OF THIS STATE, EXPECT FOR THOSE OBLIGATIONS, 1,162
PROHIBITIONS, AND REQUIREMENTS IMPOSED UNDER SECTION 3905.41 OF 1,163
THE REVISED CODE. 1,164
FOR PURPOSES OF THIS SECTION, THE LICENSING REQUIREMENTS 1,167
THAT MUST BE ACCEPTED BY THE SUPERINTENDENT INCLUDE THE 1,168
REQUIREMENTS FOR PRE-LICENSING AND CONTINUING EDUCATION OF THE 1,169
OTHER STATE OR PROVINCE.
Sec. 3905.48. (A) On and after July 1, 1987, no NO 1,178
person, unless the person has complied with division (B) of this 1,179
section, shall be permitted to take an examination for a license 1,181
as an agent or solicitor to engage in the sale of any of the 1,182
following types of insurance: 1,183
(1) Life insurance, annuity contracts, variable annuity 1,185
contracts, and variable life insurance; 1,186
(2) Sickness and accident insurance; 1,188
(3) All lines of property and casualty insurance; 1,190
(4) All other lines of insurance for which an examination 1,192
is required for licensing, except title insurance. 1,193
(B) No person shall be permitted to take an examination 1,195
described in division (A) of this section unless either of the 1,196
following applies: 1,197
(1) The person has earned a bachelor's or associate's 1,199
degree in insurance in an accredited institution; 1,200
(2) The person has been granted a diploma for successfully 1,202
completing a high school curriculum under section 3313.61 of the 1,203
Revised Code or a certificate of high school equivalence under 1,204
rule 3301-41-1 of the Administrative Code, or been granted a 1,205
comparable diploma or certificate by another state, and has 1,206
successfully completed at least forty hours of study in a program 1,207
of insurance education approved by the superintendent of 1,208
insurance in consultation with the insurance agent education 1,209
advisory council under criteria established by the 1,210
superintendent. 1,211
Sec. 3905.481. (A) ANY PERSON WHO IS LICENSED AS AN AGENT 1,214
26
AND WHO COMPLETES CONTINUING EDUCATION OFFERED IN A COURSE OR 1,216
PROGRAM OF STUDY APPROVED BY THE SUPERINTENDENT OF INSURANCE, OR
THE SUPERINTENDENT'S DESIGNEE, IN CONSULTATION WITH THE INSURANCE 1,217
AGENT EDUCATION ADVISORY COUNCIL MAY REQUEST THE SUPERINTENDENT, 1,218
OR THE SUPERINTENDENT'S DESIGNEE, TO PROVIDE A WRITTEN 1,219
CERTIFICATION OF THE COMPLETION OF SUCH EDUCATION. THE 1,220
CERTIFICATION SHALL NAME THE ENTITY THAT DEVELOPED OR SPONSORED 1,221
THE COURSE OR PROGRAM OF STUDY COMPLETED BY THE PERSON, DESCRIBE 1,222
THE SUBJECT OF THE EDUCATION, SET FORTH THE NUMBER OF HOURS OF 1,224
EDUCATION THE PERSON SUCCESSFULLY COMPLETED, AND PROVIDE ANY 1,225
OTHER INFORMATION NECESSARY FOR THE PERSON TO DEMONSTRATE 1,226
COMPLIANCE WITH THE CONTINUING EDUCATION REQUIREMENTS OF ANOTHER 1,227
STATE.
(B) THE SUPERINTENDENT SHALL ADOPT RULES IN ACCORDANCE 1,230
WITH CHAPTER 119. OF THE REVISED CODE TO CARRY OUT THE PURPOSES 1,232
OF DIVISION (A) OF THIS SECTION. IN ADOPTING SUCH RULES, THE 1,233
SUPERINTENDENT SHALL CONSIDER ANY RECOMMENDATIONS MADE BY THE 1,234
INSURANCE AGENT EDUCATION ADVISORY COUNCIL.
Sec. 3905.486. The superintendent of insurance shall adopt 1,243
rules in accordance with Chapter 119. of the Revised Code to 1,244
carry out the purposes of sections 3905.48 AND 3905.483 to 1,245
3905.486 of the Revised Code. In adopting any rules, the 1,246
superintendent shall consider any recommendations made by the 1,247
insurance agent education advisory council. 1,248
Sec. 3905.49. (A) AS USED IN THIS SECTION: 1,258
(1) "INSURER" HAS THE SAME MEANING AS IN SECTION 3901.32 1,261
OF THE REVISED CODE. 1,262
(2) "REFUSAL TO ISSUE OR RENEW" MEANS THE DECISION OF THE 1,265
SUPERINTENDENT OF INSURANCE NOT TO PROCESS EITHER THE INITIAL 1,266
APPLICATION FOR A LICENSE AS AN AGENT OR THE RENEWAL OF SUCH A 1,267
LICENSE.
(3) "REVOCATION" MEANS THE PERMANENT TERMINATION OF ALL 1,270
AUTHORITY TO HOLD ANY LICENSE AS AN AGENT IN THIS STATE.
(4) "SURRENDER FOR CAUSE" MEANS THE VOLUNTARY TERMINATION 1,273
27
OF ALL AUTHORITY TO HOLD ANY LICENSE AS AN AGENT IN THIS STATE, 1,274
IN LIEU OF A REVOCATION OR SUSPENSION ORDER. 1,275
(5) "SUSPENSION" MEANS THE TERMINATION OF ALL AUTHORITY TO 1,278
HOLD ANY LICENSE AS AN AGENT IN THIS STATE, FOR EITHER A 1,279
SPECIFIED PERIOD OF TIME OR AN INDEFINITE PERIOD OF TIME AND 1,280
UNDER ANY TERMS OR CONDITIONS DETERMINED BY THE SUPERINTENDENT. 1,281
(B) The superintendent of insurance may suspend, revoke, 1,285
refuse to continue or renew, or refuse to issue OR RENEW any 1,286
license as an agent, SURPLUS LINE BROKER, or solicitor LIMITED 1,287
INSURANCE REPRESENTATIVE, OR IMPOSE ANY OTHER SANCTION AUTHORIZED 1,288
under this chapter, if the superintendent finds any FOR one or 1,290
more of the following REASONS: 1,291
(1) The person has made a false OBTAINING OR ATTEMPTING TO 1,294
OBTAIN ANY LICENSE OR APPOINTMENT THROUGH MISREPRESENTATION OR 1,295
FRAUD, INCLUDING MAKING ANY MATERIALLY UNTRUE statement with 1,297
respect to a material matter in the license AN application FOR A 1,298
LICENSE OR APPOINTMENT; 1,299
(2) Any cause for which issuance of the license could have 1,301
been refused had it existed and been known to the superintendent 1,302
at the time of issuance; 1,303
(3) The person has violated VIOLATING or failed FAILING to 1,306
comply with any insurance law or any lawful, rule, SUBPOENA, 1,307
CONSENT AGREEMENT, or order of the superintendent or the 1,309
commissioner of insurance of another state;
(4) The person has obtained or attempted to obtain any 1,311
such license through mispresentation or fraud; 1,312
(5) The person has improperly withheld, misappropriated,; 1,314
(3) MISAPPROPRIATING or converted CONVERTING to the 1,317
person's own use any moneys belonging to policyholders, insurers 1,319
PROSPECTIVE POLICYHOLDERS, beneficiaries, INSURANCE COMPANIES, or 1,320
others received in the course of the person's insurance business; 1,321
(4) FAILING TO TIMELY SUBMIT AN APPLICATION FOR INSURANCE. 1,324
FOR PURPOSES OF DIVISION (B)(4) OF THIS SECTION, A SUBMISSION IS 1,326
CONSIDERED TIMELY IF IT OCCURS WITHIN THE TIME PERIOD EXPRESSLY 1,327
28
PROVIDED FOR BY THE INSURER, OR WITHIN SEVEN DAYS AFTER THE AGENT 1,328
ACCEPTS A PREMIUM OR AN ORDER TO BIND FROM A POLICYHOLDER OR 1,329
APPLICANT, WHICHEVER IS LATER.
