As Passed by the House 1
122nd General Assembly 4
Regular Session Am. Sub. S. B. No. 154 5
1997-1998 6
SENATORS NEIN-GILLMOR-SUHADOLNIK-RAY-GARDNER- 8
REPRESENTATIVES STAPLETON-VAN VYVEN-JOLIVETTE-HOUSEHOLDER- 9
OLMAN-GARCIA-WILLAMOWSKI-PERZ 10
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A B I L L
To amend sections 1751.38, 3901.021, 3905.02, 14
3905.06, 3905.07, 3905.08, 3905.18, 3905.20, 15
3905.27, 3905.30, 3905.40, 3905.48, 3905.481, 16
3905.482, 3905.49, 3905.99, 3913.40, 3921.33, 17
3923.121, 3931.101, 3931.11, 3941.02, 3953.21, 19
3953.23, 3960.11, and 4745.01; to amend, for the 20
purpose of adopting a new section number as 22
indicated in parentheses, section 3905.02 23
(3905.03); to enact new sections 3905.01, 24
3905.011, and 3905.02 and sections 3905.012, 25
3905.013, 3905.491, 3905.492, 3905.54, and 26
3905.55; and to repeal sections 3905.01, 27
3905.011, 3905.03, and 3905.05 of the Revised 28
Code to revise the Insurance Agents Law; to 29
specify that a fraternal benefit society 31
organized under the laws of another state and 32
admitted to transact business in Ohio may become 33
a domestic insurer; to provide that an insurer is 35
not prohibited from transferring its domicile 36
to Ohio because its charter or bylaws contain 38
characteristics of both a mutual and stock 40
insurance company; and, if Am. Sub. H.B. 248 of 41
the 122nd General Assembly is enacted, to 42
supersede sections 3905.49 and 3905.491 of the 44
Revised Code as they result from that act. 45
2
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 47
Section 1. That sections 1751.38, 3901.021, 3905.02, 49
3905.06, 3905.07, 3905.08, 3905.18, 3905.20, 3905.27, 3905.30, 50
3905.40, 3905.48, 3905.481, 3905.482, 3905.49, 3905.99, 3913.40, 51
3921.33, 3923.121, 3931.101, 3931.11, 3941.02, 3953.21, 3953.23, 54
3960.11, and 4745.01 be amended; section 3905.02 (3905.03) be 55
amended for the purpose of adopting a new section number as 56
indicated in parentheses; and new sections 3905.01, 3905.011, and 57
3905.02 and sections 3905.012, 3905.013, 3905.491, 3905.492, 58
3905.54, and 3905.55 of the Revised Code be enacted to read as 59
follows:
Sec. 1751.38. (A) As used in this section, "agent" means 69
a person appointed by a health insuring corporation to engage in 70
the solicitation or enrollment of subscribers or enrollees. 71
(B) Agents of health insuring corporations shall be 74
licensed pursuant to section 3905.01 3905.02 or 3905.18 of the 75
Revised Code. 77
(C) Sections 3905.01, 3905.03, 3905.05 3905.02, 3905.16 to 80
3905.18, 3905.181, 3905.19, 3905.23, 3905.40, 3905.41, 3905.42, 81
3905.46 to 3905.48, 3905.481, 3905.482, 3905.486, 3905.49, 82
3905.491, 3905.492, 3905.50, 3905.71 to 3905.79, and 3905.99 of 84
the Revised Code shall apply to health insuring corporations and 85
the agents of health insuring corporations in the same manner in 86
which these sections apply to insurers and agents of insurers. 87
Sec. 3901.021. Two-thirds THREE-FOURTHS of all APPOINTMENT 96
AND OTHER fees collected under section 3905.01, division (E) of 98
section SECTIONS 3905.02, 3905.03, 3905.07, AND 3905.18, and 99
division (A)(6) of section 3905.26 of the Revised Code shall be 102
paid into the state treasury to the credit of the department of 103
insurance operating fund, which is hereby created. The remaining 104
one-third ONE-FOURTH shall be credited to the general revenue 106
fund. If the superintendent of insurance is authorized by the 107
controlling board to increase the fees pursuant to section 108
3905.011 of the Revised Code, the board may also direct that an 110
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amount equal to the increase, up to three-fourths of all fees 111
collected after the increase pursuant to section 3905.011 of the 112
Revised Code, shall be credited to the department of insurance 114
operating fund, with the remaining portion to be credited to the 115
general revenue fund. All operating expenses of the department 116
of insurance except those expenses defined under section 3901.07 117
of the Revised Code shall be paid from the department of 118
insurance operating fund.
Sec. 3905.01. (A) NO PERSON SHALL PROCURE AN APPLICATION 121
OR QUOTE PREMIUMS FOR, DISCUSS COVERAGES OF, OR SOLICIT, 122
NEGOTIATE, EFFECT, PROCURE, PLACE, WRITE, DELIVER, RENEW, OR 123
BIND, A POLICY OF INSURANCE THROUGH ANY MEDIUM FOR RISKS 124
RESIDING, LOCATED, OR TO BE PERFORMED IN THIS STATE, UNLESS THE 125
PERSON IS LICENSED BY THE SUPERINTENDENT OF INSURANCE IN 126
ACCORDANCE WITH THIS CHAPTER. 127
(B) DIVISION (A) OF THIS SECTION DOES NOT APPLY TO ANY OF 131
THE FOLLOWING PERSONS:
(1) AN INSURER AS DEFINED IN SECTION 3901.32 OF THE 133
REVISED CODE;
(2) ANY PERSON WHO FURNISHES INFORMATION REGARDING GROUP 135
INSURANCE, ENROLLS INDIVIDUALS IN GROUP INSURANCE PLANS, ISSUES 136
CERTIFICATES UNDER SUCH PLANS, OR OTHERWISE ASSISTS IN 137
ADMINISTERING SUCH PLANS, IF NO COMMISSION OR OTHER FORM OF 138
COMPENSATION RELATED TO PREMIUM OR SALES VOLUME IS PAID FOR SUCH 139
SERVICES; 140
(3) ANY EMPLOYEE OF A CREDITOR WITH RESPECT TO INSURANCE 142
PRODUCTS MADE AVAILABLE ONLY IN CONNECTION WITH A CREDIT 144
TRANSACTION, INCLUDING CREDIT LIFE INSURANCE, CREDIT DISABILITY 145
OR ACCIDENT AND HEALTH INSURANCE, CREDIT PROPERTY INSURANCE,
MORTGAGE LIFE INSURANCE, MORTGAGE ACCIDENT AND HEALTH INSURANCE, 146
INVOLUNTARY UNEMPLOYMENT INSURANCE, INDIVIDUAL LIFE INSURANCE, 147
AND INDIVIDUAL DISABILITY OR ACCIDENT AND HEALTH INSURANCE, IF 148
THE ENTIRE PREMIUM IS FINANCED AS PART OF THE CREDIT TRANSACTION 149
AND THE FOLLOWING CONDITIONS ARE MET:
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(a) IF THE INSURANCE PRODUCT IS AN INDIVIDUAL LIFE 151
INSURANCE POLICY, A LICENSED AGENT IS RESPONSIBLE FOR THE 152
INSURANCE TRANSACTION.
(b) IF THE EMPLOYEE OF THE CREDITOR IS PAID BY THE 154
INSURANCE AGENT OR BY THE INSURANCE COMPANY, THE EMPLOYEE HOLDS A 155
LIMITED AUTHORITY LICENSE. 156
FOR PURPOSES OF DIVISION (B)(3) OF THIS SECTION, "CREDIT 158
PROPERTY INSURANCE" MEANS INSURANCE COVERING RISKS OF LOSS, 159
DAMAGE, AND DESTRUCTION OF PROPERTY USED AS SECURITY FOR A CREDIT 160
TRANSACTION, WHICH INSURANCE MAY ALSO COVER OTHER PROPERTY THAT 162
IS MERELY INCIDENTAL TO THE PROPERTY USED AS SECURITY FOR THE 164
CREDIT TRANSACTION.
(4) ANY EMPLOYER, OR OFFICER OR EMPLOYEE OF AN EMPLOYER, 167
TO THE EXTENT THAT THE EMPLOYER, OFFICER, OR EMPLOYEE IS ENGAGED 168
IN THE ADMINISTRATION OR OPERATION OF ANY EMPLOYEE BENEFITS 169
PROGRAM INVOLVING THE USE OF INSURANCE FOR THE EMPLOYER'S 170
EMPLOYEES OR THE EMPLOYEES OF A SUBSIDIARY OR AFFILIATE OF THE 171
EMPLOYER, PROVIDED THAT THE EMPLOYER, OFFICER, OR EMPLOYEE IS NOT 173
COMPENSATED, EITHER DIRECTLY OR INDIRECTLY, IN ANY MANNER BY AN 174
INSURANCE AGENT OR BY THE INSURANCE COMPANY ISSUING THE
INSURANCE; 175
(5) AN ADJUSTER EMPLOYED BY OR REPRESENTING AN INSURER IN 178
THE ADJUSTMENT OF CLAIMS OR A PUBLIC INSURANCE ADJUSTER HOLDING A 179
CERTIFICATE OF AUTHORITY ISSUED UNDER CHAPTER 3951. OF THE 181
REVISED CODE WHEN PERFORMING THE DUTIES OF A PUBLIC INSURANCE 183
ADJUSTER.
(C) DIVISION (A) OF THIS SECTION DOES NOT APPLY TO ANY OF 187
THE FOLLOWING ACTIVITIES WHEN PERFORMED BY AN EMPLOYEE OF, AND AT 188
THE DIRECTION OF, AN INSURER OR LICENSED INSURANCE AGENT: 189
(1) THE ACCEPTANCE OF PREMIUMS OTHER THAN THE INITIAL 191
PREMIUM; 192
(2) THE GATHERING OF INFORMATION, SUCH AS NAMES, 194
ADDRESSES, EXPIRATION DATES OF CURRENT INSURANCE, AND NAMES OF 195
CURRENT INSURERS; 196
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(3) THE SETTING OF APPOINTMENTS FOR INSURANCE AGENTS, 198
PROVIDED THAT THE PERSON SETTING THE APPOINTMENT DOES NOT 199
COMMUNICATE ANY INFORMATION ABOUT INSURANCE; 200
(4) THE SERVICING OF EXISTING INSURANCE POLICIES ISSUED BY 203
OR THROUGH THE EMPLOYEE'S EMPLOYER, PROVIDED THE SERVICING IS NOT 204
PART OF A SOLICITATION;
(5) THE PERFORMANCE OF CLERICAL OR MINISTERIAL DUTIES. 207
(D) THE SUPERINTENDENT MAY ADOPT RULES IN ACCORDANCE WITH 210
CHAPTER 119. OF THE REVISED CODE TO SET FORTH THE SPECIFIC ACTS 213
THAT COMPRISE ANY OF THE ACTIVITIES DESCRIBED IN THIS SECTION, 214
THE PERFORMANCE OF WHICH EITHER REQUIRES OR DOES NOT REQUIRE 216
LICENSURE AS AN AGENT.
Sec. 3905.011. (A) AS USED IN THIS SECTION AND SECTIONS 219
3905.012 AND 3905.013 OF THE REVISED CODE, "INSURER" HAS THE SAME 221
MEANING AS IN SECTION 3901.32 OF THE REVISED CODE. 224
(B) ANY PERSON THAT IS LICENSED AS AN AGENT UNDER SECTION 227
3905.02 OR 3905.18 OF THE REVISED CODE IS ELIGIBLE TO BE 229
APPOINTED BY ONE OR MORE INSURERS AUTHORIZED TO DO BUSINESS IN 230
THIS STATE. 231
(C)(1) PRIOR TO APPOINTING AN AGENT, AN INSURER SHALL 234
CERTIFY TO THE SUPERINTENDENT OF INSURANCE, IN ACCORDANCE WITH 235
RULES ADOPTED BY THE SUPERINTENDENT UNDER SECTION 3905.013 OF THE 236
REVISED CODE, THAT THE PERSON IS COMPETENT, FINANCIALLY 238
RESPONSIBLE, AND SUITABLE TO REPRESENT THE INSURER. 239
(2) NO AGENT SHALL REPRESENT TO THE PUBLIC THAT THE AGENT 241
HAS AUTHORITY TO REPRESENT A PARTICULAR INSURER UNTIL THE INSURER 243
HAS ACKNOWLEDGED THAT AUTHORITY BY APPOINTMENT OF THE AGENT IN 244
ACCORDANCE WITH DIVISION (C)(1) OF THIS SECTION. 245
(D)(1) NO INSURER SHALL PAY A COMMISSION, FEE, OR OTHER 248
TYPE OF CONSIDERATION, OR GIVE ANY OTHER THING OF VALUE, TO A 249
PERSON THAT IS REQUIRED TO BE LICENSED BY THE SUPERINTENDENT 250
UNDER THIS CHAPTER FOR THE SALE OF, OR FOR ANY DIRECT OR INDIRECT 251
CONNECTION WITH THE SALE OF, ANY INSURANCE SOLD BY OR ON BEHALF 252
OF THE INSURER, BUT IS NOT SO LICENSED.
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(2) NOTHING IN THIS SECTION PROHIBITS AN INSURER FROM 254
ENTERING INTO A COMPENSATION AGREEMENT WITH A CREDITOR WITH 255
RESPECT TO INSURANCE PRODUCTS MADE AVAILABLE ONLY IN CONNECTION 257
WITH A CREDIT TRANSACTION, INCLUDING CREDIT LIFE INSURANCE,
CREDIT DISABILITY OR ACCIDENT AND HEALTH INSURANCE, CREDIT 258
PROPERTY INSURANCE, MORTGAGE LIFE INSURANCE, MORTGAGE ACCIDENT 259
AND HEALTH INSURANCE, INVOLUNTARY UNEMPLOYMENT INSURANCE, 260
INDIVIDUAL LIFE INSURANCE, AND INDIVIDUAL DISABILITY OR ACCIDENT 261
AND HEALTH INSURANCE, IF THE ENTIRE PREMIUM IS FINANCED AS PART 262
OF THE CREDIT TRANSACTION. FOR PURPOSES OF DIVISION (D)(2) OF 263
THIS SECTION, "CREDIT PROPERTY INSURANCE" HAS THE SAME MEANING AS 264
IN DIVISION (B)(3) OF SECTION 3905.01 OF THE REVISED CODE.
Sec. 3905.012. (A)(1) EXCEPT AS PROVIDED IN DIVISION 268
(A)(2) OF THIS SECTION, ANY PERSON LICENSED AS AN AGENT UNDER 269
SECTION 3905.02 OR 3905.18 OF THE REVISED CODE, OR APPOINTED AS A 271
SOLICITOR UNDER SECTION 3905.03 OF THE REVISED CODE, MAY AT ANY 274
TIME SURRENDER ANY OR ALL LICENSES HELD BY THE PERSON. 275
(2) NO AGENT SHALL SURRENDER THE AGENT'S LICENSES IF THE 278
SUPERINTENDENT OF INSURANCE IS INVESTIGATING ANY ALLEGATION OF 279
WRONGDOING BY THE AGENT OR HAS INITIATED PROCEEDINGS UNDER 280
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 281
SURRENDER IS INVALID.
(B)(1) IF AN INSURER OR AGENT CANCELS THE APPOINTMENT OF 284
AN AGENT OR SOLICITOR DUE TO SUSPECTED FRAUD, MISREPRESENTATION, 285
THEFT, CONVERSION, OR ANY OTHER CULPABLE MISAPPROPRIATION, THE 286
INSURER OR AGENT SHALL PROMPTLY NOTIFY THE SUPERINTENDENT. THE 287
NOTICE SHALL INCLUDE A COMPLETE STATEMENT OF THE FACTS AND THE 288
REASONS FOR THE CANCELLATION. 289
(2) IN THE ABSENCE OF FRAUD OR ACTUAL MALICE, AN INSURER 291
OR AGENT IS IMMUNE FROM ANY CIVIL LIABILITY THAT OTHERWISE MIGHT 292
BE INCURRED OR IMPOSED AS A RESULT OF ANY ACTION TAKEN BY THE 293
INSURER OR AGENT TO COMPLY WITH DIVISION (B)(1) OF THIS SECTION. 295
(C) IF AN AGENT'S LICENSE IS SURRENDERED, REVOKED, OR 297
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SUSPENDED, ALL APPOINTMENTS HELD BY THE AGENT ARE VOID. IF A NEW 299
LICENSE IS ISSUED TO THAT PERSON OR IF THAT PERSON'S PREVIOUS 300
LICENSE IS REINSTATED, ANY APPOINTMENT OF THE PERSON TO REPRESENT 301
AN INSURER OR AGENT MUST BE MADE IN ACCORDANCE WITH THE 302
REQUIREMENTS OF THIS CHAPTER.
