As Reported by the Senate Insurance, Commerce 1
and Labor Committee 2
122nd General Assembly 5
Regular Session Sub. S. B. No. 70 6
1997-1998 7
SENATORS DIX-KEARNS-B. JOHNSON-ZALESKI-CUPP-WATTS-GILLMOR 9
11
A B I L L
To amend section 3901.21 of the Revised Code to make 12
it an unfair practice for any insurer to cancel 13
or to refuse to issue or renew any life or health 14
insurance policy or contract because the
applicant or insured is a victim of domestic 16
violence or renders services to victims of 17
domestic violence as a social worker or
counselor, to prohibit insurers from taking other 18
adverse actions based on the applicant's or 20
insured's status as a victim of domestic
violence, and to provide civil and criminal 22
immunity to an insurer acting in compliance with
this act.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 24
Section 1. That section 3901.21 of the Revised Code be 26
amended to read as follows: 27
Sec. 3901.21. The following are hereby defined as unfair 36
and deceptive acts or practices in the business of insurance: 37
(A) Making, issuing, circulating, or causing or permitting 39
to be made, issued, or circulated, or preparing with intent to so 40
use, any estimate, illustration, circular, or statement 41
misrepresenting the terms of any policy issued or to be issued or 42
the benefits or advantages promised thereby or the dividends or 43
share of the surplus to be received thereon, or making any false 44
or misleading statements as to the dividends or share of surplus 45
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previously paid on similar policies, or making any misleading 46
representation or any misrepresentation as to the financial 47
condition of any insurer as shown by the last preceding verified 48
statement made by it to the insurance department of this state, 49
or as to the legal reserve system upon which any life insurer 50
operates, or using any name or title of any policy or class of 51
policies misrepresenting the true nature thereof, or making any 52
misrepresentation or incomplete comparison to any person for the 53
purpose of inducing or tending to induce such person to purchase, 54
amend, lapse, forfeit, change, or surrender insurance. 55
Any written statement concerning the premiums for a policy 57
which refers to the net cost after credit for an assumed 58
dividend, without an accurate written statement of the gross 59
premiums, cash values, and dividends based on the insurer's 60
current dividend scale, which are used to compute the net cost 61
for such policy, and a prominent warning that the rate of 62
dividend is not guaranteed, is a misrepresentation for the 63
purposes of this division. 64
(B) Making, publishing, disseminating, circulating, or 66
placing before the public or causing, directly or indirectly, to 67
be made, published, disseminated, circulated, or placed before 68
the public, in a newspaper, magazine, or other publication, or in 69
the form of a notice, circular, pamphlet, letter, or poster, or 70
over any radio station, or in any other way, or preparing with 71
intent to so use, an advertisement, announcement, or statement 72
containing any assertion, representation, or statement, with 73
respect to the business of insurance or with respect to any 74
person in the conduct of his THE PERSON'S insurance business, 75
which is untrue, deceptive, or misleading. 77
(C) Making, publishing, disseminating, or circulating, 79
directly or indirectly, or aiding, abetting, or encouraging the 80
making, publishing, disseminating, or circulating, or preparing 81
with intent to so use, any statement, pamphlet, circular, 82
article, or literature, which is false as to the financial 83
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condition of an insurer and which is calculated to injure any 84
person engaged in the business of insurance. 85
(D) Filing with any supervisory or other public official, 87
or making, publishing, disseminating, circulating, or delivering 88
to any person, or placing before the public, or causing directly 89
or indirectly to be made, published, disseminated, circulated, 90
delivered to any person, or placed before the public, any false 91
statement of financial condition of an insurer. 92
Making any false entry in any book, report, or statement of 94
any insurer with intent to deceive any agent or examiner lawfully 95
appointed to examine into its condition or into any of its 96
affairs, or any public official to whom such insurer is required 97
by law to report, or who has authority by law to examine into its 98
condition or into any of its affairs, or, with like intent, 99
willfully omitting to make a true entry of any material fact 100
pertaining to the business of such insurer in any book, report, 101
or statement of such insurer, or mutilating, destroying, 102
suppressing, withholding, or concealing any of its records. 103
(E) Issuing or delivering or permitting agents, officers, 105
or employees to issue or deliver agency company stock or other 106
capital stock or benefit certificates or shares in any common-law 107
corporation or securities or any special or advisory board 108
contracts or other contracts of any kind promising returns and 109
profits as an inducement to insurance. 110
(F) Making or permitting any unfair discrimination among 112
individuals of the same class and equal expectation of life in 113
the rates charged for any contract of life insurance or of life 114
annuity or in the dividends or other benefits payable thereon, or 115