(6) The person has knowingly misrepresented (5) KNOWINGLY 1,332
MISREPRESENTING the terms, BENEFITS, VALUE, COST, OR EFFECTIVE 1,333
DATES of any actual or proposed insurance policy or contract; 1,334
(7) The person has been (6) BEING convicted of a felony. 1,337
If a person has been convicted of a felony based on evidence of 1,339
acts or omissions related to the insurance business, the 1,340
superintendent shall revoke any license issued to such person for 1,341
a period of not less than two years. If the person did not hold 1,342
a license at the time of the conviction, no license shall be 1,343
issued to the person for a period of two years after the date of 1,344
the conviction.; 1,345
(8) The person is guilty of (7) BEING CONVICTED OF A 1,347
MISDEMEANOR THAT INVOLVES THE MISUSE OR THEFT OF MONEY OR 1,349
PROPERTY BELONGING TO ANOTHER, FRAUD, FORGERY, DISHONEST ACTS, OR 1,350
BREACH OF A FIDUCIARY DUTY, OR THAT IS BASED ON ANY ACT OR 1,351
OMISSION RELATING TO THE BUSINESS OF INSURANCE, SECURITIES, OR 1,352
FINANCIAL SERVICES;
(9)(8) COMMITTING an unfair or deceptive trade act OR 1,356
practice or fraud under any section of Title XXXIX of the Revised 1,357
Code OR ANY RULE ADOPTED THEREUNDER;
(9) In the conduct of the person's affairs under a 1,359
license, the person has used fraudulent, coercive, or dishonest 1,360
practices, or is incompetent, untrustworthy, or financially 1,361
irresponsible; 1,362
(10) The person's HAVING AN INSURANCE license has been 1,364
suspended or revoked in any other state, province, district, or 1,366
territory;
(11) The person has forged (10) FORGING OR CAUSING THE 1,368
FORGERY OF another's name to ANY DOCUMENT RELATED TO OR USED IN 1,370
an application for insurance TRANSACTION; 1,371
(12) The person has cheated (11) POSSESSING OR USING ANY 1,374
29
UNAUTHORIZED MATERIALS DURING A LICENSING OR CONTINUING EDUCATION 1,375
EXAMINATION OR CHEATING on an A LICENSING OR CONTINUING EDUCATION 1,376
examination for an insurance license 1,377
(B) The license of a partnership or corporation may be 1,379
suspended, revoked, or refused if the superintendent finds, after 1,380
notice and hearing under Chapter 119. of the Revised Code, that 1,381
an individual licensee's violation was known or should have been 1,382
known by one or more of the partners, officers, directors, or 1,383
managers acting on behalf of the partnership or corporation and 1,384
such violation was not reported to the department of insurance or 1,385
corrective action taken in relation to the violation; 1,386
(12) FAILING TO DISCLOSE TO AN APPLICANT FOR INSURANCE OR 1,389
POLICYHOLDER UPON ACCEPTING A PREMIUM OR AN ORDER TO BIND 1,390
COVERAGE FROM THE APPLICANT OR POLICYHOLDER, THAT THE PERSON HAS 1,391
NOT BEEN APPOINTED AS AGENT BY THE INSURER AND IS NOT AN 1,392
APPOINTED SOLICITOR OF AN APPOINTED AGENT;
(13) HAVING ANY PROFESSIONAL LICENSE SUSPENDED OR REVOKED 1,395
AS A RESULT OF A MISHANDLING OF FUNDS OR BREACH OF FIDUCIARY 1,396
RESPONSIBILITIES; 1,397
(14) CAUSING OR PERMITTING A POLICYHOLDER OR APPLICANT FOR 1,400
INSURANCE TO DESIGNATE THE PERSON OR THE PERSON'S SPOUSE, PARENT, 1,401
CHILD, OR SIBLING AS THE BENEFICIARY OF A POLICY OR ANNUITY SOLD 1,402
BY THE PERSON, UNLESS THE PERSON OR A RELATIVE OF THE PERSON IS 1,403
THE INSURED OR APPLICANT;
(15) FAILING TO PROVIDE A WRITTEN RESPONSE TO THE 1,405
DEPARTMENT OF INSURANCE WITHIN THIRTY DAYS AFTER RECEIPT OF ANY 1,407
WRITTEN INQUIRY FROM THE DEPARTMENT;
(16) FAILING TO NOTIFY THE SUPERINTENDENT OF ANY CHANGE IN 1,410
THE PERSON'S ADDRESS, WITHIN THIRTY DAYS AFTER THE CHANGE OCCURS, 1,412
AS REQUIRED BY SECTION 3905.54 OF THE REVISED CODE;
(17) TRANSFERRING OR PLACING INSURANCE WITH AN INSURER 1,414
OTHER THAN THE INSURER EXPRESSLY CHOSEN BY THE APPLICANT FOR 1,415
INSURANCE OR POLICYHOLDER WITHOUT THE PRIOR CONSENT OF THE 1,416
APPLICANT OR POLICYHOLDER OR ABSENT EXTENUATING CIRCUMSTANCES; 1,417
30
(18) ENGAGING IN ANY FRAUDULENT OR COERCIVE PRACTICE IN 1,420
CONNECTION WITH THE BUSINESS OF INSURANCE;
(19) FAILING TO INFORM A POLICYHOLDER OR APPLICANT FOR 1,422
INSURANCE OF THE IDENTITY OF THE INSURER OR INSURERS, OR THE 1,423
IDENTITY OF ANY OTHER INSURANCE AGENT, GENERAL AGENT, SURPLUS 1,424
LINE BROKER, OR LICENSEE KNOWN TO BE INVOLVED IN PROCURING, 1,425
PLACING, OR CONTINUING THE INSURANCE FOR THE POLICYHOLDER OR 1,426
APPLICANT, UPON THE BINDING OF THE COVERAGE; 1,427
(20) IN THE CASE OF AN AGENT THAT IS A CORPORATION, 1,429
LIMITED LIABILITY COMPANY, OR PARTNERSHIP, FAILING TO REPORT AN 1,430
INDIVIDUAL LICENSEE'S VIOLATION TO THE DEPARTMENT WHEN THE 1,431
VIOLATION WAS KNOWN OR SHOULD HAVE BEEN KNOWN BY ONE OR MORE OF 1,432
THE PARTNERS, OFFICERS, MANAGERS, OR MEMBERS OF THE CORPORATION, 1,433
LIMITED LIABILITY COMPANY, OR PARTNERSHIP; 1,434
(21) SUBMITTING OR USING A DOCUMENT IN THE CONDUCT OF THE 1,437
BUSINESS OF INSURANCE WHEN THE PERSON KNEW OR SHOULD HAVE KNOWN 1,438
THAT THE DOCUMENT CONTAINED THE FORGED SIGNATURE OF ANOTHER 1,439
PERSON;
(22) MISREPRESENTING THE PERSON'S QUALIFICATIONS OR USING 1,442
IN ANY WAY A PROFESSIONAL DESIGNATION THAT HAS NOT BEEN CONFERRED 1,443
UPON THE PERSON BY THE APPROPRIATE ACCREDITING ORGANIZATION; 1,444
(23) OBTAINING A PREMIUM LOAN OR CAUSING A PREMIUM LOAN TO 1,447
BE MADE TO OR IN THE NAME OF AN INSURED WITHOUT THAT PERSON'S 1,448
KNOWLEDGE AND WRITTEN AUTHORIZATION;
(24) FAILING TO NOTIFY THE SUPERINTENDENT OF ANY 1,450
DISCIPLINARY ACTION TAKEN BY THE INSURANCE AUTHORITY OF ANOTHER 1,451
STATE, WITHIN SIXTY DAYS AFTER THE ACTION WAS TAKEN, AS REQUIRED 1,453
BY SECTION 3905.54 OF THE REVISED CODE;
(25) FAILING TO FILE ANY OF THE REPORTS OR NOTICES 1,455
REQUIRED UNDER THIS CHAPTER; 1,456
(26) SUBMITTING AN APPLICATION FOR INSURANCE, OR CAUSING 1,459
THE ISSUANCE OF AN INSURANCE POLICY OR CONTRACT, ON BEHALF OF AN 1,460
APPLICANT WHO DID NOT REQUEST OR AUTHORIZE THE INSURANCE. 1,461
DIVISION (B)(26) OF THIS SECTION DOES NOT APPLY TO ANY POLICY 1,462
31
ISSUED BY AN OTHER THAN LIFE INSURANCE COMPANY.
(27) USING PAPER, SOFTWARE, OR ANY OTHER MATERIALS OF OR 1,465
PROVIDED BY AN INSURER AFTER THE INSURER HAS TERMINATED THE
AUTHORITY OF THE LICENSEE, IF THE USE OF SUCH MATERIALS WOULD 1,466
CAUSE A REASONABLE PERSON TO BELIEVE THAT THE LICENSEE WAS ACTING 1,468
ON BEHALF OF OR OTHERWISE REPRESENTING THE INSURER; 1,469
(28) PROVIDING MISLEADING, DECEPTIVE, OR UNTRUE 1,471
INFORMATION TO AN APPLICANT FOR INSURANCE OR A POLICYHOLDER 1,472
REGARDING A PARTICULAR INSURANCE AGENT, COMPANY, OR PRODUCT; 1,474
(29) SOLICITING, PROCURING AN APPLICATION FOR, OR PLACING, 1,477
EITHER DIRECTLY OR INDIRECTLY, ANY INSURANCE POLICY WHEN THE 1,478
PERSON IS NOT AUTHORIZED UNDER THIS CHAPTER TO ENGAGE IN SUCH 1,479
ACTIVITY;
(30) SOLICITING, MARKETING, OR SELLING ANY PRODUCT OR 1,481
SERVICE THAT OFFERS BENEFITS SIMILAR TO INSURANCE BUT IS NOT 1,482
REGULATED BY THE SUPERINTENDENT, WITHOUT FULLY DISCLOSING TO THE 1,483
PROSPECTIVE PURCHASER THAT THE PRODUCT OR SERVICE IS NOT 1,484
INSURANCE AND IS NOT REGULATED BY THE SUPERINTENDENT; 1,485
(31) FAILING TO FULFILL A REFUND OBLIGATION IN A TIMELY 1,487
MANNER. FOR PURPOSES OF DIVISION (B)(31) OF THIS SECTION, A 1,489
REBUTTABLE PRESUMPTION EXISTS THAT A REFUND OBLIGATION IS NOT 1,490
FULFILLED IN A TIMELY MANNER UNLESS IT IS FULFILLED WITHIN ONE OF 1,491
THE FOLLOWING TIME PERIODS: 1,492
(a) THIRTY DAYS AFTER THE DATE THE POLICYHOLDER, 1,495
APPLICANT, OR INSURER TAKES OR REQUESTS ACTION RESULTING IN A 1,496
REFUND;
(b) THIRTY DAYS AFTER THE DATE OF THE INSURER'S REFUND 1,499
CHECK, IF THE AGENT IS EXPECTED TO ISSUE A PORTION OF THE TOTAL 1,500
REFUND;
(c) FORTY-FIVE DAYS AFTER THE DATE OF THE AGENT'S 1,503
STATEMENT OF ACCOUNT ON WHICH THE REFUND FIRST APPEARS. 1,504
(C) Before denying, revoking, suspending, or refusing to 1,506
continue or renew ISSUE any license or imposing any penalty under 1,508
this section OR SECTION 3905.482 OF THE REVISED CODE, the 1,509
32
superintendent shall provide THE LICENSEE OR APPLICANT WITH 1,511
notice and an opportunity for hearing, under AS PROVIDED IN 1,512
Chapter 119. of the Revised Code, to the licensee or applicant 1,514
and any insurer represented by the licensee or applicant EXCEPT 1,516
AS FOLLOWS:
(1)(a) ANY NOTICE OF OPPORTUNITY FOR HEARING, THE HEARING 1,518
OFFICER'S FINDINGS AND RECOMMENDATIONS, OR THE SUPERINTENDENT'S 1,520
ORDER SHALL BE SERVED BY CERTIFIED MAIL AT THE LAST KNOWN ADDRESS 1,521
OF THE LICENSEE OR APPLICANT. SERVICE SHALL BE EVIDENCED BY 1,522
RETURN RECEIPT SIGNED BY ANY PERSON.