(D)(1) ANY AGENT, OTHER THAN A CORPORATION, PARTNERSHIP, 304
OR LIMITED LIABILITY COMPANY, WHO IS NO LONGER ENGAGED IN THE 305
BUSINESS OF INSURANCE IN ANY CAPACITY FOR WHICH AN AGENT'S 306
LICENSE IS REQUIRED MAY APPLY TO THE SUPERINTENDENT FOR INACTIVE 307
STATUS. THE SUPERINTENDENT MAY GRANT SUCH STATUS ONLY IF THE 308
SUPERINTENDENT IS SATISFIED THAT THE PERSON IS NOT ENGAGED IN AND 310
DOES NOT INTEND TO ENGAGE IN ANY OF THE ACTIVITIES SET FORTH IN 311
SECTION 3905.01 OF THE REVISED CODE THAT REQUIRES AN AGENT'S 313
LICENSE. 314
(2) A PERSON WHO HAS BEEN GRANTED INACTIVE STATUS IS 316
EXEMPT FROM ANY CONTINUING EDUCATION REQUIREMENTS IMPOSED UNDER 317
THIS CHAPTER. 318
(3) THE SUPERINTENDENT MAY ADOPT RULES IN ACCORDANCE WITH 321
CHAPTER 119. OF THE REVISED CODE TO ESTABLISH PROCEDURES FOR 324
APPLYING FOR INACTIVE STATUS, CRITERIA USED TO DETERMINE
ELIGIBILITY FOR SUCH STATUS, AND STANDARDS AND PROCEDURES FOR 325
TRANSFERRING FROM INACTIVE TO ACTIVE STATUS. 326
(E) THE SUPERINTENDENT MAY SUSPEND OR REVOKE A LICENSE, OR 329
TAKE ANY OTHER DISCIPLINARY ACTION AUTHORIZED BY THIS CHAPTER, 330
REGARDLESS OF WHETHER THE PERSON IS APPOINTED OR OTHERWISE 331
AUTHORIZED TO REPRESENT AN INSURER OR AGENT. 332
Sec. 3905.013. (A) THE SUPERINTENDENT OF INSURANCE MAY 335
ADOPT RULES IN ACCORDANCE WITH CHAPTER 119. OF THE REVISED CODE 338
FOR PURPOSES OF IMPLEMENTING SECTIONS 3905.01 TO 3905.03 AND 339
3905.18 OF THE REVISED CODE, INCLUDING RULES THAT DO THE 342
FOLLOWING:
(1) SET FORTH REQUIREMENTS AND PROCEDURES FOR THE ISSUANCE 345
OF AN AGENT'S LICENSE;
(2) PROVIDE FOR THE ISSUANCE OF A LIMITED AUTHORITY 348
8
LICENSE FOR A SPECIFIC LINE OF INSURANCE AND FOR THE APPOINTMENT
OF SUCH A LICENSEE, AND SET FORTH ANY PRELICENSING EDUCATION, 350
EXAMINATION, OR CONTINUING EDUCATION REQUIREMENTS THE
SUPERINTENDENT CONSIDERS APPROPRIATE FOR THE LICENSE; 351
(3) SET FORTH THE CIRCUMSTANCES UNDER WHICH THE 354
SUPERINTENDENT OR THE SUPERINTENDENT'S DESIGNEE MAY REFUSE TO
ISSUE AN AGENT'S LICENSE TO AN APPLICANT. NOTWITHSTANDING 356
CHAPTER 119. OF THE REVISED CODE, AN OPPORTUNITY FOR A HEARING 359
SHALL NOT BE GRANTED TO SUCH AN APPLICANT UNTIL THE
SUPERINTENDENT HAS CONDUCTED AN INVESTIGATION OF THE MATTER. 361
(4) ESTABLISH PROCEDURES FOR CERTIFYING AN INSURER'S 363
APPOINTMENT OF AN AGENT; 364
(5) ESTABLISH PROCEDURES FOR THE SURRENDER OF LICENSES OR 367
APPOINTMENTS.
(B) THE SUPERINTENDENT MAY DIRECT LICENSEES TO PAY ANY 370
FEES TO ANY CONTRACTED VENDOR.
Sec. 3905.02. (A) AN APPLICANT FOR A LICENSE AS AN OTHER 373
THAN LIFE INSURANCE AGENT SHALL SUBMIT AN APPLICATION FOR SUCH A 374
LICENSE TO THE SUPERINTENDENT OF INSURANCE. THE APPLICATION 376
SHALL BE ON A FORM FURNISHED BY THE SUPERINTENDENT AND BE 377
ACCOMPANIED BY A STATEMENT UNDER OATH BY THE APPLICANT WHICH 378
GIVES THE APPLICANT'S NAME, AGE, RESIDENCE, PRESENT OCCUPATION, 379
OCCUPATION FOR THE FIVE YEARS NEXT PRECEDING THE DATE OF THE 380
APPLICATION, AND SUCH OTHER INFORMATION AS THE SUPERINTENDENT MAY 381
REQUIRE.
THE APPLICANT SHALL ALSO REQUEST A CRIMINAL RECORDS CHECK 383
CONDUCTED BY THE SUPERINTENDENT OF THE BUREAU OF CRIMINAL 385
IDENTIFICATION AND INVESTIGATION IN ACCORDANCE WITH SECTION
109.572 OF THE REVISED CODE, AND DIRECT THAT THE BUREAU'S WRITTEN 387
RESPONSE TO THAT REQUEST BE TRANSMITTED TO THE SUPERINTENDENT OF 388
INSURANCE, OR TO THE SUPERINTENDENT'S DESIGNEE, AS SPECIFIED ON 389
THE FORM PRESCRIBED PURSUANT TO THAT SECTION. IF THE 390
SUPERINTENDENT OF INSURANCE OR THE SUPERINTENDENT'S DESIGNEE
FAILS TO RECEIVE THE BUREAU'S RESPONSE TO THE APPLICANT'S REQUEST 392
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FOR A CRIMINAL RECORDS CHECK, THE SUPERINTENDENT MAY REFUSE TO 393
ISSUE A LICENSE UNDER THIS SECTION. THE APPLICANT SHALL PAY ANY 394
FEE REQUIRED BY THE BUREAU FOR CONDUCTING THE CRIMINAL RECORDS 395
CHECK.
AN APPLICANT FOR A LICENSE SHALL SUBMIT TO AN EXAMINATION 398
AS TO THE QUALIFICATIONS SET FORTH IN DIVISION (B) OF THIS 399
SECTION. 400
(B) THE SUPERINTENDENT OF INSURANCE SHALL ISSUE TO AN 403
APPLICANT A LICENSE THAT STATES IN SUBSTANCE THAT THE PERSON IS 404
AUTHORIZED TO DO THE BUSINESS OF AN OTHER THAN LIFE INSURANCE 405
AGENT IN THIS STATE, IF THE SUPERINTENDENT IS SATISFIED THAT THE 406
APPLICANT IS A SUITABLE PERSON AND INTENDS TO HOLD SELF OUT IN 407
GOOD FAITH AS AN AGENT; THAT THE APPLICANT IS HONEST, 408
TRUSTWORTHY, AND UNDERSTANDS THE DUTIES AND OBLIGATIONS OF AN 409
AGENT, AND IS FAMILIAR WITH THE INSURANCE LAWS OF THIS STATE AND 410
WITH THE TERMS AND PROVISIONS OF THE POLICIES AND CONTRACTS OF 411
INSURANCE THE APPLICANT PROPOSES TO EFFECT; THAT IN APPLYING FOR 412
THE LICENSE IT IS NOT THE APPLICANT'S PURPOSE OR INTENTION 413
PRINCIPALLY TO SOLICIT OR PLACE INSURANCE ON THE APPLICANT'S OWN 414
PROPERTY OR THAT OF RELATIVES, EMPLOYERS, OR EMPLOYEES OR THAT 415
FOR WHICH THEY OR THE APPLICANT IS AGENT, CUSTODIAN, VENDOR, 416
BAILEE, TRUSTEE, OR PAYEE; AND THAT THE APPLICANT HAS COMPLETED 417
THE EDUCATIONAL REQUIREMENTS SET FORTH IN SECTION 3905.48 OF THE 418
REVISED CODE.
THE SUPERINTENDENT MAY SUSPEND OR REVOKE SUCH A LICENSE AS 420
PROVIDED IN SECTION 3905.482 OF THE REVISED CODE, AND MAY 421
SUSPEND, REVOKE, REFUSE TO CONTINUE, OR REFUSE TO ISSUE SUCH A 423
LICENSE AS PROVIDED IN SECTION 3905.49 OF THE REVISED CODE. 425
UNLESS REVOKED OR SUSPENDED BY THE SUPERINTENDENT OR SURRENDERED 426
BY THE AGENT, SUCH A LICENSE CONTINUES IN FORCE FOR THE LIFE OF 427
THE AGENT, IN THE CASE OF AN INDIVIDUAL, OR UNTIL THE 428
CORPORATION, PARTNERSHIP, OR LIMITED LIABILITY COMPANY CEASES TO
EXIST. 429
IF THE SUPERINTENDENT REFUSES TO ISSUE SUCH A LICENSE BASED 432
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IN WHOLE OR IN PART UPON THE BUREAU'S WRITTEN RESPONSE TO A 433
CRIMINAL RECORDS CHECK REQUESTED PURSUANT TO DIVISION (A) OF THIS 434
SECTION, THE SUPERINTENDENT SHALL SEND A COPY OF THE RESPONSE 435
THAT THE BUREAU TRANSMITTED TO THE SUPERINTENDENT OR TO THE 436
SUPERINTENDENT'S DESIGNEE, TO THE APPLICANT AT THE APPLICANT'S 437
HOME ADDRESS UPON THE APPLICANT'S SUBMISSION OF A WRITTEN REQUEST 438
TO THE SUPERINTENDENT. 439
(C)(1) EACH INSURANCE COMPANY SHALL CERTIFY TO THE 442
SUPERINTENDENT OF INSURANCE BEFORE THE THIRTIETH DAY OF JUNE EACH 443
YEAR THE NAMES AND ADDRESSES OF THE AGENTS FOR WHOM IT REQUESTS 444
APPOINTMENTS OR THE CONTINUANCE OF APPOINTMENTS. ALL DOMESTIC, 445
FOREIGN, AND ALIEN COMPANIES SHALL PAY TO THE SUPERINTENDENT A 446
FEE OF TWENTY DOLLARS FOR EVERY SUCH APPOINTMENT WHEN ISSUED AND 447
FOR EACH CONTINUANCE THEREAFTER. SUCH AN APPOINTMENT, UNLESS 448
CANCELED BY THE INSURANCE COMPANY, MAY BE CONTINUED IN FORCE PAST 450
THE THIRTIETH DAY OF JUNE NEXT AFTER ITS ISSUE AND AFTER THE 451
THIRTIETH DAY OF JUNE OF EACH SUCCEEDING YEAR PROVIDED THAT THE 453
APPOINTEE IS LICENSED AND IS ELIGIBLE FOR THE APPOINTMENT. 454
(2) AN INSURANCE COMPANY SHALL BE BOUND BY THE ACTS OF THE 457
PERSON NAMED IN THE APPOINTMENT WITHIN THAT PERSON'S APPARENT 458
AUTHORITY AS ITS AGENT.
(3) DIVISION (C) OF THIS SECTION DOES NOT APPLY TO LIFE 461
INSURANCE COMPANIES, INCLUDING FRATERNALS, NOR TO DOMESTIC MUTUAL 462
PROTECTIVE ASSESSMENT FIRE ASSOCIATIONS AS DEFINED IN SECTION 463
3939.01 OF THE REVISED CODE. 465
(D) THE SUPERINTENDENT OF INSURANCE MAY PRESCRIBE THE 468
FORMS TO BE USED AS EVIDENCE OF THE ISSUANCE OF LICENSES AND 469
APPOINTMENTS UNDER THIS SECTION AND MAY ISSUE ONE OR MORE 470
CERTIFICATES, IN A FORM SUITABLE FOR OFFICE DISPLAY, TO COVER ANY 471
NUMBER OF INSURANCE COMPANIES WITH WHICH AN AGENT HAS 472
APPOINTMENTS.
(E)(1) THE SUPERINTENDENT OF INSURANCE SHALL NOT ISSUE OR 475
CONTINUE THE LICENSE OF A CORPORATION, PARTNERSHIP, OR LIMITED 476
LIABILITY COMPANY ORGANIZED UNDER THE LAWS OF THIS OR ANY OTHER 477
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STATE UNLESS THE CORPORATION, PARTNERSHIP, OR LIMITED LIABILITY 478
COMPANY IS QUALIFIED TO DO BUSINESS IN THIS STATE UNDER THE 479
APPLICABLE PROVISIONS OF TITLE XVII OF THE REVISED CODE. 483
(2) THE FAILURE OF A CORPORATION, PARTNERSHIP, OR LIMITED 486
LIABILITY COMPANY TO BE IN GOOD STANDING WITH THE SECRETARY OF 487
STATE OR TO MAINTAIN A VALID APPOINTMENT OF STATUTORY AGENT IS 488
GROUNDS FOR SUSPENSION OR REVOCATION OF ITS LICENSE. 489
(3) BY APPLYING FOR A LICENSE AS AN AGENT UNDER THIS 491
SECTION, AN INDIVIDUAL, CORPORATION, PARTNERSHIP, OR LIMITED 492
LIABILITY COMPANY CONSENTS TO THE JURISDICTION OF THE COURTS OF 493
THIS STATE. 494
Sec. 3905.02 3905.03. (A) Any agent authorized and 503
licensed as provided in section 3905.01 3905.02 of the Revised 505
Code, and representing APPOINTED TO REPRESENT one or more 507
insurance corporations within this state, may employ APPOINT as 509
many solicitors as the agent desires to represent the agent and
the agent's agency, but such THE solicitors shall not represent 510
themselves, by advertisement or otherwise, as agents of insurance 512
companies for which their employer may be the authorized agent, 513
and such THE solicitors shall in all instances represent 514
themselves only as solicitors for said THE agent. Upon 515
EACH AGENT THAT EMPLOYS A PERSON AS A SOLICITOR SHALL 518
CERTIFY TO THE SUPERINTENDENT OF INSURANCE THAT THE PERSON IS 519
COMPETENT, FINANCIALLY RESPONSIBLE, AND SUITABLE TO REPRESENT THE 520
AGENT. UPON written notice by any such agent that the agent has 522
employed such a person as a solicitor, the superintendent of 523
insurance shall issue to the solicitor a license AN APPOINTMENT 524
in the form prepared by the superintendent, if the superintendent 526
is satisfied that: 527
(1) The applicant SOLICITOR is a suitable person and 529
intends to hold self out in good faith as a solicitor;. 531
(2) The applicant SOLICITOR is honest and trustworthy;. 534
(3) The applicant SOLICITOR has training or instruction in 536
the business and understands the duties and obligations of a 537
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solicitor;. 538
(4) The applicant SOLICITOR IS LICENSED UNDER SECTION 540
3905.02 OF THE REVISED CODE, is familiar with the insurance laws, 542
and IS FAMILIAR with the provisions of the policies and contracts 543
of insurance the applicant SOLICITOR proposes to solicit;. 545
(5) In applying for such license it IT is not appointee's 548
THE SOLICITOR'S purpose or intention principally to solicit or 549
place insurance on appointee's THE SOLICITOR'S own property or 550
that of relatives, employers, or employees or that for which they 552
or the appointee SOLICITOR is agent, custodian, vendor, bailee, 554
trustee, or payee. Notice
(6) ON AND AFTER JULY 1, 1987, THE SOLICITOR HAS COMPLETED 558
THE PRELICENSING EDUCATIONAL REQUIREMENTS SET FORTH IN SECTION 559
3905.48 OF THE REVISED CODE. 561
NOTICE shall be upon a form furnished by the superintendent 565
and shall be accompanied by a statement under oath by the 566
solicitor which shall give GIVES the applicant's SOLICITOR'S 567
name, age, residence, present occupation, the applicant's 570
SOLICITOR'S occupation for the five years next preceding the date 571
of the notice, the kinds of insurance for which the applicant 572
SOLICITOR wishes license to solicit, and such other information 574
as the superintendent requires, upon a blank furnished by the 575
superintendent.
(6) On and after July 1, 1987, the applicant has completed 577
the pre-licensing educational requirements set forth in section 578
3905.48 of the Revised Code. 579
(B) If such appointee THE SOLICITOR within the preceding 581
two years has not been appointed as a licensed IN THIS STATE AS 583
AN insurance solicitor or has not had an appointment as a 585
licensed insurance solicitor continued by an insurance agent 586
licensed in this state FOR OTHER THAN LIFE INSURANCE UNDER 587
SECTION 3905.02 OF THE REVISED CODE, the appointee SOLICITOR 588
shall submit to a hearing and AN examination as to the 589
qualifications set forth in divisions (A)(1) to (5) of this 591
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section.
(C) For the purpose of licensing solicitors, insurance 593
shall be considered as of three classes: fire insurance, 594
including marine and inland transportation; casualty insurance; 595
and surety insurance. A solicitor who did not hold a license as 596
solicitor prior to January 1, 1967, may be licensed APPOINTED 597
only if the solicitor is qualified for the same class or classes 600
of insurance for which the agent employing the solicitor is 601
licensed. Each solicitor's license shall state the class or 603
classes A SOLICITOR MAY SOLICIT ONLY THOSE LINES OF INSURANCE for 604
which issued and no BOTH THE solicitor shall be licensed for AND 605
the same kind of insurance by more than one APPOINTING agent ARE 607
LICENSED. Unless such license NO SOLICITOR SHALL BE APPOINTED BY 609
MORE THAN ONE AGENT. 610
UNLESS THE SOLICITOR'S LICENSE is revoked or suspended by 613
the superintendent or unless the agent by written notice to the 614
superintendent cancels the solicitor's authority as such
solicitor, or unless such license is canceled by the 615
superintendent upon written notice from the solicitor that the 616
solicitor's authority has been canceled by the agent, such 617
license and any other license issued to a solicitor APPOINTMENT 618
may, in the discretion of the superintendent, and at the request 620
of the agent who employs the solicitor and the payment of the 621
required fee, be continued past the thirtieth day of June next 622
after its issue and after the thirtieth day of June each 623
succeeding year. Each agent shall certify, to the superintendent 624
of insurance, before the thirtieth day of June each year, the 625
names and addresses of the solicitors the agent has employed 626
during the preceding year, indicating those for whom the agent 627
wishes licenses APPOINTMENTS to be continued. 628
The agent giving written notice shall pay to the 630
superintendent a fee of twenty dollars for every such license 631
APPOINTMENT and for each continuance thereof. The issuance of a 633
solicitor's license APPOINTMENT shall be limited to a natural 634
14
person who is a resident of this state or to a natural person who 637
is employed by a licensed resident agent and is conducting 638
business only from within this state.
The superintendent may suspend or revoke such a license as 640
provided in section 3905.482 of the Revised Code, and may 641
suspend, revoke, refuse to continue or renew, or refuse to issue 642
such a license as provided in section 3905.49 of the Revised 643
Code.
Sec. 3905.06. Sections 3905.01 to 3905.06 of the Revised 652
Code do not apply to companies or associations transacting the 653
business of life insurance or their agent or to associations 655
organized and operating under sections 3939.01 to 3939.09 of the 656
Revised Code.
