As Passed by the Senate 1
122nd General Assembly 4
Regular Session Am. Sub. S. B. No. 154 5
1997-1998 6
SENATORS NEIN-GILLMOR-SUHADOLNIK-RAY-GARDNER 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, 3905.481, 14
3905.482, 3905.49, 3905.99, 3913.40, 3921.33,
3923.121, 3931.101, 3931.11, 3941.02, 3953.21, 16
3953.23, 3960.11, and 4745.01; to amend, for the
purpose of adopting a new section number as 18
indicated in parentheses, section 3905.02 19
(3905.03); to enact new sections 3905.01,
3905.011, and 3905.02 and sections 3905.012, 20
3905.013, 3905.491, 3905.492, 3905.54, and 21
3905.55; and to repeal sections 3905.01,
3905.011, 3905.03, and 3905.05 of the Revised 22
Code to revise the Insurance Agents Law; to 23
specify that a fraternal benefit society 24
organized under the laws of another state and 25
admitted to transact business in Ohio may become
a domestic insurer; to provide that an insurer is 27
not prohibited from transferring its domicile to
Ohio because its charter or bylaws contain 28
characteristics of both a mutual and stock
insurance company; and, if Am. Sub. H.B. 248 of 29
the 122nd General Assembly is enacted, to 30
supersede sections 3905.49 and 3905.491 of the
Revised Code as they result from that act. 31
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 33
2
Section 1. That sections 1751.38, 3901.021, 3905.02, 35
3905.06, 3905.07, 3905.08, 3905.18, 3905.20, 3905.27, 3905.30, 36
3905.40, 3905.48, 3905.481, 3905.482, 3905.49, 3905.99, 3913.40, 37
3921.33, 3923.121, 3931.101, 3931.11, 3941.02, 3953.21, 3953.23, 40
3960.11, and 4745.01 be amended; section 3905.02 (3905.03) be 41
amended for the purpose of adopting a new section number as 42
indicated in parentheses; and new sections 3905.01, 3905.011, and 43
3905.02 and sections 3905.012, 3905.013, 3905.491, 3905.492, 44
3905.54, and 3905.55 of the Revised Code be enacted to read as 45
follows:
Sec. 1751.38. (A) As used in this section, "agent" means 55
a person appointed by a health insuring corporation to engage in 56
the solicitation or enrollment of subscribers or enrollees. 57
(B) Agents of health insuring corporations shall be 60
licensed pursuant to section 3905.01 3905.02 or 3905.18 of the 61
Revised Code. 63
(C) Sections 3905.01, 3905.03, 3905.05 3905.02, 3905.16 to 66
3905.18, 3905.181, 3905.19, 3905.23, 3905.40, 3905.41, 3905.42, 67
3905.46 to 3905.48, 3905.481, 3905.482, 3905.486, 3905.49, 68
3905.491, 3905.492, 3905.50, 3905.71 to 3905.79, and 3905.99 of 70
the Revised Code shall apply to health insuring corporations and 71
the agents of health insuring corporations in the same manner in 72
which these sections apply to insurers and agents of insurers. 73
Sec. 3901.021. Two-thirds THREE-FOURTHS of all APPOINTMENT 82
AND OTHER fees collected under section 3905.01, division (E) of 84
section 3905.18, and division (A)(6) of section 3905.26 CHAPTER 86
3905. of the Revised Code shall be paid into the state treasury 88
to the credit of the department of insurance operating fund, 89
which is hereby created. The remaining one-third ONE-FOURTH 90
shall be credited to the general revenue fund. If the 91
superintendent of insurance is authorized by the controlling 92
board to increase the fees pursuant to section 3905.011 of the 94
Revised Code, the board may also direct that an amount equal to 95
the increase, up to three-fourths of all fees collected after the 96
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increase pursuant to section 3905.011 of the Revised Code, shall 98
be credited to the department of insurance operating fund, with 99
the remaining portion to be credited to the general revenue fund. 100
All operating expenses of the department of insurance except 101
those expenses defined under section 3901.07 of the Revised Code 102
shall be paid from the department of insurance operating fund. 103
Sec. 3905.01. (A) NO PERSON SHALL PROCURE AN APPLICATION 106
OR QUOTE PREMIUMS FOR, DISCUSS COVERAGES OF, OR SOLICIT, 107
NEGOTIATE, EFFECT, PROCURE, PLACE, WRITE, DELIVER, RENEW, OR 108
BIND, A POLICY OF INSURANCE THROUGH ANY MEDIUM FOR RISKS 109
RESIDING, LOCATED, OR TO BE PERFORMED IN THIS STATE, UNLESS THE 110
PERSON IS LICENSED BY THE SUPERINTENDENT OF INSURANCE IN 111
ACCORDANCE WITH THIS CHAPTER. 112
(B) DIVISION (A) OF THIS SECTION DOES NOT APPLY TO ANY OF 116
THE FOLLOWING PERSONS:
(1) AN INSURER AS DEFINED IN SECTION 3901.32 OF THE 118
REVISED CODE;
(2) ANY PERSON WHO FURNISHES INFORMATION REGARDING GROUP 120
INSURANCE, ENROLLS INDIVIDUALS IN GROUP INSURANCE PLANS, ISSUES 121
CERTIFICATES UNDER SUCH PLANS, OR OTHERWISE ASSISTS IN 122
ADMINISTERING SUCH PLANS, IF NO COMMISSION OR OTHER FORM OF 123
COMPENSATION RELATED TO PREMIUM OR SALES VOLUME IS PAID FOR SUCH 124
SERVICES; 125
(3) ANY EMPLOYEE OF A CREDITOR WITH RESPECT TO INSURANCE 127
PRODUCTS MADE AVAILABLE ONLY IN CONNECTION WITH A CREDIT 129
TRANSACTION, INCLUDING CREDIT LIFE INSURANCE, CREDIT DISABILITY 130
OR ACCIDENT AND HEALTH INSURANCE, CREDIT PROPERTY INSURANCE,
MORTGAGE LIFE INSURANCE, MORTGAGE ACCIDENT AND HEALTH INSURANCE, 131
INVOLUNTARY UNEMPLOYMENT INSURANCE, INDIVIDUAL LIFE INSURANCE, 132
AND INDIVIDUAL DISABILITY OR ACCIDENT AND HEALTH INSURANCE, IF 133
THE ENTIRE PREMIUM IS FINANCED AS PART OF THE CREDIT TRANSACTION 134
AND THE FOLLOWING CONDITIONS ARE MET:
(a) IF THE INSURANCE PRODUCT IS AN INDIVIDUAL LIFE 136
INSURANCE POLICY, A LICENSED AGENT IS RESPONSIBLE FOR THE 137
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INSURANCE TRANSACTION.
(b) IF THE EMPLOYEE OF THE CREDITOR IS PAID BY THE 139
INSURANCE AGENT OR BY THE INSURANCE COMPANY, THE EMPLOYEE HOLDS A 140
LIMITED AUTHORITY LICENSE. 141
FOR PURPOSES OF DIVISION (B)(3) OF THIS SECTION, "CREDIT 143
PROPERTY INSURANCE" MEANS INSURANCE COVERING RISKS OF LOSS, 144
DAMAGE, AND DESTRUCTION OF PROPERTY USED AS SECURITY FOR A CREDIT 145
TRANSACTION, WHICH INSURANCE MAY ALSO COVER OTHER PROPERTY THAT 147
IS MERELY INCIDENTAL TO THE PROPERTY USED AS SECURITY FOR THE 149
CREDIT TRANSACTION.
(4) ANY EMPLOYER, OR OFFICER OR EMPLOYEE OF AN EMPLOYER, 152
TO THE EXTENT THAT THE EMPLOYER, OFFICER, OR EMPLOYEE IS ENGAGED 153
IN THE ADMINISTRATION OR OPERATION OF ANY EMPLOYEE BENEFITS 154
PROGRAM INVOLVING THE USE OF INSURANCE FOR THE EMPLOYER'S 155
EMPLOYEES OR THE EMPLOYEES OF A SUBSIDIARY OR AFFILIATE OF THE 156
EMPLOYER, PROVIDED THAT THE EMPLOYER, OFFICER, OR EMPLOYEE IS NOT 158
COMPENSATED, EITHER DIRECTLY OR INDIRECTLY, IN ANY MANNER BY AN 159
INSURANCE AGENT OR BY THE INSURANCE COMPANY ISSUING THE
INSURANCE; 160
(5) AN ADJUSTER EMPLOYED BY OR REPRESENTING AN INSURER IN 163
THE ADJUSTMENT OF CLAIMS OR A PUBLIC INSURANCE ADJUSTER HOLDING A 164
CERTIFICATE OF AUTHORITY ISSUED UNDER CHAPTER 3951. OF THE 166
REVISED CODE WHEN PERFORMING THE DUTIES OF A PUBLIC INSURANCE 168
ADJUSTER.
(C) DIVISION (A) OF THIS SECTION DOES NOT APPLY TO ANY OF 172
THE FOLLOWING ACTIVITIES WHEN PERFORMED BY AN EMPLOYEE OF, AND AT 173
THE DIRECTION OF, AN INSURER OR LICENSED INSURANCE AGENT: 174
(1) THE ACCEPTANCE OF PREMIUMS OTHER THAN THE INITIAL 176
PREMIUM; 177
(2) THE GATHERING OF INFORMATION, SUCH AS NAMES, 179
ADDRESSES, EXPIRATION DATES OF CURRENT INSURANCE, AND NAMES OF 180
CURRENT INSURERS; 181
(3) THE SETTING OF APPOINTMENTS FOR INSURANCE AGENTS, 183
PROVIDED THAT THE PERSON SETTING THE APPOINTMENT DOES NOT 184
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COMMUNICATE ANY INFORMATION ABOUT INSURANCE; 185
(4) THE PROVISION OF INFORMATION ABOUT EXISTING INSURANCE 187
POLICIES ISSUED BY OR THROUGH THE EMPLOYEE'S EMPLOYER, IF THE 188
INFORMATION IS NOT PROVIDED AS PART OF A SOLICITATION; 189
(5) THE PERFORMANCE OF CLERICAL OR MINISTERIAL DUTIES. 192
(D) THE SUPERINTENDENT MAY ADOPT RULES IN ACCORDANCE WITH 195
CHAPTER 119. OF THE REVISED CODE TO SET FORTH THE SPECIFIC ACTS 198
THAT COMPRISE ANY OF THE ACTIVITIES DESCRIBED IN THIS SECTION, 199
THE PERFORMANCE OF WHICH EITHER REQUIRES OR DOES NOT REQUIRE 201
LICENSURE AS AN AGENT.
Sec. 3905.011. (A) AS USED IN THIS SECTION AND SECTIONS 204
3905.012 AND 3905.013 OF THE REVISED CODE, "INSURER" HAS THE SAME 206
MEANING AS IN SECTION 3901.32 OF THE REVISED CODE. 209
(B) ANY PERSON THAT IS LICENSED AS AN AGENT UNDER SECTION 212
3905.02 OR 3905.18 OF THE REVISED CODE IS ELIGIBLE TO BE 214
APPOINTED BY ONE OR MORE INSURERS AUTHORIZED TO DO BUSINESS IN 215
THIS STATE. 216
(C)(1) PRIOR TO APPOINTING AN AGENT, AN INSURER SHALL 219
CERTIFY TO THE SUPERINTENDENT OF INSURANCE, IN ACCORDANCE WITH 220
RULES ADOPTED BY THE SUPERINTENDENT UNDER SECTION 3905.013 OF THE 221
REVISED CODE, THAT THE PERSON IS COMPETENT, FINANCIALLY 223
RESPONSIBLE, AND SUITABLE TO REPRESENT THE INSURER. 224
(2) NO AGENT SHALL REPRESENT TO THE PUBLIC THAT THE AGENT 226
HAS AUTHORITY TO REPRESENT A PARTICULAR INSURER UNTIL THE INSURER 228
HAS ACKNOWLEDGED THAT AUTHORITY BY APPOINTMENT OF THE AGENT IN 229
ACCORDANCE WITH DIVISION (C)(1) OF THIS SECTION. 230
(D)(1) NO INSURER SHALL PAY A COMMISSION, FEE, OR OTHER 233
TYPE OF CONSIDERATION, OR GIVE ANY OTHER THING OF VALUE, TO A 234
PERSON THAT IS REQUIRED TO BE LICENSED BY THE SUPERINTENDENT 235
UNDER THIS CHAPTER FOR THE SALE OF, OR FOR ANY DIRECT OR INDIRECT 236
CONNECTION WITH THE SALE OF, ANY INSURANCE SOLD BY OR ON BEHALF 237
OF THE INSURER, BUT IS NOT SO LICENSED.
(2) NOTHING IN THIS SECTION PROHIBITS AN INSURER FROM 239
ENTERING INTO A COMPENSATION AGREEMENT WITH A CREDITOR WITH 240
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RESPECT TO INSURANCE PRODUCTS MADE AVAILABLE ONLY IN CONNECTION 242
WITH A CREDIT TRANSACTION, INCLUDING CREDIT LIFE INSURANCE,
CREDIT DISABILITY OR ACCIDENT AND HEALTH INSURANCE, CREDIT 243
PROPERTY INSURANCE, MORTGAGE LIFE INSURANCE, MORTGAGE ACCIDENT 244
AND HEALTH INSURANCE, INVOLUNTARY UNEMPLOYMENT INSURANCE, 245
INDIVIDUAL LIFE INSURANCE, AND INDIVIDUAL DISABILITY OR ACCIDENT 246
AND HEALTH INSURANCE, IF THE ENTIRE PREMIUM IS FINANCED AS PART 247
OF THE CREDIT TRANSACTION. FOR PURPOSES OF DIVISION (D)(2) OF 248
THIS SECTION, "CREDIT PROPERTY INSURANCE" HAS THE SAME MEANING AS 249
IN DIVISION (B)(3) OF SECTION 3905.01 OF THE REVISED CODE.
Sec. 3905.012. (A)(1) EXCEPT AS PROVIDED IN DIVISION 253
(A)(2) OF THIS SECTION, ANY PERSON LICENSED AS AN AGENT UNDER 254
SECTION 3905.02 OR 3905.18 OF THE REVISED CODE, OR APPOINTED AS A 256
SOLICITOR UNDER SECTION 3905.03 OF THE REVISED CODE, MAY AT ANY 259
TIME SURRENDER ANY OR ALL LICENSES HELD BY THE PERSON. 260
(2) NO AGENT SHALL SURRENDER THE AGENT'S LICENSES IF THE 263
SUPERINTENDENT OF INSURANCE IS INVESTIGATING ANY ALLEGATION OF 264
WRONGDOING BY THE AGENT OR HAS INITIATED PROCEEDINGS UNDER 265
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 266
SURRENDER IS INVALID.
(B)(1) IF AN INSURER OR AGENT CANCELS THE APPOINTMENT OF 269
AN AGENT OR SOLICITOR DUE TO SUSPECTED FRAUD, MISREPRESENTATION, 270
THEFT, CONVERSION, OR ANY OTHER CULPABLE MISAPPROPRIATION, THE 271
INSURER OR AGENT SHALL PROMPTLY NOTIFY THE SUPERINTENDENT. THE 272
NOTICE SHALL INCLUDE A COMPLETE STATEMENT OF THE FACTS AND THE 273
REASONS FOR THE CANCELLATION. 274
(2) IN THE ABSENCE OF FRAUD OR ACTUAL MALICE, AN INSURER 276
OR AGENT IS IMMUNE FROM ANY CIVIL LIABILITY THAT OTHERWISE MIGHT 277
BE INCURRED OR IMPOSED AS A RESULT OF ANY ACTION TAKEN BY THE 278
INSURER OR AGENT TO COMPLY WITH DIVISION (B)(1) OF THIS SECTION. 280
(C) IF AN AGENT'S LICENSE IS SURRENDERED, REVOKED, OR 282
SUSPENDED, ALL APPOINTMENTS HELD BY THE AGENT ARE VOID. IF A NEW 284
LICENSE IS ISSUED TO THAT PERSON OR IF THAT PERSON'S PREVIOUS 285
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LICENSE IS REINSTATED, ANY APPOINTMENT OF THE PERSON TO REPRESENT 286
AN INSURER OR AGENT MUST BE MADE IN ACCORDANCE WITH THE 287
REQUIREMENTS OF THIS CHAPTER.