FOR PURPOSES OF THIS SECTION, THE "LAST KNOWN ADDRESS" IS 1,524
THE ADDRESS THAT APPEARS IN THE LICENSING RECORDS OF THE 1,525
DEPARTMENT OF INSURANCE.
(b) IF THE CERTIFIED MAIL ENVELOPE IS RETURNED WITH AN 1,528
ENDORSEMENT SHOWING THAT SERVICE WAS REFUSED, OR THAT THE 1,529
ENVELOPE WAS UNCLAIMED, THE NOTICE AND ALL SUBSEQUENT NOTICES
REQUIRED BY CHAPTER 119. OF THE REVISED CODE MAY BE SERVED BY 1,530
ORDINARY MAIL TO THE LAST KNOWN ADDRESS OF THE LICENSEE OR 1,531
APPLICANT. THE MAILING SHALL BE EVIDENCED BY A CERTIFICATE OF 1,532
MAILING. SERVICE IS DEEMED COMPLETE AS OF THE DATE OF SUCH 1,533
CERTIFICATE PROVIDED THAT THE ORDINARY MAIL ENVELOPE IS NOT 1,534
RETURNED BY THE POSTAL AUTHORITIES WITH AN ENDORSEMENT SHOWING 1,535
FAILURE OF DELIVERY. THE TIME PERIOD IN WHICH TO REQUEST A 1,536
HEARING, AS PROVIDED IN CHAPTER 119. OF THE REVISED CODE, BEGINS 1,539
TO RUN ON THE DATE OF MAILING. 1,540
(c) IF SERVICE BY ORDINARY MAIL FAILS, THE SUPERINTENDENT 1,543
MAY CAUSE A SUMMARY OF THE SUBSTANTIVE PROVISIONS OF THE NOTICE 1,544
TO BE PUBLISHED ONCE A WEEK FOR THREE CONSECUTIVE WEEKS IN A 1,545
NEWSPAPER OF GENERAL CIRCULATION IN THE COUNTY WHERE THE LAST 1,546
KNOWN PLACE OF RESIDENCE OR BUSINESS OF THE PARTY IS LOCATED. 1,547
THE NOTICE IS CONSIDERED SERVED ON THE DATE OF THE THIRD 1,548
PUBLICATION.
(d) ANY NOTICE REQUIRED TO BE SERVED UNDER CHAPTER 119. OF 1,551
THE REVISED CODE SHALL ALSO BE SERVED UPON THE PARTY'S ATTORNEY 1,554
33
BY ORDINARY MAIL IF THE ATTORNEY HAS ENTERED AN APPEARANCE IN THE 1,555
MATTER.
(e) THE SUPERINTENDENT MAY, AT ANY TIME, PERFECT SERVICE 1,558
ON A PARTY BY PERSONAL DELIVERY OF THE NOTICE BY AN EMPLOYEE OF 1,559
THE DEPARTMENT.
(f) NOTICES REGARDING THE SCHEDULING OF HEARINGS AND ALL 1,562
OTHER MATTERS NOT DESCRIBED IN DIVISION (C)(1)(a) OF THIS SECTION 1,564
SHALL BE SENT BY ORDINARY MAIL TO THE PARTY AND TO THE PARTY'S 1,565
ATTORNEY.
(2) ANY SUBPOENA FOR THE APPEARANCE OF A WITNESS OR THE 1,568
PRODUCTION OF DOCUMENTS OR OTHER EVIDENCE AT A HEARING, OR FOR 1,569
THE PURPOSE OF TAKING TESTIMONY FOR USE AT A HEARING, SHALL BE 1,570
SERVED BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED, BY AN
ATTORNEY OR BY AN EMPLOYEE OF THE DEPARTMENT DESIGNATED BY THE 1,571
SUPERINTENDENT. SUCH SUBPOENAS SHALL BE ENFORCED IN THE MANNER 1,572
PROVIDED IN SECTION 119.09 OF THE REVISED CODE. NOTHING IN THIS 1,575
SECTION SHALL BE CONSTRUED AS LIMITING THE SUPERINTENDENT'S OTHER 1,576
STATUTORY POWERS TO ISSUE SUBPOENAS. 1,577
(D) The IF THE superintendent DETERMINES THAT A VIOLATION 1,579
DESCRIBED IN THIS SECTION HAS OCCURRED, THE SUPERINTENDENT may 1,580
modify any order under this section and restore a license of or 1,582
issue a license to a person if the superintendent finds, after 1,583
notice and opportunity for hearing provided to affected parties, 1,584
that the person can demonstrate all DO ANY of the following: 1,585
(1) The person has made restitution for all pecuniary 1,587
losses caused by his ASSESS A CIVIL FORFEITURE IN AN AMOUNT NOT 1,588
EXCEEDING TWENTY-FIVE THOUSAND DOLLARS PER violation; 1,589
(2) The person's character and reputation have been 1,591
rehabilitated so that the person possesses the personal 1,592
qualifications required for the initial issuance of a license; 1,593
ASSESS ADMINISTRATIVE COSTS TO COVER THE EXPENSES INCURRED BY THE 1,595
DEPARTMENT IN THE ADMINISTRATIVE ACTION, INCLUDING COSTS INCURRED 1,596
IN THE INVESTIGATION AND HEARING PROCESSES. ANY COSTS COLLECTED 1,597
SHALL BE PAID INTO THE STATE TREASURY TO THE CREDIT OF THE 1,598
34
DEPARTMENT OF INSURANCE OPERATING FUND CREATED IN SECTION
3901.021 OF THE REVISED CODE. 1,600
(3) If the order was an order of revocation based on a 1,602
conviction for felony based on evidence of acts or omissions 1,603
related to the insurance business, that two years have elapsed 1,604
since the effective date of the order, or if the order was an 1,605
order denying a license because of such a conviction, that two 1,606
years have elapsed since the date of the conviction SUSPEND ALL 1,608
OF THE PERSON'S LICENSES FOR ALL LINES OF INSURANCE FOR EITHER A 1,609
SPECIFIED PERIOD OF TIME OR AN INDEFINITE PERIOD OF TIME AND 1,610
UNDER SUCH TERMS AND CONDITIONS AS THE SUPERINTENDENT MAY 1,611
DETERMINE;
(4) If required by the superintendent, the person passes 1,613
the examination required for an initial issuance of the license 1,614
PERMANENTLY REVOKE ALL OF THE PERSON'S LICENSES FOR ALL LINES OF 1,616
INSURANCE;
(5) REFUSE TO ISSUE A LICENSE; 1,618
(6) REFUSE TO RENEW A LICENSE; 1,620
(7) PROHIBIT THE PERSON FROM BEING EMPLOYED IN ANY 1,622
CAPACITY IN THE BUSINESS OF INSURANCE AND FROM HAVING ANY 1,623
FINANCIAL INTEREST IN ANY INSURANCE AGENCY, COMPANY, OR 1,624
THIRD-PARTY ADMINISTRATOR IN THIS STATE. THE SUPERINTENDENT MAY, 1,626
IN THE SUPERINTENDENT'S DISCRETION, DETERMINE THE NATURE,
CONDITIONS, AND DURATION OF SUCH RESTRICTIONS. 1,627
(8) ORDER CORRECTIVE ACTIONS IN LIEU OF OR IN ADDITION TO 1,630
THE OTHER PENALTIES LISTED IN DIVISION (D) OF THIS SECTION. SUCH 1,631
AN ORDER MAY PROVIDE FOR THE SUSPENSION OF CIVIL FORFEITURES, 1,632
LICENSE REVOCATION, LICENSE SUSPENSION, OR REFUSAL TO ISSUE OR 1,633
RENEW A LICENSE IF THE LICENSEE COMPLIES WITH THE TERMS AND 1,634
CONDITIONS OF THE CORRECTIVE ACTION ORDER. 1,635
(9) ACCEPT A SURRENDER FOR CAUSE OFFERED BY THE LICENSEE, 1,638
WHICH SHALL BE FOR AT LEAST FIVE YEARS AND SHALL PROHIBIT THE 1,639
LICENSEE FROM SEEKING ANY LICENSE AUTHORIZED UNDER THIS CHAPTER 1,640
DURING THAT TIME PERIOD. A SURRENDER FOR CAUSE MAY ALSO INCLUDE 1,641
35
A CORRECTIVE ACTION ORDER AS PROVIDED IN DIVISION (D)(8) OF THIS 1,642
SECTION.