in any other of the terms and conditions of such contract. 116
(G)(1) Except as otherwise expressly provided by law, 118
knowingly permitting or offering to make or making any contract 119
of life insurance, life annuity or accident and health insurance, 120
or agreement as to such contract other than as plainly expressed 121
in the contract issued thereon, or paying or allowing, or giving 122
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or offering to pay, allow, or give, directly or indirectly, as 123
inducement to such insurance, or annuity, any rebate of premiums 124
payable on the contract, or any special favor or advantage in the 125
dividends or other benefits thereon, or any valuable 126
consideration or inducement whatever not specified in the 127
contract; or giving, or selling, or purchasing, or offering to 128
give, sell, or purchase, as inducement to such insurance or 129
annuity or in connection therewith, any stocks, bonds, or other 130
securities, or other obligations of any insurance company or 131
other corporation, association, or partnership, or any dividends 132
or profits accrued thereon, or anything of value whatsoever not 133
specified in the contract. 134
(2) Nothing in division (F) or division (G)(1) of this 136
section shall be construed as prohibiting any of the following 137
practices: (a) in the case of any contract of life insurance or 138
life annuity, paying bonuses to policyholders or otherwise 139
abating their premiums in whole or in part out of surplus 140
accumulated from nonparticipating insurance, provided that any 141
such bonuses or abatement of premiums shall be fair and equitable 142
to policyholders and for the best interests of the company and 143
its policyholders; (b) in the case of life insurance policies 144
issued on the industrial debit plan, making allowance to 145
policyholders who have continuously for a specified period made 146
premium payments directly to an office of the insurer in an 147
amount which fairly represents the saving in collection expenses; 148
(c) readjustment of the rate of premium for a group insurance 149
policy based on the loss or expense experience thereunder, at the 150
end of the first or any subsequent policy year of insurance 151
thereunder, which may be made retroactive only for such policy 152
year. 153
(H) Making, issuing, circulating, or causing or permitting 155
to be made, issued, or circulated, or preparing with intent to so 156
use, any statement to the effect that a policy of life insurance 157
is, is the equivalent of, or represents shares of capital stock 158
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or any rights or options to subscribe for or otherwise acquire 159
any such shares in the life insurance company issuing that policy 160
or any other company. 161
(I) Making, issuing, circulating, or causing or permitting 163
to be made, issued or circulated, or preparing with intent to so 164
issue, any statement to the effect that payments to a 165
policyholder of the principal amounts of a pure endowment are 166
other than payments of a specific benefit for which specific 167
premiums have been paid. 168
(J) Making, issuing, circulating, or causing or permitting 170
to be made, issued, or circulated, or preparing with intent to so 171
use, any statement to the effect that any insurance company was 172
required to change a policy form or related material to comply 173
with Title XXXIX of the Revised Code or any regulation of the 174
superintendent of insurance, for the purpose of inducing or 175
intending to induce any policyholder or prospective policyholder 176
to purchase, amend, lapse, forfeit, change, or surrender 177
insurance. 178
(K) Aiding or abetting another to violate this section. 180
(L) Refusing to issue any policy of insurance, or 182
canceling or declining to renew such policy because of the sex or 183
marital status of the applicant, prospective insured, insured, or 184
policyholder. 185
(M) Making or permitting any unfair discrimination between 187
individuals of the same class and of essentially the same hazard 188
in the amount of premium, policy fees, or rates charged for any 189
policy or contract of insurance, other than life insurance, or in 190
the benefits payable thereunder, or in underwriting standards and 191
practices or eligibility requirements, or in any of the terms or 192
conditions of such contract, or in any other manner whatever. 193
(N) Refusing to make available disability income insurance 195
solely because the applicant's principal occupation is that of 196
managing a household. 197
(O) Refusing, when offering maternity benefits under any 199
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individual or group sickness and accident insurance policy, to 200
make maternity benefits available to the policyholder for the 201
individual or individuals to be covered under any comparable 202
policy to be issued for delivery in this state, including family 203
members if the policy otherwise provides coverage for family 204
members. Nothing in this division shall be construed to prohibit 205
an insurer from imposing a reasonable waiting period for such 206
benefits, but in no event shall such waiting period exceed two 207
hundred seventy days. 208
(P) Using, or permitting to be used, a pattern settlement 210
as the basis of any offer of settlement. As used in this 211
division, "pattern settlement" means a method by which liability 212
is routinely imputed to a claimant without an investigation of 213