(D)(1) ANY AGENT, OTHER THAN A CORPORATION, PARTNERSHIP, 289
OR LIMITED LIABILITY COMPANY, WHO IS NO LONGER ENGAGED IN THE 290
BUSINESS OF INSURANCE IN ANY CAPACITY FOR WHICH AN AGENT'S 291
LICENSE IS REQUIRED MAY APPLY TO THE SUPERINTENDENT FOR INACTIVE 292
STATUS. THE SUPERINTENDENT MAY GRANT SUCH STATUS ONLY IF THE 293
SUPERINTENDENT IS SATISFIED THAT THE PERSON IS NOT ENGAGED IN AND 295
DOES NOT INTEND TO ENGAGE IN ANY OF THE ACTIVITIES SET FORTH IN 296
SECTION 3905.01 OF THE REVISED CODE THAT REQUIRES AN AGENT'S 298
LICENSE. 299
(2) A PERSON WHO HAS BEEN GRANTED INACTIVE STATUS IS 301
EXEMPT FROM ANY CONTINUING EDUCATION REQUIREMENTS IMPOSED UNDER 302
THIS CHAPTER. 303
(3) THE SUPERINTENDENT MAY ADOPT RULES IN ACCORDANCE WITH 306
CHAPTER 119. OF THE REVISED CODE TO ESTABLISH PROCEDURES FOR 309
APPLYING FOR INACTIVE STATUS, CRITERIA USED TO DETERMINE
ELIGIBILITY FOR SUCH STATUS, AND STANDARDS AND PROCEDURES FOR 310
TRANSFERRING FROM INACTIVE TO ACTIVE STATUS. 311
(E) THE SUPERINTENDENT MAY SUSPEND OR REVOKE A LICENSE, OR 314
TAKE ANY OTHER DISCIPLINARY ACTION AUTHORIZED BY THIS CHAPTER, 315
REGARDLESS OF WHETHER THE PERSON IS APPOINTED OR OTHERWISE 316
AUTHORIZED TO REPRESENT AN INSURER OR AGENT. 317
Sec. 3905.013. (A) THE SUPERINTENDENT OF INSURANCE MAY 320
ADOPT RULES IN ACCORDANCE WITH CHAPTER 119. OF THE REVISED CODE 323
FOR PURPOSES OF IMPLEMENTING SECTIONS 3905.01 TO 3905.03 AND 324
3905.18 OF THE REVISED CODE, INCLUDING RULES THAT DO THE 327
FOLLOWING:
(1) SET FORTH REQUIREMENTS AND PROCEDURES FOR THE ISSUANCE 330
OF AN AGENT'S LICENSE;
(2) PROVIDE FOR THE ISSUANCE OF A LIMITED AUTHORITY 333
LICENSE FOR A SPECIFIC LINE OF INSURANCE AND FOR THE APPOINTMENT
OF SUCH A LICENSEE, AND SET FORTH ANY PRELICENSING EDUCATION, 335
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EXAMINATION, OR CONTINUING EDUCATION REQUIREMENTS THE
SUPERINTENDENT CONSIDERS APPROPRIATE FOR THE LICENSE; 336
(3) SET FORTH THE CIRCUMSTANCES UNDER WHICH THE 339
SUPERINTENDENT OR THE SUPERINTENDENT'S DESIGNEE MAY REFUSE TO
ISSUE AN AGENT'S LICENSE TO AN APPLICANT. NOTWITHSTANDING 341
CHAPTER 119. OF THE REVISED CODE, AN OPPORTUNITY FOR A HEARING 344
SHALL NOT BE GRANTED TO SUCH AN APPLICANT UNTIL THE
SUPERINTENDENT HAS CONDUCTED AN INVESTIGATION OF THE MATTER. 346
(4) ESTABLISH PROCEDURES FOR CERTIFYING AN INSURER'S 348
APPOINTMENT OF AN AGENT; 349
(5) ESTABLISH PROCEDURES FOR THE SURRENDER OF LICENSES OR 352
APPOINTMENTS.
(B) THE SUPERINTENDENT MAY DIRECT LICENSEES TO PAY ANY 355
FEES TO ANY CONTRACTED VENDOR.
Sec. 3905.02. (A) AN APPLICANT FOR A LICENSE AS AN OTHER 358
THAN LIFE INSURANCE AGENT SHALL SUBMIT AN APPLICATION FOR SUCH A 359
LICENSE TO THE SUPERINTENDENT OF INSURANCE. THE APPLICATION 361
SHALL BE ON A FORM FURNISHED BY THE SUPERINTENDENT AND BE 362
ACCOMPANIED BY A STATEMENT UNDER OATH BY THE APPLICANT WHICH 363
GIVES THE APPLICANT'S NAME, AGE, RESIDENCE, PRESENT OCCUPATION, 364
OCCUPATION FOR THE FIVE YEARS NEXT PRECEDING THE DATE OF THE 365
APPLICATION, AND SUCH OTHER INFORMATION AS THE SUPERINTENDENT MAY 366
REQUIRE.
THE APPLICANT SHALL ALSO REQUEST A CRIMINAL RECORDS CHECK 368
CONDUCTED BY THE SUPERINTENDENT OF THE BUREAU OF CRIMINAL 370
IDENTIFICATION AND INVESTIGATION IN ACCORDANCE WITH SECTION
109.572 OF THE REVISED CODE, AND DIRECT THAT THE BUREAU'S WRITTEN 372
RESPONSE TO THAT REQUEST BE TRANSMITTED TO THE SUPERINTENDENT OF 373
INSURANCE, OR TO THE SUPERINTENDENT'S DESIGNEE, AS SPECIFIED ON 374
THE FORM PRESCRIBED PURSUANT TO THAT SECTION. IF THE 375
SUPERINTENDENT OF INSURANCE OR THE SUPERINTENDENT'S DESIGNEE
FAILS TO RECEIVE THE BUREAU'S RESPONSE TO THE APPLICANT'S REQUEST 377
FOR A CRIMINAL RECORDS CHECK, THE SUPERINTENDENT MAY REFUSE TO 378
ISSUE A LICENSE UNDER THIS SECTION. THE APPLICANT SHALL PAY ANY 379
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FEE REQUIRED BY THE BUREAU FOR CONDUCTING THE CRIMINAL RECORDS 380
CHECK.
AN APPLICANT FOR A LICENSE SHALL SUBMIT TO AN EXAMINATION 383
AS TO THE QUALIFICATIONS SET FORTH IN DIVISION (B) OF THIS 384
SECTION. 385
(B) THE SUPERINTENDENT OF INSURANCE SHALL ISSUE TO AN 388
APPLICANT A LICENSE THAT STATES IN SUBSTANCE THAT THE PERSON IS 389
AUTHORIZED TO DO THE BUSINESS OF AN OTHER THAN LIFE INSURANCE 390
AGENT IN THIS STATE, IF THE SUPERINTENDENT IS SATISFIED THAT THE 391
APPLICANT IS A SUITABLE PERSON AND INTENDS TO HOLD SELF OUT IN 392
GOOD FAITH AS AN AGENT; THAT THE APPLICANT IS HONEST, 393
TRUSTWORTHY, AND UNDERSTANDS THE DUTIES AND OBLIGATIONS OF AN 394
AGENT, AND IS FAMILIAR WITH THE INSURANCE LAWS OF THIS STATE AND 395
WITH THE TERMS AND PROVISIONS OF THE POLICIES AND CONTRACTS OF 396
INSURANCE THE APPLICANT PROPOSES TO EFFECT; THAT IN APPLYING FOR 397
THE LICENSE IT IS NOT THE APPLICANT'S PURPOSE OR INTENTION 398
PRINCIPALLY TO SOLICIT OR PLACE INSURANCE ON THE APPLICANT'S OWN 399
PROPERTY OR THAT OF RELATIVES, EMPLOYERS, OR EMPLOYEES OR THAT 400
FOR WHICH THEY OR THE APPLICANT IS AGENT, CUSTODIAN, VENDOR, 401
BAILEE, TRUSTEE, OR PAYEE; AND THAT THE APPLICANT HAS COMPLETED 402
THE EDUCATIONAL REQUIREMENTS SET FORTH IN SECTION 3905.48 OF THE 403
REVISED CODE.
THE SUPERINTENDENT MAY SUSPEND OR REVOKE SUCH A LICENSE AS 405
PROVIDED IN SECTION 3905.482 OF THE REVISED CODE, AND MAY 406
SUSPEND, REVOKE, REFUSE TO CONTINUE, OR REFUSE TO ISSUE SUCH A 408
LICENSE AS PROVIDED IN SECTION 3905.49 OF THE REVISED CODE. 410
UNLESS REVOKED OR SUSPENDED BY THE SUPERINTENDENT OR SURRENDERED 411
BY THE AGENT, SUCH A LICENSE CONTINUES IN FORCE FOR THE LIFE OF 412
THE AGENT, IN THE CASE OF AN INDIVIDUAL, OR UNTIL THE 413
CORPORATION, PARTNERSHIP, OR LIMITED LIABILITY COMPANY CEASES TO
EXIST. 414
(C)(1) EACH INSURANCE COMPANY SHALL CERTIFY TO THE 417
SUPERINTENDENT OF INSURANCE BEFORE THE THIRTIETH DAY OF JUNE EACH 418
YEAR THE NAMES AND ADDRESSES OF THE AGENTS FOR WHOM IT REQUESTS 419
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APPOINTMENTS OR THE CONTINUANCE OF APPOINTMENTS. ALL DOMESTIC, 420
FOREIGN, AND ALIEN COMPANIES SHALL PAY TO THE SUPERINTENDENT A 421
FEE OF TWENTY DOLLARS FOR EVERY SUCH APPOINTMENT WHEN ISSUED AND 422
FOR EACH CONTINUANCE THEREAFTER. SUCH AN APPOINTMENT, UNLESS 423
CANCELED BY THE INSURANCE COMPANY, MAY BE CONTINUED IN FORCE PAST 425
THE THIRTIETH DAY OF JUNE NEXT AFTER ITS ISSUE AND AFTER THE 426
THIRTIETH DAY OF JUNE OF EACH SUCCEEDING YEAR PROVIDED THAT THE 428
APPOINTEE IS LICENSED AND IS ELIGIBLE FOR THE APPOINTMENT. 429
(2) AN INSURANCE COMPANY SHALL BE BOUND BY THE ACTS OF THE 432
PERSON NAMED IN THE APPOINTMENT WITHIN THAT PERSON'S APPARENT 433
AUTHORITY AS ITS AGENT.
(3) DIVISION (C) OF THIS SECTION DOES NOT APPLY TO LIFE 436
INSURANCE COMPANIES, INCLUDING FRATERNALS, NOR TO DOMESTIC MUTUAL 437
PROTECTIVE ASSESSMENT FIRE ASSOCIATIONS AS DEFINED IN SECTION 438
3939.01 OF THE REVISED CODE. 440
(D) THE SUPERINTENDENT OF INSURANCE MAY PRESCRIBE THE 443
FORMS TO BE USED AS EVIDENCE OF THE ISSUANCE OF LICENSES AND 444
APPOINTMENTS UNDER THIS SECTION AND MAY ISSUE ONE OR MORE 445
CERTIFICATES, IN A FORM SUITABLE FOR OFFICE DISPLAY, TO COVER ANY 446
NUMBER OF INSURANCE COMPANIES WITH WHICH AN AGENT HAS 447
APPOINTMENTS.
(E)(1) THE SUPERINTENDENT OF INSURANCE SHALL NOT ISSUE OR 450
CONTINUE THE LICENSE OF A CORPORATION, PARTNERSHIP, OR LIMITED 451
LIABILITY COMPANY ORGANIZED UNDER THE LAWS OF THIS OR ANY OTHER 452
STATE UNLESS THE CORPORATION, PARTNERSHIP, OR LIMITED LIABILITY 453
COMPANY IS QUALIFIED TO DO BUSINESS IN THIS STATE UNDER THE 454
APPLICABLE PROVISIONS OF TITLE XVII OF THE REVISED CODE. 458
(2) THE FAILURE OF A CORPORATION, PARTNERSHIP, OR LIMITED 461
LIABILITY COMPANY TO BE IN GOOD STANDING WITH THE SECRETARY OF 462
STATE OR TO MAINTAIN A VALID APPOINTMENT OF STATUTORY AGENT IS 463
GROUNDS FOR SUSPENSION OR REVOCATION OF ITS LICENSE. 464
(3) BY APPLYING FOR A LICENSE AS AN AGENT UNDER THIS 466
SECTION, AN INDIVIDUAL, CORPORATION, PARTNERSHIP, OR LIMITED 467
LIABILITY COMPANY CONSENTS TO THE JURISDICTION OF THE COURTS OF 468
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THIS STATE. 469
Sec. 3905.02 3905.03. (A) Any agent authorized and 478
licensed as provided in section 3905.01 3905.02 of the Revised 480
Code, and representing APPOINTED TO REPRESENT one or more 482
insurance corporations within this state, may employ APPOINT as 484
many solicitors as the agent desires to represent the agent and
the agent's agency, but such THE solicitors shall not represent 485
themselves, by advertisement or otherwise, as agents of insurance 487
companies for which their employer may be the authorized agent, 488
and such THE solicitors shall in all instances represent 489
themselves only as solicitors for said THE agent. Upon 490
EACH AGENT THAT EMPLOYS A PERSON AS A SOLICITOR SHALL 493
CERTIFY TO THE SUPERINTENDENT OF INSURANCE THAT THE PERSON IS 494
COMPETENT, FINANCIALLY RESPONSIBLE, AND SUITABLE TO REPRESENT THE 495
AGENT. UPON written notice by any such agent that the agent has 497
employed such a person as a solicitor, the superintendent of 498
insurance shall issue to the solicitor a license AN APPOINTMENT 499
in the form prepared by the superintendent, if the superintendent 501
is satisfied that: 502
(1) The applicant SOLICITOR is a suitable person and 504
intends to hold self out in good faith as a solicitor;. 506
(2) The applicant SOLICITOR is honest and trustworthy;. 509
(3) The applicant SOLICITOR has training or instruction in 511
the business and understands the duties and obligations of a 512
solicitor;. 513
(4) The applicant SOLICITOR IS LICENSED UNDER SECTION 515
3905.02 OF THE REVISED CODE, is familiar with the insurance laws, 517
and IS FAMILIAR with the provisions of the policies and contracts 518
of insurance the applicant SOLICITOR proposes to solicit;. 520
(5) In applying for such license it IT is not appointee's 523
THE SOLICITOR'S purpose or intention principally to solicit or 524
place insurance on appointee's THE SOLICITOR'S own property or 525
that of relatives, employers, or employees or that for which they 527
or the appointee SOLICITOR is agent, custodian, vendor, bailee, 529
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trustee, or payee. Notice
(6) ON AND AFTER JULY 1, 1987, THE SOLICITOR HAS COMPLETED 533
THE PRELICENSING EDUCATIONAL REQUIREMENTS SET FORTH IN SECTION 534
3905.48 OF THE REVISED CODE. 536
NOTICE shall be upon a form furnished by the superintendent 540
and shall be accompanied by a statement under oath by the 541
solicitor which shall give GIVES the applicant's SOLICITOR'S 542
name, age, residence, present occupation, the applicant's 545
SOLICITOR'S occupation for the five years next preceding the date 546
of the notice, the kinds of insurance for which the applicant 547
SOLICITOR wishes license to solicit, and such other information 549
as the superintendent requires, upon a blank furnished by the 550
superintendent.
(6) On and after July 1, 1987, the applicant has completed 552
the pre-licensing educational requirements set forth in section 553
3905.48 of the Revised Code. 554
(B) If such appointee THE SOLICITOR within the preceding 556
two years has not been appointed as a licensed IN THIS STATE AS 558
AN insurance solicitor or has not had an appointment as a 560
licensed insurance solicitor continued by an insurance agent 561
licensed in this state FOR OTHER THAN LIFE INSURANCE UNDER 562
SECTION 3905.02 OF THE REVISED CODE, the appointee SOLICITOR 563
shall submit to a hearing and AN examination as to the 564
qualifications set forth in divisions (A)(1) to (5) of this 566
section.
(C) For the purpose of licensing solicitors, insurance 568
shall be considered as of three classes: fire insurance, 569
including marine and inland transportation; casualty insurance; 570
and surety insurance. A solicitor who did not hold a license as 571
solicitor prior to January 1, 1967, may be licensed APPOINTED 572
only if the solicitor is qualified for the same class or classes 575
of insurance for which the agent employing the solicitor is 576
licensed. Each solicitor's license shall state the class or 578
classes A SOLICITOR MAY SOLICIT ONLY THOSE LINES OF INSURANCE for 579
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which issued and no BOTH THE solicitor shall be licensed for AND 580
the same kind of insurance by more than one APPOINTING agent ARE 582
LICENSED. Unless such license NO SOLICITOR SHALL BE APPOINTED BY 584
MORE THAN ONE AGENT. 585
UNLESS THE SOLICITOR'S LICENSE is revoked or suspended by 588
the superintendent or unless the agent by written notice to the 589
superintendent cancels the solicitor's authority as such
solicitor, or unless such license is canceled by the 590
superintendent upon written notice from the solicitor that the 591
solicitor's authority has been canceled by the agent, such 592
license and any other license issued to a solicitor APPOINTMENT 593
may, in the discretion of the superintendent, and at the request 595
of the agent who employs the solicitor and the payment of the 596
required fee, be continued past the thirtieth day of June next 597
after its issue and after the thirtieth day of June each 598
succeeding year. Each agent shall certify, to the superintendent 599
of insurance, before the thirtieth day of June each year, the 600
names and addresses of the solicitors the agent has employed 601
during the preceding year, indicating those for whom the agent 602
wishes licenses APPOINTMENTS to be continued. 603
The agent giving written notice shall pay to the 605
superintendent a fee of twenty dollars for every such license 606
APPOINTMENT and for each continuance thereof. The issuance of a 608
solicitor's license APPOINTMENT shall be limited to a natural 609
person who is a resident of this state or to a natural person who 612
is employed by a licensed resident agent and is conducting 613
business only from within this state.
The superintendent may suspend or revoke such a license as 615
provided in section 3905.482 of the Revised Code, and may 616
suspend, revoke, refuse to continue or renew, or refuse to issue 617
such a license as provided in section 3905.49 of the Revised 618
Code.