(E) The superintendent shall MAY consider the following 1,644
standards FACTORS in denying a license, imposing suspensions, 1,645
revocations, FINES, or refusals of continuations or renewals of 1,647
licenses OTHER PENALTIES, AND ISSUING ORDERS UNDER THIS SECTION: 1,648
(1) Whether the person acted in good faith and without 1,650
knowledge of his violation and makes; 1,651
(2) WHETHER THE PERSON MADE restitution for any pecuniary 1,654
losses suffered by other persons as a result of his THE PERSON'S 1,655
actions. In such cases, the maximum suspension shall be ninety 1,656
days. 1,657
(2) Whether, within the meanings defined in section 1,659
2901.22 of the Revised Code, the person acted purposely, 1,660
knowingly, recklessly, or negligently; 1,661
(3) Whether the amount of money or the nature of the 1,663
property involved in the violation would, if it were the subject 1,664
of a criminal offense, make a theft offense a misdemeanor or a 1,665
felony THE ACTUAL HARM OR POTENTIAL FOR HARM TO OTHERS; 1,666
(4) The degree of trust placed in the person by, and the 1,668
incompetency, inexperience, or susceptibility to undue influence 1,669
or duress VULNERABILITY of, any other person involved PERSONS WHO 1,671
WERE OR COULD HAVE BEEN ADVERSELY AFFECTED BY THE PERSON'S
ACTIONS; 1,672
(5) The effect of the violation upon the perception by 1,674
insureds and insurance customers of the ethics and integrity of 1,675
the insurance industry WHETHER THE PERSON WAS THE SUBJECT OF ANY 1,676
PREVIOUS ADMINISTRATIVE ACTIONS BY THE SUPERINTENDENT; 1,677
(6) The extent to which NUMBER OF INDIVIDUALS ADVERSELY 1,679
AFFECTED BY the person's conduct departed from the customary and 1,681
usual ethical standards of persons engaged in the insurance 1,682
business ACTS OR OMISSIONS;
(7) WHETHER THE PERSON VOLUNTARILY REPORTED THE VIOLATION, 1,684
AND THE EXTENT OF THE PERSON'S COOPERATION AND ACCEPTANCE OF 1,685
36
RESPONSIBILITY; 1,686
(8) WHETHER THE PERSON OBSTRUCTED OR IMPEDED, OR ATTEMPTED 1,689
TO OBSTRUCT OR IMPEDE, THE SUPERINTENDENT'S INVESTIGATION; 1,690
(9) THE PERSON'S EFFORTS TO CONCEAL THE MISCONDUCT; 1,693
(10) REMEDIAL EFFORTS TO PREVENT FUTURE VIOLATIONS; 1,696
(11) IF THE PERSON WAS CONVICTED OF A CRIMINAL OFFENSE, 1,699
THE NATURE OF THE OFFENSE, WHETHER THE CONVICTION WAS BASED ON 1,700
ACTS OR OMISSIONS TAKEN UNDER ANY PROFESSIONAL LICENSE, WHETHER 1,701
THE OFFENSE INVOLVED THE BREACH OF A FIDUCIARY DUTY, THE AMOUNT 1,702
OF TIME THAT HAS PASSED, AND THE PERSON'S ACTIVITIES SUBSEQUENT 1,703
TO THE CONVICTION;
(12) Such other factors as the superintendent determines 1,705
to be appropriate under the circumstances. 1,706
(F)(1) A VIOLATION DESCRIBED IN DIVISION (B)(1), (2), (3), 1,709
(5), (6), (7), (8), (9), (10), (11), (12), (13), (14), (17), 1,710
(18), (19), (20), (21), (22), (23), (25), (26), (27), (28), (29), 1,712
(30), OR (31) OF THIS SECTION IS A CLASS A OFFENSE FOR WHICH THE 1,713
SUPERINTENDENT MAY IMPOSE ANY PENALTY SET FORTH IN DIVISION (D) 1,715
OF THIS SECTION.
(2) A VIOLATION DESCRIBED IN DIVISION (B)(4), (15), (16), 1,718
OR (24) OF THIS SECTION IS A CLASS B OFFENSE FOR WHICH THE 1,720
SUPERINTENDENT MAY IMPOSE ANY PENALTY SET FORTH IN DIVISION 1,722
(D)(1), (2), (8), OR (9) OF THIS SECTION. 1,723
(G) IF A VIOLATION DESCRIBED IN THIS SECTION HAS CAUSED, 1,726
IS CAUSING, OR IS ABOUT TO CAUSE SUBSTANTIAL AND MATERIAL HARM, 1,727
THE SUPERINTENDENT MAY ISSUE AN ORDER REQUIRING THAT PERSON TO 1,728
CEASE AND DESIST FROM ENGAGING IN THE VIOLATION. NOTICE OF THE 1,729
ORDER SHALL BE MAILED BY CERTIFIED MAIL, RETURN RECEIPT 1,730
REQUESTED, OR SERVED IN ANY OTHER MANNER PROVIDED FOR IN THIS 1,731
SECTION, IMMEDIATELY AFTER ITS ISSUANCE TO THE PERSON SUBJECT TO 1,732
THE ORDER AND TO ALL PERSONS KNOWN TO BE INVOLVED IN THE 1,733
VIOLATION. THE SUPERINTENDENT MAY THEREAFTER PUBLICIZE OR 1,734
OTHERWISE MAKE KNOWN TO ALL INTERESTED PARTIES THAT THE ORDER HAS 1,735
BEEN ISSUED.
37
THE NOTICE SHALL SPECIFY THE PARTICULAR ACT, OMISSION, 1,737
PRACTICE, OR TRANSACTION THAT IS SUBJECT TO THE CEASE-AND-DESIST 1,738
ORDER AND SHALL SET A DATE, NOT MORE THAN FIFTEEN DAYS AFTER THE 1,739
DATE OF THE ORDER, FOR A HEARING ON THE CONTINUATION OR 1,740
REVOCATION OF THE ORDER. THE PERSON SHALL COMPLY WITH THE ORDER 1,741
IMMEDIATELY UPON RECEIPT OF NOTICE OF THE ORDER. 1,742
THE SUPERINTENDENT MAY, UPON THE APPLICATION OF A PARTY AND 1,745
FOR GOOD CAUSE SHOWN, CONTINUE THE HEARING. CHAPTER 119. OF THE 1,746
REVISED CODE APPLIES TO SUCH HEARINGS TO THE EXTENT THAT THAT 1,749
CHAPTER DOES NOT CONFLICT WITH THE PROCEDURES SET FORTH IN THIS 1,750
SECTION. THE SUPERINTENDENT SHALL, WITHIN FIFTEEN DAYS AFTER 1,751
OBJECTIONS ARE SUBMITTED TO THE HEARING OFFICER'S REPORT AND 1,752
RECOMMENDATION, ISSUE A FINAL ORDER EITHER CONFIRMING OR REVOKING 1,753
THE CEASE-AND-DESIST ORDER. THE FINAL ORDER MAY BE APPEALED AS 1,754
PROVIDED UNDER SECTION 119.12 OF THE REVISED CODE. 1,756
THE REMEDY UNDER THIS DIVISION IS CUMULATIVE AND CONCURRENT 1,759
WITH THE OTHER REMEDIES AVAILABLE UNDER THIS SECTION.
(H) IF THE SUPERINTENDENT HAS REASONABLE CAUSE TO BELIEVE 1,762
THAT AN ORDER ISSUED UNDER THIS SECTION HAS BEEN VIOLATED IN 1,763
WHOLE OR IN PART, THE SUPERINTENDENT MAY REQUEST THE ATTORNEY 1,764
GENERAL TO COMMENCE AND PROSECUTE ANY APPROPRIATE ACTION OR 1,765
PROCEEDING IN THE NAME OF THE STATE AGAINST SUCH PERSON. 1,766
THE COURT MAY, IN AN ACTION BROUGHT PURSUANT TO THIS 1,768
DIVISION, IMPOSE ANY OF THE FOLLOWING: 1,769
(1) FOR EACH VIOLATION, A CIVIL PENALTY OF NOT MORE THAN 1,772
TWENTY-FIVE THOUSAND DOLLARS;
(2) INJUNCTIVE RELIEF; 1,774
(3) RESTITUTION; 1,776
(4) ANY OTHER APPROPRIATE RELIEF. 1,778
(I) THIS SECTION APPLIES TO BOTH RESIDENT AND NONRESIDENT 1,781
AGENTS WHO ARE LICENSED UNDER THIS CHAPTER. 1,782
(J) NOTHING IN THIS SECTION SHALL BE CONSTRUED TO CREATE 1,785
OR IMPLY A PRIVATE CAUSE OF ACTION AGAINST AN AGENT, SOLICITOR, 1,786
OR INSURER.
38
Sec. 3905.491. (A) UPON WRITTEN APPLICATION OF A PERSON 1,789
WHOSE LICENSE WAS SUSPENDED, REVOKED, OR SURRENDERED FOR CAUSE 1,790
UNDER SECTION 3905.49 OF THE REVISED CODE, THE SUPERINTENDENT OF 1,792
INSURANCE SHALL HOLD A HEARING TO DETERMINE WHETHER THE 1,793
ADMINISTRATIVE ACTION IMPOSING SUCH SUSPENSION, REVOCATION, OR 1,794
SURRENDER SHOULD BE MODIFIED, PROVIDED THAT ALL OF THE FOLLOWING 1,795
CONDITIONS ARE MET: 1,796
(1) AT LEAST FIVE YEARS HAVE ELAPSED SINCE THE DATE OF THE 1,799
ADMINISTRATIVE ACTION SOUGHT TO BE MODIFIED;
(2) AT LEAST TWO YEARS HAVE ELAPSED SINCE ANY PREVIOUS 1,801
REQUEST FOR A MODIFICATION WAS MADE UNDER THIS SECTION; 1,802
(3) THE BURDEN OF PROOF IS ON THE PERSON REQUESTING THE 1,805
MODIFICATION.