Sec. 3905.07. No person shall act in this state as special 665
representative, state agent, field representative, state, 666
district, or local manager, or in any similar capacity by 667
whatever title designated, unless the person is licensed by the 668
superintendent of insurance. Upon written notice by an insurance 669
company authorized to transact business in this state of its 670
employment of a person to act as such representative and that the 671
person's duties are to appoint, supervise, or dismiss agents, to 672
aid them in soliciting, negotiating, and receiving applications 673
of and handling orders for insurance, and to aid the employer 674
generally in the transaction of its business in this state, but 675
not to solicit insurance on that person's own behalf, the 676
superintendent shall issue a license as special representative to 677
such THE person. Such THE license shall state in substance that 679
the company is authorized to do business in this state and that 680
the person named therein IN THE LICENSE is a constituted special 682
representative of the company in this state in the transaction of 683
such business within the person's apparent authority as the 684
company is authorized to transact therein. If such THE special 685
representative signs policies for the company, the special 687
representative must qualify as an agent under section 3905.01 688
15
3905.02 of the Revised Code. Unless the company, by written 689
notice to the superintendent, cancels the special 690
representative's authority to act for it, such license may, in 691
the discretion of the superintendent and at the request of the 692
company and payment of the required fee, be continued past the 693
thirtieth day of June next after issue and the thirtieth day of 694
June of each succeeding year. Each company shall pay a fee of 695
five dollars for each such license and each continuance thereof. 696
A PERSON LICENSED AS A SPECIAL REPRESENTATIVE UNDER THIS 699
SECTION IS NOT SUBJECT TO SECTION 3905.481 OF THE REVISED CODE 701
UNLESS THE PERSON IS ALSO LICENSED AS AN AGENT UNDER SECTION 702
3905.02 OF THE REVISED CODE. 704
Sec. 3905.08. If it appears from the written notice given 713
to the superintendent of insurance pursuant to sections 3905.01, 714
3905.02, and 3905.18 of the Revised Code that the appointment 716
APPLICATION of any person to act as an agent, or the employment 718
of any person to act as a solicitor, is only for the purpose of 720
having such agent or such solicitor procure PROCURING, receive 722
RECEIVING, or forward FORWARDING applications for insurance 724
against accidents to or sickness of persons, or on the health of
individuals and against personal injury, disablement, or death 725
resulting from traveling or general accidents by land and water, 726
then the scope of any hearing or examination, or questions in any 727
application for license, as provided for in any of said THOSE 728
sections, shall be limited to that type of insurance only. If 730
any such person appointed as agent or employed as a solicitor is 731
otherwise qualified under said THOSE sections, the superintendent 732
shall issue to such THE person an appropriate agent's or 733
solicitor's license bearing an imprint across its face "accident 735
and health insurance license." Such license only entitles the 736
holder to procure applications for such insurance and forward the 737
same to the company or agent that he THE HOLDER is licensed 739
APPOINTED to represent. Such sections apply to any person 740
appointed as an agent or employed as a solicitor, except to the 741
16
extent that they are modified and amended by this section. No 742
agent or solicitor licensed under this section shall procure, 743
receive, or forward applications for any kind of insurance except 744
the kinds enumerated in this section. Any violation of this 745
section, by any AN agent or solicitor licensed under this section 747
is cause for the revocation of said THE license and any other 749
licenses issued by the superintendent to said THE agent or 750
solicitor. 751
The acceptance by any insurance company from any AN agent 753
licensed under this section, or the acceptance by any insurance 755
agent, whether licensed under this or any other section of the 757
Revised Code, from any solicitor licensed under this section, of 758
an application for any kind of insurance except the kinds
enumerated in this section, is cause for the revocation of the 759
license of said THE company or agent and for the revocation of 761
any other licenses issued by the superintendent to said THE 763
company or agent.
Sec. 3905.18. (A) Upon written notice by AN APPLICANT FOR 772
A LICENSE AS a life insurance company authorized to transact 774
business in this state of its appointment of a person to act as 775
its agent in this state, and upon issuance of the certificate 776
verified by an executive officer or managing agent thereof, that 777
such company has investigated the character and record of such 778
person and satisfied itself that he is trustworthy and qualified 779
to act as its agent, and that he has completed the educational 781
requirements set forth in section 3905.48 of the Revised Code, 782
SHALL SUBMIT TO the superintendent of insurance shall, on receipt 784
of such certification, furnish to the agent an application for AN 785
agent's license, which shall contain such questions touching the 786
applicant's fitness to be licensed as an agent as the 787
superintendent determines. If such appointee within the 789
preceding two years has not been appointed as a licensed life 790
insurance agent or has not had his appointment as a licensed life 792
insurance agent continued by an insurance company authorized to 793
17
transact business in this state, the appointee THE APPLICATION 794
SHALL BE ACCOMPANIED BY A STATEMENT UNDER OATH BY THE APPLICANT 797
THAT GIVES THE APPLICANT'S NAME, AGE, RESIDENCE, PRESENT 798
OCCUPATION, OCCUPATION FOR THE FIVE YEARS NEXT PRECEDING THE DATE 799
OF THE APPLICATION, AND SUCH OTHER INFORMATION AS THE 800
SUPERINTENDENT MAY REQUIRE.
THE APPLICANT SHALL ALSO REQUEST A CRIMINAL RECORDS CHECK 802
CONDUCTED BY THE SUPERINTENDENT OF THE BUREAU OF CRIMINAL 804
IDENTIFICATION AND INVESTIGATION IN ACCORDANCE WITH SECTION
109.572 OF THE REVISED CODE, AND DIRECT THAT THE BUREAU'S WRITTEN 806
RESPONSE TO THAT REQUEST BE TRANSMITTED TO THE SUPERINTENDENT OF 807
INSURANCE, OR TO THE SUPERINTENDENT'S DESIGNEE, AS SPECIFIED ON 808
THE FORM PRESCRIBED PURSUANT TO THAT SECTION. IF THE 809
SUPERINTENDENT OF INSURANCE OR THE SUPERINTENDENT'S DESIGNEE
FAILS TO RECEIVE THE BUREAU'S RESPONSE TO THE APPLICANT'S REQUEST 811
FOR A CRIMINAL RECORDS CHECK, THE SUPERINTENDENT MAY REFUSE TO 812
ISSUE A LICENSE UNDER THIS SECTION. THE APPLICANT SHALL PAY ANY 813
FEE REQUIRED BY THE BUREAU FOR CONDUCTING THE CRIMINAL RECORDS 814
CHECK.
AN APPLICANT FOR A LICENSE shall submit to an examination 819
as to his THE APPLICANT'S knowledge of life and sickness and 820
accident insurance and the laws of this state governing his 821
activities as a life insurance agent. Unless 822
(B) UNLESS it appears that the appointee APPLICANT is not 827
of good reputation and character, is not a trustworthy person, is 828
not suitable to be licensed, or has not completed such THE 829
educational requirements SET FORTH IN SECTION 3905.48 OF THE 830
REVISED CODE, the superintendent OF INSURANCE shall issue to him 831
THE APPLICANT a license which shall state, in substance, that the 833
company PERSON is authorized to do THE business OF A LIFE 835
INSURANCE AGENT in this state, and that the person named therein 837
is a constituted agent of the company in this state for the 838
transaction of such business. Each notice and certificate shall 839
be upon forms furnished by the superintendent and shall be 840
18
accompanied by a statement under oath by the appointee which 841
shall give his name, age, residence, present occupation, 843
occupation for the five years next preceding the date of the 844
notice, and such other information as the superintendent
requires, upon a blank furnished by him. 845
(B) The superintendent may suspend or revoke such a 847
license as provided in section 3905.482 of the Revised Code, and 848
may suspend, revoke, refuse to continue or renew, or refuse to 849
issue such a license as provided in section 3905.49 of the 850
Revised Code. Every such UNLESS REVOKED OR SUSPENDED BY THE 851
SUPERINTENDENT OR SURRENDERED BY THE AGENT, SUCH A LICENSE 852
CONTINUES IN FORCE FOR THE LIFE OF THE AGENT, IN THE CASE OF AN 853
INDIVIDUAL, OR UNTIL THE CORPORATION, PARTNERSHIP, OR LIMITED 854
LIABILITY COMPANY CEASES TO EXIST.
IF THE SUPERINTENDENT REFUSES TO ISSUE SUCH A LICENSE BASED 857
IN WHOLE OR IN PART UPON THE BUREAU'S WRITTEN RESPONSE TO A 858
CRIMINAL RECORDS CHECK REQUESTED PURSUANT TO DIVISION (A) OF THIS 859
SECTION, THE SUPERINTENDENT SHALL SEND A COPY OF THE RESPONSE 860
THAT THE BUREAU TRANSMITTED TO THE SUPERINTENDENT OR TO THE 861
SUPERINTENDENT'S DESIGNEE, TO THE APPLICANT AT THE APPLICANT'S 862
HOME ADDRESS UPON THE APPLICANT'S SUBMISSION OF A WRITTEN REQUEST 863
TO THE SUPERINTENDENT. 864
EACH insurance company shall, upon the termination of the 867
employment APPOINTMENT of any such agent, forthwith file with the 869
superintendent a statement of the termination of such employment 870
THE APPOINTMENT.
(C) Upon written notice by a life insurance company 872
authorized to transact business in this state of its appointment 873
of a corporation, PARTNERSHIP, OR LIMITED LIABILITY COMPANY to 874
act as its agent in this state, the superintendent of insurance 876
shall furnish such THE corporation, PARTNERSHIP, OR LIMITED 877
LIABILITY COMPANY with an application for agent's license which 878
shall contain such questions as will enable the superintendent to 879
determine that such THE corporation, PARTNERSHIP, OR LIMITED 880
19
LIABILITY COMPANY was organized for the purpose of acting as an 881
insurance agent,; that each employee of such THE corporation, 883
PARTNERSHIP, OR LIMITED LIABILITY COMPANY who will negotiate for, 884
place, or renew policies or agreements of life insurance on 885
behalf of such THE corporation, PARTNERSHIP, OR LIMITED LIABILITY 886
COMPANY has been issued a life insurance agent's license pursuant 887
to division (A) of this section; that the voting shares of such 888
corporation are beneficially owned by natural persons who are 889
residents of this state; that such THE corporation, PARTNERSHIP, 890
OR LIMITED LIABILITY COMPANY and such THE life insurance company 892
have executed a written agreement whereby the rights and duties 893
of each are set forth; and that in applying for such THE license 894
it is not the appointee's purpose or intention principally to 896
solicit or place insurance on the lives of the appointee's 897
officers, employees, or shareholders, or the lives of relatives 898
of such officers, employees, or shareholders, or upon the lives 899
of persons for whom they, their relatives, or the appointee is 900
agent, custodian, vendor, bailee, trustee, or payee. Unless it 901
appears that such THE corporation, PARTNERSHIP, OR LIMITED 903
LIABILITY COMPANY was not organized for such purpose or that each 904
such employee has not been so licensed or that the voting shares 905
of such corporation are not so beneficially owned or that such a 906
written agreement has not been executed, the superintendent shall 907
issue to such THE corporation, PARTNERSHIP, OR LIMITED LIABILITY 908
COMPANY a license which shall state STATES, in substance, that 909
such THE corporation, PARTNERSHIP, OR LIMITED LIABILITY COMPANY 910
is a life insurance agent. 911
(D) If the superintendent of insurance, at any time 913
subsequent to the issuance of a life insurance agent's license to 914
a corporation, PARTNERSHIP, OR LIMITED LIABILITY COMPANY, finds 915
that such THE corporation, PARTNERSHIP, OR LIMITED LIABILITY 917
COMPANY has ceased to have as its purpose acting as an insurance 918
agent or that each employee of such THE corporation, PARTNERSHIP, 919
OR LIMITED LIABILITY COMPANY who negotiates for, places, or 920
20
renews policies or agreements of life insurance on behalf of such 922
THE corporation, PARTNERSHIP, OR LIMITED LIABILITY COMPANY has 923
not been issued a life insurance agent's license or that the 924
voting shares of such corporation are not beneficially owned by 925
natural persons who are residents of this state or that the 926
principal use of such THE license has been to solicit, place, or 928
effect insurance on the lives of the appointee's officers, 929
employees, or shareholders, or on the lives of the relatives of 930
such officers, employees, or shareholders, or upon the lives of 931
persons for whom they, or their relatives, or the appointee is 932
agent, custodian, vendor, bailee, trustee, or payee, or for any 933
other cause shown he, THE SUPERINTENDENT may after hearing revoke 935
the life insurance agent's license issued to such THE 937
corporation, PARTNERSHIP, OR LIMITED LIABILITY COMPANY or suspend 938
such THE license until such condition as he THE SUPERINTENDENT 939
finds existing ceases to exist. The finding of the 942
superintendent, either in refusing to grant a license or in 943
revoking a license, shall be in writing, and shall state the 944
facts upon which his THE action is based. The action of the 946
superintendent in granting, revoking, continuing, or refusing to 947
grant, revoke, or continue such THE license, shall be subject to 949
review in accordance with Chapter 119. of the Revised Code. 950
(E) Unless THE AGENT'S LICENSE IS revoked OR SUSPENDED by 952
the superintendent OF INSURANCE, or unless the company by written 954
notice to the superintendent cancels the agent's authority to act 955
for it, a life insurance agent's license, and any other license 956
issued to an agent APPOINTMENT may, in the discretion of the 958
superintendent and at the request of the company and payment of 959
the required fee, be continued past the thirtieth day of June 960
next after its issue and after the thirtieth day of June in each 961
succeeding year. Except as provided in section 3905.011 of the 962
Revised Code, all ALL domestic, foreign, and alien companies 964
shall pay a fee of twenty dollars for every such license 965
APPOINTMENT and for each continuance thereafter. While such 967
21
license AN APPOINTMENT remains in force, a foreign company shall 969
be bound by the acts of the person named therein IN THE 970
APPOINTMENT, within his THE PERSON'S APPARENT authority as its 973
acknowledged agent.
(F) The superintendent OF INSURANCE may prescribe the 975
forms to be used as evidence of the issuance of licenses AND 976
APPOINTMENTS under this section and may issue one or more 978
certificates, in a form suitable for office display, to cover any 979
number of insurance companies with which an agent is licensed HAS 980
APPOINTMENTS.