Sec. 3905.06. Sections 3905.01 to 3905.06 of the Revised 627
Code do not apply to companies or associations transacting the 628
14
business of life insurance or their agent or to associations 630
organized and operating under sections 3939.01 to 3939.09 of the 631
Revised Code.
Sec. 3905.07. No person shall act in this state as special 640
representative, state agent, field representative, state, 641
district, or local manager, or in any similar capacity by 642
whatever title designated, unless the person is licensed by the 643
superintendent of insurance. Upon written notice by an insurance 644
company authorized to transact business in this state of its 645
employment of a person to act as such representative and that the 646
person's duties are to appoint, supervise, or dismiss agents, to 647
aid them in soliciting, negotiating, and receiving applications 648
of and handling orders for insurance, and to aid the employer 649
generally in the transaction of its business in this state, but 650
not to solicit insurance on that person's own behalf, the 651
superintendent shall issue a license as special representative to 652
such THE person. Such THE license shall state in substance that 654
the company is authorized to do business in this state and that 655
the person named therein IN THE LICENSE is a constituted special 657
representative of the company in this state in the transaction of 658
such business within the person's apparent authority as the 659
company is authorized to transact therein. If such THE special 660
representative signs policies for the company, the special 662
representative must qualify as an agent under section 3905.01 663
3905.02 of the Revised Code. Unless the company, by written 664
notice to the superintendent, cancels the special 665
representative's authority to act for it, such license may, in 666
the discretion of the superintendent and at the request of the 667
company and payment of the required fee, be continued past the 668
thirtieth day of June next after issue and the thirtieth day of 669
June of each succeeding year. Each company shall pay a fee of 670
five dollars for each such license and each continuance thereof. 671
A PERSON LICENSED AS A SPECIAL REPRESENTATIVE UNDER THIS 674
SECTION IS NOT SUBJECT TO SECTION 3905.481 OF THE REVISED CODE 676
15
UNLESS THE PERSON IS ALSO LICENSED AS AN AGENT UNDER SECTION 677
3905.02 OF THE REVISED CODE. 679
Sec. 3905.08. If it appears from the written notice given 688
to the superintendent of insurance pursuant to sections 3905.01, 689
3905.02, and 3905.18 of the Revised Code that the appointment 691
APPLICATION of any person to act as an agent, or the employment 693
of any person to act as a solicitor, is only for the purpose of 695
having such agent or such solicitor procure PROCURING, receive 697
RECEIVING, or forward FORWARDING applications for insurance 699
against accidents to or sickness of persons, or on the health of
individuals and against personal injury, disablement, or death 700
resulting from traveling or general accidents by land and water, 701
then the scope of any hearing or examination, or questions in any 702
application for license, as provided for in any of said THOSE 703
sections, shall be limited to that type of insurance only. If 705
any such person appointed as agent or employed as a solicitor is 706
otherwise qualified under said THOSE sections, the superintendent 707
shall issue to such THE person an appropriate agent's or 708
solicitor's license bearing an imprint across its face "accident 710
and health insurance license." Such license only entitles the 711
holder to procure applications for such insurance and forward the 712
same to the company or agent that he THE HOLDER is licensed 714
APPOINTED to represent. Such sections apply to any person 715
appointed as an agent or employed as a solicitor, except to the 716
extent that they are modified and amended by this section. No 717
agent or solicitor licensed under this section shall procure, 718
receive, or forward applications for any kind of insurance except 719
the kinds enumerated in this section. Any violation of this 720
section, by any AN agent or solicitor licensed under this section 722
is cause for the revocation of said THE license and any other 724
licenses issued by the superintendent to said THE agent or 725
solicitor. 726
The acceptance by any insurance company from any AN agent 728
licensed under this section, or the acceptance by any insurance 730
16
agent, whether licensed under this or any other section of the 732
Revised Code, from any solicitor licensed under this section, of 733
an application for any kind of insurance except the kinds
enumerated in this section, is cause for the revocation of the 734
license of said THE company or agent and for the revocation of 736
any other licenses issued by the superintendent to said THE 738
company or agent.
Sec. 3905.18. (A) Upon written notice by AN APPLICANT FOR 747
A LICENSE AS a life insurance company authorized to transact 749
business in this state of its appointment of a person to act as 750
its agent in this state, and upon issuance of the certificate 751
verified by an executive officer or managing agent thereof, that 752
such company has investigated the character and record of such 753
person and satisfied itself that he is trustworthy and qualified 754
to act as its agent, and that he has completed the educational 756
requirements set forth in section 3905.48 of the Revised Code, 757
SHALL SUBMIT TO the superintendent of insurance shall, on receipt 759
of such certification, furnish to the agent an application for AN 760
agent's license, which shall contain such questions touching the 761
applicant's fitness to be licensed as an agent as the 762
superintendent determines. If such appointee within the 764
preceding two years has not been appointed as a licensed life 765
insurance agent or has not had his appointment as a licensed life 767
insurance agent continued by an insurance company authorized to 768
transact business in this state, the appointee THE APPLICATION 769
SHALL BE ACCOMPANIED BY A STATEMENT UNDER OATH BY THE APPLICANT 772
THAT GIVES THE APPLICANT'S NAME, AGE, RESIDENCE, PRESENT 773
OCCUPATION, OCCUPATION FOR THE FIVE YEARS NEXT PRECEDING THE DATE 774
OF THE APPLICATION, AND SUCH OTHER INFORMATION AS THE 775
SUPERINTENDENT MAY REQUIRE.
THE APPLICANT SHALL ALSO REQUEST A CRIMINAL RECORDS CHECK 777
CONDUCTED BY THE SUPERINTENDENT OF THE BUREAU OF CRIMINAL 779
IDENTIFICATION AND INVESTIGATION IN ACCORDANCE WITH SECTION
109.572 OF THE REVISED CODE, AND DIRECT THAT THE BUREAU'S WRITTEN 781
17
RESPONSE TO THAT REQUEST BE TRANSMITTED TO THE SUPERINTENDENT OF 782
INSURANCE, OR TO THE SUPERINTENDENT'S DESIGNEE, AS SPECIFIED ON 783
THE FORM PRESCRIBED PURSUANT TO THAT SECTION. IF THE 784
SUPERINTENDENT OF INSURANCE OR THE SUPERINTENDENT'S DESIGNEE
FAILS TO RECEIVE THE BUREAU'S RESPONSE TO THE APPLICANT'S REQUEST 786
FOR A CRIMINAL RECORDS CHECK, THE SUPERINTENDENT MAY REFUSE TO 787
ISSUE A LICENSE UNDER THIS SECTION. THE APPLICANT SHALL PAY ANY 788
FEE REQUIRED BY THE BUREAU FOR CONDUCTING THE CRIMINAL RECORDS 789
CHECK.
AN APPLICANT FOR A LICENSE shall submit to an examination 794
as to his THE APPLICANT'S knowledge of life and sickness and 795
accident insurance and the laws of this state governing his 796
activities as a life insurance agent. Unless 797
(B) UNLESS it appears that the appointee APPLICANT is not 802
of good reputation and character, is not a trustworthy person, is 803
not suitable to be licensed, or has not completed such THE 804
educational requirements SET FORTH IN SECTION 3905.48 OF THE 805
REVISED CODE, the superintendent OF INSURANCE shall issue to him 806
THE APPLICANT a license which shall state, in substance, that the 808
company PERSON is authorized to do THE business OF A LIFE 810
INSURANCE AGENT in this state, and that the person named therein 812
is a constituted agent of the company in this state for the 813
transaction of such business. Each notice and certificate shall 814
be upon forms furnished by the superintendent and shall be 815
accompanied by a statement under oath by the appointee which 816
shall give his name, age, residence, present occupation, 818
occupation for the five years next preceding the date of the 819
notice, and such other information as the superintendent
requires, upon a blank furnished by him. 820
(B) The superintendent may suspend or revoke such a 822
license as provided in section 3905.482 of the Revised Code, and 823
may suspend, revoke, refuse to continue or renew, or refuse to 824
issue such a license as provided in section 3905.49 of the 825
Revised Code. Every such UNLESS REVOKED OR SUSPENDED BY THE 826
18
SUPERINTENDENT OR SURRENDERED BY THE AGENT, SUCH A LICENSE 827
CONTINUES IN FORCE FOR THE LIFE OF THE AGENT, IN THE CASE OF AN 828
INDIVIDUAL, OR UNTIL THE CORPORATION, PARTNERSHIP, OR LIMITED 829
LIABILITY COMPANY CEASES TO EXIST.
EACH insurance company shall, upon the termination of the 832
employment APPOINTMENT of any such agent, forthwith file with the 834
superintendent a statement of the termination of such employment 835
THE APPOINTMENT.
(C) Upon written notice by a life insurance company 837
authorized to transact business in this state of its appointment 838
of a corporation, PARTNERSHIP, OR LIMITED LIABILITY COMPANY to 839
act as its agent in this state, the superintendent of insurance 841
shall furnish such THE corporation, PARTNERSHIP, OR LIMITED 842
LIABILITY COMPANY with an application for agent's license which 843
shall contain such questions as will enable the superintendent to 844
determine that such THE corporation, PARTNERSHIP, OR LIMITED 845
LIABILITY COMPANY was organized for the purpose of acting as an 846
insurance agent,; that each employee of such THE corporation, 848
PARTNERSHIP, OR LIMITED LIABILITY COMPANY who will negotiate for, 849
place, or renew policies or agreements of life insurance on 850
behalf of such THE corporation, PARTNERSHIP, OR LIMITED LIABILITY 851
COMPANY has been issued a life insurance agent's license pursuant 852
to division (A) of this section; that the voting shares of such 853
corporation are beneficially owned by natural persons who are 854
residents of this state; that such THE corporation, PARTNERSHIP, 855
OR LIMITED LIABILITY COMPANY and such THE life insurance company 857
have executed a written agreement whereby the rights and duties 858
of each are set forth; and that in applying for such THE license 859
it is not the appointee's purpose or intention principally to 861
solicit or place insurance on the lives of the appointee's 862
officers, employees, or shareholders, or the lives of relatives 863
of such officers, employees, or shareholders, or upon the lives 864
of persons for whom they, their relatives, or the appointee is 865
agent, custodian, vendor, bailee, trustee, or payee. Unless it 866
19
appears that such THE corporation, PARTNERSHIP, OR LIMITED 868
LIABILITY COMPANY was not organized for such purpose or that each 869
such employee has not been so licensed or that the voting shares 870
of such corporation are not so beneficially owned or that such a 871
written agreement has not been executed, the superintendent shall 872
issue to such THE corporation, PARTNERSHIP, OR LIMITED LIABILITY 873
COMPANY a license which shall state STATES, in substance, that 874
such THE corporation, PARTNERSHIP, OR LIMITED LIABILITY COMPANY 875
is a life insurance agent. 876
(D) If the superintendent of insurance, at any time 878
subsequent to the issuance of a life insurance agent's license to 879
a corporation, PARTNERSHIP, OR LIMITED LIABILITY COMPANY, finds 880
that such THE corporation, PARTNERSHIP, OR LIMITED LIABILITY 882
COMPANY has ceased to have as its purpose acting as an insurance 883
agent or that each employee of such THE corporation, PARTNERSHIP, 884
OR LIMITED LIABILITY COMPANY who negotiates for, places, or 885
renews policies or agreements of life insurance on behalf of such 887
THE corporation, PARTNERSHIP, OR LIMITED LIABILITY COMPANY has 888
not been issued a life insurance agent's license or that the 889
voting shares of such corporation are not beneficially owned by 890
natural persons who are residents of this state or that the 891
principal use of such THE license has been to solicit, place, or 893
effect insurance on the lives of the appointee's officers, 894
employees, or shareholders, or on the lives of the relatives of 895
such officers, employees, or shareholders, or upon the lives of 896
persons for whom they, or their relatives, or the appointee is 897
agent, custodian, vendor, bailee, trustee, or payee, or for any 898
other cause shown he, THE SUPERINTENDENT may after hearing revoke 900
the life insurance agent's license issued to such THE 902
corporation, PARTNERSHIP, OR LIMITED LIABILITY COMPANY or suspend 903
such THE license until such condition as he THE SUPERINTENDENT 904
finds existing ceases to exist. The finding of the 907
superintendent, either in refusing to grant a license or in 908
revoking a license, shall be in writing, and shall state the 909
20
facts upon which his THE action is based. The action of the 911
superintendent in granting, revoking, continuing, or refusing to 912
grant, revoke, or continue such THE license, shall be subject to 914
review in accordance with Chapter 119. of the Revised Code. 915
(E) Unless THE AGENT'S LICENSE IS revoked OR SUSPENDED by 917
the superintendent OF INSURANCE, or unless the company by written 919
notice to the superintendent cancels the agent's authority to act 920
for it, a life insurance agent's license, and any other license 921
issued to an agent APPOINTMENT may, in the discretion of the 923
superintendent and at the request of the company and payment of 924
the required fee, be continued past the thirtieth day of June 925
next after its issue and after the thirtieth day of June in each 926
succeeding year. Except as provided in section 3905.011 of the 927
Revised Code, all ALL domestic, foreign, and alien companies 929
shall pay a fee of twenty dollars for every such license 930
APPOINTMENT and for each continuance thereafter. While such 932
license AN APPOINTMENT remains in force, a foreign company shall 934
be bound by the acts of the person named therein IN THE 935
APPOINTMENT, within his THE PERSON'S APPARENT authority as its 938
acknowledged agent.
(F) The superintendent OF INSURANCE may prescribe the 940
forms to be used as evidence of the issuance of licenses AND 941
APPOINTMENTS under this section and may issue one or more 943
certificates, in a form suitable for office display, to cover any 944
number of insurance companies with which an agent is licensed HAS 945
APPOINTMENTS.