(B) THE MODIFICATION OF AN ORDER ISSUED OR CONSENT 1,808
AGREEMENT ENTERED INTO UNDER SECTION 3905.49 OF THE REVISED CODE 1,810
IS AT THE DISCRETION OF THE SUPERINTENDENT. THE SUPERINTENDENT 1,811
MAY MODIFY SUCH AN ORDER OR AGREEMENT IF THE SUPERINTENDENT FINDS 1,812
ALL OF THE FOLLOWING: 1,813
(1) AT LEAST FIVE YEARS HAVE ELAPSED SINCE THE DATE OF THE 1,816
ADMINISTRATIVE ACTION;
(2) THE PERSON IS OF GOOD BUSINESS REPUTE AND IS SUITABLE 1,819
TO BE AN INSURANCE AGENT;
(3) THE PERSON HAS MADE RESTITUTION FOR ALL PECUNIARY 1,821
LOSSES SUFFERED BY ANY PERSON AS A RESULT OF THE CONDUCT THAT 1,822
GAVE RISE TO THE ADMINISTRATIVE ACTION; 1,823
(4) THE PERSON HAS NOT BEEN CONVICTED OF ANY FELONY OR OF 1,826
ANY MISDEMEANOR DESCRIBED IN DIVISION (B)(7) OF SECTION 3905.49 1,827
OF THE REVISED CODE UNLESS THE CONVICTION WAS THE SUBJECT OF A 1,830
PREVIOUS ADMINISTRATIVE ACTION BY THE SUPERINTENDENT; 1,831
(5) THE CIRCUMSTANCES SURROUNDING THE PREVIOUS VIOLATION 1,834
ARE SUCH THAT IT IS UNLIKELY THE PERSON WOULD COMMIT SUCH 1,835
OFFENSES IN THE FUTURE;
(6) THE PERSON'S CHARACTER HAS BEEN REHABILITATED. 1,838
(C) THE ISSUANCE OF ANY LICENSE PURSUANT TO A MODIFICATION 1,841
39
UNDER THIS SECTION SHALL BE CONDITIONED UPON THE SUCCESSFUL 1,842
COMPLETION OF ALL PRELICENSING EDUCATION AND EXAMINATION 1,843
REQUIREMENTS.
Sec. 3905.492. (A)(1) ALL RECORDS AND OTHER INFORMATION 1,845
OBTAINED BY THE SUPERINTENDENT OF INSURANCE OR THE 1,846
SUPERINTENDENT'S DEPUTIES, EXAMINERS, ASSISTANTS, OR OTHER 1,847
EMPLOYEES, OR AGENTS RELATING TO AN INVESTIGATION OF AN APPLICANT 1,848
FOR LICENSURE UNDER THIS CHAPTER, OR OF AN AGENT, SOLICITOR, 1,849
BROKER, OR OTHER PERSON LICENSED UNDER THIS CHAPTER OR CHAPTER 1,850
3951., 3957., OR 3959. OF THE REVISED CODE, ARE CONFIDENTIAL AND 1,851
ARE NOT PUBLIC RECORDS AS DEFINED IN SECTION 149.43 OF THE
REVISED CODE UNTIL THE APPLICANT OR LICENSEE IS PROVIDED NOTICE 1,852
AND OPPORTUNITY FOR HEARING PURSUANT TO CHAPTER 119. OF THE 1,853
REVISED CODE WITH RESPECT TO SUCH RECORDS OR INFORMATION. IF NO 1,854
ADMINISTRATIVE ACTION IS INITIATED WITH RESPECT TO A PARTICULAR 1,855
MATTER ABOUT WHICH THE SUPERINTENDENT OBTAINED RECORDS OR OTHER
INFORMATION AS PART OF AN INVESTIGATION, ALL SUCH RECORDS AND 1,856
INFORMATION RELATING TO THAT MATTER SHALL REMAIN CONFIDENTIAL FOR 1,857
THREE YEARS AFTER THE FILE ON THE MATTER IS CLOSED. 1,859
(2) DIVISION (A)(1) OF THIS SECTION APPLIES ONLY TO 1,862
INVESTIGATIONS THAT COULD RESULT IN ADMINISTRATIVE ACTION UNDER 1,864
TITLE XVII OR XXXIX OR CHAPTER 119. OF THE REVISED CODE. 1,869
(B) THE RECORDS AND OTHER INFORMATION DESCRIBED IN 1,872
DIVISION (A) OF THIS SECTION SHALL REMAIN CONFIDENTIAL FOR ALL 1,873
PURPOSES EXCEPT WHEN IT IS APPROPRIATE FOR THE SUPERINTENDENT AND 1,874
THE SUPERINTENDENT'S DEPUTIES, EXAMINERS, ASSISTANTS, OR OTHER 1,875
EMPLOYEES, OR AGENTS TO TAKE OFFICIAL ACTION REGARDING THE 1,877
AFFAIRS OF THE APPLICANT OR LICENSEE OR IN CONNECTION WITH ACTUAL 1,878
OR POTENTIAL CRIMINAL PROCEEDINGS. 1,879
(C) EMPLOYEES OR AGENTS OF THE DEPARTMENT OF INSURANCE 1,882
SHALL NOT BE REQUIRED BY ANY COURT IN THIS STATE TO TESTIFY IN A 1,883
CIVIL ACTION, IF SUCH TESTIMONY CONCERNS ANY MATTER RELATED TO 1,884
RECORDS OR ANY OTHER INFORMATION CONSIDERED CONFIDENTIAL UNDER 1,885
THIS SECTION OF WHICH THEY HAVE KNOWLEDGE. 1,886
40
(D) THIS SECTION DOES NOT APPLY TO ANY COMPLAINT OR ACTION 1,888
UNDER SECTION 3905.04 OF THE REVISED CODE. 1,889
Sec. 3905.54. EACH AGENT LICENSED UNDER THIS CHAPTER SHALL 1,892
NOTIFY THE SUPERINTENDENT OF INSURANCE IN WRITING OF ALL OF THE 1,893
FOLLOWING, AS APPLICABLE:
(A) ANY CHANGE IN THE AGENT'S ADDRESS, WITHIN THIRTY DAYS 1,897
AFTER THE CHANGE OCCURS. FOR PURPOSES OF THIS DIVISION,
"ADDRESS" MEANS RESIDENTIAL ADDRESS, BUSINESS ADDRESS, AND ANY 1,899
OTHER ADDRESS OR ADDRESSES THE SUPERINTENDENT REQUIRES BY RULE 1,900
ADOPTED IN ACCORDANCE WITH CHAPTER 119. OF THE REVISED CODE. 1,903
(B) ANY FELONY CONVICTION, OR ANY MISDEMEANOR CONVICTION 1,906
DESCRIBED IN DIVISION (B)(7) OF SECTION 3905.49 OF THE REVISED 1,909
CODE, WITHIN THIRTY DAYS AFTER SENTENCING. THE NOTICE SHALL 1,910
INCLUDE THE NAME OF THE COURT HAVING JURISDICTION OVER THE 1,911
MATTER, THE CASE NUMBER, THE OFFENSE CHARGED, THE SENTENCE 1,912
IMPOSED, AND A COPY OF THE JUDGMENT ENTRY. 1,913
(C) ANY DISCIPLINARY ACTION TAKEN BY THE INSURANCE 1,916
AUTHORITY OF ANOTHER STATE, WITHIN SIXTY DAYS AFTER THE ACTION IS 1,917
TAKEN.
Sec. 3905.55. (A) EXCEPT AS PROVIDED IN DIVISION (B) OF 1,920
THIS SECTION, AN AGENT MAY CHARGE A CONSUMER A FEE IF ALL OF THE 1,921
FOLLOWING CONDITIONS ARE MET: 1,922
(1) THE FEE IS DISCLOSED TO THE CONSUMER IN A MANNER THAT 1,925
SEPARATELY IDENTIFIES THE FEE AND THE PREMIUM.
(2) THE FEE IS NOT CALCULATED AS A PERCENTAGE OF THE 1,927
PREMIUM. 1,928
(3) THE FEE IS NOT REFUNDED, FORGIVEN, WAIVED, OFFSET, OR 1,931
REDUCED BY ANY COMMISSION EARNED OR RECEIVED FOR ANY POLICY OR 1,932
COVERAGE SOLD.
(4) THE AMOUNT OF THE FEE, AND THE CONSUMER'S OBLIGATION 1,935
TO PAY THE FEE, ARE NOT CONDITIONED UPON THE OCCURRENCE OF A 1,936
FUTURE EVENT OR CONDITION, SUCH AS THE PURCHASE, CANCELLATION, 1,937
LAPSE, DECLINATION, OR NONRENEWAL OF INSURANCE. 1,938
(5) THE AGENT DISCLOSES TO THE CONSUMER THAT THE FEE IS 1,941
41
BEING CHARGED BY THE AGENT AND NOT BY THE INSURANCE COMPANY, THAT 1,942
NEITHER STATE LAW NOR THE INSURANCE COMPANY REQUIRES THE AGENT TO 1,943
CHARGE THE FEE, AND THAT THE FEE IS NOT REFUNDABLE. 1,944
(6) THE CONSUMER CONSENTS TO THE FEE. 1,946
(7) THE AGENT, IN CHARGING THE FEE, DOES NOT DISCRIMINATE 1,949
ON THE BASIS OF RACE, SEX, NATIONAL ORIGIN, RELIGION, DISABILITY, 1,950
HEALTH STATUS, AGE, MARITAL STATUS, OR GEOGRAPHIC LOCATION, AND 1,951
DOES NOT UNFAIRLY DISCRIMINATE BETWEEN PERSONS OF ESSENTIALLY THE 1,952
SAME CLASS AND OF ESSENTIALLY THE SAME HAZARD OR EXPECTATION OF 1,953
LIFE.