(G)(1) THE SUPERINTENDENT OF INSURANCE SHALL NOT ISSUE OR 983
CONTINUE THE LICENSE OF A CORPORATION, PARTNERSHIP, OR LIMITED 984
LIABILITY COMPANY ORGANIZED UNDER THE LAWS OF THIS OR ANY OTHER 985
STATE UNLESS THE CORPORATION, PARTNERSHIP, OR LIMITED LIABILITY 986
COMPANY IS QUALIFIED TO DO BUSINESS IN THIS STATE UNDER THE 987
APPLICABLE PROVISIONS OF TITLE XVII OF THE REVISED CODE. 991
(2) THE FAILURE OF A CORPORATION, PARTNERSHIP, OR LIMITED 994
LIABILITY COMPANY TO BE IN GOOD STANDING WITH THE SECRETARY OF 995
STATE OR TO MAINTAIN A VALID APPOINTMENT OF STATUTORY AGENT IS 996
GROUNDS FOR SUSPENSION OR REVOCATION OF ITS LICENSE. 997
(3) BY APPLYING FOR A LICENSE AS AN AGENT UNDER THIS 999
SECTION, AN INDIVIDUAL, CORPORATION, PARTNERSHIP, OR LIMITED 1,000
LIABILITY COMPANY CONSENTS TO THE JURISDICTION OF THE COURTS OF 1,001
THIS STATE. 1,002
Sec. 3905.20. (A) Any person licensed as a life insurance 1,011
agent for a life insurance company authorized to deliver or issue 1,012
for delivery in this state SHALL, UPON SATISFACTORY COMPLETION OF 1,014
AN EXAMINATION AS TO THE PERSON'S KNOWLEDGE OF policies, 1,016
annuities, or AND other contracts providing variable or fixed and 1,017
variable benefits or contractual payments ISSUED BY LIFE 1,018
INSURANCE COMPANIES pursuant to section 3911.011 of the Revised 1,019
Code shall, upon written application of such company, 1,020
satisfactory completion of an examination as to his knowledge of 1,022
such policies, annuities, and contracts and the nature thereof, 1,023
22
payment of the required fee, and compliance with the 1,024
pre-licensing PRELICENSING educational requirements of section 1,025
3905.48 of the Revised Code, be licensed by the superintendent of 1,027
insurance as a variable contract agent. 1,028
(B) The superintendent may suspend or revoke such a 1,030
license as provided in section 3905.482 of the Revised Code, and 1,031
may suspend, revoke, refuse to continue or renew, or refuse to 1,032
issue such a license as provided in section 3905.49 of the 1,033
Revised Code. Revocation of such THE person's license as a life 1,034
insurance agent or failure to renew such license is cause for 1,035
revoking such THE person's license as a variable contract agent. 1,036
Every such UNLESS REVOKED OR SUSPENDED BY THE SUPERINTENDENT OR 1,037
SURRENDERED BY THE AGENT, A VARIABLE CONTRACT AGENT'S LICENSE 1,038
CONTINUES IN FORCE FOR THE LIFE OF THE AGENT. 1,039
EACH LIFE insurance company shall, upon termination of the 1,041
employment APPOINTMENT of any such person as a variable contract 1,042
agent, forthwith file with the superintendent a statement of the 1,044
termination of such employment THE APPOINTMENT. 1,045
(C) Any corporation, PARTNERSHIP, OR LIMITED LIABILITY 1,047
COMPANY licensed as a life insurance agent for AND APPOINTED BY a 1,049
life insurance company authorized to deliver or issue for 1,051
delivery in this state policies, annuities, or other contracts 1,052
providing variable or fixed and variable benefits or contractual 1,053
payments pursuant to section 3911.011 of the Revised Code, may, 1,054
upon written application of such company and upon a proper 1,055
showing that all of such THE corporation's, PARTNERSHIP'S, OR 1,057
LIMITED LIABILITY COMPANY'S employees who will negotiate for, 1,058
place, or renew any such policies, annuities, or contracts on 1,059
behalf of such THE corporation, PARTNERSHIP, OR LIMITED LIABILITY 1,060
COMPANY have been issued licenses as variable contract agents 1,062
pursuant to division (A) of this section, be licensed by the 1,063
superintendent of insurance as a variable contract agent. 1,064
(D) The superintendent of insurance may, for cause shown 1,066
and after hearing, revoke the variable contract agent's license 1,067
23
issued to such corporation, PARTNERSHIP, OR LIMITED LIABILITY 1,068
COMPANY, or suspend such THE license until such condition as he 1,071
THE SUPERINTENDENT finds existing ceases to exist. The 1,072
revocation or suspension of such THE corporation's, 1,073
PARTNERSHIP'S, OR LIMITED LIABILITY COMPANY'S license as a life 1,074
insurance agent or failure to renew such license shall be cause 1,076
for revoking or suspending, as the case may be, such THE 1,077
corporation's, PARTNERSHIP'S, OR LIMITED LIABILITY COMPANY'S 1,078
license as a variable contract agent. The finding of the 1,079
superintendent, either in refusing to grant a license or in 1,080
revoking a license, shall be in writing and state the facts upon 1,081
which his THE SUPERINTENDENT'S action is based. The action of 1,082
the superintendent in granting, revoking, continuing, or refusing 1,084
to grant, revoke, or continue such license, shall be subject to 1,085
review in accordance with Chapter 119. of the Revised Code. 1,086
(E) Unless revoked or suspended by the superintendent OR 1,088
SURRENDERED BY THE CORPORATION, PARTNERSHIP, OR LIMITED LIABILITY 1,089
COMPANY, or unless the company by written notice to the 1,090
superintendent cancels the agent's authority to act for it, a 1,091
variable contract agent's license, and any other license issued 1,092
to an agent may, in the discretion of the superintendent and at 1,093
the request of the company and payment of the required fee, be 1,094
CONTINUES IN FORCE UNTIL THE CORPORATION, PARTNERSHIP, OR LIMITED 1,095
LIABILITY COMPANY CEASES TO EXIST. 1,096
(F) EACH LIFE INSURANCE COMPANY SHALL CERTIFY TO THE 1,099
SUPERINTENDENT BEFORE THE THIRTIETH DAY OF JUNE EACH YEAR THE 1,101
NAMES AND ADDRESSES OF THE VARIABLE CONTRACT AGENTS FOR WHOM IT 1,102
REQUESTS APPOINTMENTS OR THE CONTINUANCE OF APPOINTMENTS. SUCH 1,103
AN APPOINTMENT, UNLESS CANCELED BY THE INSURANCE COMPANY, MAY BE 1,104
continued IN FORCE past the thirtieth day of June next after its 1,106
issue and after the thirtieth day of June in each succeeding 1,107
year. Except as provided in section 3905.011 of the Revised 1,108
Code, all ALL domestic, foreign, and alien companies shall pay a 1,110
fee of twenty dollars for every such license APPOINTMENT WHEN 1,111
24
ISSUED and for each continuance thereafter. While such license 1,113
APPOINTMENT remains in force, a foreign company shall be bound by 1,116
the acts of the person named therein IN THE APPOINTMENT, within 1,117
his THE PERSON'S APPARENT authority as its authorized agent. 1,119
Sec. 3905.27. The superintendent of insurance may open an 1,128
account in the name of each insurance company authorized to do 1,129
business in this state and in the name of any authorized 1,130
insurance agent, and charge said THE accounts with all fees 1,131
incurred by such companies or agents in accordance with sections 1,133
3905.01, 3905.02, 3905.03, 3905.07, 3905.26, 3919.26, and 3931.03 1,134
of the Revised Code, and other statutes imposing fees. The 1,136
statutory fee for each service requested shall be charged against 1,137
the proper account forthwith upon the rendition of the service. 1,138
Not later than the tenth day of each calendar month the 1,140
superintendent shall render an itemized statement to each company 1,141
or agent whose account has been charged during the month next 1,142
preceding, showing the amount of all fees charged during said 1,143
THAT month and demanding that payment thereof be made not later 1,145
than the first day of the month next following. 1,146
The failure of any insurance company within said THAT time 1,148
to pay the amount of such fees in accordance with such THE 1,149
monthly statement, or, if said THE statement or account is found 1,150
to be incorrect, in accordance with a corrected monthly statement 1,151
rendered by the superintendent, is grounds for the revocation of 1,152
its certificate of authority to do business in this state. In 1,153
the event of such an order of revocation, the superintendent 1,154
shall forthwith cause a notice thereof to be published once in at 1,155
least one newspaper at the seat of the government and also, if a 1,156
domestic company, once in at least one newspaper published in the 1,157
county where its home office is located, or, if a foreign or 1,158
alien company, once in at least one newspaper published in a 1,159
county of this state where an agency of such THE company is 1,160
located. After the publication of such THE notice, no agent of 1,162
such THE company shall procure applications for insurance or 1,164
25
issue policies.
In the event of the failure of any agent within the time 1,166
fixed to pay the amount of fees charged against his THE AGENT'S 1,167
account in accordance with the monthly statement rendered by the 1,169
superintendent, such THE agent's license may be revoked in the 1,170
manner provided by sections 3905.01 3905.02 and 3905.18 of the 1,172
Revised Code. 1,173
Sec. 3905.30. The superintendent of insurance may issue a 1,182
surplus line broker's license to any natural person who is a 1,184
citizen of the United States and has been a resident of this OR 1,186
ANY OTHER state OR A PROVINCE OF CANADA, OR TO ANY CORPORATION, 1,187
PARTNERSHIP, OR LIMITED LIABILITY COMPANY THAT IS ORGANIZED UNDER 1,188
THE LAWS OF THIS OR ANY OTHER STATE OR A PROVINCE OF CANADA. THE 1,189
APPLICANT MUST HAVE BEEN LICENSED AS A MULTIPLE LINE AGENT for at
least two years prior to making application for the SURPLUS LINE 1,192
BROKER'S license. The applicant shall also have met the 1,193
standards and passed the test provided for the issuance of a 1,195
multiple line agent's license. A surplus line broker's license 1,196
permits the person named in the license to negotiate for and 1,197
obtain insurance, other than life insurance, on property or 1,199
persons in this state in insurers not authorized to transact 1,200
business in this state. Each such license expires on the
thirty-first day of January next after the year in which it is 1,201
issued, and may be then renewed. 1,202
Sec. 3905.40. The superintendent of insurance shall MAY 1,211
issue no A license to any person as agent of an insurance company 1,213
if such person INDIVIDUAL WHO is a resident of a ANOTHER state 1,216
which, by its laws, prohibits residents of this state from acting
as agents of insurance companies in such state; if the 1,217
superintendent is satisfied that any person holding a license as 1,218
such agent is a resident of such state, he shall revoke such 1,220
license OR A PROVINCE OF CANADA, OR TO ANY CORPORATION, 1,221
PARTNERSHIP, OR LIMITED LIABILITY COMPANY THAT IS ORGANIZED UNDER 1,222
THE LAWS OF ANOTHER STATE OR A PROVINCE OF CANADA. FOR THE 1,223
26
PURPOSE OF ACCORDING SUCH AN APPLICANT THE FULL PRIVILEGES OF AN 1,225
INSURANCE AGENT IN THIS STATE, THE SUPERINTENDENT SHALL ACCEPT 1,226
THE LICENSING OBLIGATIONS, PROHIBITIONS, AND REQUIREMENTS THAT 1,227
ARE IMPOSED UPON THE APPLICANT BY THE INSURANCE AUTHORITY AND 1,228
LAWS OF THE STATE OR OF THE PROVINCE OF CANADA OF WHICH THE 1,230
APPLICANT IS A RESIDENT, OR UNDER WHICH THE APPLICANT IS
ORGANIZED, AS SATISFYING THE LICENSING OBLIGATIONS, PROHIBITIONS, 1,232
AND REQUIREMENTS OF THIS STATE, EXCEPT FOR THOSE OBLIGATIONS, 1,233
PROHIBITIONS, AND REQUIREMENTS IMPOSED UNDER SECTION 3905.41 OF 1,234
THE REVISED CODE. 1,235
FOR PURPOSES OF THIS SECTION, THE LICENSING REQUIREMENTS 1,238
THAT MUST BE ACCEPTED BY THE SUPERINTENDENT INCLUDE THE 1,239
REQUIREMENTS FOR PRELICENSING AND CONTINUING EDUCATION OF THE 1,240
OTHER STATE OR PROVINCE.
Sec. 3905.48. (A) On and after July 1, 1987, no NO 1,249
person, unless the person has complied with division (B) of this 1,250
section, shall be permitted to take an examination for a license 1,252
as an agent or solicitor to engage in the sale of any of the 1,253
following types of insurance: 1,254
(1) Life insurance, annuity contracts, variable annuity 1,256
contracts, and variable life insurance; 1,257
(2) Sickness and accident insurance; 1,259
(3) All lines of property and casualty insurance; 1,261
(4) All other lines of insurance for which an examination 1,263
is required for licensing, except title insurance. 1,264
(B) No person shall be permitted to take an examination 1,266
described in division (A) of this section unless either of the 1,267
following applies: 1,268
(1) The person has earned a bachelor's or associate's 1,270
degree in insurance in an accredited institution; 1,271
(2) The person has been granted a diploma for successfully 1,273
completing a high school curriculum under section 3313.61 of the 1,274
Revised Code or a certificate of high school equivalence under 1,275
rule 3301-41-1 of the Administrative Code, or been granted a 1,276
27
comparable diploma or certificate by another state, and has 1,277
successfully completed at least forty hours of study in a program 1,278
of insurance education approved by the superintendent of 1,279
insurance in consultation with the insurance agent education 1,280
advisory council under criteria established by the 1,281
superintendent. 1,282
Sec. 3905.481. (A)(1) Except as provided in division (B) 1,291
of this section, each person who is issued a license as an agent 1,292
or solicitor on and OR after July 1, 1993, THE EFFECTIVE DATE OF 1,294
THIS AMENDMENT shall complete in accordance with division (A)(1) 1,295
of this section at least thirty TWENTY hours of continuing 1,296
education instruction offered in a course or program of study 1,298
approved by the superintendent of insurance in consultation with 1,299
the insurance agent education advisory council. The person shall 1,300
complete the initial thirty TWENTY hours of continuing education 1,302
instruction during a period not to exceed twenty-four months 1,303
commencing on the first day of January of the year immediately 1,304
following the year of the issuance of the license and ending on 1,305
the thirty-first day of December of the second year following the 1,306
year of the issuance of the license. Thereafter, the person 1,307
shall complete at least thirty TWENTY hours of continuing 1,308
education instruction in every subsequent twenty-four-month 1,309
period commencing on the first day of January and ending on the 1,310
thirty-first day of December of the following year. 1,311
(2) Except as provided in division (B) of this section, 1,313
each person who, on July 1, 1993 THE EFFECTIVE DATE OF THIS 1,314
AMENDMENT, holds a license as an agent or solicitor issued prior 1,316
to that date shall complete, no later than December 31, 1995 1,317
DURING THAT PERSON'S APPLICABLE TWENTY-FOUR MONTH REPORTING 1,318
PERIOD, at least thirty TWENTY hours of continuing education 1,319
instruction offered in a course or program of study approved by 1,320
the superintendent in consultation with the council. Thereafter, 1,321
the person shall complete at least thirty TWENTY hours of such 1,323
continuing education instruction in every subsequent 1,324
28
twenty-four-month period commencing on the first day of January 1,325
of every even-numbered year and ending on the thirty-first day of 1,326
December of every odd-numbered year THE FOLLOWING YEAR. 1,327
(B) Division (A) of this section does not apply to any 1,329
person or class of persons, as determined by the superintendent 1,331
in consultation with the council. 1,332
(C) A person may comply with division (A) of this section 1,334
by demonstrating to the council that the person has completed the 1,338
minimum number of hours required by that division in a 1,339
substantially similar course or program of study offered in 1,340
another state.
Sec. 3905.482. (A) The superintendent of insurance shall 1,349
suspend the agent's or solicitor's license of any person who 1,350
fails to meet the requirements of section 3905.481 of the Revised 1,351
Code and has not been granted under division (B) of this section 1,352
an extension of time within which to complete the requirements. 1,353
The suspension shall continue until the person demonstrates to 1,354
the satisfaction of the superintendent that he THE PERSON has 1,355
complied with the requirements of section 3905.481 of the Revised 1,357
Code and all other provisions of this chapter. However, the 1,358
superintendent shall revoke the license if the person fails to 1,359
demonstrate such compliance within six months after the 1,360
conclusion of the immediately preceding twenty-four-month 1,361
compliance period and has not been granted under division (B) of 1,362
this section an extension of time within which to complete the 1,363
requirements. Any person whose license has been revoked under 1,364
this division and who desires to hold a license as an agent or 1,365
solicitor under this chapter shall apply for a new agent's or 1,366
solicitor's license in accordance with the requirements of this 1,367
chapter.
(B) If a person cannot meet the requirements of section 1,369
3905.481 of the Revised Code due to a disability or inactivity 1,370
due to special circumstances, the superintendent may grant the 1,371
person a reasonable extension of time to enable the person to 1,372
29
comply with the requirements of section 3905.481 of the Revised 1,373
Code for the period of the disability or inactivity. 1,374
(C) Before revoking or suspending any agent's or 1,376
solicitor's license under this section, the superintendent shall 1,377
provide the licensee notice and an opportunity for a hearing in 1,378
accordance with Chapter 119. of the Revised Code. 1,379
Sec. 3905.49. (A) AS USED IN THIS SECTION: 1,389
(1) "INSURER" HAS THE SAME MEANING AS IN SECTION 3901.32 1,392
OF THE REVISED CODE. 1,393
(2) "REFUSAL TO ISSUE OR RENEW" MEANS THE DECISION OF THE 1,396
SUPERINTENDENT OF INSURANCE NOT TO PROCESS EITHER THE INITIAL 1,397
APPLICATION FOR A LICENSE AS AN AGENT OR THE RENEWAL OF SUCH A 1,398
LICENSE.
(3) "REVOCATION" MEANS THE PERMANENT TERMINATION OF ALL 1,401
AUTHORITY TO HOLD ANY LICENSE AS AN AGENT IN THIS STATE.
(4) "SURRENDER FOR CAUSE" MEANS THE VOLUNTARY TERMINATION 1,404
OF ALL AUTHORITY TO HOLD ANY LICENSE AS AN AGENT IN THIS STATE, 1,405
IN LIEU OF A REVOCATION OR SUSPENSION ORDER. 1,406
(5) "SUSPENSION" MEANS THE TERMINATION OF ALL AUTHORITY TO 1,409
HOLD ANY LICENSE AS AN AGENT IN THIS STATE, FOR EITHER A 1,410
SPECIFIED PERIOD OF TIME OR AN INDEFINITE PERIOD OF TIME AND 1,411
UNDER ANY TERMS OR CONDITIONS DETERMINED BY THE SUPERINTENDENT. 1,412
(B) The superintendent of insurance may suspend, revoke, 1,416
refuse to continue or renew, or refuse to issue OR RENEW any 1,417
license as an agent, SURPLUS LINE BROKER, or solicitor LIMITED 1,418
INSURANCE REPRESENTATIVE, OR IMPOSE ANY OTHER SANCTION AUTHORIZED 1,419
under this chapter, if the superintendent finds any FOR one or 1,421
more of the following REASONS: 1,422
(1) The person has made a false OBTAINING OR ATTEMPTING TO 1,425
OBTAIN ANY LICENSE OR APPOINTMENT THROUGH MISREPRESENTATION OR 1,426
FRAUD, INCLUDING MAKING ANY MATERIALLY UNTRUE statement with 1,428
respect to a material matter in the license AN application FOR A 1,429
LICENSE OR APPOINTMENT; 1,430
(2) Any cause for which issuance of the license could have 1,432
30
been refused had it existed and been known to the superintendent 1,433
at the time of issuance; 1,434
(3) The person has violated VIOLATING or failed FAILING to 1,437
comply with any insurance law or any lawful, rule, SUBPOENA, 1,438
CONSENT AGREEMENT, or order of the superintendent or the 1,440
commissioner of insurance of another state;
(4) The person has obtained or attempted to obtain any 1,442
such license through mispresentation or fraud; 1,443
(5) The person has improperly withheld, misappropriated,; 1,445
(3) MISAPPROPRIATING or converted CONVERTING to the 1,448
person's own use any moneys belonging to policyholders, insurers 1,450
PROSPECTIVE POLICYHOLDERS, beneficiaries, INSURANCE COMPANIES, or 1,451
others received in the course of the person's insurance business; 1,452
(4) FAILING TO TIMELY SUBMIT AN APPLICATION FOR INSURANCE. 1,455
FOR PURPOSES OF DIVISION (B)(4) OF THIS SECTION, A SUBMISSION IS 1,457
CONSIDERED TIMELY IF IT OCCURS WITHIN THE TIME PERIOD EXPRESSLY 1,458
PROVIDED FOR BY THE INSURER, OR WITHIN SEVEN DAYS AFTER THE AGENT 1,459
ACCEPTS A PREMIUM OR AN ORDER TO BIND FROM A POLICYHOLDER OR 1,460
APPLICANT, WHICHEVER IS LATER.