(G)(1) THE SUPERINTENDENT OF INSURANCE SHALL NOT ISSUE OR 948
CONTINUE THE LICENSE OF A CORPORATION, PARTNERSHIP, OR LIMITED 949
LIABILITY COMPANY ORGANIZED UNDER THE LAWS OF THIS OR ANY OTHER 950
STATE UNLESS THE CORPORATION, PARTNERSHIP, OR LIMITED LIABILITY 951
COMPANY IS QUALIFIED TO DO BUSINESS IN THIS STATE UNDER THE 952
APPLICABLE PROVISIONS OF TITLE XVII OF THE REVISED CODE. 956
(2) THE FAILURE OF A CORPORATION, PARTNERSHIP, OR LIMITED 959
LIABILITY COMPANY TO BE IN GOOD STANDING WITH THE SECRETARY OF 960
21
STATE OR TO MAINTAIN A VALID APPOINTMENT OF STATUTORY AGENT IS 961
GROUNDS FOR SUSPENSION OR REVOCATION OF ITS LICENSE. 962
(3) BY APPLYING FOR A LICENSE AS AN AGENT UNDER THIS 964
SECTION, AN INDIVIDUAL, CORPORATION, PARTNERSHIP, OR LIMITED 965
LIABILITY COMPANY CONSENTS TO THE JURISDICTION OF THE COURTS OF 966
THIS STATE. 967
Sec. 3905.20. (A) Any person licensed as a life insurance 976
agent for a life insurance company authorized to deliver or issue 977
for delivery in this state SHALL, UPON SATISFACTORY COMPLETION OF 979
AN EXAMINATION AS TO THE PERSON'S KNOWLEDGE OF policies, 981
annuities, or AND other contracts providing variable or fixed and 982
variable benefits or contractual payments ISSUED BY LIFE 983
INSURANCE COMPANIES pursuant to section 3911.011 of the Revised 984
Code shall, upon written application of such company, 985
satisfactory completion of an examination as to his knowledge of 987
such policies, annuities, and contracts and the nature thereof, 988
payment of the required fee, and compliance with the 989
pre-licensing PRELICENSING educational requirements of section 990
3905.48 of the Revised Code, be licensed by the superintendent of 992
insurance as a variable contract agent. 993
(B) The superintendent may suspend or revoke such a 995
license as provided in section 3905.482 of the Revised Code, and 996
may suspend, revoke, refuse to continue or renew, or refuse to 997
issue such a license as provided in section 3905.49 of the 998
Revised Code. Revocation of such THE person's license as a life 999
insurance agent or failure to renew such license is cause for 1,000
revoking such THE person's license as a variable contract agent. 1,001
Every such UNLESS REVOKED OR SUSPENDED BY THE SUPERINTENDENT OR 1,002
SURRENDERED BY THE AGENT, A VARIABLE CONTRACT AGENT'S LICENSE 1,003
CONTINUES IN FORCE FOR THE LIFE OF THE AGENT. 1,004
EACH LIFE insurance company shall, upon termination of the 1,006
employment APPOINTMENT of any such person as a variable contract 1,007
agent, forthwith file with the superintendent a statement of the 1,009
termination of such employment THE APPOINTMENT. 1,010
22
(C) Any corporation, PARTNERSHIP, OR LIMITED LIABILITY 1,012
COMPANY licensed as a life insurance agent for AND APPOINTED BY a 1,014
life insurance company authorized to deliver or issue for 1,016
delivery in this state policies, annuities, or other contracts 1,017
providing variable or fixed and variable benefits or contractual 1,018
payments pursuant to section 3911.011 of the Revised Code, may, 1,019
upon written application of such company and upon a proper 1,020
showing that all of such THE corporation's, PARTNERSHIP'S, OR 1,022
LIMITED LIABILITY COMPANY'S employees who will negotiate for, 1,023
place, or renew any such policies, annuities, or contracts on 1,024
behalf of such THE corporation, PARTNERSHIP, OR LIMITED LIABILITY 1,025
COMPANY have been issued licenses as variable contract agents 1,027
pursuant to division (A) of this section, be licensed by the 1,028
superintendent of insurance as a variable contract agent. 1,029
(D) The superintendent of insurance may, for cause shown 1,031
and after hearing, revoke the variable contract agent's license 1,032
issued to such corporation, PARTNERSHIP, OR LIMITED LIABILITY 1,033
COMPANY, or suspend such THE license until such condition as he 1,036
THE SUPERINTENDENT finds existing ceases to exist. The 1,037
revocation or suspension of such THE corporation's, 1,038
PARTNERSHIP'S, OR LIMITED LIABILITY COMPANY'S license as a life 1,039
insurance agent or failure to renew such license shall be cause 1,041
for revoking or suspending, as the case may be, such THE 1,042
corporation's, PARTNERSHIP'S, OR LIMITED LIABILITY COMPANY'S 1,043
license as a variable contract agent. The finding of the 1,044
superintendent, either in refusing to grant a license or in 1,045
revoking a license, shall be in writing and state the facts upon 1,046
which his THE SUPERINTENDENT'S action is based. The action of 1,047
the superintendent in granting, revoking, continuing, or refusing 1,049
to grant, revoke, or continue such license, shall be subject to 1,050
review in accordance with Chapter 119. of the Revised Code. 1,051
(E) Unless revoked or suspended by the superintendent OR 1,053
SURRENDERED BY THE CORPORATION, PARTNERSHIP, OR LIMITED LIABILITY 1,054
COMPANY, or unless the company by written notice to the 1,055
23
superintendent cancels the agent's authority to act for it, a 1,056
variable contract agent's license, and any other license issued 1,057
to an agent may, in the discretion of the superintendent and at 1,058
the request of the company and payment of the required fee, be 1,059
CONTINUES IN FORCE UNTIL THE CORPORATION, PARTNERSHIP, OR LIMITED 1,060
LIABILITY COMPANY CEASES TO EXIST. 1,061
(F) EACH LIFE INSURANCE COMPANY SHALL CERTIFY TO THE 1,064
SUPERINTENDENT BEFORE THE THIRTIETH DAY OF JUNE EACH YEAR THE 1,066
NAMES AND ADDRESSES OF THE VARIABLE CONTRACT AGENTS FOR WHOM IT 1,067
REQUESTS APPOINTMENTS OR THE CONTINUANCE OF APPOINTMENTS. SUCH 1,068
AN APPOINTMENT, UNLESS CANCELED BY THE INSURANCE COMPANY, MAY BE 1,069
continued IN FORCE past the thirtieth day of June next after its 1,071
issue and after the thirtieth day of June in each succeeding 1,072
year. Except as provided in section 3905.011 of the Revised 1,073
Code, all ALL domestic, foreign, and alien companies shall pay a 1,075
fee of twenty dollars for every such license APPOINTMENT WHEN 1,076
ISSUED and for each continuance thereafter. While such license 1,078
APPOINTMENT remains in force, a foreign company shall be bound by 1,081
the acts of the person named therein IN THE APPOINTMENT, within 1,082
his THE PERSON'S APPARENT authority as its authorized agent. 1,084
Sec. 3905.27. The superintendent of insurance may open an 1,093
account in the name of each insurance company authorized to do 1,094
business in this state and in the name of any authorized 1,095
insurance agent, and charge said THE accounts with all fees 1,096
incurred by such companies or agents in accordance with sections 1,098
3905.01, 3905.02, 3905.03, 3905.07, 3905.26, 3919.26, and 3931.03 1,099
of the Revised Code, and other statutes imposing fees. The 1,101
statutory fee for each service requested shall be charged against 1,102
the proper account forthwith upon the rendition of the service. 1,103
Not later than the tenth day of each calendar month the 1,105
superintendent shall render an itemized statement to each company 1,106
or agent whose account has been charged during the month next 1,107
preceding, showing the amount of all fees charged during said 1,108
THAT month and demanding that payment thereof be made not later 1,110
24
than the first day of the month next following. 1,111
The failure of any insurance company within said THAT time 1,113
to pay the amount of such fees in accordance with such THE 1,114
monthly statement, or, if said THE statement or account is found 1,115
to be incorrect, in accordance with a corrected monthly statement 1,116
rendered by the superintendent, is grounds for the revocation of 1,117
its certificate of authority to do business in this state. In 1,118
the event of such an order of revocation, the superintendent 1,119
shall forthwith cause a notice thereof to be published once in at 1,120
least one newspaper at the seat of the government and also, if a 1,121
domestic company, once in at least one newspaper published in the 1,122
county where its home office is located, or, if a foreign or 1,123
alien company, once in at least one newspaper published in a 1,124
county of this state where an agency of such THE company is 1,125
located. After the publication of such THE notice, no agent of 1,127
such THE company shall procure applications for insurance or 1,129
issue policies.
In the event of the failure of any agent within the time 1,131
fixed to pay the amount of fees charged against his THE AGENT'S 1,132
account in accordance with the monthly statement rendered by the 1,134
superintendent, such THE agent's license may be revoked in the 1,135
manner provided by sections 3905.01 3905.02 and 3905.18 of the 1,137
Revised Code. 1,138
Sec. 3905.30. The superintendent of insurance may issue a 1,147
surplus line broker's license to any natural person who is a 1,149
citizen of the United States and has been a resident of this OR 1,151
ANY OTHER state OR A PROVINCE OF CANADA, OR TO ANY CORPORATION, 1,152
PARTNERSHIP, OR LIMITED LIABILITY COMPANY THAT IS ORGANIZED UNDER 1,153
THE LAWS OF THIS OR ANY OTHER STATE OR A PROVINCE OF CANADA. THE 1,154
APPLICANT MUST HAVE BEEN LICENSED AS A MULTIPLE LINE AGENT for at
least two years prior to making application for the SURPLUS LINE 1,157
BROKER'S license. The applicant shall also have met the 1,158
standards and passed the test provided for the issuance of a 1,160
multiple line agent's license. A surplus line broker's license 1,161
25
permits the person named in the license to negotiate for and 1,162
obtain insurance, other than life insurance, on property or 1,164
persons in this state in insurers not authorized to transact 1,165
business in this state. Each such license expires on the
thirty-first day of January next after the year in which it is 1,166
issued, and may be then renewed. 1,167
Sec. 3905.40. The superintendent of insurance shall MAY 1,176
issue no A license to any person as agent of an insurance company 1,178
if such person INDIVIDUAL WHO is a resident of a ANOTHER state 1,181
which, by its laws, prohibits residents of this state from acting
as agents of insurance companies in such state; if the 1,182
superintendent is satisfied that any person holding a license as 1,183
such agent is a resident of such state, he shall revoke such 1,185
license OR A PROVINCE OF CANADA, OR TO ANY CORPORATION, 1,186
PARTNERSHIP, OR LIMITED LIABILITY COMPANY THAT IS ORGANIZED UNDER 1,187
THE LAWS OF ANOTHER STATE OR A PROVINCE OF CANADA. FOR THE 1,188
PURPOSE OF ACCORDING SUCH AN APPLICANT THE FULL PRIVILEGES OF AN 1,190
INSURANCE AGENT IN THIS STATE, THE SUPERINTENDENT SHALL ACCEPT 1,191
THE LICENSING OBLIGATIONS, PROHIBITIONS, AND REQUIREMENTS THAT 1,192
ARE IMPOSED UPON THE APPLICANT BY THE INSURANCE AUTHORITY AND 1,193
LAWS OF THE STATE OR OF THE PROVINCE OF CANADA OF WHICH THE 1,195
APPLICANT IS A RESIDENT, OR UNDER WHICH THE APPLICANT IS
ORGANIZED, AS SATISFYING THE LICENSING OBLIGATIONS, PROHIBITIONS, 1,197
AND REQUIREMENTS OF THIS STATE, EXCEPT FOR THOSE OBLIGATIONS, 1,198
PROHIBITIONS, AND REQUIREMENTS IMPOSED UNDER SECTION 3905.41 OF 1,199
THE REVISED CODE. 1,200
FOR PURPOSES OF THIS SECTION, THE LICENSING REQUIREMENTS 1,203
THAT MUST BE ACCEPTED BY THE SUPERINTENDENT INCLUDE THE 1,204
REQUIREMENTS FOR PRELICENSING AND CONTINUING EDUCATION OF THE 1,205
OTHER STATE OR PROVINCE.
Sec. 3905.48. (A) On and after July 1, 1987, no NO 1,214
person, unless the person has complied with division (B) of this 1,215
section, shall be permitted to take an examination for a license 1,217
as an agent or solicitor to engage in the sale of any of the 1,218
26
following types of insurance: 1,219
(1) Life insurance, annuity contracts, variable annuity 1,221
contracts, and variable life insurance; 1,222
(2) Sickness and accident insurance; 1,224
(3) All lines of property and casualty insurance; 1,226
(4) All other lines of insurance for which an examination 1,228
is required for licensing, except title insurance. 1,229
(B) No person shall be permitted to take an examination 1,231
described in division (A) of this section unless either of the 1,232
following applies: 1,233
(1) The person has earned a bachelor's or associate's 1,235
degree in insurance in an accredited institution; 1,236
(2) The person has been granted a diploma for successfully 1,238
completing a high school curriculum under section 3313.61 of the 1,239
Revised Code or a certificate of high school equivalence under 1,240
rule 3301-41-1 of the Administrative Code, or been granted a 1,241
comparable diploma or certificate by another state, and has 1,242
successfully completed at least forty hours of study in a program 1,243
of insurance education approved by the superintendent of 1,244
insurance in consultation with the insurance agent education 1,245
advisory council under criteria established by the 1,246
superintendent. 1,247
Sec. 3905.481. (A)(1) Except as provided in division (B) 1,256
of this section, each person who is issued a license as an agent 1,257
or solicitor on and OR after July 1, 1993, THE EFFECTIVE DATE OF 1,259
THIS AMENDMENT shall complete in accordance with division (A)(1) 1,260
of this section at least thirty FIFTEEN hours of continuing 1,261
education instruction offered in a course or program of study 1,263
approved by the superintendent of insurance in consultation with 1,264
the insurance agent education advisory council. The person shall 1,265
complete the initial thirty FIFTEEN hours of continuing education 1,268
instruction during a period not to exceed twenty-four months 1,269
commencing on the first day of January of PERSON'S BIRTHDAY IN 1,270
the year immediately following the year of the issuance of the 1,271
27
license and ending on the thirty-first day of December of 1,272
PERSON'S BIRTHDAY IN the second THIRD year following the year of 1,274
the issuance of the license. Thereafter, the person shall 1,275
complete at least thirty FIFTEEN hours of continuing education 1,277
instruction in every subsequent twenty-four-month period 1,278
commencing on the first day of January and ending on the
thirty-first day of December of the following year. 1,279
(2) Except as provided in division (B) of this section, 1,281
each person who, on July 1, 1993 THE EFFECTIVE DATE OF THIS 1,282
AMENDMENT, holds a license as an agent or solicitor issued prior 1,284
to that date shall complete, no later than December 31, 1995, at 1,285
least thirty FIFTEEN hours of continuing education instruction 1,287
offered in a course or program of study approved by the 1,288
superintendent in consultation with the council, AS FOLLOWS:
(a) IF THE PERSON HAS BEEN LICENSED CONTINUOUSLY SINCE AT 1,290
LEAST DECEMBER 31, 1993, FIFTEEN HOURS OF CONTINUING EDUCATION 1,291
BETWEEN JANUARY 1, 1996, AND THE PERSON'S BIRTHDAY IN 1998; 1,292
(b) IF THE PERSON WAS FIRST LICENSED IN 1994 OR 1996 AND 1,294
HAS BEEN LICENSED CONTINUOUSLY SINCE THEN, FIFTEEN HOURS OF 1,295
CONTINUING EDUCATION BETWEEN JANUARY 1, 1997, AND THE PERSON'S 1,297
BIRTHDAY IN 1999;
(c) IF THE PERSON WAS FIRST LICENSED IN 1995 AND HAS BEEN 1,299
CONTINUOUSLY LICENSED SINCE THEN, FIFTEEN HOURS OF CONTINUING 1,300
EDUCATION BETWEEN JANUARY 1, 1998, AND THE PERSON'S BIRTHDAY IN 1,302
2000. Thereafter 1,303
THEREAFTER, the person shall complete at least thirty 1,306
FIFTEEN hours of such continuing education instruction in every 1,308
subsequent twenty-four-month period commencing on the first day 1,309
of January of every even-numbered year and ending on the 1,310
thirty-first day of December of every odd-numbered year PERSON'S 1,311
BIRTHDAY.
(B) Division (A) of this section does not apply to any 1,313
person or class of persons, as determined by the superintendent 1,315
in consultation with the council. 1,316
28
(C) A person may comply with division (A) of this section 1,318
by demonstrating to the council that the person has completed the 1,322
minimum number of hours required by that division in a 1,323
substantially similar course or program of study offered in 1,324
another state.
Sec. 3905.482. (A) The superintendent of insurance shall 1,333
suspend the agent's or solicitor's license of any person who 1,334
fails to meet the requirements of section 3905.481 of the Revised 1,335
Code and has not been granted under division (B) of this section 1,336
an extension of time within which to complete the requirements. 1,337
The suspension shall continue until the person demonstrates to 1,338
the satisfaction of the superintendent that he THE PERSON has 1,339
complied with the requirements of section 3905.481 of the Revised 1,341
Code and all other provisions of this chapter. However, the 1,342
superintendent shall revoke the license if the person fails to 1,343
demonstrate such compliance within six months after the 1,344
conclusion of the immediately preceding twenty-four-month 1,345
compliance period and has not been granted under division (B) of 1,346
this section an extension of time within which to complete the 1,347
requirements. Any person whose license has been revoked under 1,348
this division and who desires to hold a license as an agent or 1,349
solicitor under this chapter shall apply for a new agent's or 1,350
solicitor's license in accordance with the requirements of this 1,351
chapter.
(B) If a person cannot meet the requirements of section 1,353
3905.481 of the Revised Code due to a disability or inactivity 1,354
due to special circumstances, the superintendent may grant the 1,355
person a reasonable extension of time to enable the person to 1,356
comply with the requirements of section 3905.481 of the Revised 1,357
Code for the period of the disability or inactivity. 1,358
(C) Before revoking or suspending any agent's or 1,360
solicitor's license under this section, the superintendent shall 1,361
provide the licensee notice and an opportunity for a hearing in 1,362
accordance with Chapter 119. of the Revised Code. 1,363
29
Sec. 3905.49. (A) AS USED IN THIS SECTION: 1,373
(1) "INSURER" HAS THE SAME MEANING AS IN SECTION 3901.32 1,376
OF THE REVISED CODE. 1,377
(2) "REFUSAL TO ISSUE OR RENEW" MEANS THE DECISION OF THE 1,380
SUPERINTENDENT OF INSURANCE NOT TO PROCESS EITHER THE INITIAL 1,381
APPLICATION FOR A LICENSE AS AN AGENT OR THE RENEWAL OF SUCH A 1,382
LICENSE.
(3) "REVOCATION" MEANS THE PERMANENT TERMINATION OF ALL 1,385
AUTHORITY TO HOLD ANY LICENSE AS AN AGENT IN THIS STATE.
(4) "SURRENDER FOR CAUSE" MEANS THE VOLUNTARY TERMINATION 1,388
OF ALL AUTHORITY TO HOLD ANY LICENSE AS AN AGENT IN THIS STATE, 1,389
IN LIEU OF A REVOCATION OR SUSPENSION ORDER. 1,390
(5) "SUSPENSION" MEANS THE TERMINATION OF ALL AUTHORITY TO 1,393
HOLD ANY LICENSE AS AN AGENT IN THIS STATE, FOR EITHER A 1,394
SPECIFIED PERIOD OF TIME OR AN INDEFINITE PERIOD OF TIME AND 1,395
UNDER ANY TERMS OR CONDITIONS DETERMINED BY THE SUPERINTENDENT. 1,396
(B) The superintendent of insurance may suspend, revoke, 1,400
refuse to continue or renew, or refuse to issue OR RENEW any 1,401
license as an agent, SURPLUS LINE BROKER, or solicitor LIMITED 1,402
INSURANCE REPRESENTATIVE, OR IMPOSE ANY OTHER SANCTION AUTHORIZED 1,403
under this chapter, if the superintendent finds any FOR one or 1,405
more of the following REASONS: 1,406
(1) The person has made a false OBTAINING OR ATTEMPTING TO 1,409
OBTAIN ANY LICENSE OR APPOINTMENT THROUGH MISREPRESENTATION OR 1,410
FRAUD, INCLUDING MAKING ANY MATERIALLY UNTRUE statement with 1,412
respect to a material matter in the license AN application FOR A 1,413
LICENSE OR APPOINTMENT; 1,414
(2) Any cause for which issuance of the license could have 1,416
been refused had it existed and been known to the superintendent 1,417
at the time of issuance; 1,418
(3) The person has violated VIOLATING or failed FAILING to 1,421
comply with any insurance law or any lawful, rule, SUBPOENA, 1,422
CONSENT AGREEMENT, or order of the superintendent or the 1,424
commissioner of insurance of another state;
30
(4) The person has obtained or attempted to obtain any 1,426
such license through mispresentation or fraud; 1,427
(5) The person has improperly withheld, misappropriated,; 1,429
(3) MISAPPROPRIATING or converted CONVERTING to the 1,432
person's own use any moneys belonging to policyholders, insurers 1,434
PROSPECTIVE POLICYHOLDERS, beneficiaries, INSURANCE COMPANIES, or 1,435
others received in the course of the person's insurance business; 1,436
(4) FAILING TO TIMELY SUBMIT AN APPLICATION FOR INSURANCE. 1,439
FOR PURPOSES OF DIVISION (B)(4) OF THIS SECTION, A SUBMISSION IS 1,441
CONSIDERED TIMELY IF IT OCCURS WITHIN THE TIME PERIOD EXPRESSLY 1,442
PROVIDED FOR BY THE INSURER, OR WITHIN SEVEN DAYS AFTER THE AGENT 1,443
ACCEPTS A PREMIUM OR AN ORDER TO BIND FROM A POLICYHOLDER OR 1,444
APPLICANT, WHICHEVER IS LATER.