(B) A FEE MAY NOT BE CHARGED FOR TAKING OR SUBMITTING AN 1,956
INITIAL APPLICATION FOR COVERAGE WITH ANY ONE INSURER OR 1,957
DIFFERENT PROGRAMS WITH THE SAME INSURER, OR PROCESSING A CHANGE 1,958
TO AN EXISTING POLICY, A CANCELLATION, A CLAIM, OR A RENEWAL, IN 1,959
CONNECTION WITH ANY OF THE FOLLOWING PERSONAL LINES POLICIES: 1,960
(1) PRIVATE PASSENGER AUTOMOBILE; 1,962
(2) HOMEOWNERS, INCLUDING COVERAGE FOR TENANTS OR 1,964
CONDOMINIUM OWNERS, OWNER-OCCUPIED FIRE OR DWELLING PROPERTY 1,965
COVERAGE, PERSONAL UMBRELLA LIABILITY, OR ANY OTHER PERSONAL 1,966
LINES-RELATED COVERAGE WHETHER SOLD AS A SEPARATE POLICY OR AS AN 1,968
ENDORSEMENT TO ANOTHER PERSONAL LINES POLICY;
(3) INDIVIDUAL LIFE INSURANCE; 1,970
(4) INDIVIDUAL SICKNESS OR ACCIDENT INSURANCE; 1,972
(5) DISABILITY INCOME POLICIES; 1,974
(6) CREDIT INSURANCE PRODUCTS. 1,977
(C) NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION, 1,980
AN AGENT MAY CHARGE A FEE FOR AGENT SERVICES IN CONNECTION WITH A 1,981
POLICY ISSUED ON A NO-COMMISSION BASIS, IF THE AGENT PROVIDES THE 1,982
CONSUMER WITH PRIOR DISCLOSURE OF THE FEE AND OF THE SERVICES TO 1,983
BE PROVIDED. 1,984
(D) IN THE EVENT OF A DISPUTE BETWEEN AN AGENT AND A 1,987
CONSUMER REGARDING ANY DISCLOSURE REQUIRED BY THIS SECTION, THE 1,988
AGENT HAS THE BURDEN OF PROVING THAT THE DISCLOSURE WAS MADE. 1,989
(E)(1) NO PERSON SHALL FAIL TO COMPLY WITH THIS SECTION. 1,992
42
(2) WHOEVER VIOLATES DIVISION (E)(1) OF THIS SECTION IS 1,995
DEEMED TO HAVE ENGAGED IN AN UNFAIR AND DECEPTIVE ACT OR PRACTICE 1,997
IN THE BUSINESS OF INSURANCE UNDER SECTIONS 3901.19 TO 3901.26 OF 1,998
THE REVISED CODE. 1,999
Sec. 3905.99. (A) Whoever violates sections 3905.181, 2,008
3905.21, or 3905.23 of the Revised Code shall be fined not less 2,009
than twenty-five nor more than five hundred dollars or imprisoned 2,010
not more than six months, or both.
(B) Whoever violates section 3905.31 or 3905.33 of the 2,012
Revised Code shall be fined not less than twenty-five nor more 2,013
than five hundred dollars or imprisoned not more than one year, 2,014
or both.
(C) Whoever violates section 3905.37 or 3905.43 of the 2,016
Revised Code shall be fined not less than one hundred nor more 2,017
than five hundred dollars.
(D) WHOEVER VIOLATES SECTION 3905.01 OF THE REVISED CODE 2,019
IS GUILTY OF A MISDEMEANOR OF THE FIRST DEGREE. 2,020
Sec. 3913.40. (A) Any insurer, INCLUDING ANY FRATERNAL 2,029
BENEFIT SOCIETY, that is organized under the laws of another 2,031
state and is admitted to transact the business of insurance in 2,032
this state may become a domestic insurer by complying with all of 2,033
the requirements of law relative to the organization and 2,034
licensing of a domestic insurer of the same type and by 2,035
designating its principal place of business at a place in this 2,036
state. Such a domestic insurer shall be issued like certificates 2,037
and licenses to transact business in this state, is subject to 2,038
the jurisdiction of this state, and shall be recognized as an 2,039
insurer formed under the laws of this state as of the date of its 2,040
original incorporation in its original domiciliary state. The 2,041
superintendent of insurance shall approve any proposed transfer 2,042
of domicile under this division unless the superintendent 2,043
determines that the transfer is not in the interest of
policyholders of this state. 2,044
(B) Any domestic insurer, upon the approval of the 2,046
43
superintendent, may transfer its domicile to any other state in 2,047
which it is admitted to transact the business of insurance. Upon 2,048
such a transfer, the insurer shall cease to be a domestic 2,049
insurer, and shall be admitted to this state if qualified as a 2,050
foreign insurer. The superintendent shall approve any proposed 2,051
transfer of domicile under this division unless the 2,052
superintendent determines that the transfer is not in the 2,053
interest of policyholders of this state. 2,054
(C)(1) With respect to any insurer, INCLUDING ANY 2,056
FRATERNAL BENEFIT SOCIETY, that is licensed to transact the 2,058
business of insurance in this state and that transfers its 2,059
domicile to this or any other state by merger, consolidation, or 2,060
any other lawful method, both of the following apply: 2,061
(a) The certificate of authority, agents appointments and 2,063
licenses, rates, and other items as allowed by the superintendent 2,064
that are in existence at the time of the transfer shall continue 2,065
in effect upon the transfer if the insurer remains qualified to 2,066
transact the business of insurance in this state. 2,067
(b) All outstanding policies shall remain in effect and 2,069
need not be endorsed as to the new name of the company or its new 2,070
location unless so ordered by the superintendent. 2,071
(2) Every transferring insurer as described in division 2,073
(C)(1) of this section shall file new policy forms with the 2,074
superintendent on or before the effective date of the transfer, 2,075
but may use existing policy forms with appropriate endorsements 2,076
if allowed by, and under such conditions as are approved by, the 2,077
superintendent. Every such insurer shall notify the 2,078
superintendent of the details of the proposed transfer, and shall 2,079
file promptly any resulting amendments to corporate documents 2,080
filed or required to be filed with the superintendent. 2,081
(D) NOTHING IN THIS SECTION OR ANY OTHER PROVISION OF THE 2,083
REVISED CODE PROHIBITS AN INSURER FROM TRANSFERRING ITS DOMICILE 2,084
TO THIS STATE BECAUSE ITS CHARTER, BYLAWS, OR ANY OTHER 2,085
ORGANIZATIONAL DOCUMENT CONTAINS CHARACTERISTICS OF BOTH A MUTUAL 2,086
44
INSURANCE COMPANY AND A STOCK INSURANCE COMPANY.
(E) The superintendent, in accordance with Chapter 119. of 2,088
the Revised Code, may adopt rules to carry out the purposes of 2,089
this section. 2,090
Sec. 3921.33. (A) Agents of fraternal benefit societies 2,099
shall be licensed in the manner provided for agents of insurance 2,100
companies in Chapter 3905. of the Revised Code, and shall be 2,102
required to complete the continuing education instruction set 2,103
forth in section 3905.481 of the Revised Code starting with the 2,104
twenty-four-month period commencing on the first day of January 2,105
of 1999. However, no written or other examination shall be
required of any person whose application for the original 2,108
issuance of a license to represent a fraternal benefit society as 2,110
its agent was filed with the superintendent of insurance prior to 2,111
January 1, 1997.
(B) The following persons shall not be required to be 2,114
licensed in accordance with division (A) of this section: 2,115
(1) Any regularly salaried officer, employee, or member of 2,117
a licensed society who devotes substantially all of the person's 2,118
services to activities other than the solicitation of fraternal 2,119
insurance contracts from the public, and who receives for the 2,120
solicitation of any such contracts no commission or other 2,121
compensation directly dependent upon the amount of business
obtained.