(6) The person has knowingly misrepresented (5) KNOWINGLY 1,463
MISREPRESENTING the terms, BENEFITS, VALUE, COST, OR EFFECTIVE 1,464
DATES of any actual or proposed insurance policy or contract; 1,465
(7) The person has been (6) BEING convicted of a felony. 1,468
If a person has been convicted of a felony based on evidence of 1,470
acts or omissions related to the insurance business, the 1,471
superintendent shall revoke any license issued to such person for 1,472
a period of not less than two years. If the person did not hold 1,473
a license at the time of the conviction, no license shall be 1,474
issued to the person for a period of two years after the date of 1,475
the conviction. 1,476
(8) The person is guilty of; 1,478
(7) BEING CONVICTED OF A MISDEMEANOR THAT INVOLVES THE 1,481
MISUSE OR THEFT OF MONEY OR PROPERTY BELONGING TO ANOTHER, FRAUD, 1,482
FORGERY, DISHONEST ACTS, OR BREACH OF A FIDUCIARY DUTY, OR THAT 1,483
31
IS BASED ON ANY ACT OR OMISSION RELATING TO THE BUSINESS OF 1,484
INSURANCE, SECURITIES, OR FINANCIAL SERVICES; 1,485
(8) COMMITTING an unfair or deceptive trade act OR 1,489
practice or fraud under any section of Title XXXIX of the Revised 1,490
Code OR ANY RULE ADOPTED THEREUNDER;
(9) In the conduct of the person's affairs under a 1,492
license, the person has used fraudulent, coercive, or dishonest 1,493
practices, or is incompetent, untrustworthy, or financially 1,494
irresponsible; 1,495
(10) The person's HAVING AN INSURANCE license has been 1,497
suspended or revoked in any other state, province, district, or 1,499
territory;
(11) The person has forged (10) FORGING OR CAUSING THE 1,501
FORGERY OF another's name to ANY DOCUMENT RELATED TO OR USED IN 1,503
an application for insurance TRANSACTION; 1,504
(12) The person has cheated (11) POSSESSING OR USING ANY 1,507
UNAUTHORIZED MATERIALS DURING A LICENSING OR CONTINUING EDUCATION 1,508
EXAMINATION OR CHEATING on an A LICENSING OR CONTINUING EDUCATION 1,509
examination for an insurance license. 1,510
(B) The license of a partnership or corporation may be 1,512
suspended, revoked, or refused if the superintendent finds, after 1,513
notice and hearing under Chapter 119. of the Revised Code, that 1,514
an individual licensee's violation was known or should have been 1,515
known by one or more of the partners, officers, directors, or 1,516
managers acting on behalf of the partnership or corporation and 1,517
such violation was not reported to the department of insurance or 1,518
corrective action taken in relation to the violation; 1,519
(12) FAILING TO DISCLOSE TO AN APPLICANT FOR INSURANCE OR 1,522
POLICYHOLDER UPON ACCEPTING A PREMIUM OR AN ORDER TO BIND 1,523
COVERAGE FROM THE APPLICANT OR POLICYHOLDER, THAT THE PERSON HAS 1,524
NOT BEEN APPOINTED AS AGENT BY THE INSURER AND IS NOT AN 1,525
APPOINTED SOLICITOR OF AN APPOINTED AGENT;
(13) HAVING ANY PROFESSIONAL LICENSE SUSPENDED OR REVOKED 1,528
AS A RESULT OF A MISHANDLING OF FUNDS OR BREACH OF FIDUCIARY 1,529
32
RESPONSIBILITIES; 1,530
(14) CAUSING OR PERMITTING A POLICYHOLDER OR APPLICANT FOR 1,533
INSURANCE TO DESIGNATE THE PERSON OR THE PERSON'S SPOUSE, PARENT, 1,534
CHILD, OR SIBLING AS THE BENEFICIARY OF A POLICY OR ANNUITY SOLD 1,535
BY THE PERSON, UNLESS THE PERSON OR A RELATIVE OF THE PERSON IS 1,536
THE INSURED OR APPLICANT;
(15) FAILING TO PROVIDE A WRITTEN RESPONSE TO THE 1,538
DEPARTMENT OF INSURANCE WITHIN THIRTY DAYS AFTER RECEIPT OF ANY 1,540
WRITTEN INQUIRY FROM THE DEPARTMENT;
(16) FAILING TO NOTIFY THE SUPERINTENDENT OF ANY CHANGE IN 1,543
THE PERSON'S ADDRESS, WITHIN THIRTY DAYS AFTER THE CHANGE OCCURS, 1,545
AS REQUIRED BY SECTION 3905.54 OF THE REVISED CODE;
(17) TRANSFERRING OR PLACING INSURANCE WITH AN INSURER 1,547
OTHER THAN THE INSURER EXPRESSLY CHOSEN BY THE APPLICANT FOR 1,548
INSURANCE OR POLICYHOLDER WITHOUT THE CONSENT OF THE APPLICANT OR 1,549
POLICYHOLDER OR ABSENT EXTENUATING CIRCUMSTANCES; 1,550
(18) ENGAGING IN ANY FRAUDULENT OR COERCIVE PRACTICE IN 1,553
CONNECTION WITH THE BUSINESS OF INSURANCE;
(19) FAILING TO INFORM A POLICYHOLDER OR APPLICANT FOR 1,555
INSURANCE OF THE IDENTITY OF THE INSURER OR INSURERS, OR THE 1,556
IDENTITY OF ANY OTHER INSURANCE AGENT, GENERAL AGENT, SURPLUS 1,557
LINE BROKER, OR LICENSEE KNOWN TO BE INVOLVED IN PROCURING, 1,558
PLACING, OR CONTINUING THE INSURANCE FOR THE POLICYHOLDER OR 1,559
APPLICANT, UPON THE BINDING OF THE COVERAGE; 1,560
(20) IN THE CASE OF AN AGENT THAT IS A CORPORATION, 1,562
LIMITED LIABILITY COMPANY, OR PARTNERSHIP, FAILING TO REPORT AN 1,563
INDIVIDUAL LICENSEE'S VIOLATION TO THE DEPARTMENT WHEN THE 1,564
VIOLATION WAS KNOWN OR SHOULD HAVE BEEN KNOWN BY ONE OR MORE OF 1,565
THE PARTNERS, OFFICERS, MANAGERS, OR MEMBERS OF THE CORPORATION, 1,566
LIMITED LIABILITY COMPANY, OR PARTNERSHIP; 1,567
(21) SUBMITTING OR USING A DOCUMENT IN THE CONDUCT OF THE 1,570
BUSINESS OF INSURANCE WHEN THE PERSON KNEW OR SHOULD HAVE KNOWN 1,571
THAT THE DOCUMENT CONTAINED THE FORGED SIGNATURE OF ANOTHER 1,572
PERSON;
33
(22) MISREPRESENTING THE PERSON'S QUALIFICATIONS OR USING 1,575
IN ANY WAY A PROFESSIONAL DESIGNATION THAT HAS NOT BEEN CONFERRED 1,576
UPON THE PERSON BY THE APPROPRIATE ACCREDITING ORGANIZATION; 1,577
(23) OBTAINING A PREMIUM LOAN OR CAUSING A PREMIUM LOAN TO 1,580
BE MADE TO OR IN THE NAME OF AN INSURED WITHOUT THAT PERSON'S 1,581
KNOWLEDGE AND WRITTEN AUTHORIZATION;
(24) FAILING TO NOTIFY THE SUPERINTENDENT OF ANY 1,583
DISCIPLINARY ACTION TAKEN BY THE INSURANCE AUTHORITY OF ANOTHER 1,584
STATE, WITHIN SIXTY DAYS AFTER THE ACTION WAS TAKEN, AS REQUIRED 1,586
BY SECTION 3905.54 OF THE REVISED CODE;
(25) FAILING TO FILE ANY OF THE REPORTS OR NOTICES 1,588
REQUIRED UNDER THIS CHAPTER; 1,589
(26) SUBMITTING AN APPLICATION FOR INSURANCE, OR CAUSING 1,592
THE ISSUANCE OF AN INSURANCE POLICY OR CONTRACT, ON BEHALF OF AN 1,593
APPLICANT WHO DID NOT REQUEST OR AUTHORIZE THE INSURANCE. 1,594
DIVISION (B)(26) OF THIS SECTION DOES NOT APPLY TO ANY POLICY 1,595
ISSUED BY AN OTHER THAN LIFE INSURANCE COMPANY.
(27) USING PAPER, SOFTWARE, OR ANY OTHER MATERIALS OF OR 1,598
PROVIDED BY AN INSURER AFTER THE INSURER HAS TERMINATED THE
AUTHORITY OF THE LICENSEE, IF THE USE OF SUCH MATERIALS WOULD 1,599
CAUSE A REASONABLE PERSON TO BELIEVE THAT THE LICENSEE WAS ACTING 1,601
ON BEHALF OF OR OTHERWISE REPRESENTING THE INSURER; 1,602
(28) PROVIDING MISLEADING, DECEPTIVE, OR UNTRUE 1,604
INFORMATION TO AN APPLICANT FOR INSURANCE OR A POLICYHOLDER 1,605
REGARDING A PARTICULAR INSURANCE AGENT, COMPANY, OR PRODUCT; 1,607
(29) SOLICITING, PROCURING AN APPLICATION FOR, OR PLACING, 1,610
EITHER DIRECTLY OR INDIRECTLY, ANY INSURANCE POLICY WHEN THE 1,611
PERSON IS NOT AUTHORIZED UNDER THIS CHAPTER TO ENGAGE IN SUCH 1,612
ACTIVITY;
(30) SOLICITING, MARKETING, OR SELLING ANY PRODUCT OR 1,614
SERVICE THAT OFFERS BENEFITS SIMILAR TO INSURANCE BUT IS NOT 1,615
REGULATED BY THE SUPERINTENDENT, WITHOUT FULLY DISCLOSING TO THE 1,616
PROSPECTIVE PURCHASER THAT THE PRODUCT OR SERVICE IS NOT 1,617
INSURANCE AND IS NOT REGULATED BY THE SUPERINTENDENT; 1,618
34
(31) FAILING TO FULFILL A REFUND OBLIGATION IN A TIMELY 1,620
MANNER. FOR PURPOSES OF DIVISION (B)(31) OF THIS SECTION, A 1,622
REBUTTABLE PRESUMPTION EXISTS THAT A REFUND OBLIGATION IS NOT 1,623
FULFILLED IN A TIMELY MANNER UNLESS IT IS FULFILLED WITHIN ONE OF 1,624
THE FOLLOWING TIME PERIODS: 1,625
(a) THIRTY DAYS AFTER THE DATE THE POLICYHOLDER, 1,628
APPLICANT, OR INSURER TAKES OR REQUESTS ACTION RESULTING IN A 1,629
REFUND;
(b) THIRTY DAYS AFTER THE DATE OF THE INSURER'S REFUND 1,632
CHECK, IF THE AGENT IS EXPECTED TO ISSUE A PORTION OF THE TOTAL 1,633
REFUND;
(c) FORTY-FIVE DAYS AFTER THE DATE OF THE AGENT'S 1,636
STATEMENT OF ACCOUNT ON WHICH THE REFUND FIRST APPEARS. 1,637
(C) Before denying, revoking, suspending, or refusing to 1,639
continue or renew ISSUE any license or imposing any penalty under 1,641
this section OR SECTION 3905.482 OF THE REVISED CODE, the 1,642
superintendent shall provide THE LICENSEE OR APPLICANT WITH 1,644
notice and an opportunity for hearing, under AS PROVIDED IN 1,645
Chapter 119. of the Revised Code, to the licensee or applicant 1,647
and any insurer represented by the licensee or applicant EXCEPT 1,649
AS FOLLOWS:
(1)(a) ANY NOTICE OF OPPORTUNITY FOR HEARING, THE HEARING 1,651
OFFICER'S FINDINGS AND RECOMMENDATIONS, OR THE SUPERINTENDENT'S 1,653
ORDER SHALL BE SERVED BY CERTIFIED MAIL AT THE LAST KNOWN ADDRESS 1,654
OF THE LICENSEE OR APPLICANT. SERVICE SHALL BE EVIDENCED BY 1,655
RETURN RECEIPT SIGNED BY ANY PERSON.
FOR PURPOSES OF THIS SECTION, THE "LAST KNOWN ADDRESS" IS 1,657
THE ADDRESS THAT APPEARS IN THE LICENSING RECORDS OF THE 1,658
DEPARTMENT OF INSURANCE.
(b) IF THE CERTIFIED MAIL ENVELOPE IS RETURNED WITH AN 1,661
ENDORSEMENT SHOWING THAT SERVICE WAS REFUSED, OR THAT THE 1,662
ENVELOPE WAS UNCLAIMED, THE NOTICE AND ALL SUBSEQUENT NOTICES
REQUIRED BY CHAPTER 119. OF THE REVISED CODE MAY BE SERVED BY 1,663
ORDINARY MAIL TO THE LAST KNOWN ADDRESS OF THE LICENSEE OR 1,664
35
APPLICANT. THE MAILING SHALL BE EVIDENCED BY A CERTIFICATE OF 1,665
MAILING. SERVICE IS DEEMED COMPLETE AS OF THE DATE OF SUCH 1,666
CERTIFICATE PROVIDED THAT THE ORDINARY MAIL ENVELOPE IS NOT 1,667
RETURNED BY THE POSTAL AUTHORITIES WITH AN ENDORSEMENT SHOWING 1,668
FAILURE OF DELIVERY. THE TIME PERIOD IN WHICH TO REQUEST A 1,669
HEARING, AS PROVIDED IN CHAPTER 119. OF THE REVISED CODE, BEGINS 1,672
TO RUN ON THE DATE OF MAILING. 1,673
(c) IF SERVICE BY ORDINARY MAIL FAILS, THE SUPERINTENDENT 1,676
MAY CAUSE A SUMMARY OF THE SUBSTANTIVE PROVISIONS OF THE NOTICE 1,677
TO BE PUBLISHED ONCE A WEEK FOR THREE CONSECUTIVE WEEKS IN A 1,678
NEWSPAPER OF GENERAL CIRCULATION IN THE COUNTY WHERE THE LAST 1,679
KNOWN PLACE OF RESIDENCE OR BUSINESS OF THE PARTY IS LOCATED. 1,680
THE NOTICE IS CONSIDERED SERVED ON THE DATE OF THE THIRD 1,681
PUBLICATION.
(d) ANY NOTICE REQUIRED TO BE SERVED UNDER CHAPTER 119. OF 1,684
THE REVISED CODE SHALL ALSO BE SERVED UPON THE PARTY'S ATTORNEY 1,687
BY ORDINARY MAIL IF THE ATTORNEY HAS ENTERED AN APPEARANCE IN THE 1,688
MATTER.
(e) THE SUPERINTENDENT MAY, AT ANY TIME, PERFECT SERVICE 1,691
ON A PARTY BY PERSONAL DELIVERY OF THE NOTICE BY AN EMPLOYEE OF 1,692
THE DEPARTMENT.
(f) NOTICES REGARDING THE SCHEDULING OF HEARINGS AND ALL 1,695
OTHER MATTERS NOT DESCRIBED IN DIVISION (C)(1)(a) OF THIS SECTION 1,697
SHALL BE SENT BY ORDINARY MAIL TO THE PARTY AND TO THE PARTY'S 1,698
ATTORNEY.
(2) ANY SUBPOENA FOR THE APPEARANCE OF A WITNESS OR THE 1,701
PRODUCTION OF DOCUMENTS OR OTHER EVIDENCE AT A HEARING, OR FOR 1,702
THE PURPOSE OF TAKING TESTIMONY FOR USE AT A HEARING, SHALL BE 1,703
SERVED BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED, BY AN
ATTORNEY OR BY AN EMPLOYEE OF THE DEPARTMENT DESIGNATED BY THE 1,704
SUPERINTENDENT. SUCH SUBPOENAS SHALL BE ENFORCED IN THE MANNER 1,705
PROVIDED IN SECTION 119.09 OF THE REVISED CODE. NOTHING IN THIS 1,708
SECTION SHALL BE CONSTRUED AS LIMITING THE SUPERINTENDENT'S OTHER 1,709
STATUTORY POWERS TO ISSUE SUBPOENAS. 1,710
36
(D) The IF THE superintendent DETERMINES THAT A VIOLATION 1,712
DESCRIBED IN THIS SECTION HAS OCCURRED, THE SUPERINTENDENT may 1,713
modify any order under this section and restore a license of or 1,715
issue a license to a person if the superintendent finds, after 1,716
notice and opportunity for hearing provided to affected parties, 1,717
that the person can demonstrate all DO ANY of the following: 1,718
(1) The person has made restitution for all pecuniary 1,720
losses caused by his ASSESS A CIVIL FORFEITURE IN AN AMOUNT NOT 1,721
EXCEEDING TWENTY-FIVE THOUSAND DOLLARS PER violation; 1,722
(2) The person's character and reputation have been 1,724
rehabilitated so that the person possesses the personal 1,725
qualifications required for the initial issuance of a license; 1,726
ASSESS ADMINISTRATIVE COSTS TO COVER THE EXPENSES INCURRED BY THE 1,728
DEPARTMENT IN THE ADMINISTRATIVE ACTION, INCLUDING COSTS INCURRED 1,729
IN THE INVESTIGATION AND HEARING PROCESSES. ANY COSTS COLLECTED 1,730
SHALL BE PAID INTO THE STATE TREASURY TO THE CREDIT OF THE 1,731
DEPARTMENT OF INSURANCE OPERATING FUND CREATED IN SECTION
3901.021 OF THE REVISED CODE. 1,733
(3) If the order was an order of revocation based on a 1,735
conviction for felony based on evidence of acts or omissions 1,736
related to the insurance business, that two years have elapsed 1,737
since the effective date of the order, or if the order was an 1,738
order denying a license because of such a conviction, that two 1,739
years have elapsed since the date of the conviction SUSPEND ALL 1,741
OF THE PERSON'S LICENSES FOR ALL LINES OF INSURANCE FOR EITHER A 1,742
SPECIFIED PERIOD OF TIME OR AN INDEFINITE PERIOD OF TIME AND 1,743
UNDER SUCH TERMS AND CONDITIONS AS THE SUPERINTENDENT MAY 1,744
DETERMINE;
(4) If required by the superintendent, the person passes 1,746
the examination required for an initial issuance of the license 1,747
PERMANENTLY REVOKE ALL OF THE PERSON'S LICENSES FOR ALL LINES OF 1,749
INSURANCE;
(5) REFUSE TO ISSUE A LICENSE; 1,751
(6) REFUSE TO RENEW A LICENSE; 1,753
37
(7) PROHIBIT THE PERSON FROM BEING EMPLOYED IN ANY 1,755
CAPACITY IN THE BUSINESS OF INSURANCE AND FROM HAVING ANY 1,756
FINANCIAL INTEREST IN ANY INSURANCE AGENCY, COMPANY, OR 1,757
THIRD-PARTY ADMINISTRATOR IN THIS STATE. THE SUPERINTENDENT MAY, 1,759
IN THE SUPERINTENDENT'S DISCRETION, DETERMINE THE NATURE,
CONDITIONS, AND DURATION OF SUCH RESTRICTIONS. 1,760
(8) ORDER CORRECTIVE ACTIONS IN LIEU OF OR IN ADDITION TO 1,763
THE OTHER PENALTIES LISTED IN DIVISION (D) OF THIS SECTION. SUCH 1,764
AN ORDER MAY PROVIDE FOR THE SUSPENSION OF CIVIL FORFEITURES, 1,765
LICENSE REVOCATION, LICENSE SUSPENSION, OR REFUSAL TO ISSUE OR 1,766
RENEW A LICENSE IF THE LICENSEE COMPLIES WITH THE TERMS AND 1,767
CONDITIONS OF THE CORRECTIVE ACTION ORDER. 1,768
(9) ACCEPT A SURRENDER FOR CAUSE OFFERED BY THE LICENSEE, 1,771
WHICH SHALL BE FOR AT LEAST FIVE YEARS AND SHALL PROHIBIT THE 1,772
LICENSEE FROM SEEKING ANY LICENSE AUTHORIZED UNDER THIS CHAPTER 1,773
DURING THAT TIME PERIOD. A SURRENDER FOR CAUSE MAY ALSO INCLUDE 1,774
A CORRECTIVE ACTION ORDER AS PROVIDED IN DIVISION (D)(8) OF THIS 1,775
SECTION.