(6) The person has knowingly misrepresented (5) KNOWINGLY 1,447
MISREPRESENTING the terms, BENEFITS, VALUE, COST, OR EFFECTIVE 1,448
DATES of any actual or proposed insurance policy or contract; 1,449
(7) The person has been (6) BEING convicted of a felony. 1,452
If a person has been convicted of a felony based on evidence of 1,454
acts or omissions related to the insurance business, the 1,455
superintendent shall revoke any license issued to such person for 1,456
a period of not less than two years. If the person did not hold 1,457
a license at the time of the conviction, no license shall be 1,458
issued to the person for a period of two years after the date of 1,459
the conviction.; 1,460
(8) The person is guilty of (7) BEING CONVICTED OF A 1,462
MISDEMEANOR THAT INVOLVES THE MISUSE OR THEFT OF MONEY OR 1,464
PROPERTY BELONGING TO ANOTHER, FRAUD, FORGERY, DISHONEST ACTS, OR 1,465
BREACH OF A FIDUCIARY DUTY, OR THAT IS BASED ON ANY ACT OR 1,466
OMISSION RELATING TO THE BUSINESS OF INSURANCE, SECURITIES, OR 1,467
FINANCIAL SERVICES;
(9)(8) COMMITTING an unfair or deceptive trade act OR 1,471
practice or fraud under any section of Title XXXIX of the Revised 1,472
Code OR ANY RULE ADOPTED THEREUNDER;
(9) In the conduct of the person's affairs under a 1,474
31
license, the person has used fraudulent, coercive, or dishonest 1,475
practices, or is incompetent, untrustworthy, or financially 1,476
irresponsible; 1,477
(10) The person's HAVING AN INSURANCE license has been 1,479
suspended or revoked in any other state, province, district, or 1,481
territory;
(11) The person has forged (10) FORGING OR CAUSING THE 1,483
FORGERY OF another's name to ANY DOCUMENT RELATED TO OR USED IN 1,485
an application for insurance TRANSACTION; 1,486
(12) The person has cheated (11) POSSESSING OR USING ANY 1,489
UNAUTHORIZED MATERIALS DURING A LICENSING OR CONTINUING EDUCATION 1,490
EXAMINATION OR CHEATING on an A LICENSING OR CONTINUING EDUCATION 1,491
examination for an insurance license 1,492
(B) The license of a partnership or corporation may be 1,494
suspended, revoked, or refused if the superintendent finds, after 1,495
notice and hearing under Chapter 119. of the Revised Code, that 1,496
an individual licensee's violation was known or should have been 1,497
known by one or more of the partners, officers, directors, or 1,498
managers acting on behalf of the partnership or corporation and 1,499
such violation was not reported to the department of insurance or 1,500
corrective action taken in relation to the violation; 1,501
(12) FAILING TO DISCLOSE TO AN APPLICANT FOR INSURANCE OR 1,504
POLICYHOLDER UPON ACCEPTING A PREMIUM OR AN ORDER TO BIND 1,505
COVERAGE FROM THE APPLICANT OR POLICYHOLDER, THAT THE PERSON HAS 1,506
NOT BEEN APPOINTED AS AGENT BY THE INSURER AND IS NOT AN 1,507
APPOINTED SOLICITOR OF AN APPOINTED AGENT;
(13) HAVING ANY PROFESSIONAL LICENSE SUSPENDED OR REVOKED 1,510
AS A RESULT OF A MISHANDLING OF FUNDS OR BREACH OF FIDUCIARY 1,511
RESPONSIBILITIES; 1,512
(14) CAUSING OR PERMITTING A POLICYHOLDER OR APPLICANT FOR 1,515
INSURANCE TO DESIGNATE THE PERSON OR THE PERSON'S SPOUSE, PARENT, 1,516
CHILD, OR SIBLING AS THE BENEFICIARY OF A POLICY OR ANNUITY SOLD 1,517
BY THE PERSON, UNLESS THE PERSON OR A RELATIVE OF THE PERSON IS 1,518
THE INSURED OR APPLICANT;
32
(15) FAILING TO PROVIDE A WRITTEN RESPONSE TO THE 1,520
DEPARTMENT OF INSURANCE WITHIN THIRTY DAYS AFTER RECEIPT OF ANY 1,522
WRITTEN INQUIRY FROM THE DEPARTMENT;
(16) FAILING TO NOTIFY THE SUPERINTENDENT OF ANY CHANGE IN 1,525
THE PERSON'S ADDRESS, WITHIN THIRTY DAYS AFTER THE CHANGE OCCURS, 1,527
AS REQUIRED BY SECTION 3905.54 OF THE REVISED CODE;
(17) TRANSFERRING OR PLACING INSURANCE WITH AN INSURER 1,529
OTHER THAN THE INSURER EXPRESSLY CHOSEN BY THE APPLICANT FOR 1,530
INSURANCE OR POLICYHOLDER WITHOUT THE PRIOR CONSENT OF THE 1,531
APPLICANT OR POLICYHOLDER OR ABSENT EXTENUATING CIRCUMSTANCES; 1,532
(18) ENGAGING IN ANY FRAUDULENT OR COERCIVE PRACTICE IN 1,535
CONNECTION WITH THE BUSINESS OF INSURANCE;
(19) FAILING TO INFORM A POLICYHOLDER OR APPLICANT FOR 1,537
INSURANCE OF THE IDENTITY OF THE INSURER OR INSURERS, OR THE 1,538
IDENTITY OF ANY OTHER INSURANCE AGENT, GENERAL AGENT, SURPLUS 1,539
LINE BROKER, OR LICENSEE KNOWN TO BE INVOLVED IN PROCURING, 1,540
PLACING, OR CONTINUING THE INSURANCE FOR THE POLICYHOLDER OR 1,541
APPLICANT, UPON THE BINDING OF THE COVERAGE; 1,542
(20) IN THE CASE OF AN AGENT THAT IS A CORPORATION, 1,544
LIMITED LIABILITY COMPANY, OR PARTNERSHIP, FAILING TO REPORT AN 1,545
INDIVIDUAL LICENSEE'S VIOLATION TO THE DEPARTMENT WHEN THE 1,546
VIOLATION WAS KNOWN OR SHOULD HAVE BEEN KNOWN BY ONE OR MORE OF 1,547
THE PARTNERS, OFFICERS, MANAGERS, OR MEMBERS OF THE CORPORATION, 1,548
LIMITED LIABILITY COMPANY, OR PARTNERSHIP; 1,549
(21) SUBMITTING OR USING A DOCUMENT IN THE CONDUCT OF THE 1,552
BUSINESS OF INSURANCE WHEN THE PERSON KNEW OR SHOULD HAVE KNOWN 1,553
THAT THE DOCUMENT CONTAINED THE FORGED SIGNATURE OF ANOTHER 1,554
PERSON;
(22) MISREPRESENTING THE PERSON'S QUALIFICATIONS OR USING 1,557
IN ANY WAY A PROFESSIONAL DESIGNATION THAT HAS NOT BEEN CONFERRED 1,558
UPON THE PERSON BY THE APPROPRIATE ACCREDITING ORGANIZATION; 1,559
(23) OBTAINING A PREMIUM LOAN OR CAUSING A PREMIUM LOAN TO 1,562
BE MADE TO OR IN THE NAME OF AN INSURED WITHOUT THAT PERSON'S 1,563
KNOWLEDGE AND WRITTEN AUTHORIZATION;
33
(24) FAILING TO NOTIFY THE SUPERINTENDENT OF ANY 1,565
DISCIPLINARY ACTION TAKEN BY THE INSURANCE AUTHORITY OF ANOTHER 1,566
STATE, WITHIN SIXTY DAYS AFTER THE ACTION WAS TAKEN, AS REQUIRED 1,568
BY SECTION 3905.54 OF THE REVISED CODE;
(25) FAILING TO FILE ANY OF THE REPORTS OR NOTICES 1,570
REQUIRED UNDER THIS CHAPTER; 1,571
(26) SUBMITTING AN APPLICATION FOR INSURANCE, OR CAUSING 1,574
THE ISSUANCE OF AN INSURANCE POLICY OR CONTRACT, ON BEHALF OF AN 1,575
APPLICANT WHO DID NOT REQUEST OR AUTHORIZE THE INSURANCE. 1,576
DIVISION (B)(26) OF THIS SECTION DOES NOT APPLY TO ANY POLICY 1,577
ISSUED BY AN OTHER THAN LIFE INSURANCE COMPANY.
(27) USING PAPER, SOFTWARE, OR ANY OTHER MATERIALS OF OR 1,580
PROVIDED BY AN INSURER AFTER THE INSURER HAS TERMINATED THE
AUTHORITY OF THE LICENSEE, IF THE USE OF SUCH MATERIALS WOULD 1,581
CAUSE A REASONABLE PERSON TO BELIEVE THAT THE LICENSEE WAS ACTING 1,583
ON BEHALF OF OR OTHERWISE REPRESENTING THE INSURER; 1,584
(28) PROVIDING MISLEADING, DECEPTIVE, OR UNTRUE 1,586
INFORMATION TO AN APPLICANT FOR INSURANCE OR A POLICYHOLDER 1,587
REGARDING A PARTICULAR INSURANCE AGENT, COMPANY, OR PRODUCT; 1,589
(29) SOLICITING, PROCURING AN APPLICATION FOR, OR PLACING, 1,592
EITHER DIRECTLY OR INDIRECTLY, ANY INSURANCE POLICY WHEN THE 1,593
PERSON IS NOT AUTHORIZED UNDER THIS CHAPTER TO ENGAGE IN SUCH 1,594
ACTIVITY;
(30) SOLICITING, MARKETING, OR SELLING ANY PRODUCT OR 1,596
SERVICE THAT OFFERS BENEFITS SIMILAR TO INSURANCE BUT IS NOT 1,597
REGULATED BY THE SUPERINTENDENT, WITHOUT FULLY DISCLOSING TO THE 1,598
PROSPECTIVE PURCHASER THAT THE PRODUCT OR SERVICE IS NOT 1,599
INSURANCE AND IS NOT REGULATED BY THE SUPERINTENDENT; 1,600
(31) FAILING TO FULFILL A REFUND OBLIGATION IN A TIMELY 1,602
MANNER. FOR PURPOSES OF DIVISION (B)(31) OF THIS SECTION, A 1,604
REBUTTABLE PRESUMPTION EXISTS THAT A REFUND OBLIGATION IS NOT 1,605
FULFILLED IN A TIMELY MANNER UNLESS IT IS FULFILLED WITHIN ONE OF 1,606
THE FOLLOWING TIME PERIODS: 1,607
(a) THIRTY DAYS AFTER THE DATE THE POLICYHOLDER, 1,610
34
APPLICANT, OR INSURER TAKES OR REQUESTS ACTION RESULTING IN A 1,611
REFUND;
(b) THIRTY DAYS AFTER THE DATE OF THE INSURER'S REFUND 1,614
CHECK, IF THE AGENT IS EXPECTED TO ISSUE A PORTION OF THE TOTAL 1,615
REFUND;
(c) FORTY-FIVE DAYS AFTER THE DATE OF THE AGENT'S 1,618
STATEMENT OF ACCOUNT ON WHICH THE REFUND FIRST APPEARS. 1,619
(C) Before denying, revoking, suspending, or refusing to 1,621
continue or renew ISSUE any license or imposing any penalty under 1,623
this section OR SECTION 3905.482 OF THE REVISED CODE, the 1,624
superintendent shall provide THE LICENSEE OR APPLICANT WITH 1,626
notice and an opportunity for hearing, under AS PROVIDED IN 1,627
Chapter 119. of the Revised Code, to the licensee or applicant 1,629
and any insurer represented by the licensee or applicant EXCEPT 1,631
AS FOLLOWS:
(1)(a) ANY NOTICE OF OPPORTUNITY FOR HEARING, THE HEARING 1,633
OFFICER'S FINDINGS AND RECOMMENDATIONS, OR THE SUPERINTENDENT'S 1,635
ORDER SHALL BE SERVED BY CERTIFIED MAIL AT THE LAST KNOWN ADDRESS 1,636
OF THE LICENSEE OR APPLICANT. SERVICE SHALL BE EVIDENCED BY 1,637
RETURN RECEIPT SIGNED BY ANY PERSON.
FOR PURPOSES OF THIS SECTION, THE "LAST KNOWN ADDRESS" IS 1,639
THE ADDRESS THAT APPEARS IN THE LICENSING RECORDS OF THE 1,640
DEPARTMENT OF INSURANCE.
(b) IF THE CERTIFIED MAIL ENVELOPE IS RETURNED WITH AN 1,643
ENDORSEMENT SHOWING THAT SERVICE WAS REFUSED, OR THAT THE 1,644
ENVELOPE WAS UNCLAIMED, THE NOTICE AND ALL SUBSEQUENT NOTICES
REQUIRED BY CHAPTER 119. OF THE REVISED CODE MAY BE SERVED BY 1,645
ORDINARY MAIL TO THE LAST KNOWN ADDRESS OF THE LICENSEE OR 1,646
APPLICANT. THE MAILING SHALL BE EVIDENCED BY A CERTIFICATE OF 1,647
MAILING. SERVICE IS DEEMED COMPLETE AS OF THE DATE OF SUCH 1,648
CERTIFICATE PROVIDED THAT THE ORDINARY MAIL ENVELOPE IS NOT 1,649
RETURNED BY THE POSTAL AUTHORITIES WITH AN ENDORSEMENT SHOWING 1,650
FAILURE OF DELIVERY. THE TIME PERIOD IN WHICH TO REQUEST A 1,651
HEARING, AS PROVIDED IN CHAPTER 119. OF THE REVISED CODE, BEGINS 1,654
35
TO RUN ON THE DATE OF MAILING. 1,655
(c) IF SERVICE BY ORDINARY MAIL FAILS, THE SUPERINTENDENT 1,658
MAY CAUSE A SUMMARY OF THE SUBSTANTIVE PROVISIONS OF THE NOTICE 1,659
TO BE PUBLISHED ONCE A WEEK FOR THREE CONSECUTIVE WEEKS IN A 1,660
NEWSPAPER OF GENERAL CIRCULATION IN THE COUNTY WHERE THE LAST 1,661
KNOWN PLACE OF RESIDENCE OR BUSINESS OF THE PARTY IS LOCATED. 1,662
THE NOTICE IS CONSIDERED SERVED ON THE DATE OF THE THIRD 1,663
PUBLICATION.
(d) ANY NOTICE REQUIRED TO BE SERVED UNDER CHAPTER 119. OF 1,666
THE REVISED CODE SHALL ALSO BE SERVED UPON THE PARTY'S ATTORNEY 1,669
BY ORDINARY MAIL IF THE ATTORNEY HAS ENTERED AN APPEARANCE IN THE 1,670
MATTER.
(e) THE SUPERINTENDENT MAY, AT ANY TIME, PERFECT SERVICE 1,673
ON A PARTY BY PERSONAL DELIVERY OF THE NOTICE BY AN EMPLOYEE OF 1,674
THE DEPARTMENT.
(f) NOTICES REGARDING THE SCHEDULING OF HEARINGS AND ALL 1,677
OTHER MATTERS NOT DESCRIBED IN DIVISION (C)(1)(a) OF THIS SECTION 1,679
SHALL BE SENT BY ORDINARY MAIL TO THE PARTY AND TO THE PARTY'S 1,680
ATTORNEY.