The officers, employees, and members described in division 2,123
(B)(1) of this section also are not subject to examination by the 2,124
superintendent under Chapter 3905. of the Revised Code. 2,125
(2) Any agent or representative of a society who devotes, 2,127
or intends to devote, less than fifty per cent of the person's 2,128
time to the solicitation and procurement of insurance contracts 2,129
for the society. For purposes of division (B)(2) of this 2,130
section, any person who, in the preceding calendar year, has 2,131
received a commission or other compensation for soliciting and 2,132
procuring any of the following contracts on behalf of an
45
individual society is presumed to have devoted, or to have 2,134
intended to devote, fifty per cent of the person's time to the 2,135
solicitation and procurement of insurance contracts: 2,136
(a) Life insurance contracts that, in the aggregate, 2,138
exceeded two hundred thousand dollars of coverage for all lives 2,139
insured for the preceding calendar year; 2,140
(b) A permanent life insurance contract offering more than 2,143
ten thousand dollars of coverage on an individual life;
(c) A term life insurance contract offering more than 2,145
fifty thousand dollars of coverage on an individual life; 2,146
(d) Any insurance contracts other than life that the 2,148
society may write and that insure the individual lives of more 2,149
than twenty-five individuals; 2,150
(e) Any contract issued on a variable basis, as authorized 2,152
by division (C) of section 3921.22 of the Revised Code. 2,153
Sec. 3923.121. (A) As used in this section: 2,162
(1) "Association" means a voluntary unincorporated 2,164
association of insurers formed for the sole purpose of enabling 2,165
cooperative action to provide sickness and accident insurance in 2,166
accordance with this section. 2,167
(2) "Insurer" means any insurance company authorized to do 2,169
the business of sickness and accident insurance in this state. 2,170
(3) "Insured" means a person covered under a group policy 2,172
issued pursuant to this section. 2,173
(B) Any insurer may join with one or more other insurers, 2,175
in an association, to offer, sell, and issue to a policyholder 2,176
selected by the association a policy of group insurance against 2,177
major financial loss from sickness and accident covering 2,178
residents of this state who are sixty-five years of age or older 2,179
and the spouses of such residents. The insurance shall be 2,180
offered, issued, and administered in the name of the association. 2,181
Membership in the association shall be open to any insurer and 2,182
each insurer which participates shall be liable for a specified 2,183
percentage of the risks. The policy may be executed on behalf of 2,184
46
the association by a duly authorized person and need not be 2,185
countersigned by an agent. 2,186
(C) The persons eligible for coverage under the policy 2,188
shall be all residents of this state who are sixty-five years of 2,189
age or older and their spouses, subject to reasonable 2,190
underwriting restrictions to be set forth in the plan of the 2,191
association. The policy may provide basic hospital and surgical 2,192
coverage, basic medical coverage, major medical coverage, and any 2,193
combination of these; provided that it shall not be required as a 2,194
condition for obtaining major medical coverage that any basic 2,195
coverage be taken. 2,196
(D) The association shall file with the superintendent of 2,198
insurance any policy, contract, certificate, or other evidence of 2,199
insurance, application, or other forms pertaining to such 2,200
insurance together with the premium rates to be charged therefor. 2,201
The superintendent may approve, disapprove, and withdraw approval 2,202
of the forms in accordance with section 3923.02 of the Revised 2,203
Code, or the premium rates if by reasonable assumptions such 2,204
rates are excessive in relation to the benefits provided. In 2,205
determining whether such rates by reasonable assumptions are 2,206
excessive in relation to the benefits provided the superintendent 2,207
shall give due consideration to past and prospective claim 2,208
experience, within and outside this state, and to fluctuations in 2,209
such claim experience, to a reasonable risk charge, to 2,210
contribution to surplus and contingency funds, to past and 2,211
prospective expenses, both within and outside this state, and to 2,212
all other relevant factors within and outside this state, 2,213
including any differing operating methods of the insurers joining 2,214
in the issuance of the policy. In reviewing the forms the 2,215
superintendent shall not be bound by the requirements of sections 2,216
3923.04 to 3923.07 of the Revised Code with respect to standard 2,218
provisions to be included in sickness and accident policies or 2,219
forms.
(E) The association may enroll eligible persons for 2,221
47
coverage under the policy through any insurance agent licensed to 2,222
sell sickness and accident insurance pursuant to section 3905.01 2,223
3905.02, 3905.08, 3905.18, or 3941.02 of the Revised Code. 2,225
(F) The association shall file annually with the 2,227
superintendent on such date and in such form as the 2,228
superintendent may prescribe, a financial summary of its 2,229
operations.
(G) The association may sue and be sued in its associate 2,231
name and for such purposes only shall be treated as a domestic 2,232
corporation. Service of process against such THE association 2,233
made upon a managing agent, any member thereof, or any agent 2,235
authorized by appointment to receive service of process, shall 2,236
have the same force and effect as if such THE service had been 2,237
made upon all members of the association. 2,239
(H) Under any policy issued as provided in this section, 2,241
the policyholder, or such person as the policyholder shall 2,242
designate, shall alone be a member of each domestic mutual 2,243
insurance company joining in the issue of the policy and shall be 2,244
entitled to one vote by virtue of such policy at the meetings of 2,245
each such mutual insurance company. Notice of the annual 2,246
meetings of each such mutual insurance company may be given by 2,247
written notice to the policyholder or as otherwise prescribed in 2,248
said THE policy. 2,249
Sec. 3931.101. The provisions of sections 3905.01 to 2,258
3905.05, inclusive, 3905.04 of the Revised Code, relating to the 2,260
appointment, licensing, qualification and regulation of insurance 2,261
agents, brokers and solicitors shall apply to all persons 2,262
authorized to solicit powers of attorney or applications for
contracts of indemnity for any reciprocal exchange, insurance 2,263
exchange or attorney in fact as provided for in Chapter 3931,. of 2,264
the Revised Code, except a traveling full time salaried 2,266
non-commission employee of an attorney whose duties as such
employee are primarily the performance of inspection 2,267
underwriting, loss prevention engineering and claim services 2,268
48
shall be exempt from this section and shall be regulated solely 2,269
by section 3931.11 of the Revised Code.
Sec. 3931.11. Every attorney shall certify to the 2,278
superintendent of insurance the names and addresses of the 2,279
attorney's traveling full time salaried non-commission employees, 2,280
primarily engaged in performing underwriting, loss prevention 2,281
engineering and claim services, authorized by the attorney to 2,282
solicit powers of attorney or applications for contracts of 2,283
indemnity specified in section 3931.01 of the Revised Code. The 2,284
authority of such persons shall continue until the first day of 2,285
the next April, unless it is cancelled by the attorney and the 2,286
certificate of such cancellation is filed with the 2,287
superintendent, or unless the license of the attorney or 2,288
authority of such person is revoked or suspended by the 2,289
superintendent. Expiring certificates of authority of such 2,290
persons may be renewed in like manner to continue until the first 2,291
day of the next April. The superintendent shall record the names 2,292
and addresses of such persons so that their names may 2,293
conveniently be inspected and shall thereupon certify and deliver 2,294
to the attorney a list of the names of all persons so recorded. 2,295
If the superintendent finds that any such person has 2,297
wilfully WILLFULLY violated, or failed to comply with, sections 2,298
3931.01 to 3931.12, inclusive, of the Revised Code, or has been 2,300
convicted of a felony in the United States, or in this or any 2,301
state, or has been guilty of any act or acts which if performed 2,302
by an agent licensed under section 3905.01 3905.02 of the Revised 2,303
Code would constitute statutory grounds for the revocation of 2,305
such agent's license, the superintendent may refuse or revoke the 2,306
authority of such THE person and cancel the person's name on the 2,308
superintendent's records, and the superintendent shall thereupon 2,310
notify such THE person and the attorney of such THE revocation. 2,311
Thereafter such THE person shall not act as representative of any 2,312
attorney until a new certificate of authority by the attorney 2,313
thereafter appointing such THE person is filed with and approved 2,314
49
by the superintendent. 2,315
No such person shall act for any attorney in placing 2,317
insurance or making such contracts of indemnity, unless the 2,318
attorney has the license required by section 3931.10 of the 2,319
Revised Code, nor unless the unexpired, unrevoked, and 2,320
unsuspended certificate of such person's authority is filed with 2,321
the superintendent. Any such person shall be individually liable 2,322
on any contract of indemnity made, issued, or accepted through 2,323
that person as representing any attorney who is not licensed by 2,325
the superintendent to make such contracts of indemnity.
Sec. 3941.02. (A) A domestic mutual company may be 2,334
organized by not less than twenty persons, to carry on the 2,335
business of mutual insurance and to reinsure and to accept 2,336
reinsurance as authorized by law and its articles of 2,337
incorporation. Such persons shall execute articles of 2,338
incorporation which, if not inconsistent with the constitution 2,339
and laws of this state and of the United States, shall be 2,340
approved by the attorney general and the secretary of state. The 2,341
articles and the certificate of approval by the attorney general 2,342
shall be recorded by the secretary of state who shall deposit a 2,343
copy thereof with the superintendent of insurance. 2,344
(B) If the articles of incorporation of a domestic, 2,346
foreign, or alien, mutual or stock insurance company empower it, 2,347
or if the power of attorney or subscribers' agreement empowers 2,348
the attorney in fact of a reciprocal or interinsurance exchange, 2,349
to transact any of the kinds of insurance described in division 2,350
(A) of section 3929.01 of the Revised Code, such company or 2,351
attorney may apply to the superintendent for the appropriate 2,352
license or certificate of authority, as provided in section 2,353
3925.11, 3927.01, 3931.10, or 3941.06 of the Revised Code, which 2,354
application shall state which of the kinds of insurance it 2,355
proposes to transact, and the superintendent shall act thereon in 2,356
the manner prescribed by that section. 2,357
(C) An Ohio agent shall be licensed, upon written notice 2,360
50
of appointment by a domestic, foreign, or alien, mutual or stock 2,361
insurance company, to procure, receive, or forward application 2,362
for the kinds of insurance the company is authorized to transact 2,363
in this state if the agent is then licensed to write all of the 2,364
kinds of insurance described in division (A) of section 3929.01 2,365
of the Revised Code, either for the company or for any other 2,366
company or companies authorized to transact insurance business in 2,367
this state. An Ohio agent not so licensed shall not procure, 2,368
receive, or forward applications for any kind of insurance for 2,369
the company until qualified and licensed to procure, receive, or 2,370
forward applications for all of the kinds of insurance described 2,371
in division (A) of section 3929.01 of the Revised Code, in 2,372
accordance with the applicable provisions of Chapter 3905. of the 2,373
Revised Code and in accordance with such rules as the 2,374
superintendent may adopt in connection therewith; provided any 2,375
company, irrespective of the kinds of insurance it is authorized 2,376
to transact, may apply for and obtain the renewal of licenses of 2,377
its agents who were licensed on or before July 1, 1945, to 2,378
procure, receive, or forward applications for any of the kinds of 2,379
insurance described in division (A) of section 3929.01 of the 2,380
Revised Code, and such agents shall not be required to be 2,381
licensed for all the kinds of insurance transacted by the company 2,382
making the applications for such renewals. Nothing in this 2,383
section shall be construed to authorize an agent whose license is 2,384
renewed under these provisions to procure, receive, or forward 2,385
applications for any kind or kinds of insurance other than the 2,386
kind or kinds for which the agent was authorized to procure, 2,387
receive, or forward applications on July 1, 1945; provided, the 2,389
procuring, receiving, or forwarding of applications by such an 2,390
agent for any kind or kinds of insurance other than the kind or 2,391
kinds the agent was authorized to procure, receive, or forward, 2,393
as of July 1, 1945, is cause for revocation of the license of the 2,394
agent by the superintendent and the acceptance by any insurance 2,395
company licensed to do business in this state of an application 2,396
51
for any kind of insurance other than the kind or kinds that the 2,397
agent was authorized to procure, receive, or forward, as of July 2,398
1, 1945, is cause for revocation of the license of the company by 2,399
the superintendent. Nothing in this section shall be construed 2,400
to alter the provisions of sections 2301.373, 3905.05, 3931.101, 2,401
and 3931.11 of the Revised Code. 2,402
Sec. 3953.21. (A) Every title insurance company 2,411
authorized to transact business within this state shall certify 2,412
annually to the superintendent of insurance the names of all 2,413
title insurance agents representing it in this state in 2,414
accordance with section 3905.01 3905.02 of the Revised Code. 2,415
(B) No bank, trust company, bank and trust company, or 2,417
other lending institution, mortgage service, brokerage, mortgage 2,418
guaranty company, escrow company, real estate company or any 2,419
subsidiaries thereof or any individuals so engaged shall be 2,420
permitted to act as an agent for a title insurance company.