(E) The superintendent shall MAY consider the following 1,777
standards FACTORS in denying a license, imposing suspensions, 1,778
revocations, FINES, or refusals of continuations or renewals of 1,780
licenses OTHER PENALTIES, AND ISSUING ORDERS UNDER THIS SECTION: 1,781
(1) Whether the person acted in good faith and without 1,783
knowledge of his violation and makes; 1,784
(2) WHETHER THE PERSON MADE restitution for any pecuniary 1,787
losses suffered by other persons as a result of his THE PERSON'S 1,788
actions. In such cases, the maximum suspension shall be ninety 1,789
days. 1,790
(2) Whether, within the meanings defined in section 1,792
2901.22 of the Revised Code, the person acted purposely, 1,793
knowingly, recklessly, or negligently; 1,794
(3) Whether the amount of money or the nature of the 1,796
property involved in the violation would, if it were the subject 1,797
of a criminal offense, make a theft offense a misdemeanor or a 1,798
38
felony THE ACTUAL HARM OR POTENTIAL FOR HARM TO OTHERS; 1,799
(4) The degree of trust placed in the person by, and the 1,801
incompetency, inexperience, or susceptibility to undue influence 1,802
or duress VULNERABILITY of, any other person involved PERSONS WHO 1,804
WERE OR COULD HAVE BEEN ADVERSELY AFFECTED BY THE PERSON'S
ACTIONS; 1,805
(5) The effect of the violation upon the perception by 1,807
insureds and insurance customers of the ethics and integrity of 1,808
the insurance industry WHETHER THE PERSON WAS THE SUBJECT OF ANY 1,809
PREVIOUS ADMINISTRATIVE ACTIONS BY THE SUPERINTENDENT; 1,810
(6) The extent to which NUMBER OF INDIVIDUALS ADVERSELY 1,812
AFFECTED BY the person's conduct departed from the customary and 1,814
usual ethical standards of persons engaged in the insurance 1,815
business ACTS OR OMISSIONS;
(7) WHETHER THE PERSON VOLUNTARILY REPORTED THE VIOLATION, 1,817
AND THE EXTENT OF THE PERSON'S COOPERATION AND ACCEPTANCE OF 1,818
RESPONSIBILITY; 1,819
(8) WHETHER THE PERSON OBSTRUCTED OR IMPEDED, OR ATTEMPTED 1,822
TO OBSTRUCT OR IMPEDE, THE SUPERINTENDENT'S INVESTIGATION; 1,823
(9) THE PERSON'S EFFORTS TO CONCEAL THE MISCONDUCT; 1,826
(10) REMEDIAL EFFORTS TO PREVENT FUTURE VIOLATIONS; 1,829
(11) IF THE PERSON WAS CONVICTED OF A CRIMINAL OFFENSE, 1,832
THE NATURE OF THE OFFENSE, WHETHER THE CONVICTION WAS BASED ON 1,833
ACTS OR OMISSIONS TAKEN UNDER ANY PROFESSIONAL LICENSE, WHETHER 1,834
THE OFFENSE INVOLVED THE BREACH OF A FIDUCIARY DUTY, THE AMOUNT 1,835
OF TIME THAT HAS PASSED, AND THE PERSON'S ACTIVITIES SUBSEQUENT 1,836
TO THE CONVICTION;
(12) Such other factors as the superintendent determines 1,838
to be appropriate under the circumstances. 1,839
(F)(1) A VIOLATION DESCRIBED IN DIVISION (B)(1), (2), (3), 1,842
(5), (6), (7), (8), (9), (10), (11), (12), (13), (14), (17), 1,843
(18), (19), (20), (21), (22), (23), (25), (26), (27), (28), (29), 1,845
(30), OR (31) OF THIS SECTION IS A CLASS A OFFENSE FOR WHICH THE 1,846
SUPERINTENDENT MAY IMPOSE ANY PENALTY SET FORTH IN DIVISION (D) 1,848
39
OF THIS SECTION.
(2) A VIOLATION DESCRIBED IN DIVISION (B)(4), (15), (16), 1,851
OR (24) OF THIS SECTION IS A CLASS B OFFENSE FOR WHICH THE 1,853
SUPERINTENDENT MAY IMPOSE ANY PENALTY SET FORTH IN DIVISION 1,855
(D)(1), (2), (8), OR (9) OF THIS SECTION. 1,856
(G) IF A VIOLATION DESCRIBED IN THIS SECTION HAS CAUSED, 1,859
IS CAUSING, OR IS ABOUT TO CAUSE SUBSTANTIAL AND MATERIAL HARM, 1,860
THE SUPERINTENDENT MAY ISSUE AN ORDER REQUIRING THAT PERSON TO 1,861
CEASE AND DESIST FROM ENGAGING IN THE VIOLATION. NOTICE OF THE 1,862
ORDER SHALL BE MAILED BY CERTIFIED MAIL, RETURN RECEIPT 1,863
REQUESTED, OR SERVED IN ANY OTHER MANNER PROVIDED FOR IN THIS 1,864
SECTION, IMMEDIATELY AFTER ITS ISSUANCE TO THE PERSON SUBJECT TO 1,865
THE ORDER AND TO ALL PERSONS KNOWN TO BE INVOLVED IN THE 1,866
VIOLATION. THE SUPERINTENDENT MAY THEREAFTER PUBLICIZE OR 1,867
OTHERWISE MAKE KNOWN TO ALL INTERESTED PARTIES THAT THE ORDER HAS 1,868
BEEN ISSUED.
THE NOTICE SHALL SPECIFY THE PARTICULAR ACT, OMISSION, 1,870
PRACTICE, OR TRANSACTION THAT IS SUBJECT TO THE CEASE-AND-DESIST 1,871
ORDER AND SHALL SET A DATE, NOT MORE THAN FIFTEEN DAYS AFTER THE 1,872
DATE OF THE ORDER, FOR A HEARING ON THE CONTINUATION OR 1,873
REVOCATION OF THE ORDER. THE PERSON SHALL COMPLY WITH THE ORDER 1,874
IMMEDIATELY UPON RECEIPT OF NOTICE OF THE ORDER. 1,875
THE SUPERINTENDENT MAY, UPON THE APPLICATION OF A PARTY AND 1,878
FOR GOOD CAUSE SHOWN, CONTINUE THE HEARING. CHAPTER 119. OF THE 1,879
REVISED CODE APPLIES TO SUCH HEARINGS TO THE EXTENT THAT THAT 1,882
CHAPTER DOES NOT CONFLICT WITH THE PROCEDURES SET FORTH IN THIS 1,883
SECTION. THE SUPERINTENDENT SHALL, WITHIN FIFTEEN DAYS AFTER 1,884
OBJECTIONS ARE SUBMITTED TO THE HEARING OFFICER'S REPORT AND 1,885
RECOMMENDATION, ISSUE A FINAL ORDER EITHER CONFIRMING OR REVOKING 1,886
THE CEASE-AND-DESIST ORDER. THE FINAL ORDER MAY BE APPEALED AS 1,887
PROVIDED UNDER SECTION 119.12 OF THE REVISED CODE. 1,889
THE REMEDY UNDER THIS DIVISION IS CUMULATIVE AND CONCURRENT 1,892
WITH THE OTHER REMEDIES AVAILABLE UNDER THIS SECTION.
(H) IF THE SUPERINTENDENT HAS REASONABLE CAUSE TO BELIEVE 1,895
40
THAT AN ORDER ISSUED UNDER THIS SECTION HAS BEEN VIOLATED IN 1,896
WHOLE OR IN PART, THE SUPERINTENDENT MAY REQUEST THE ATTORNEY 1,897
GENERAL TO COMMENCE AND PROSECUTE ANY APPROPRIATE ACTION OR 1,898
PROCEEDING IN THE NAME OF THE STATE AGAINST SUCH PERSON. 1,899
THE COURT MAY, IN AN ACTION BROUGHT PURSUANT TO THIS 1,901
DIVISION, IMPOSE ANY OF THE FOLLOWING: 1,902
(1) FOR EACH VIOLATION, A CIVIL PENALTY OF NOT MORE THAN 1,905
TWENTY-FIVE THOUSAND DOLLARS;
(2) INJUNCTIVE RELIEF; 1,907
(3) RESTITUTION; 1,909
(4) ANY OTHER APPROPRIATE RELIEF. 1,911
(I) THIS SECTION APPLIES TO BOTH RESIDENT AND NONRESIDENT 1,914
AGENTS WHO ARE LICENSED UNDER THIS CHAPTER. 1,915
(J) NOTHING IN THIS SECTION SHALL BE CONSTRUED TO CREATE 1,918
OR IMPLY A PRIVATE CAUSE OF ACTION AGAINST AN AGENT, SOLICITOR, 1,919
OR INSURER.
Sec. 3905.491. (A) UPON WRITTEN APPLICATION OF A PERSON 1,922
WHOSE LICENSE WAS SUSPENDED, REVOKED, OR SURRENDERED FOR CAUSE 1,923
UNDER SECTION 3905.49 OF THE REVISED CODE, THE SUPERINTENDENT OF 1,925
INSURANCE SHALL HOLD A HEARING TO DETERMINE WHETHER THE 1,926
ADMINISTRATIVE ACTION IMPOSING SUCH SUSPENSION, REVOCATION, OR 1,927
SURRENDER SHOULD BE MODIFIED, PROVIDED THAT ALL OF THE FOLLOWING 1,928
CONDITIONS ARE MET: 1,929
(1) AT LEAST FIVE YEARS HAVE ELAPSED SINCE THE DATE OF THE 1,932
ADMINISTRATIVE ACTION SOUGHT TO BE MODIFIED;
(2) AT LEAST TWO YEARS HAVE ELAPSED SINCE ANY PREVIOUS 1,934
REQUEST FOR A MODIFICATION WAS MADE UNDER THIS SECTION; 1,935
(3) THE BURDEN OF PROOF IS ON THE PERSON REQUESTING THE 1,938
MODIFICATION.
(B) THE MODIFICATION OF AN ORDER ISSUED OR CONSENT 1,941
AGREEMENT ENTERED INTO UNDER SECTION 3905.49 OF THE REVISED CODE 1,943
IS AT THE DISCRETION OF THE SUPERINTENDENT. THE SUPERINTENDENT 1,944
MAY MODIFY SUCH AN ORDER OR AGREEMENT IF THE SUPERINTENDENT FINDS 1,945
ALL OF THE FOLLOWING: 1,946
41
(1) AT LEAST FIVE YEARS HAVE ELAPSED SINCE THE DATE OF THE 1,949
ADMINISTRATIVE ACTION;
(2) THE PERSON IS OF GOOD BUSINESS REPUTE AND IS SUITABLE 1,952
TO BE AN INSURANCE AGENT;
(3) THE PERSON HAS MADE RESTITUTION FOR ALL PECUNIARY 1,954
LOSSES SUFFERED BY ANY PERSON AS A RESULT OF THE CONDUCT THAT 1,955
GAVE RISE TO THE ADMINISTRATIVE ACTION; 1,956
(4) THE PERSON HAS NOT BEEN CONVICTED OF ANY FELONY OR OF 1,959
ANY MISDEMEANOR DESCRIBED IN DIVISION (B)(7) OF SECTION 3905.49 1,960
OF THE REVISED CODE UNLESS THE CONVICTION WAS THE SUBJECT OF A 1,963
PREVIOUS ADMINISTRATIVE ACTION BY THE SUPERINTENDENT; 1,964
(5) THE CIRCUMSTANCES SURROUNDING THE PREVIOUS VIOLATION 1,967
ARE SUCH THAT IT IS UNLIKELY THE PERSON WOULD COMMIT SUCH 1,968
OFFENSES IN THE FUTURE;
(6) THE PERSON'S CHARACTER HAS BEEN REHABILITATED. 1,971
(C) THE ISSUANCE OF ANY LICENSE PURSUANT TO A MODIFICATION 1,974
UNDER THIS SECTION SHALL BE CONDITIONED UPON THE SUCCESSFUL 1,975
COMPLETION OF ALL PRELICENSING EDUCATION AND EXAMINATION 1,976
REQUIREMENTS.
Sec. 3905.492. (A)(1) ALL RECORDS AND OTHER INFORMATION 1,978
OBTAINED BY THE SUPERINTENDENT OF INSURANCE OR THE 1,979
SUPERINTENDENT'S DEPUTIES, EXAMINERS, ASSISTANTS, OR OTHER 1,980
EMPLOYEES, OR AGENTS RELATING TO AN INVESTIGATION OF AN APPLICANT 1,981
FOR LICENSURE UNDER THIS CHAPTER, OR OF AN AGENT, SOLICITOR, 1,982
BROKER, OR OTHER PERSON LICENSED UNDER THIS CHAPTER OR CHAPTER 1,983
3951., 3957., OR 3959. OF THE REVISED CODE, ARE CONFIDENTIAL AND 1,984
ARE NOT PUBLIC RECORDS AS DEFINED IN SECTION 149.43 OF THE
REVISED CODE UNTIL THE APPLICANT OR LICENSEE IS PROVIDED NOTICE 1,985
AND OPPORTUNITY FOR HEARING PURSUANT TO CHAPTER 119. OF THE 1,986
REVISED CODE WITH RESPECT TO SUCH RECORDS OR INFORMATION. IF NO 1,987
ADMINISTRATIVE ACTION IS INITIATED WITH RESPECT TO A PARTICULAR 1,988
MATTER ABOUT WHICH THE SUPERINTENDENT OBTAINED RECORDS OR OTHER
INFORMATION AS PART OF AN INVESTIGATION, ALL SUCH RECORDS AND 1,989
INFORMATION RELATING TO THAT MATTER SHALL REMAIN CONFIDENTIAL FOR 1,990
42
THREE YEARS AFTER THE FILE ON THE MATTER IS CLOSED. 1,992
(2) DIVISION (A)(1) OF THIS SECTION APPLIES ONLY TO 1,995
INVESTIGATIONS THAT COULD RESULT IN ADMINISTRATIVE ACTION UNDER 1,997
TITLE XVII OR XXXIX OR CHAPTER 119. OF THE REVISED CODE. 2,002
(B) THE RECORDS AND OTHER INFORMATION DESCRIBED IN 2,005
DIVISION (A) OF THIS SECTION SHALL REMAIN CONFIDENTIAL FOR ALL 2,006
PURPOSES EXCEPT WHEN IT IS APPROPRIATE FOR THE SUPERINTENDENT AND 2,007
THE SUPERINTENDENT'S DEPUTIES, EXAMINERS, ASSISTANTS, OR OTHER 2,008
EMPLOYEES, OR AGENTS TO TAKE OFFICIAL ACTION REGARDING THE 2,010
AFFAIRS OF THE APPLICANT OR LICENSEE OR IN CONNECTION WITH ACTUAL 2,011
OR POTENTIAL CRIMINAL PROCEEDINGS. 2,012
(C) EMPLOYEES OR AGENTS OF THE DEPARTMENT OF INSURANCE 2,015
SHALL NOT BE REQUIRED BY ANY COURT IN THIS STATE TO TESTIFY IN A 2,016
CIVIL ACTION, IF SUCH TESTIMONY CONCERNS ANY MATTER RELATED TO 2,017
RECORDS OR ANY OTHER INFORMATION CONSIDERED CONFIDENTIAL UNDER 2,018
THIS SECTION OF WHICH THEY HAVE KNOWLEDGE. 2,019
(D) THIS SECTION DOES NOT APPLY TO ANY COMPLAINT OR ACTION 2,021
UNDER SECTION 3905.04 OF THE REVISED CODE. 2,022
Sec. 3905.54. EACH AGENT LICENSED UNDER THIS CHAPTER SHALL 2,025
NOTIFY THE SUPERINTENDENT OF INSURANCE IN WRITING OF ALL OF THE 2,026
FOLLOWING, AS APPLICABLE:
(A) ANY CHANGE IN THE AGENT'S ADDRESS, WITHIN THIRTY DAYS 2,030
AFTER THE CHANGE OCCURS. FOR PURPOSES OF THIS DIVISION,
"ADDRESS" MEANS RESIDENTIAL ADDRESS, BUSINESS ADDRESS, AND ANY 2,032
OTHER ADDRESS OR ADDRESSES THE SUPERINTENDENT REQUIRES BY RULE 2,033
ADOPTED IN ACCORDANCE WITH CHAPTER 119. OF THE REVISED CODE. 2,036
(B) ANY FELONY CONVICTION, OR ANY MISDEMEANOR CONVICTION 2,039
DESCRIBED IN DIVISION (B)(7) OF SECTION 3905.49 OF THE REVISED 2,042
CODE, WITHIN THIRTY DAYS AFTER SENTENCING. THE NOTICE SHALL 2,043
INCLUDE THE NAME OF THE COURT HAVING JURISDICTION OVER THE 2,044
MATTER, THE CASE NUMBER, THE OFFENSE CHARGED, THE SENTENCE 2,045
IMPOSED, AND A COPY OF THE JUDGMENT ENTRY. 2,046
(C) ANY DISCIPLINARY ACTION TAKEN BY THE INSURANCE 2,049
AUTHORITY OF ANOTHER STATE, WITHIN SIXTY DAYS AFTER THE ACTION IS 2,050
43
TAKEN.