(2) ANY SUBPOENA FOR THE APPEARANCE OF A WITNESS OR THE 1,683
PRODUCTION OF DOCUMENTS OR OTHER EVIDENCE AT A HEARING, OR FOR 1,684
THE PURPOSE OF TAKING TESTIMONY FOR USE AT A HEARING, SHALL BE 1,685
SERVED BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED, BY AN
ATTORNEY OR BY AN EMPLOYEE OF THE DEPARTMENT DESIGNATED BY THE 1,686
SUPERINTENDENT. SUCH SUBPOENAS SHALL BE ENFORCED IN THE MANNER 1,687
PROVIDED IN SECTION 119.09 OF THE REVISED CODE. NOTHING IN THIS 1,690
SECTION SHALL BE CONSTRUED AS LIMITING THE SUPERINTENDENT'S OTHER 1,691
STATUTORY POWERS TO ISSUE SUBPOENAS. 1,692
(D) The IF THE superintendent DETERMINES THAT A VIOLATION 1,694
DESCRIBED IN THIS SECTION HAS OCCURRED, THE SUPERINTENDENT may 1,695
modify any order under this section and restore a license of or 1,697
issue a license to a person if the superintendent finds, after 1,698
notice and opportunity for hearing provided to affected parties, 1,699
that the person can demonstrate all DO ANY of the following: 1,700
36
(1) The person has made restitution for all pecuniary 1,702
losses caused by his ASSESS A CIVIL FORFEITURE IN AN AMOUNT NOT 1,703
EXCEEDING TWENTY-FIVE THOUSAND DOLLARS PER violation; 1,704
(2) The person's character and reputation have been 1,706
rehabilitated so that the person possesses the personal 1,707
qualifications required for the initial issuance of a license; 1,708
ASSESS ADMINISTRATIVE COSTS TO COVER THE EXPENSES INCURRED BY THE 1,710
DEPARTMENT IN THE ADMINISTRATIVE ACTION, INCLUDING COSTS INCURRED 1,711
IN THE INVESTIGATION AND HEARING PROCESSES. ANY COSTS COLLECTED 1,712
SHALL BE PAID INTO THE STATE TREASURY TO THE CREDIT OF THE 1,713
DEPARTMENT OF INSURANCE OPERATING FUND CREATED IN SECTION
3901.021 OF THE REVISED CODE. 1,715
(3) If the order was an order of revocation based on a 1,717
conviction for felony based on evidence of acts or omissions 1,718
related to the insurance business, that two years have elapsed 1,719
since the effective date of the order, or if the order was an 1,720
order denying a license because of such a conviction, that two 1,721
years have elapsed since the date of the conviction SUSPEND ALL 1,723
OF THE PERSON'S LICENSES FOR ALL LINES OF INSURANCE FOR EITHER A 1,724
SPECIFIED PERIOD OF TIME OR AN INDEFINITE PERIOD OF TIME AND 1,725
UNDER SUCH TERMS AND CONDITIONS AS THE SUPERINTENDENT MAY 1,726
DETERMINE;
(4) If required by the superintendent, the person passes 1,728
the examination required for an initial issuance of the license 1,729
PERMANENTLY REVOKE ALL OF THE PERSON'S LICENSES FOR ALL LINES OF 1,731
INSURANCE;
(5) REFUSE TO ISSUE A LICENSE; 1,733
(6) REFUSE TO RENEW A LICENSE; 1,735
(7) PROHIBIT THE PERSON FROM BEING EMPLOYED IN ANY 1,737
CAPACITY IN THE BUSINESS OF INSURANCE AND FROM HAVING ANY 1,738
FINANCIAL INTEREST IN ANY INSURANCE AGENCY, COMPANY, OR 1,739
THIRD-PARTY ADMINISTRATOR IN THIS STATE. THE SUPERINTENDENT MAY, 1,741
IN THE SUPERINTENDENT'S DISCRETION, DETERMINE THE NATURE,
CONDITIONS, AND DURATION OF SUCH RESTRICTIONS. 1,742
37
(8) ORDER CORRECTIVE ACTIONS IN LIEU OF OR IN ADDITION TO 1,745
THE OTHER PENALTIES LISTED IN DIVISION (D) OF THIS SECTION. SUCH 1,746
AN ORDER MAY PROVIDE FOR THE SUSPENSION OF CIVIL FORFEITURES, 1,747
LICENSE REVOCATION, LICENSE SUSPENSION, OR REFUSAL TO ISSUE OR 1,748
RENEW A LICENSE IF THE LICENSEE COMPLIES WITH THE TERMS AND 1,749
CONDITIONS OF THE CORRECTIVE ACTION ORDER. 1,750
(9) ACCEPT A SURRENDER FOR CAUSE OFFERED BY THE LICENSEE, 1,753
WHICH SHALL BE FOR AT LEAST FIVE YEARS AND SHALL PROHIBIT THE 1,754
LICENSEE FROM SEEKING ANY LICENSE AUTHORIZED UNDER THIS CHAPTER 1,755
DURING THAT TIME PERIOD. A SURRENDER FOR CAUSE MAY ALSO INCLUDE 1,756
A CORRECTIVE ACTION ORDER AS PROVIDED IN DIVISION (D)(8) OF THIS 1,757
SECTION.
(E) The superintendent shall MAY consider the following 1,759
standards FACTORS in denying a license, imposing suspensions, 1,760
revocations, FINES, or refusals of continuations or renewals of 1,762
licenses OTHER PENALTIES, AND ISSUING ORDERS UNDER THIS SECTION: 1,763
(1) Whether the person acted in good faith and without 1,765
knowledge of his violation and makes; 1,766
(2) WHETHER THE PERSON MADE restitution for any pecuniary 1,769
losses suffered by other persons as a result of his THE PERSON'S 1,770
actions. In such cases, the maximum suspension shall be ninety 1,771
days. 1,772
(2) Whether, within the meanings defined in section 1,774
2901.22 of the Revised Code, the person acted purposely, 1,775
knowingly, recklessly, or negligently; 1,776
(3) Whether the amount of money or the nature of the 1,778
property involved in the violation would, if it were the subject 1,779
of a criminal offense, make a theft offense a misdemeanor or a 1,780
felony THE ACTUAL HARM OR POTENTIAL FOR HARM TO OTHERS; 1,781
(4) The degree of trust placed in the person by, and the 1,783
incompetency, inexperience, or susceptibility to undue influence 1,784
or duress VULNERABILITY of, any other person involved PERSONS WHO 1,786
WERE OR COULD HAVE BEEN ADVERSELY AFFECTED BY THE PERSON'S
ACTIONS; 1,787
38
(5) The effect of the violation upon the perception by 1,789
insureds and insurance customers of the ethics and integrity of 1,790
the insurance industry WHETHER THE PERSON WAS THE SUBJECT OF ANY 1,791
PREVIOUS ADMINISTRATIVE ACTIONS BY THE SUPERINTENDENT; 1,792
(6) The extent to which NUMBER OF INDIVIDUALS ADVERSELY 1,794
AFFECTED BY the person's conduct departed from the customary and 1,796
usual ethical standards of persons engaged in the insurance 1,797
business ACTS OR OMISSIONS;
(7) WHETHER THE PERSON VOLUNTARILY REPORTED THE VIOLATION, 1,799
AND THE EXTENT OF THE PERSON'S COOPERATION AND ACCEPTANCE OF 1,800
RESPONSIBILITY; 1,801
(8) WHETHER THE PERSON OBSTRUCTED OR IMPEDED, OR ATTEMPTED 1,804
TO OBSTRUCT OR IMPEDE, THE SUPERINTENDENT'S INVESTIGATION; 1,805
(9) THE PERSON'S EFFORTS TO CONCEAL THE MISCONDUCT; 1,808
(10) REMEDIAL EFFORTS TO PREVENT FUTURE VIOLATIONS; 1,811
(11) IF THE PERSON WAS CONVICTED OF A CRIMINAL OFFENSE, 1,814
THE NATURE OF THE OFFENSE, WHETHER THE CONVICTION WAS BASED ON 1,815
ACTS OR OMISSIONS TAKEN UNDER ANY PROFESSIONAL LICENSE, WHETHER 1,816
THE OFFENSE INVOLVED THE BREACH OF A FIDUCIARY DUTY, THE AMOUNT 1,817
OF TIME THAT HAS PASSED, AND THE PERSON'S ACTIVITIES SUBSEQUENT 1,818
TO THE CONVICTION;
(12) Such other factors as the superintendent determines 1,820
to be appropriate under the circumstances. 1,821
(F)(1) A VIOLATION DESCRIBED IN DIVISION (B)(1), (2), (3), 1,824
(5), (6), (7), (8), (9), (10), (11), (12), (13), (14), (17), 1,825
(18), (19), (20), (21), (22), (23), (25), (26), (27), (28), (29), 1,827
(30), OR (31) OF THIS SECTION IS A CLASS A OFFENSE FOR WHICH THE 1,828
SUPERINTENDENT MAY IMPOSE ANY PENALTY SET FORTH IN DIVISION (D) 1,830
OF THIS SECTION.
(2) A VIOLATION DESCRIBED IN DIVISION (B)(4), (15), (16), 1,833
OR (24) OF THIS SECTION IS A CLASS B OFFENSE FOR WHICH THE 1,835
SUPERINTENDENT MAY IMPOSE ANY PENALTY SET FORTH IN DIVISION 1,837
(D)(1), (2), (8), OR (9) OF THIS SECTION. 1,838
(G) IF A VIOLATION DESCRIBED IN THIS SECTION HAS CAUSED, 1,841
39
IS CAUSING, OR IS ABOUT TO CAUSE SUBSTANTIAL AND MATERIAL HARM, 1,842
THE SUPERINTENDENT MAY ISSUE AN ORDER REQUIRING THAT PERSON TO 1,843
CEASE AND DESIST FROM ENGAGING IN THE VIOLATION. NOTICE OF THE 1,844
ORDER SHALL BE MAILED BY CERTIFIED MAIL, RETURN RECEIPT 1,845
REQUESTED, OR SERVED IN ANY OTHER MANNER PROVIDED FOR IN THIS 1,846
SECTION, IMMEDIATELY AFTER ITS ISSUANCE TO THE PERSON SUBJECT TO 1,847
THE ORDER AND TO ALL PERSONS KNOWN TO BE INVOLVED IN THE 1,848
VIOLATION. THE SUPERINTENDENT MAY THEREAFTER PUBLICIZE OR 1,849
OTHERWISE MAKE KNOWN TO ALL INTERESTED PARTIES THAT THE ORDER HAS 1,850
BEEN ISSUED.
THE NOTICE SHALL SPECIFY THE PARTICULAR ACT, OMISSION, 1,852
PRACTICE, OR TRANSACTION THAT IS SUBJECT TO THE CEASE-AND-DESIST 1,853
ORDER AND SHALL SET A DATE, NOT MORE THAN FIFTEEN DAYS AFTER THE 1,854
DATE OF THE ORDER, FOR A HEARING ON THE CONTINUATION OR 1,855
REVOCATION OF THE ORDER. THE PERSON SHALL COMPLY WITH THE ORDER 1,856
IMMEDIATELY UPON RECEIPT OF NOTICE OF THE ORDER. 1,857
THE SUPERINTENDENT MAY, UPON THE APPLICATION OF A PARTY AND 1,860
FOR GOOD CAUSE SHOWN, CONTINUE THE HEARING. CHAPTER 119. OF THE 1,861
REVISED CODE APPLIES TO SUCH HEARINGS TO THE EXTENT THAT THAT 1,864
CHAPTER DOES NOT CONFLICT WITH THE PROCEDURES SET FORTH IN THIS 1,865
SECTION. THE SUPERINTENDENT SHALL, WITHIN FIFTEEN DAYS AFTER 1,866
OBJECTIONS ARE SUBMITTED TO THE HEARING OFFICER'S REPORT AND 1,867
RECOMMENDATION, ISSUE A FINAL ORDER EITHER CONFIRMING OR REVOKING 1,868
THE CEASE-AND-DESIST ORDER. THE FINAL ORDER MAY BE APPEALED AS 1,869
PROVIDED UNDER SECTION 119.12 OF THE REVISED CODE. 1,871
THE REMEDY UNDER THIS DIVISION IS CUMULATIVE AND CONCURRENT 1,874
WITH THE OTHER REMEDIES AVAILABLE UNDER THIS SECTION.
(H) IF THE SUPERINTENDENT HAS REASONABLE CAUSE TO BELIEVE 1,877
THAT AN ORDER ISSUED UNDER THIS SECTION HAS BEEN VIOLATED IN 1,878
WHOLE OR IN PART, THE SUPERINTENDENT MAY REQUEST THE ATTORNEY 1,879
GENERAL TO COMMENCE AND PROSECUTE ANY APPROPRIATE ACTION OR 1,880
PROCEEDING IN THE NAME OF THE STATE AGAINST SUCH PERSON. 1,881
THE COURT MAY, IN AN ACTION BROUGHT PURSUANT TO THIS 1,883
DIVISION, IMPOSE ANY OF THE FOLLOWING: 1,884
40
(1) FOR EACH VIOLATION, A CIVIL PENALTY OF NOT MORE THAN 1,887
TWENTY-FIVE THOUSAND DOLLARS;
(2) INJUNCTIVE RELIEF; 1,889
(3) RESTITUTION; 1,891
(4) ANY OTHER APPROPRIATE RELIEF. 1,893
(I) THIS SECTION APPLIES TO BOTH RESIDENT AND NONRESIDENT 1,896
AGENTS WHO ARE LICENSED UNDER THIS CHAPTER. 1,897
(J) NOTHING IN THIS SECTION SHALL BE CONSTRUED TO CREATE 1,900
OR IMPLY A PRIVATE CAUSE OF ACTION AGAINST AN AGENT, SOLICITOR, 1,901
OR INSURER.
Sec. 3905.491. (A) UPON WRITTEN APPLICATION OF A PERSON 1,904
WHOSE LICENSE WAS SUSPENDED, REVOKED, OR SURRENDERED FOR CAUSE 1,905
UNDER SECTION 3905.49 OF THE REVISED CODE, THE SUPERINTENDENT OF 1,907
INSURANCE SHALL HOLD A HEARING TO DETERMINE WHETHER THE 1,908
ADMINISTRATIVE ACTION IMPOSING SUCH SUSPENSION, REVOCATION, OR 1,909
SURRENDER SHOULD BE MODIFIED, PROVIDED THAT ALL OF THE FOLLOWING 1,910
CONDITIONS ARE MET: 1,911
(1) AT LEAST FIVE YEARS HAVE ELAPSED SINCE THE DATE OF THE 1,914
ADMINISTRATIVE ACTION SOUGHT TO BE MODIFIED;
(2) AT LEAST TWO YEARS HAVE ELAPSED SINCE ANY PREVIOUS 1,916
REQUEST FOR A MODIFICATION WAS MADE UNDER THIS SECTION; 1,917
(3) THE BURDEN OF PROOF IS ON THE PERSON REQUESTING THE 1,920
MODIFICATION.
(B) THE MODIFICATION OF AN ORDER ISSUED OR CONSENT 1,923
AGREEMENT ENTERED INTO UNDER SECTION 3905.49 OF THE REVISED CODE 1,925
IS AT THE DISCRETION OF THE SUPERINTENDENT. THE SUPERINTENDENT 1,926
MAY MODIFY SUCH AN ORDER OR AGREEMENT IF THE SUPERINTENDENT FINDS 1,927
ALL OF THE FOLLOWING: 1,928
(1) AT LEAST FIVE YEARS HAVE ELAPSED SINCE THE DATE OF THE 1,931
ADMINISTRATIVE ACTION;
(2) THE PERSON IS OF GOOD BUSINESS REPUTE AND IS SUITABLE 1,934
TO BE AN INSURANCE AGENT;
(3) THE PERSON HAS MADE RESTITUTION FOR ALL PECUNIARY 1,936
LOSSES SUFFERED BY ANY PERSON AS A RESULT OF THE CONDUCT THAT 1,937
41
GAVE RISE TO THE ADMINISTRATIVE ACTION; 1,938
(4) THE PERSON HAS NOT BEEN CONVICTED OF ANY FELONY OR OF 1,941
ANY MISDEMEANOR DESCRIBED IN DIVISION (B)(7) OF SECTION 3905.49 1,942
OF THE REVISED CODE UNLESS THE CONVICTION WAS THE SUBJECT OF A 1,945
PREVIOUS ADMINISTRATIVE ACTION BY THE SUPERINTENDENT; 1,946
(5) THE CIRCUMSTANCES SURROUNDING THE PREVIOUS VIOLATION 1,949
ARE SUCH THAT IT IS UNLIKELY THE PERSON WOULD COMMIT SUCH 1,950
OFFENSES IN THE FUTURE;
(6) THE PERSON'S CHARACTER HAS BEEN REHABILITATED. 1,953
(C) THE ISSUANCE OF ANY LICENSE PURSUANT TO A MODIFICATION 1,956
UNDER THIS SECTION SHALL BE CONDITIONED UPON THE SUCCESSFUL 1,957
COMPLETION OF ALL PRELICENSING EDUCATION AND EXAMINATION 1,958
REQUIREMENTS.