Sec. 3953.23. (A) Every title insurance agent shall keep 2,429
his books of account and record and vouchers pertaining to the 2,431
business of title insurance in such manner that the title 2,432
insurance company may readily ascertain from time to time whether 2,433
the agent has complied with this chapter.
(B) A title insurance agent may engage in the business of 2,435
handling escrows of real property transactions directly connected 2,436
with the business of title insurance, provided that the agent 2,437
shall maintain a separate record of all receipts and 2,438
disbursements of escrow funds and shall not commingle any such
funds with agent's own funds or with funds held by agent in any 2,439
other capacity; and if at any time the superintendent of 2,440
insurance determines that an agent has failed to comply with any 2,441
of the provisions of this section, the superintendent may revoke 2,442
the license of said THE agent pursuant to section 3905.01 3905.02 2,444
of the Revised Code, subject to review as provided for in 2,445
sections 119.01 to 119.13, inclusive, CHAPTER 119. of the Revised 2,447
Code. All agents shall be covered by a fidelity bond in an 2,449
52
amount and with a company satisfactory to the principal. 2,450
Sec. 3960.11. (A) No person shall act or aid in any 2,459
manner in soliciting, negotiating, or procuring liability 2,460
insurance in this state from a risk retention group unless the 2,461
person is licensed as an insurance agent or broker in accordance 2,462
with section 3905.01, 3905.03, 3905.02 or 3905.30 of the Revised 2,464
Code.
(B) No person shall act or aid in any manner in 2,466
soliciting, negotiating, or procuring liability insurance in this 2,467
state for a purchasing group from an authorized insurer or a risk 2,468
retention group chartered in a state unless the person is 2,469
licensed as an insurance agent or broker in accordance with 2,470
section 3905.01, 3905.03, 3905.02 or 3905.30 of the Revised Code. 2,472
(C) No person shall act or aid in any manner in 2,474
soliciting, negotiating, or procuring liability insurance 2,475
coverage in this state for any member of a purchasing group under 2,476
a purchasing group's policy unless the person is licensed as an 2,477
insurance agent or broker in accordance with section 3905.01, 2,478
3905.03, 3905.02 or 3905.30 of the Revised Code. 2,479
(D) No person shall act or aid in any manner in 2,481
soliciting, negotiating, or procuring liability insurance from an 2,482
insurer not authorized to do business in this state on behalf of 2,483
a purchasing group located in this state unless the person is 2,484
licensed as an insurance agent or A surplus lines LINE broker in 2,486
accordance with section 3905.01, 3905.03, or 3905.30 of the 2,488
Revised Code. 2,489
Sec. 4745.01. (A) "Standard renewal procedure," as used 2,498
in Chapters 905., 907., 909., 911., 913., 915., 918., 921., 923., 2,499
927., 942., 943., 953., 1321., 3710., 3713., 3715., 3719., 3731., 2,500
3742., 3748., 3769., 3783., 3905., 3921., 3951., 4104., 4105., 2,501
4143., 4169., 4561., 4701., 4703., 4707., 4709., 4713., 4715., 2,502
4717., 4723., 4725., 4727., 4728., 4729., 4731., 4733., 4734., 2,503
4735., 4739., 4741., 4747., 4749., 4753., 4755., 4757., 4759., 2,504
4761., 4766., 4773., and 4775. of the Revised Code, means the 2,505
53
license renewal procedures specified in this chapter. 2,506
(B) "Licensing agency," as used in this chapter, means any 2,508
department, division, board, section of a board, or other state 2,509
governmental unit subject to the standard renewal procedure, as 2,510
defined in this section, and authorized by the Revised Code to 2,511
issue a license to engage in a specific profession, occupation, 2,512
or occupational activity, or to have charge of and operate 2,513
certain specified equipment, machinery, or premises. 2,514
(C) "License," as used in this chapter, means a license, 2,516
certificate, permit, card, or other authority issued or conferred 2,517
by a licensing agency by authority of which the licensee has or 2,518
claims the privilege to engage in the profession, occupation, or 2,519
occupational activity, or to have control of and operate certain 2,520
specific equipment, machinery, or premises, over which the 2,521
licensing agency has jurisdiction. 2,522
(D) "Licensee," as used in this chapter, means either the 2,524
person to whom the license is issued or renewed by a licensing 2,525
agency, or the person, partnership, or corporation at whose 2,526
request the license is issued or renewed. 2,527
(E) "Renewal" and "renewed," as used in this chapter and 2,529
in the chapters of the Revised Code specified in division (A) of 2,530
this section, includes the continuing licensing procedure 2,531
provided in Chapter 3748. of the Revised Code and rules adopted 2,533
under it and in sections 1321.05, 3905.01, 3905.02, 3905.07, 2,534
3905.18, and 3921.33 of the Revised Code, and as applied to those 2,535
continuing licenses any reference in this chapter to the date of 2,537
expiration of any license shall be construed to mean the due date 2,538
of the annual or other fee for the continuing license. 2,539
Section 2. That existing sections 1751.38, 3901.021, 2,541
3905.02, 3905.06, 3905.07, 3905.08, 3905.18, 3905.20, 3905.27, 2,543
3905.30, 3905.40, 3905.48, 3905.486, 3905.49, 3905.99, 3913.40, 2,544
3921.33, 3923.121, 3931.101, 3931.11, 3941.02, 3953.21, 3953.23, 2,545
3960.11, and 4745.01 and sections 3905.01, 3905.011, 3905.03, 2,546
3905.05, 3905.481, and 3905.482 of the Revised Code are hereby 2,547
54
repealed.
Section 3. Sections 1 and 2 of this act, except for 2,549
sections 3905.011, 3905.012, 3905.02, 3905.03, 3905.18, and 2,550
3905.20 of the Revised Code, shall take effect at the earliest 2,551
time permitted by law. Sections 3905.011, 3905.012, 3905.02, 2,552
3905.03, 3905.18, and 3905.20 of the Revised Code, as amended, 2,553
enacted, or repealed by this act, shall take effect July 1, 1998.
Section 4. It is the intent of the General Assembly that 2,555
the Superintendent of Insurance take any action necessary to 2,556
administer the Insurance Agents Law, as amended by this act, and 2,557
to provide for an orderly transition for those persons licensed 2,558
or appointed under that Law as it existed prior to the effective 2,559
date of this act. 2,560
Section 5. The Department of Insurance shall, no later 2,562
than July 1, 1999, issue a new license to each person who, on 2,563
July 1, 1998, holds a license as an agent. Any license 2,564
application that is pending on July 1, 1998, or that is received 2,565
by the Department on or after that date, shall be reviewed in
accordance with this act. 2,566
Section 6. If Am. Sub. H.B. 248 is enacted by the 122nd 2,568
General Assembly, sections 3905.49 and 3905.491 of the Revised 2,569
Code, as the sections result from this act, supersede the same 2,570
sections as they result from Am. Sub. H.B. 248.
Section 7. Section 3941.02 of the Revised Code is 2,572
presented in this act as a composite of the section as amended by 2,573
both Sub. H.B. 167 and Am. Sub. S.B. 259 of the 121st General 2,574
Assembly, with the new language of neither of the acts shown in 2,576
capital letters. This is in recognition of the principle stated 2,577
in division (B) of section 1.52 of the Revised Code that such 2,578
amendments are to be harmonized where not substantively 2,579
irreconcilable and constitutes a legislative finding that such is 2,580
the resulting version in effect prior to the effective date of 2,581
this act.