Sec. 3905.55. (A) EXCEPT AS PROVIDED IN DIVISION (B) OF 2,053
THIS SECTION, AN AGENT MAY CHARGE A CONSUMER A FEE IF ALL OF THE 2,054
FOLLOWING CONDITIONS ARE MET: 2,055
(1) THE FEE IS DISCLOSED TO THE CONSUMER IN A MANNER THAT 2,058
SEPARATELY IDENTIFIES THE FEE AND THE PREMIUM.
(2) THE FEE IS NOT CALCULATED AS A PERCENTAGE OF THE 2,060
PREMIUM. 2,061
(3) THE FEE IS NOT REFUNDED, FORGIVEN, WAIVED, OFFSET, OR 2,064
REDUCED BY ANY COMMISSION EARNED OR RECEIVED FOR ANY POLICY OR 2,065
COVERAGE SOLD.
(4) THE AMOUNT OF THE FEE, AND THE CONSUMER'S OBLIGATION 2,068
TO PAY THE FEE, ARE NOT CONDITIONED UPON THE OCCURRENCE OF A 2,069
FUTURE EVENT OR CONDITION, SUCH AS THE PURCHASE, CANCELLATION, 2,070
LAPSE, DECLINATION, OR NONRENEWAL OF INSURANCE. 2,071
(5) THE AGENT DISCLOSES TO THE CONSUMER THAT THE FEE IS 2,074
BEING CHARGED BY THE AGENT AND NOT BY THE INSURANCE COMPANY, THAT 2,075
NEITHER STATE LAW NOR THE INSURANCE COMPANY REQUIRES THE AGENT TO 2,076
CHARGE THE FEE, AND THAT THE FEE IS NOT REFUNDABLE. 2,077
(6) THE CONSUMER CONSENTS TO THE FEE. 2,079
(7) THE AGENT, IN CHARGING THE FEE, DOES NOT DISCRIMINATE 2,082
ON THE BASIS OF RACE, SEX, NATIONAL ORIGIN, RELIGION, DISABILITY, 2,083
HEALTH STATUS, AGE, MARITAL STATUS, OR GEOGRAPHIC LOCATION, AND 2,084
DOES NOT UNFAIRLY DISCRIMINATE BETWEEN PERSONS OF ESSENTIALLY THE 2,085
SAME CLASS AND OF ESSENTIALLY THE SAME HAZARD OR EXPECTATION OF 2,086
LIFE.
(B) A FEE MAY NOT BE CHARGED FOR TAKING OR SUBMITTING AN 2,089
INITIAL APPLICATION FOR COVERAGE WITH ANY ONE INSURER OR 2,090
DIFFERENT PROGRAMS WITH THE SAME INSURER, OR PROCESSING A CHANGE 2,091
TO AN EXISTING POLICY, A CANCELLATION, A CLAIM, OR A RENEWAL, IN 2,092
CONNECTION WITH ANY OF THE FOLLOWING PERSONAL LINES POLICIES: 2,093
(1) PRIVATE PASSENGER AUTOMOBILE; 2,095
(2) HOMEOWNERS, INCLUDING COVERAGE FOR TENANTS OR 2,097
CONDOMINIUM OWNERS, OWNER-OCCUPIED FIRE OR DWELLING PROPERTY 2,098
44
COVERAGE, PERSONAL UMBRELLA LIABILITY, OR ANY OTHER PERSONAL 2,099
LINES-RELATED COVERAGE WHETHER SOLD AS A SEPARATE POLICY OR AS AN 2,101
ENDORSEMENT TO ANOTHER PERSONAL LINES POLICY;
(3) INDIVIDUAL LIFE INSURANCE; 2,103
(4) INDIVIDUAL SICKNESS OR ACCIDENT INSURANCE; 2,105
(5) DISABILITY INCOME POLICIES; 2,107
(6) CREDIT INSURANCE PRODUCTS. 2,110
(C) NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION, 2,113
AN AGENT MAY CHARGE A FEE FOR AGENT SERVICES IN CONNECTION WITH A 2,114
POLICY ISSUED ON A NO-COMMISSION BASIS, IF THE AGENT PROVIDES THE 2,115
CONSUMER WITH PRIOR DISCLOSURE OF THE FEE AND OF THE SERVICES TO 2,116
BE PROVIDED. 2,117
(D) IN THE EVENT OF A DISPUTE BETWEEN AN AGENT AND A 2,120
CONSUMER REGARDING ANY DISCLOSURE REQUIRED BY THIS SECTION, THE 2,121
AGENT HAS THE BURDEN OF PROVING THAT THE DISCLOSURE WAS MADE. 2,122
(E)(1) NO PERSON SHALL FAIL TO COMPLY WITH THIS SECTION. 2,125
(2) WHOEVER VIOLATES DIVISION (E)(1) OF THIS SECTION IS 2,128
DEEMED TO HAVE ENGAGED IN AN UNFAIR AND DECEPTIVE ACT OR PRACTICE 2,130
IN THE BUSINESS OF INSURANCE UNDER SECTIONS 3901.19 TO 3901.26 OF 2,131
THE REVISED CODE. 2,132
Sec. 3905.99. (A) Whoever violates sections 3905.181, 2,141
3905.21, or 3905.23 of the Revised Code shall be fined not less 2,142
than twenty-five nor more than five hundred dollars or imprisoned 2,143
not more than six months, or both.
(B) Whoever violates section 3905.31 or 3905.33 of the 2,145
Revised Code shall be fined not less than twenty-five nor more 2,146
than five hundred dollars or imprisoned not more than one year, 2,147
or both.
(C) Whoever violates section 3905.37 or 3905.43 of the 2,149
Revised Code shall be fined not less than one hundred nor more 2,150
than five hundred dollars.
(D) WHOEVER VIOLATES SECTION 3905.01 OF THE REVISED CODE 2,152
IS GUILTY OF A MISDEMEANOR OF THE FIRST DEGREE. 2,153
Sec. 3913.40. (A) Any insurer, INCLUDING ANY FRATERNAL 2,162
45
BENEFIT SOCIETY, that is organized under the laws of another 2,164
state and is admitted to transact the business of insurance in 2,165
this state may become a domestic insurer by complying with all of 2,166
the requirements of law relative to the organization and 2,167
licensing of a domestic insurer of the same type and by 2,168
designating its principal place of business at a place in this 2,169
state. Such a domestic insurer shall be issued like certificates 2,170
and licenses to transact business in this state, is subject to 2,171
the jurisdiction of this state, and shall be recognized as an 2,172
insurer formed under the laws of this state as of the date of its 2,173
original incorporation in its original domiciliary state. The 2,174
superintendent of insurance shall approve any proposed transfer 2,175
of domicile under this division unless the superintendent 2,176
determines that the transfer is not in the interest of
policyholders of this state. 2,177
(B) Any domestic insurer, upon the approval of the 2,179
superintendent, may transfer its domicile to any other state in 2,180
which it is admitted to transact the business of insurance. Upon 2,181
such a transfer, the insurer shall cease to be a domestic 2,182
insurer, and shall be admitted to this state if qualified as a 2,183
foreign insurer. The superintendent shall approve any proposed 2,184
transfer of domicile under this division unless the 2,185
superintendent determines that the transfer is not in the 2,186
interest of policyholders of this state. 2,187
(C)(1) With respect to any insurer, INCLUDING ANY 2,189
FRATERNAL BENEFIT SOCIETY, that is licensed to transact the 2,191
business of insurance in this state and that transfers its 2,192
domicile to this or any other state by merger, consolidation, or 2,193
any other lawful method, both of the following apply: 2,194
(a) The certificate of authority, agents appointments and 2,196
licenses, rates, and other items as allowed by the superintendent 2,197
that are in existence at the time of the transfer shall continue 2,198
in effect upon the transfer if the insurer remains qualified to 2,199
transact the business of insurance in this state. 2,200
46
(b) All outstanding policies shall remain in effect and 2,202
need not be endorsed as to the new name of the company or its new 2,203
location unless so ordered by the superintendent. 2,204
(2) Every transferring insurer as described in division 2,206
(C)(1) of this section shall file new policy forms with the 2,207
superintendent on or before the effective date of the transfer, 2,208
but may use existing policy forms with appropriate endorsements 2,209
if allowed by, and under such conditions as are approved by, the 2,210
superintendent. Every such insurer shall notify the 2,211
superintendent of the details of the proposed transfer, and shall 2,212
file promptly any resulting amendments to corporate documents 2,213
filed or required to be filed with the superintendent. 2,214
(D) NOTHING IN THIS SECTION OR ANY OTHER PROVISION OF THE 2,216
REVISED CODE PROHIBITS AN INSURER FROM TRANSFERRING ITS DOMICILE 2,217
TO THIS STATE BECAUSE ITS CHARTER, BYLAWS, OR ANY OTHER 2,218
ORGANIZATIONAL DOCUMENT CONTAINS CHARACTERISTICS OF BOTH A MUTUAL 2,219
INSURANCE COMPANY AND A STOCK INSURANCE COMPANY.
(E) The superintendent, in accordance with Chapter 119. of 2,221
the Revised Code, may adopt rules to carry out the purposes of 2,222
this section. 2,223
Sec. 3921.33. (A) Agents of fraternal benefit societies 2,232
shall be licensed in the manner provided for agents of insurance 2,233
companies in Chapter 3905. of the Revised Code, and shall be 2,235
required to complete the continuing education instruction AS set 2,236
forth in section 3905.481 of the Revised Code starting with the 2,238
twenty-four-month period commencing on the first day of January 2,239
of 1999. However, no written or other examination shall be
required of any person whose application for the original 2,242
issuance of a license to represent a fraternal benefit society as 2,244
its agent was filed with the superintendent of insurance prior to 2,245
January 1, 1997.
(B) The following persons shall not be required to be 2,248
licensed in accordance with division (A) of this section: 2,249
(1) Any regularly salaried officer, employee, or member of 2,251
47
a licensed society who devotes substantially all of the person's 2,252
services to activities other than the solicitation of fraternal 2,253
insurance contracts from the public, and who receives for the 2,254
solicitation of any such contracts no commission or other 2,255
compensation directly dependent upon the amount of business
obtained.
The officers, employees, and members described in division 2,257
(B)(1) of this section also are not subject to examination by the 2,258
superintendent under Chapter 3905. of the Revised Code. 2,259
(2) Any agent or representative of a society who devotes, 2,261
or intends to devote, less than fifty per cent of the person's 2,262
time to the solicitation and procurement of insurance contracts 2,263
for the society. For purposes of division (B)(2) of this 2,264
section, any person who, in the preceding calendar year, has 2,265
received a commission or other compensation for soliciting and 2,266
procuring any of the following contracts on behalf of an
individual society is presumed to have devoted, or to have 2,268
intended to devote, fifty per cent of the person's time to the 2,269
solicitation and procurement of insurance contracts: 2,270
(a) Life insurance contracts that, in the aggregate, 2,272
exceeded two hundred thousand dollars of coverage for all lives 2,273
insured for the preceding calendar year; 2,274
(b) A permanent life insurance contract offering more than 2,277
ten thousand dollars of coverage on an individual life;
(c) A term life insurance contract offering more than 2,279
fifty thousand dollars of coverage on an individual life; 2,280
(d) Any insurance contracts other than life that the 2,282
society may write and that insure the individual lives of more 2,283
than twenty-five individuals; 2,284
(e) Any contract issued on a variable basis, as authorized 2,286
by division (C) of section 3921.22 of the Revised Code. 2,287
Sec. 3923.121. (A) As used in this section: 2,296
(1) "Association" means a voluntary unincorporated 2,298
association of insurers formed for the sole purpose of enabling 2,299
48
cooperative action to provide sickness and accident insurance in 2,300
accordance with this section. 2,301
(2) "Insurer" means any insurance company authorized to do 2,303
the business of sickness and accident insurance in this state. 2,304
(3) "Insured" means a person covered under a group policy 2,306
issued pursuant to this section. 2,307
(B) Any insurer may join with one or more other insurers, 2,309
in an association, to offer, sell, and issue to a policyholder 2,310
selected by the association a policy of group insurance against 2,311
major financial loss from sickness and accident covering 2,312
residents of this state who are sixty-five years of age or older 2,313
and the spouses of such residents. The insurance shall be 2,314
offered, issued, and administered in the name of the association. 2,315
Membership in the association shall be open to any insurer and 2,316
each insurer which participates shall be liable for a specified 2,317
percentage of the risks. The policy may be executed on behalf of 2,318
the association by a duly authorized person and need not be 2,319
countersigned by an agent. 2,320
(C) The persons eligible for coverage under the policy 2,322
shall be all residents of this state who are sixty-five years of 2,323
age or older and their spouses, subject to reasonable 2,324
underwriting restrictions to be set forth in the plan of the 2,325
association. The policy may provide basic hospital and surgical 2,326
coverage, basic medical coverage, major medical coverage, and any 2,327
combination of these; provided that it shall not be required as a 2,328
condition for obtaining major medical coverage that any basic 2,329
coverage be taken. 2,330
(D) The association shall file with the superintendent of 2,332
insurance any policy, contract, certificate, or other evidence of 2,333
insurance, application, or other forms pertaining to such 2,334
insurance together with the premium rates to be charged therefor. 2,335
The superintendent may approve, disapprove, and withdraw approval 2,336
of the forms in accordance with section 3923.02 of the Revised 2,337
Code, or the premium rates if by reasonable assumptions such 2,338
49
rates are excessive in relation to the benefits provided. In 2,339
determining whether such rates by reasonable assumptions are 2,340
excessive in relation to the benefits provided the superintendent 2,341
shall give due consideration to past and prospective claim 2,342
experience, within and outside this state, and to fluctuations in 2,343
such claim experience, to a reasonable risk charge, to 2,344
contribution to surplus and contingency funds, to past and 2,345
prospective expenses, both within and outside this state, and to 2,346
all other relevant factors within and outside this state, 2,347
including any differing operating methods of the insurers joining 2,348
in the issuance of the policy. In reviewing the forms the 2,349
superintendent shall not be bound by the requirements of sections 2,350
3923.04 to 3923.07 of the Revised Code with respect to standard 2,352
provisions to be included in sickness and accident policies or 2,353
forms.
(E) The association may enroll eligible persons for 2,355
coverage under the policy through any insurance agent licensed to 2,356
sell sickness and accident insurance pursuant to section 3905.01 2,357
3905.02, 3905.08, 3905.18, or 3941.02 of the Revised Code. 2,359
(F) The association shall file annually with the 2,361
superintendent on such date and in such form as the 2,362
superintendent may prescribe, a financial summary of its 2,363
operations.
(G) The association may sue and be sued in its associate 2,365
name and for such purposes only shall be treated as a domestic 2,366
corporation. Service of process against such THE association 2,367
made upon a managing agent, any member thereof, or any agent 2,369
authorized by appointment to receive service of process, shall 2,370
have the same force and effect as if such THE service had been 2,371
made upon all members of the association. 2,373
(H) Under any policy issued as provided in this section, 2,375
the policyholder, or such person as the policyholder shall 2,376
designate, shall alone be a member of each domestic mutual 2,377
insurance company joining in the issue of the policy and shall be 2,378
50
entitled to one vote by virtue of such policy at the meetings of 2,379
each such mutual insurance company. Notice of the annual 2,380
meetings of each such mutual insurance company may be given by 2,381
written notice to the policyholder or as otherwise prescribed in 2,382
said THE policy. 2,383
Sec. 3931.101. The provisions of sections 3905.01 to 2,392
3905.05, inclusive, 3905.04 of the Revised Code, relating to the 2,394
appointment, licensing, qualification and regulation of insurance 2,395
agents, brokers and solicitors shall apply to all persons 2,396
authorized to solicit powers of attorney or applications for
contracts of indemnity for any reciprocal exchange, insurance 2,397
exchange or attorney in fact as provided for in Chapter 3931,. of 2,398
the Revised Code, except a traveling full time salaried 2,400
non-commission employee of an attorney whose duties as such
employee are primarily the performance of inspection 2,401
underwriting, loss prevention engineering and claim services 2,402
shall be exempt from this section and shall be regulated solely 2,403
by section 3931.11 of the Revised Code.