Sec. 3905.492. (A)(1) ALL RECORDS AND OTHER INFORMATION 1,960
OBTAINED BY THE SUPERINTENDENT OF INSURANCE OR THE 1,961
SUPERINTENDENT'S DEPUTIES, EXAMINERS, ASSISTANTS, OR OTHER 1,962
EMPLOYEES, OR AGENTS RELATING TO AN INVESTIGATION OF AN APPLICANT 1,963
FOR LICENSURE UNDER THIS CHAPTER, OR OF AN AGENT, SOLICITOR, 1,964
BROKER, OR OTHER PERSON LICENSED UNDER THIS CHAPTER OR CHAPTER 1,965
3951., 3957., OR 3959. OF THE REVISED CODE, ARE CONFIDENTIAL AND 1,966
ARE NOT PUBLIC RECORDS AS DEFINED IN SECTION 149.43 OF THE
REVISED CODE UNTIL THE APPLICANT OR LICENSEE IS PROVIDED NOTICE 1,967
AND OPPORTUNITY FOR HEARING PURSUANT TO CHAPTER 119. OF THE 1,968
REVISED CODE WITH RESPECT TO SUCH RECORDS OR INFORMATION. IF NO 1,969
ADMINISTRATIVE ACTION IS INITIATED WITH RESPECT TO A PARTICULAR 1,970
MATTER ABOUT WHICH THE SUPERINTENDENT OBTAINED RECORDS OR OTHER
INFORMATION AS PART OF AN INVESTIGATION, ALL SUCH RECORDS AND 1,971
INFORMATION RELATING TO THAT MATTER SHALL REMAIN CONFIDENTIAL FOR 1,972
THREE YEARS AFTER THE FILE ON THE MATTER IS CLOSED. 1,974
(2) DIVISION (A)(1) OF THIS SECTION APPLIES ONLY TO 1,977
INVESTIGATIONS THAT COULD RESULT IN ADMINISTRATIVE ACTION UNDER 1,979
TITLE XVII OR XXXIX OR CHAPTER 119. OF THE REVISED CODE. 1,984
(B) THE RECORDS AND OTHER INFORMATION DESCRIBED IN 1,987
DIVISION (A) OF THIS SECTION SHALL REMAIN CONFIDENTIAL FOR ALL 1,988
42
PURPOSES EXCEPT WHEN IT IS APPROPRIATE FOR THE SUPERINTENDENT AND 1,989
THE SUPERINTENDENT'S DEPUTIES, EXAMINERS, ASSISTANTS, OR OTHER 1,990
EMPLOYEES, OR AGENTS TO TAKE OFFICIAL ACTION REGARDING THE 1,992
AFFAIRS OF THE APPLICANT OR LICENSEE OR IN CONNECTION WITH ACTUAL 1,993
OR POTENTIAL CRIMINAL PROCEEDINGS. 1,994
(C) EMPLOYEES OR AGENTS OF THE DEPARTMENT OF INSURANCE 1,997
SHALL NOT BE REQUIRED BY ANY COURT IN THIS STATE TO TESTIFY IN A 1,998
CIVIL ACTION, IF SUCH TESTIMONY CONCERNS ANY MATTER RELATED TO 1,999
RECORDS OR ANY OTHER INFORMATION CONSIDERED CONFIDENTIAL UNDER 2,000
THIS SECTION OF WHICH THEY HAVE KNOWLEDGE. 2,001
(D) THIS SECTION DOES NOT APPLY TO ANY COMPLAINT OR ACTION 2,003
UNDER SECTION 3905.04 OF THE REVISED CODE. 2,004
Sec. 3905.54. EACH AGENT LICENSED UNDER THIS CHAPTER SHALL 2,007
NOTIFY THE SUPERINTENDENT OF INSURANCE IN WRITING OF ALL OF THE 2,008
FOLLOWING, AS APPLICABLE:
(A) ANY CHANGE IN THE AGENT'S ADDRESS, WITHIN THIRTY DAYS 2,012
AFTER THE CHANGE OCCURS. FOR PURPOSES OF THIS DIVISION,
"ADDRESS" MEANS RESIDENTIAL ADDRESS, BUSINESS ADDRESS, AND ANY 2,014
OTHER ADDRESS OR ADDRESSES THE SUPERINTENDENT REQUIRES BY RULE 2,015
ADOPTED IN ACCORDANCE WITH CHAPTER 119. OF THE REVISED CODE. 2,018
(B) ANY FELONY CONVICTION, OR ANY MISDEMEANOR CONVICTION 2,021
DESCRIBED IN DIVISION (B)(7) OF SECTION 3905.49 OF THE REVISED 2,024
CODE, WITHIN THIRTY DAYS AFTER SENTENCING. THE NOTICE SHALL 2,025
INCLUDE THE NAME OF THE COURT HAVING JURISDICTION OVER THE 2,026
MATTER, THE CASE NUMBER, THE OFFENSE CHARGED, THE SENTENCE 2,027
IMPOSED, AND A COPY OF THE JUDGMENT ENTRY. 2,028
(C) ANY DISCIPLINARY ACTION TAKEN BY THE INSURANCE 2,031
AUTHORITY OF ANOTHER STATE, WITHIN SIXTY DAYS AFTER THE ACTION IS 2,032
TAKEN.
Sec. 3905.55. (A) EXCEPT AS PROVIDED IN DIVISION (B) OF 2,035
THIS SECTION, AN AGENT MAY CHARGE A CONSUMER A FEE IF ALL OF THE 2,036
FOLLOWING CONDITIONS ARE MET: 2,037
(1) THE FEE IS DISCLOSED TO THE CONSUMER IN A MANNER THAT 2,040
SEPARATELY IDENTIFIES THE FEE AND THE PREMIUM.
43
(2) THE FEE IS NOT CALCULATED AS A PERCENTAGE OF THE 2,042
PREMIUM. 2,043
(3) THE FEE IS NOT REFUNDED, FORGIVEN, WAIVED, OFFSET, OR 2,046
REDUCED BY ANY COMMISSION EARNED OR RECEIVED FOR ANY POLICY OR 2,047
COVERAGE SOLD.
(4) THE AMOUNT OF THE FEE, AND THE CONSUMER'S OBLIGATION 2,050
TO PAY THE FEE, ARE NOT CONDITIONED UPON THE OCCURRENCE OF A 2,051
FUTURE EVENT OR CONDITION, SUCH AS THE PURCHASE, CANCELLATION, 2,052
LAPSE, DECLINATION, OR NONRENEWAL OF INSURANCE. 2,053
(5) THE AGENT DISCLOSES TO THE CONSUMER THAT THE FEE IS 2,056
BEING CHARGED BY THE AGENT AND NOT BY THE INSURANCE COMPANY, THAT 2,057
NEITHER STATE LAW NOR THE INSURANCE COMPANY REQUIRES THE AGENT TO 2,058
CHARGE THE FEE, AND THAT THE FEE IS NOT REFUNDABLE. 2,059
(6) THE CONSUMER CONSENTS TO THE FEE. 2,061
(7) THE AGENT, IN CHARGING THE FEE, DOES NOT DISCRIMINATE 2,064
ON THE BASIS OF RACE, SEX, NATIONAL ORIGIN, RELIGION, DISABILITY, 2,065
HEALTH STATUS, AGE, MARITAL STATUS, OR GEOGRAPHIC LOCATION, AND 2,066
DOES NOT UNFAIRLY DISCRIMINATE BETWEEN PERSONS OF ESSENTIALLY THE 2,067
SAME CLASS AND OF ESSENTIALLY THE SAME HAZARD OR EXPECTATION OF 2,068
LIFE.
(B) A FEE MAY NOT BE CHARGED FOR TAKING OR SUBMITTING AN 2,071
INITIAL APPLICATION FOR COVERAGE WITH ANY ONE INSURER OR 2,072
DIFFERENT PROGRAMS WITH THE SAME INSURER, OR PROCESSING A CHANGE 2,073
TO AN EXISTING POLICY, A CANCELLATION, A CLAIM, OR A RENEWAL, IN 2,074
CONNECTION WITH ANY OF THE FOLLOWING PERSONAL LINES POLICIES: 2,075
(1) PRIVATE PASSENGER AUTOMOBILE; 2,077
(2) HOMEOWNERS, INCLUDING COVERAGE FOR TENANTS OR 2,079
CONDOMINIUM OWNERS, OWNER-OCCUPIED FIRE OR DWELLING PROPERTY 2,080
COVERAGE, PERSONAL UMBRELLA LIABILITY, OR ANY OTHER PERSONAL 2,081
LINES-RELATED COVERAGE WHETHER SOLD AS A SEPARATE POLICY OR AS AN 2,083
ENDORSEMENT TO ANOTHER PERSONAL LINES POLICY;
(3) INDIVIDUAL LIFE INSURANCE; 2,085
(4) INDIVIDUAL SICKNESS OR ACCIDENT INSURANCE; 2,087
(5) DISABILITY INCOME POLICIES; 2,089
44
(6) CREDIT INSURANCE PRODUCTS. 2,092
(C) NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION, 2,095
AN AGENT MAY CHARGE A FEE FOR AGENT SERVICES IN CONNECTION WITH A 2,096
POLICY ISSUED ON A NO-COMMISSION BASIS, IF THE AGENT PROVIDES THE 2,097
CONSUMER WITH PRIOR DISCLOSURE OF THE FEE AND OF THE SERVICES TO 2,098
BE PROVIDED. 2,099
(D) IN THE EVENT OF A DISPUTE BETWEEN AN AGENT AND A 2,102
CONSUMER REGARDING ANY DISCLOSURE REQUIRED BY THIS SECTION, THE 2,103
AGENT HAS THE BURDEN OF PROVING THAT THE DISCLOSURE WAS MADE. 2,104
(E)(1) NO PERSON SHALL FAIL TO COMPLY WITH THIS SECTION. 2,107
(2) WHOEVER VIOLATES DIVISION (E)(1) OF THIS SECTION IS 2,110
DEEMED TO HAVE ENGAGED IN AN UNFAIR AND DECEPTIVE ACT OR PRACTICE 2,112
IN THE BUSINESS OF INSURANCE UNDER SECTIONS 3901.19 TO 3901.26 OF 2,113
THE REVISED CODE. 2,114
Sec. 3905.99. (A) Whoever violates sections 3905.181, 2,123
3905.21, or 3905.23 of the Revised Code shall be fined not less 2,124
than twenty-five nor more than five hundred dollars or imprisoned 2,125
not more than six months, or both.
(B) Whoever violates section 3905.31 or 3905.33 of the 2,127
Revised Code shall be fined not less than twenty-five nor more 2,128
than five hundred dollars or imprisoned not more than one year, 2,129
or both.
(C) Whoever violates section 3905.37 or 3905.43 of the 2,131
Revised Code shall be fined not less than one hundred nor more 2,132
than five hundred dollars.
(D) WHOEVER VIOLATES SECTION 3905.01 OF THE REVISED CODE 2,134
IS GUILTY OF A MISDEMEANOR OF THE FIRST DEGREE. 2,135
Sec. 3913.40. (A) Any insurer, INCLUDING ANY FRATERNAL 2,144
BENEFIT SOCIETY, that is organized under the laws of another 2,146
state and is admitted to transact the business of insurance in 2,147
this state may become a domestic insurer by complying with all of 2,148
the requirements of law relative to the organization and 2,149
licensing of a domestic insurer of the same type and by 2,150
designating its principal place of business at a place in this 2,151
45
state. Such a domestic insurer shall be issued like certificates 2,152
and licenses to transact business in this state, is subject to 2,153
the jurisdiction of this state, and shall be recognized as an 2,154
insurer formed under the laws of this state as of the date of its 2,155
original incorporation in its original domiciliary state. The 2,156
superintendent of insurance shall approve any proposed transfer 2,157
of domicile under this division unless the superintendent 2,158
determines that the transfer is not in the interest of
policyholders of this state. 2,159
(B) Any domestic insurer, upon the approval of the 2,161
superintendent, may transfer its domicile to any other state in 2,162
which it is admitted to transact the business of insurance. Upon 2,163
such a transfer, the insurer shall cease to be a domestic 2,164
insurer, and shall be admitted to this state if qualified as a 2,165
foreign insurer. The superintendent shall approve any proposed 2,166
transfer of domicile under this division unless the 2,167
superintendent determines that the transfer is not in the 2,168
interest of policyholders of this state. 2,169
(C)(1) With respect to any insurer, INCLUDING ANY 2,171
FRATERNAL BENEFIT SOCIETY, that is licensed to transact the 2,173
business of insurance in this state and that transfers its 2,174
domicile to this or any other state by merger, consolidation, or 2,175
any other lawful method, both of the following apply: 2,176
(a) The certificate of authority, agents appointments and 2,178
licenses, rates, and other items as allowed by the superintendent 2,179
that are in existence at the time of the transfer shall continue 2,180
in effect upon the transfer if the insurer remains qualified to 2,181
transact the business of insurance in this state. 2,182
(b) All outstanding policies shall remain in effect and 2,184
need not be endorsed as to the new name of the company or its new 2,185
location unless so ordered by the superintendent. 2,186
(2) Every transferring insurer as described in division 2,188
(C)(1) of this section shall file new policy forms with the 2,189
superintendent on or before the effective date of the transfer, 2,190
46
but may use existing policy forms with appropriate endorsements 2,191
if allowed by, and under such conditions as are approved by, the 2,192
superintendent. Every such insurer shall notify the 2,193
superintendent of the details of the proposed transfer, and shall 2,194
file promptly any resulting amendments to corporate documents 2,195
filed or required to be filed with the superintendent. 2,196
(D) NOTHING IN THIS SECTION OR ANY OTHER PROVISION OF THE 2,198
REVISED CODE PROHIBITS AN INSURER FROM TRANSFERRING ITS DOMICILE 2,199
TO THIS STATE BECAUSE ITS CHARTER, BYLAWS, OR ANY OTHER 2,200
ORGANIZATIONAL DOCUMENT CONTAINS CHARACTERISTICS OF BOTH A MUTUAL 2,201
INSURANCE COMPANY AND A STOCK INSURANCE COMPANY.
(E) The superintendent, in accordance with Chapter 119. of 2,203
the Revised Code, may adopt rules to carry out the purposes of 2,204
this section. 2,205
Sec. 3921.33. (A) Agents of fraternal benefit societies 2,214
shall be licensed in the manner provided for agents of insurance 2,215
companies in Chapter 3905. of the Revised Code, and shall be 2,217
required to complete the continuing education instruction AS set 2,218
forth in section 3905.481 of the Revised Code starting with the 2,220
twenty-four-month period commencing on the first day of January 2,221
of 1999. However, no written or other examination shall be
required of any person whose application for the original 2,224
issuance of a license to represent a fraternal benefit society as 2,226
its agent was filed with the superintendent of insurance prior to 2,227
January 1, 1997.
(B) The following persons shall not be required to be 2,230
licensed in accordance with division (A) of this section: 2,231
(1) Any regularly salaried officer, employee, or member of 2,233
a licensed society who devotes substantially all of the person's 2,234
services to activities other than the solicitation of fraternal 2,235
insurance contracts from the public, and who receives for the 2,236
solicitation of any such contracts no commission or other 2,237
compensation directly dependent upon the amount of business
obtained.
47
The officers, employees, and members described in division 2,239
(B)(1) of this section also are not subject to examination by the 2,240
superintendent under Chapter 3905. of the Revised Code. 2,241
(2) Any agent or representative of a society who devotes, 2,243
or intends to devote, less than fifty per cent of the person's 2,244
time to the solicitation and procurement of insurance contracts 2,245
for the society. For purposes of division (B)(2) of this 2,246
section, any person who, in the preceding calendar year, has 2,247
received a commission or other compensation for soliciting and 2,248
procuring any of the following contracts on behalf of an
individual society is presumed to have devoted, or to have 2,250
intended to devote, fifty per cent of the person's time to the 2,251
solicitation and procurement of insurance contracts: 2,252
(a) Life insurance contracts that, in the aggregate, 2,254
exceeded two hundred thousand dollars of coverage for all lives 2,255
insured for the preceding calendar year; 2,256
(b) A permanent life insurance contract offering more than 2,259
ten thousand dollars of coverage on an individual life;
(c) A term life insurance contract offering more than 2,261
fifty thousand dollars of coverage on an individual life; 2,262
(d) Any insurance contracts other than life that the 2,264
society may write and that insure the individual lives of more 2,265
than twenty-five individuals; 2,266
(e) Any contract issued on a variable basis, as authorized 2,268
by division (C) of section 3921.22 of the Revised Code. 2,269
Sec. 3923.121. (A) As used in this section: 2,278
(1) "Association" means a voluntary unincorporated 2,280
association of insurers formed for the sole purpose of enabling 2,281
cooperative action to provide sickness and accident insurance in 2,282
accordance with this section. 2,283
(2) "Insurer" means any insurance company authorized to do 2,285
the business of sickness and accident insurance in this state. 2,286
(3) "Insured" means a person covered under a group policy 2,288
issued pursuant to this section. 2,289
48
(B) Any insurer may join with one or more other insurers, 2,291
in an association, to offer, sell, and issue to a policyholder 2,292
selected by the association a policy of group insurance against 2,293
major financial loss from sickness and accident covering 2,294
residents of this state who are sixty-five years of age or older 2,295
and the spouses of such residents. The insurance shall be 2,296
offered, issued, and administered in the name of the association. 2,297
Membership in the association shall be open to any insurer and 2,298
each insurer which participates shall be liable for a specified 2,299
percentage of the risks. The policy may be executed on behalf of 2,300
the association by a duly authorized person and need not be 2,301
countersigned by an agent. 2,302
(C) The persons eligible for coverage under the policy 2,304
shall be all residents of this state who are sixty-five years of 2,305
age or older and their spouses, subject to reasonable 2,306
underwriting restrictions to be set forth in the plan of the 2,307
association. The policy may provide basic hospital and surgical 2,308
coverage, basic medical coverage, major medical coverage, and any 2,309
combination of these; provided that it shall not be required as a 2,310
condition for obtaining major medical coverage that any basic 2,311
coverage be taken. 2,312
(D) The association shall file with the superintendent of 2,314
insurance any policy, contract, certificate, or other evidence of 2,315
insurance, application, or other forms pertaining to such 2,316
insurance together with the premium rates to be charged therefor. 2,317
The superintendent may approve, disapprove, and withdraw approval 2,318
of the forms in accordance with section 3923.02 of the Revised 2,319
Code, or the premium rates if by reasonable assumptions such 2,320
rates are excessive in relation to the benefits provided. In 2,321
determining whether such rates by reasonable assumptions are 2,322
excessive in relation to the benefits provided the superintendent 2,323
shall give due consideration to past and prospective claim 2,324
experience, within and outside this state, and to fluctuations in 2,325
such claim experience, to a reasonable risk charge, to 2,326
49
contribution to surplus and contingency funds, to past and 2,327
prospective expenses, both within and outside this state, and to 2,328
all other relevant factors within and outside this state, 2,329
including any differing operating methods of the insurers joining 2,330
in the issuance of the policy. In reviewing the forms the 2,331
superintendent shall not be bound by the requirements of sections 2,332
3923.04 to 3923.07 of the Revised Code with respect to standard 2,334
provisions to be included in sickness and accident policies or 2,335
forms.