Sec. 3931.11. Every attorney shall certify to the 2,412
superintendent of insurance the names and addresses of the 2,413
attorney's traveling full time salaried non-commission employees, 2,414
primarily engaged in performing underwriting, loss prevention 2,415
engineering and claim services, authorized by the attorney to 2,416
solicit powers of attorney or applications for contracts of 2,417
indemnity specified in section 3931.01 of the Revised Code. The 2,418
authority of such persons shall continue until the first day of 2,419
the next April, unless it is cancelled by the attorney and the 2,420
certificate of such cancellation is filed with the 2,421
superintendent, or unless the license of the attorney or 2,422
authority of such person is revoked or suspended by the 2,423
superintendent. Expiring certificates of authority of such 2,424
persons may be renewed in like manner to continue until the first 2,425
day of the next April. The superintendent shall record the names 2,426
and addresses of such persons so that their names may 2,427
51
conveniently be inspected and shall thereupon certify and deliver 2,428
to the attorney a list of the names of all persons so recorded. 2,429
If the superintendent finds that any such person has 2,431
wilfully WILLFULLY violated, or failed to comply with, sections 2,432
3931.01 to 3931.12, inclusive, of the Revised Code, or has been 2,434
convicted of a felony in the United States, or in this or any 2,435
state, or has been guilty of any act or acts which if performed 2,436
by an agent licensed under section 3905.01 3905.02 of the Revised 2,437
Code would constitute statutory grounds for the revocation of 2,439
such agent's license, the superintendent may refuse or revoke the 2,440
authority of such THE person and cancel the person's name on the 2,442
superintendent's records, and the superintendent shall thereupon 2,444
notify such THE person and the attorney of such THE revocation. 2,445
Thereafter such THE person shall not act as representative of any 2,446
attorney until a new certificate of authority by the attorney 2,447
thereafter appointing such THE person is filed with and approved 2,448
by the superintendent. 2,449
No such person shall act for any attorney in placing 2,451
insurance or making such contracts of indemnity, unless the 2,452
attorney has the license required by section 3931.10 of the 2,453
Revised Code, nor unless the unexpired, unrevoked, and 2,454
unsuspended certificate of such person's authority is filed with 2,455
the superintendent. Any such person shall be individually liable 2,456
on any contract of indemnity made, issued, or accepted through 2,457
that person as representing any attorney who is not licensed by 2,459
the superintendent to make such contracts of indemnity.
Sec. 3941.02. (A) A domestic mutual company may be 2,468
organized by not less than twenty persons, to carry on the 2,469
business of mutual insurance and to reinsure and to accept 2,470
reinsurance as authorized by law and its articles of 2,471
incorporation. Such persons shall execute articles of 2,472
incorporation which, if not inconsistent with the constitution 2,473
and laws of this state and of the United States, shall be 2,474
approved by the attorney general and the secretary of state. The 2,475
52
articles and the certificate of approval by the attorney general 2,476
shall be recorded by the secretary of state who shall deposit a 2,477
copy thereof with the superintendent of insurance. 2,478
(B) If the articles of incorporation of a domestic, 2,480
foreign, or alien, mutual or stock insurance company empower it, 2,481
or if the power of attorney or subscribers' agreement empowers 2,482
the attorney in fact of a reciprocal or interinsurance exchange, 2,483
to transact any of the kinds of insurance described in division 2,484
(A) of section 3929.01 of the Revised Code, such company or 2,485
attorney may apply to the superintendent for the appropriate 2,486
license or certificate of authority, as provided in section 2,487
3925.11, 3927.01, 3931.10, or 3941.06 of the Revised Code, which 2,488
application shall state which of the kinds of insurance it 2,489
proposes to transact, and the superintendent shall act thereon in 2,490
the manner prescribed by that section. 2,491
(C) An Ohio agent shall be licensed, upon written notice 2,494
of appointment by a domestic, foreign, or alien, mutual or stock 2,495
insurance company, to procure, receive, or forward application 2,496
for the kinds of insurance the company is authorized to transact 2,497
in this state if the agent is then licensed to write all of the 2,498
kinds of insurance described in division (A) of section 3929.01 2,499
of the Revised Code, either for the company or for any other 2,500
company or companies authorized to transact insurance business in 2,501
this state. An Ohio agent not so licensed shall not procure, 2,502
receive, or forward applications for any kind of insurance for 2,503
the company until qualified and licensed to procure, receive, or 2,504
forward applications for all of the kinds of insurance described 2,505
in division (A) of section 3929.01 of the Revised Code, in 2,506
accordance with the applicable provisions of Chapter 3905. of the 2,507
Revised Code and in accordance with such rules as the 2,508
superintendent may adopt in connection therewith; provided any 2,509
company, irrespective of the kinds of insurance it is authorized 2,510
to transact, may apply for and obtain the renewal of licenses of 2,511
its agents who were licensed on or before July 1, 1945, to 2,512
53
procure, receive, or forward applications for any of the kinds of 2,513
insurance described in division (A) of section 3929.01 of the 2,514
Revised Code, and such agents shall not be required to be 2,515
licensed for all the kinds of insurance transacted by the company 2,516
making the applications for such renewals. Nothing in this 2,517
section shall be construed to authorize an agent whose license is 2,518
renewed under these provisions to procure, receive, or forward 2,519
applications for any kind or kinds of insurance other than the 2,520
kind or kinds for which the agent was authorized to procure, 2,521
receive, or forward applications on July 1, 1945; provided, the 2,523
procuring, receiving, or forwarding of applications by such an 2,524
agent for any kind or kinds of insurance other than the kind or 2,525
kinds the agent was authorized to procure, receive, or forward, 2,527
as of July 1, 1945, is cause for revocation of the license of the 2,528
agent by the superintendent and the acceptance by any insurance 2,529
company licensed to do business in this state of an application 2,530
for any kind of insurance other than the kind or kinds that the 2,531
agent was authorized to procure, receive, or forward, as of July 2,532
1, 1945, is cause for revocation of the license of the company by 2,533
the superintendent. Nothing in this section shall be construed 2,534
to alter the provisions of sections 2301.373, 3905.05, 3931.101, 2,535
and 3931.11 of the Revised Code. 2,536
Sec. 3953.21. (A) Every title insurance company 2,545
authorized to transact business within this state shall certify 2,546
annually to the superintendent of insurance the names of all 2,547
title insurance agents representing it in this state in 2,548
accordance with section 3905.01 3905.02 of the Revised Code. 2,549
(B) No bank, trust company, bank and trust company, or 2,551
other lending institution, mortgage service, brokerage, mortgage 2,552
guaranty company, escrow company, real estate company or any 2,553
subsidiaries thereof or any individuals so engaged shall be 2,554
permitted to act as an agent for a title insurance company.
Sec. 3953.23. (A) Every title insurance agent shall keep 2,563
his books of account and record and vouchers pertaining to the 2,565
54
business of title insurance in such manner that the title 2,566
insurance company may readily ascertain from time to time whether 2,567
the agent has complied with this chapter.
(B) A title insurance agent may engage in the business of 2,569
handling escrows of real property transactions directly connected 2,570
with the business of title insurance, provided that the agent 2,571
shall maintain a separate record of all receipts and 2,572
disbursements of escrow funds and shall not commingle any such
funds with agent's own funds or with funds held by agent in any 2,573
other capacity; and if at any time the superintendent of 2,574
insurance determines that an agent has failed to comply with any 2,575
of the provisions of this section, the superintendent may revoke 2,576
the license of said THE agent pursuant to section 3905.01 3905.02 2,578
of the Revised Code, subject to review as provided for in 2,579
sections 119.01 to 119.13, inclusive, CHAPTER 119. of the Revised 2,581
Code. All agents shall be covered by a fidelity bond in an 2,583
amount and with a company satisfactory to the principal. 2,584
Sec. 3960.11. (A) No person shall act or aid in any 2,593
manner in soliciting, negotiating, or procuring liability 2,594
insurance in this state from a risk retention group unless the 2,595
person is licensed as an insurance agent or broker in accordance 2,596
with section 3905.01, 3905.03, 3905.02 or 3905.30 of the Revised 2,598
Code.
(B) No person shall act or aid in any manner in 2,600
soliciting, negotiating, or procuring liability insurance in this 2,601
state for a purchasing group from an authorized insurer or a risk 2,602
retention group chartered in a state unless the person is 2,603
licensed as an insurance agent or broker in accordance with 2,604
section 3905.01, 3905.03, 3905.02 or 3905.30 of the Revised Code. 2,606
(C) No person shall act or aid in any manner in 2,608
soliciting, negotiating, or procuring liability insurance 2,609
coverage in this state for any member of a purchasing group under 2,610
a purchasing group's policy unless the person is licensed as an 2,611
insurance agent or broker in accordance with section 3905.01, 2,612
55
3905.03, 3905.02 or 3905.30 of the Revised Code. 2,613
(D) No person shall act or aid in any manner in 2,615
soliciting, negotiating, or procuring liability insurance from an 2,616
insurer not authorized to do business in this state on behalf of 2,617
a purchasing group located in this state unless the person is 2,618
licensed as an insurance agent or A surplus lines LINE broker in 2,620
accordance with section 3905.01, 3905.03, or 3905.30 of the 2,622
Revised Code. 2,623
Sec. 4745.01. (A) "Standard renewal procedure," as used 2,632
in Chapters 905., 907., 909., 911., 913., 915., 918., 921., 923., 2,633
927., 942., 943., 953., 1321., 3710., 3713., 3715., 3719., 3731., 2,634
3742., 3748., 3769., 3783., 3905., 3921., 3951., 4104., 4105., 2,635
4143., 4169., 4561., 4701., 4703., 4707., 4709., 4713., 4715., 2,636
4717., 4723., 4725., 4727., 4728., 4729., 4731., 4733., 4734., 2,637
4735., 4739., 4741., 4747., 4749., 4753., 4755., 4757., 4759., 2,638
4761., 4766., 4773., and 4775. of the Revised Code, means the 2,639
license renewal procedures specified in this chapter. 2,640
(B) "Licensing agency," as used in this chapter, means any 2,642
department, division, board, section of a board, or other state 2,643
governmental unit subject to the standard renewal procedure, as 2,644
defined in this section, and authorized by the Revised Code to 2,645
issue a license to engage in a specific profession, occupation, 2,646
or occupational activity, or to have charge of and operate 2,647
certain specified equipment, machinery, or premises. 2,648
(C) "License," as used in this chapter, means a license, 2,650
certificate, permit, card, or other authority issued or conferred 2,651
by a licensing agency by authority of which the licensee has or 2,652
claims the privilege to engage in the profession, occupation, or 2,653
occupational activity, or to have control of and operate certain 2,654
specific equipment, machinery, or premises, over which the 2,655
licensing agency has jurisdiction. 2,656
(D) "Licensee," as used in this chapter, means either the 2,658
person to whom the license is issued or renewed by a licensing 2,659
agency, or the person, partnership, or corporation at whose 2,660
56
request the license is issued or renewed. 2,661
(E) "Renewal" and "renewed," as used in this chapter and 2,663
in the chapters of the Revised Code specified in division (A) of 2,664
this section, includes the continuing licensing procedure 2,665
provided in Chapter 3748. of the Revised Code and rules adopted 2,667
under it and in sections 1321.05, 3905.01, 3905.02, 3905.07, 2,668
3905.18, and 3921.33 of the Revised Code, and as applied to those 2,669
continuing licenses any reference in this chapter to the date of 2,671
expiration of any license shall be construed to mean the due date 2,672
of the annual or other fee for the continuing license. 2,673
Section 2. That existing sections 1751.38, 3901.021, 2,675
3905.02, 3905.06, 3905.07, 3905.08, 3905.18, 3905.20, 3905.27, 2,677
3905.30, 3905.40, 3905.48, 3905.481, 3905.482, 3905.49, 3905.99, 2,678
3913.40, 3921.33, 3923.121, 3931.101, 3931.11, 3941.02, 3953.21, 2,679
3953.23, 3960.11, and 4745.01 and sections 3905.01, 3905.011, 2,680
3905.03, and 3905.05 of the Revised Code are hereby repealed. 2,681
Section 3. Sections 1 and 2 of this act, except for 2,683
sections 3905.011, 3905.012, 3905.02, 3905.03, 3905.18, and 2,684
3905.20 of the Revised Code, shall take effect at the earliest 2,685
time permitted by law. Sections 3905.011, 3905.012, 3905.02, 2,686
3905.03, 3905.18, and 3905.20 of the Revised Code, as amended, 2,687
enacted, or repealed by this act, shall take effect October 1,
1998.
Section 4. It is the intent of the General Assembly that 2,689
the Superintendent of Insurance take any action necessary to 2,690
administer the Insurance Agents Law, as amended by this act, and 2,691
to provide for an orderly transition for those persons licensed 2,692
or appointed under that Law as it existed prior to the effective 2,693
date of this act. 2,694
Section 5. The Department of Insurance shall, no later 2,696
than October 1, 1999, issue a new license to each person who, on 2,697
October 1, 1998, holds a license as an agent. Any license 2,699
application that is pending on October 1, 1998, or that is
received by the Department on or after that date, shall be 2,700
57
reviewed in accordance with this act. 2,701
Section 6. The Insurance Agent Education Advisory Council 2,704
operating pursuant to section 3905.483 of the Revised Code shall 2,705
create a temporary committee to conduct a special study of the 2,706
continuing education requirements for insurance agents as set 2,707
forth in the Revised Code and the Administrative Code. The 2,708
committee shall be composed of the eleven members of the 2,709
Insurance Agent Education Advisory Council appointed by the 2,710
Superintendent of Insurance pursuant to section 3905.483 of the 2,711
Revised Code; a representative, appointed by the Governor, of 2,712
private entities engaged in the business of providing continuing 2,713
education to agents; a representative, appointed by the Governor, 2,714
of financial institutions; two members of the House of 2,715
Representatives, one from each party, appointed by the Speaker of 2,716
the House of Representatives; and two members of the Senate, one 2,717
from each party, appointed by the President of the Senate. The 2,718
Superintendent or the Superintendent's designee shall serve on 2,719
the committee as a nonvoting member. 2,720
The committee shall hold an organizational meeting within 2,722
thirty days after the effective date of this section. At the 2,723
organizational meeting, the voting members of the committee shall 2,725
elect a chairperson and a vice-chairperson for the committee. 2,726
The committee shall meet at the call of the chairperson. 2,727
The committee shall study all aspects of the continuing 2,729
education requirements for insurance agents as set forth in the 2,730
Revised Code and the Administrative Code, and shall be charged 2,731
with providing findings and recommendations on how any aspect of 2,732
these requirements may be improved. 2,733
The study shall include, but is not limited to, an 2,735
examination of issues related to the following questions: 2,736
(A) Will a reduction in the biennial continuing education 2,739
requirement satisfy the continuing education requirements imposed 2,740
by other states on nonresident agents? 2,741
(B) What are the best methods for assuring the quality of 2,744
58
continuing education courses and programs of study? 2,745
(C) Is the Superintendent of Insurance's annual approval 2,748
of a continuing education course or program of study necessary if 2,749
there is no change in the course's or program's curriculum, or 2,750
could a course or program of study be approved for a longer 2,751
period of time?
(D) Could the process of approval for continuing education 2,754
courses and programs of study be streamlined, to provide for a 2,755
more timely and efficient process of approval? 2,756
(E) Should an agent receive continuing education credit 2,759
for completing courses or programs of study that pertain to 2,760
subjects outside of the agent's area of practice or licensure? 2,761
(F) What is the optimal number of hours of instruction a 2,764
statutory continuing education requirement should require agents 2,765
to complete?
(G) Should continuing education requirements include a 2,768
minimum number of hours of courses or programs of study on 2,769
ethics?
(H) Should the completion of a correspondence course, 2,772
which course requires the successful completion of a test on the 2,773
course material, be an optional method for an agent's fulfillment 2,774
of continuing education requirements? 2,775
(I) Should minimum requirements be established for 2,778
instructors of continuing education courses, such as minimum 2,779
industry experience and a current agent's license? 2,780
(J) Should an agent be limited as to the number of hours 2,783
of continuing education credit that the agent may earn from 2,784
private providers and associations or from insurance companies, 2,785
as a percentage of the total number of hours of continuing 2,786
education credit that the agent earns, or is permitted to earn, 2,787
during a single compliance period?
(K) Should an agent receive continuing education credit 2,790
for completing sales-related courses or programs of study? 2,791
(L) Should an agent's receipt of any special designation 2,794
59
exempt the agent from the completion of further continuing 2,795
education requirements?
(M) Has the continuing education requirement improved the 2,798
quality of licensed insurance agents?
(N) Would a system in which agents certified their 2,800
compliance with continuing education requirements to the 2,801
Superintendent, which system included a program of random 2,802
verification of agent compliance by the Department of Insurance, 2,803
be a feasible alternative to the current system of continuing 2,804
education compliance verification? 2,805
The committee shall hold a sufficient number of public 2,807
hearings outside of Franklin County to provide interested parties 2,808
throughout the state a chance to voice their opinions and make 2,809
recommendations with regard to the continuing education 2,810
requirements for insurance agents. 2,811
The committee shall issue an interim report within nine 2,813
months after the effective date of this section. The committee 2,814
shall issue its final report within eighteen months after the 2,815
effective date of this section. Copies of the interim and the 2,816
final reports shall be submitted, at the time of their issuance, 2,817
to the Speaker of the House of Representatives, to the President 2,818
of the Senate, to the Governor, to the chair of the House 2,819
committee having primary jurisdiction over insurance legislation, 2,821
to the chair of the Senate committee having primary jurisdiction 2,822
over insurance legislation, to the Superintendent of Insurance, 2,823
and to the Insurance Agent Education Advisory Council. The 2,824
committee may request staff assistance from the Legislative 2,825
Service Commission as needed for the completion of the reports. 2,826
Upon the issuance of its final report, the committee shall cease 2,827
to exist.
Section 7. Persons holding a license as an agent on the 2,829
effective date of section 3905.481 of the Revised Code, as 2,830
amended by this act, shall retain their current compliance 2,831
periods for purposes of completing the continuing education 2,832
60
requirements provided under section 3905.481 of the Revised Code,
as amended by this act. 2,833
Section 8. If Am. Sub. H.B. 248 is enacted by the 122nd 2,835
General Assembly, sections 3905.49 and 3905.491 of the Revised 2,836
Code, as the sections result from this act, supersede the same 2,837
sections as they result from Am. Sub. H.B. 248.
Section 9. Section 3941.02 of the Revised Code is 2,839
presented in this act as a composite of the section as amended by 2,840
both Sub. H.B. 167 and Am. Sub. S.B. 259 of the 121st General 2,841
Assembly, with the new language of neither of the acts shown in 2,843
capital letters. This is in recognition of the principle stated 2,844
in division (B) of section 1.52 of the Revised Code that such 2,845
amendments are to be harmonized where not substantively 2,846
irreconcilable and constitutes a legislative finding that such is 2,847
the resulting version in effect prior to the effective date of 2,848
this act.