(E) The association may enroll eligible persons for 2,337
coverage under the policy through any insurance agent licensed to 2,338
sell sickness and accident insurance pursuant to section 3905.01 2,339
3905.02, 3905.08, 3905.18, or 3941.02 of the Revised Code. 2,341
(F) The association shall file annually with the 2,343
superintendent on such date and in such form as the 2,344
superintendent may prescribe, a financial summary of its 2,345
operations.
(G) The association may sue and be sued in its associate 2,347
name and for such purposes only shall be treated as a domestic 2,348
corporation. Service of process against such THE association 2,349
made upon a managing agent, any member thereof, or any agent 2,351
authorized by appointment to receive service of process, shall 2,352
have the same force and effect as if such THE service had been 2,353
made upon all members of the association. 2,355
(H) Under any policy issued as provided in this section, 2,357
the policyholder, or such person as the policyholder shall 2,358
designate, shall alone be a member of each domestic mutual 2,359
insurance company joining in the issue of the policy and shall be 2,360
entitled to one vote by virtue of such policy at the meetings of 2,361
each such mutual insurance company. Notice of the annual 2,362
meetings of each such mutual insurance company may be given by 2,363
written notice to the policyholder or as otherwise prescribed in 2,364
said THE policy. 2,365
Sec. 3931.101. The provisions of sections 3905.01 to 2,374
50
3905.05, inclusive, 3905.04 of the Revised Code, relating to the 2,376
appointment, licensing, qualification and regulation of insurance 2,377
agents, brokers and solicitors shall apply to all persons 2,378
authorized to solicit powers of attorney or applications for
contracts of indemnity for any reciprocal exchange, insurance 2,379
exchange or attorney in fact as provided for in Chapter 3931,. of 2,380
the Revised Code, except a traveling full time salaried 2,382
non-commission employee of an attorney whose duties as such
employee are primarily the performance of inspection 2,383
underwriting, loss prevention engineering and claim services 2,384
shall be exempt from this section and shall be regulated solely 2,385
by section 3931.11 of the Revised Code.
Sec. 3931.11. Every attorney shall certify to the 2,394
superintendent of insurance the names and addresses of the 2,395
attorney's traveling full time salaried non-commission employees, 2,396
primarily engaged in performing underwriting, loss prevention 2,397
engineering and claim services, authorized by the attorney to 2,398
solicit powers of attorney or applications for contracts of 2,399
indemnity specified in section 3931.01 of the Revised Code. The 2,400
authority of such persons shall continue until the first day of 2,401
the next April, unless it is cancelled by the attorney and the 2,402
certificate of such cancellation is filed with the 2,403
superintendent, or unless the license of the attorney or 2,404
authority of such person is revoked or suspended by the 2,405
superintendent. Expiring certificates of authority of such 2,406
persons may be renewed in like manner to continue until the first 2,407
day of the next April. The superintendent shall record the names 2,408
and addresses of such persons so that their names may 2,409
conveniently be inspected and shall thereupon certify and deliver 2,410
to the attorney a list of the names of all persons so recorded. 2,411
If the superintendent finds that any such person has 2,413
wilfully WILLFULLY violated, or failed to comply with, sections 2,414
3931.01 to 3931.12, inclusive, of the Revised Code, or has been 2,416
convicted of a felony in the United States, or in this or any 2,417
51
state, or has been guilty of any act or acts which if performed 2,418
by an agent licensed under section 3905.01 3905.02 of the Revised 2,419
Code would constitute statutory grounds for the revocation of 2,421
such agent's license, the superintendent may refuse or revoke the 2,422
authority of such THE person and cancel the person's name on the 2,424
superintendent's records, and the superintendent shall thereupon 2,426
notify such THE person and the attorney of such THE revocation. 2,427
Thereafter such THE person shall not act as representative of any 2,428
attorney until a new certificate of authority by the attorney 2,429
thereafter appointing such THE person is filed with and approved 2,430
by the superintendent. 2,431
No such person shall act for any attorney in placing 2,433
insurance or making such contracts of indemnity, unless the 2,434
attorney has the license required by section 3931.10 of the 2,435
Revised Code, nor unless the unexpired, unrevoked, and 2,436
unsuspended certificate of such person's authority is filed with 2,437
the superintendent. Any such person shall be individually liable 2,438
on any contract of indemnity made, issued, or accepted through 2,439
that person as representing any attorney who is not licensed by 2,441
the superintendent to make such contracts of indemnity.
Sec. 3941.02. (A) A domestic mutual company may be 2,450
organized by not less than twenty persons, to carry on the 2,451
business of mutual insurance and to reinsure and to accept 2,452
reinsurance as authorized by law and its articles of 2,453
incorporation. Such persons shall execute articles of 2,454
incorporation which, if not inconsistent with the constitution 2,455
and laws of this state and of the United States, shall be 2,456
approved by the attorney general and the secretary of state. The 2,457
articles and the certificate of approval by the attorney general 2,458
shall be recorded by the secretary of state who shall deposit a 2,459
copy thereof with the superintendent of insurance. 2,460
(B) If the articles of incorporation of a domestic, 2,462
foreign, or alien, mutual or stock insurance company empower it, 2,463
or if the power of attorney or subscribers' agreement empowers 2,464
52
the attorney in fact of a reciprocal or interinsurance exchange, 2,465
to transact any of the kinds of insurance described in division 2,466
(A) of section 3929.01 of the Revised Code, such company or 2,467
attorney may apply to the superintendent for the appropriate 2,468
license or certificate of authority, as provided in section 2,469
3925.11, 3927.01, 3931.10, or 3941.06 of the Revised Code, which 2,470
application shall state which of the kinds of insurance it 2,471
proposes to transact, and the superintendent shall act thereon in 2,472
the manner prescribed by that section. 2,473
(C) An Ohio agent shall be licensed, upon written notice 2,476
of appointment by a domestic, foreign, or alien, mutual or stock 2,477
insurance company, to procure, receive, or forward application 2,478
for the kinds of insurance the company is authorized to transact 2,479
in this state if the agent is then licensed to write all of the 2,480
kinds of insurance described in division (A) of section 3929.01 2,481
of the Revised Code, either for the company or for any other 2,482
company or companies authorized to transact insurance business in 2,483
this state. An Ohio agent not so licensed shall not procure, 2,484
receive, or forward applications for any kind of insurance for 2,485
the company until qualified and licensed to procure, receive, or 2,486
forward applications for all of the kinds of insurance described 2,487
in division (A) of section 3929.01 of the Revised Code, in 2,488
accordance with the applicable provisions of Chapter 3905. of the 2,489
Revised Code and in accordance with such rules as the 2,490
superintendent may adopt in connection therewith; provided any 2,491
company, irrespective of the kinds of insurance it is authorized 2,492
to transact, may apply for and obtain the renewal of licenses of 2,493
its agents who were licensed on or before July 1, 1945, to 2,494
procure, receive, or forward applications for any of the kinds of 2,495
insurance described in division (A) of section 3929.01 of the 2,496
Revised Code, and such agents shall not be required to be 2,497
licensed for all the kinds of insurance transacted by the company 2,498
making the applications for such renewals. Nothing in this 2,499
section shall be construed to authorize an agent whose license is 2,500
53
renewed under these provisions to procure, receive, or forward 2,501
applications for any kind or kinds of insurance other than the 2,502
kind or kinds for which the agent was authorized to procure, 2,503
receive, or forward applications on July 1, 1945; provided, the 2,505
procuring, receiving, or forwarding of applications by such an 2,506
agent for any kind or kinds of insurance other than the kind or 2,507
kinds the agent was authorized to procure, receive, or forward, 2,509
as of July 1, 1945, is cause for revocation of the license of the 2,510
agent by the superintendent and the acceptance by any insurance 2,511
company licensed to do business in this state of an application 2,512
for any kind of insurance other than the kind or kinds that the 2,513
agent was authorized to procure, receive, or forward, as of July 2,514
1, 1945, is cause for revocation of the license of the company by 2,515
the superintendent. Nothing in this section shall be construed 2,516
to alter the provisions of sections 2301.373, 3905.05, 3931.101, 2,517
and 3931.11 of the Revised Code. 2,518
Sec. 3953.21. (A) Every title insurance company 2,527
authorized to transact business within this state shall certify 2,528
annually to the superintendent of insurance the names of all 2,529
title insurance agents representing it in this state in 2,530
accordance with section 3905.01 3905.02 of the Revised Code. 2,531
(B) No bank, trust company, bank and trust company, or 2,533
other lending institution, mortgage service, brokerage, mortgage 2,534
guaranty company, escrow company, real estate company or any 2,535
subsidiaries thereof or any individuals so engaged shall be 2,536
permitted to act as an agent for a title insurance company.
Sec. 3953.23. (A) Every title insurance agent shall keep 2,545
his books of account and record and vouchers pertaining to the 2,547
business of title insurance in such manner that the title 2,548
insurance company may readily ascertain from time to time whether 2,549
the agent has complied with this chapter.
(B) A title insurance agent may engage in the business of 2,551
handling escrows of real property transactions directly connected 2,552
with the business of title insurance, provided that the agent 2,553
54
shall maintain a separate record of all receipts and 2,554
disbursements of escrow funds and shall not commingle any such
funds with agent's own funds or with funds held by agent in any 2,555
other capacity; and if at any time the superintendent of 2,556
insurance determines that an agent has failed to comply with any 2,557
of the provisions of this section, the superintendent may revoke 2,558
the license of said THE agent pursuant to section 3905.01 3905.02 2,560
of the Revised Code, subject to review as provided for in 2,561
sections 119.01 to 119.13, inclusive, CHAPTER 119. of the Revised 2,563
Code. All agents shall be covered by a fidelity bond in an 2,565
amount and with a company satisfactory to the principal. 2,566
Sec. 3960.11. (A) No person shall act or aid in any 2,575
manner in soliciting, negotiating, or procuring liability 2,576
insurance in this state from a risk retention group unless the 2,577
person is licensed as an insurance agent or broker in accordance 2,578
with section 3905.01, 3905.03, 3905.02 or 3905.30 of the Revised 2,580
Code.
(B) No person shall act or aid in any manner in 2,582
soliciting, negotiating, or procuring liability insurance in this 2,583
state for a purchasing group from an authorized insurer or a risk 2,584
retention group chartered in a state unless the person is 2,585
licensed as an insurance agent or broker in accordance with 2,586
section 3905.01, 3905.03, 3905.02 or 3905.30 of the Revised Code. 2,588
(C) No person shall act or aid in any manner in 2,590
soliciting, negotiating, or procuring liability insurance 2,591
coverage in this state for any member of a purchasing group under 2,592
a purchasing group's policy unless the person is licensed as an 2,593
insurance agent or broker in accordance with section 3905.01, 2,594
3905.03, 3905.02 or 3905.30 of the Revised Code. 2,595
(D) No person shall act or aid in any manner in 2,597
soliciting, negotiating, or procuring liability insurance from an 2,598
insurer not authorized to do business in this state on behalf of 2,599
a purchasing group located in this state unless the person is 2,600
licensed as an insurance agent or A surplus lines LINE broker in 2,602
55
accordance with section 3905.01, 3905.03, or 3905.30 of the 2,604
Revised Code. 2,605
Sec. 4745.01. (A) "Standard renewal procedure," as used 2,614
in Chapters 905., 907., 909., 911., 913., 915., 918., 921., 923., 2,615
927., 942., 943., 953., 1321., 3710., 3713., 3715., 3719., 3731., 2,616
3742., 3748., 3769., 3783., 3905., 3921., 3951., 4104., 4105., 2,617
4143., 4169., 4561., 4701., 4703., 4707., 4709., 4713., 4715., 2,618
4717., 4723., 4725., 4727., 4728., 4729., 4731., 4733., 4734., 2,619
4735., 4739., 4741., 4747., 4749., 4753., 4755., 4757., 4759., 2,620
4761., 4766., 4773., and 4775. of the Revised Code, means the 2,621
license renewal procedures specified in this chapter. 2,622
(B) "Licensing agency," as used in this chapter, means any 2,624
department, division, board, section of a board, or other state 2,625
governmental unit subject to the standard renewal procedure, as 2,626
defined in this section, and authorized by the Revised Code to 2,627
issue a license to engage in a specific profession, occupation, 2,628
or occupational activity, or to have charge of and operate 2,629
certain specified equipment, machinery, or premises. 2,630
(C) "License," as used in this chapter, means a license, 2,632
certificate, permit, card, or other authority issued or conferred 2,633
by a licensing agency by authority of which the licensee has or 2,634
claims the privilege to engage in the profession, occupation, or 2,635
occupational activity, or to have control of and operate certain 2,636
specific equipment, machinery, or premises, over which the 2,637
licensing agency has jurisdiction. 2,638
(D) "Licensee," as used in this chapter, means either the 2,640
person to whom the license is issued or renewed by a licensing 2,641
agency, or the person, partnership, or corporation at whose 2,642
request the license is issued or renewed. 2,643
(E) "Renewal" and "renewed," as used in this chapter and 2,645
in the chapters of the Revised Code specified in division (A) of 2,646
this section, includes the continuing licensing procedure 2,647
provided in Chapter 3748. of the Revised Code and rules adopted 2,649
under it and in sections 1321.05, 3905.01, 3905.02, 3905.07, 2,650
56
3905.18, and 3921.33 of the Revised Code, and as applied to those 2,651
continuing licenses any reference in this chapter to the date of 2,653
expiration of any license shall be construed to mean the due date 2,654
of the annual or other fee for the continuing license. 2,655
Section 2. That existing sections 1751.38, 3901.021, 2,657
3905.02, 3905.06, 3905.07, 3905.08, 3905.18, 3905.20, 3905.27, 2,659
3905.30, 3905.40, 3905.48, 3905.481, 3905.482, 3905.49, 3905.99, 2,660
3913.40, 3921.33, 3923.121, 3931.101, 3931.11, 3941.02, 3953.21, 2,661
3953.23, 3960.11, and 4745.01 and sections 3905.01, 3905.011, 2,662
3905.03, and 3905.05 of the Revised Code are hereby repealed. 2,663
Section 3. Sections 1 and 2 of this act, except for 2,665
sections 3905.011, 3905.012, 3905.02, 3905.03, 3905.18, and 2,666
3905.20 of the Revised Code, shall take effect at the earliest 2,667
time permitted by law. Sections 3905.011, 3905.012, 3905.02, 2,668
3905.03, 3905.18, and 3905.20 of the Revised Code, as amended, 2,669
enacted, or repealed by this act, shall take effect July 1, 1998.
Section 4. It is the intent of the General Assembly that 2,671
the Superintendent of Insurance take any action necessary to 2,672
administer the Insurance Agents Law, as amended by this act, and 2,673
to provide for an orderly transition for those persons licensed 2,674
or appointed under that Law as it existed prior to the effective 2,675
date of this act. 2,676
Section 5. The Department of Insurance shall, no later 2,678
than July 1, 1999, issue a new license to each person who, on 2,679
July 1, 1998, holds a license as an agent. Any license 2,680
application that is pending on July 1, 1998, or that is received 2,681
by the Department on or after that date, shall be reviewed in
accordance with this act. 2,682
Section 6. If Am. Sub. H.B. 248 is enacted by the 122nd 2,684
General Assembly, sections 3905.49 and 3905.491 of the Revised 2,685
Code, as the sections result from this act, supersede the same 2,686
sections as they result from Am. Sub. H.B. 248.
Section 7. Section 3941.02 of the Revised Code is 2,688
presented in this act as a composite of the section as amended by 2,689
57
both Sub. H.B. 167 and Am. Sub. S.B. 259 of the 121st General 2,690
Assembly, with the new language of neither of the acts shown in 2,692
capital letters. This is in recognition of the principle stated 2,693
in division (B) of section 1.52 of the Revised Code that such 2,694
amendments are to be harmonized where not substantively 2,695
irreconcilable and constitutes a legislative finding that such is 2,696
the resulting version in effect prior to the effective date of 2,697
this act.