the particular occurrence upon which the claim is based and by 214
using a predetermined formula for the assignment of liability 215
arising out of occurrences of a similar nature. Nothing in this 216
division shall be construed to prohibit an insurer from 217
determining a claimant's liability by applying formulas or 218
guidelines to the facts and circumstances disclosed by the 219
insurer's investigation of the particular occurrence upon which a 220
claim is based. 221
(Q) Refusing to insure, or refusing to continue to insure, 223
or limiting the amount, extent, or kind of life or sickness and 224
accident insurance or annuity coverage available to an 225
individual, or charging an individual a different rate for the 226
same coverage solely because of blindness or partial blindness. 227
With respect to all other conditions, including the underlying 228
cause of blindness or partial blindness, persons who are blind or 229
partially blind shall be subject to the same standards of sound 230
actuarial principles or actual or reasonably anticipated 231
actuarial experience as are sighted persons. Refusal to insure 232
includes, but is not limited to, denial by an insurer of 233
disability insurance coverage on the grounds that the policy 234
defines "disability" as being presumed in the event that the 235
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eyesight of the insured is lost. However, an insurer may exclude 236
from coverage disabilities consisting solely of blindness or 237
partial blindness when such conditions existed at the time the 238
policy was issued. To the extent that the provisions of this 239
division may appear to conflict with any provision of section 240
3999.16 of the Revised Code, this division applies. 241
(R)(1) Directly or indirectly offering to sell, selling, 243
or delivering, issuing for delivery, renewing, or using or 244
otherwise marketing any policy of insurance or insurance product 245
in connection with or in any way related to the grant of a 246
student loan guaranteed in whole or in part by an agency or 247
commission of this state or the United States, except insurance 248
that is required under federal or state law as a condition for 249
obtaining such a loan and the premium for which is included in 250
the fees and charges applicable to the loan; or, in the case of 251
an insurer or insurance agent, knowingly permitting any lender 252
making such loans to engage in such acts or practices in 253
connection with the insurer's or agent's insurance business. 254
(2) Except in the case of a violation of division (G) of 256
this section, division (R)(1) of this section does not apply to 257
either of the following: 258
(a) Acts or practices of an insurer, its agents, 260
representatives, or employees in connection with the grant of a 261
guaranteed student loan to its insured or the insured's spouse or 262
dependent children where such acts or practices take place more 263
than ninety days after the effective date of the insurance; 264
(b) Acts or practices of an insurer, its agents, 266
representatives, or employees in connection with the 267
solicitation, processing, or issuance of an insurance policy or 268
product covering the student loan borrower or his THE BORROWER'S 269
spouse or dependent children, where such acts or practices take 271
place more than one hundred eighty days after the date on which 272
the borrower is notified that the student loan was approved. 273
(S) Denying coverage, under any health insurance or health 275
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care policy, contract, or plan providing family coverage, to any 276
natural or adopted child of the named insured or subscriber 277
solely on the basis that the child does not reside in the 278
household of the named insured or subscriber. 279
(T)(1) Using any underwriting standard or engaging in any 281
other act or practice that, directly or indirectly, due solely to 282
the actual or expected health condition of one or more 283
individuals, does either of the following:
(a) Terminates or fails to renew an existing individual 285
policy, contract, or plan of health benefits, or a health benefit 286
plan issued to a small employer as those terms are defined in 287
section 3924.01 of the Revised Code, for which an individual 288
would otherwise be eligible;
(b) With respect to a health benefit plan issued to a 290
small employer, as those terms are defined in section 3924.01 of 291
the Revised Code, excludes or causes the exclusion of an 292
individual from coverage under an existing employer-provided 293
policy, contract, or plan of health benefits, except that an 294
insurer may exclude, on the basis of health status, a late
enrollee as defined in section 3924.01 of the Revised Code. 295
(2) The superintendent of insurance may adopt rules in 297
accordance with Chapter 119. of the Revised Code for purposes of 298
implementing division (T)(1) of this section. 299
(U) With respect to a health benefit plan issued to a 301
small employer, as those terms are defined in section 3924.01 of 302
the Revised Code, negligently or willfully placing coverage for 303
adverse risks with a certain carrier, as defined in section 304
3924.01 of the Revised Code.
(V) Using any program, scheme, device, or other unfair act 306
or practice that, directly or indirectly, causes or results in 307
the placing of coverage for adverse risks with another carrier, 308
as defined in section 3924.01 of the Revised Code. 309
(W) Failing to comply with section 3923.23, 3923.231, 311
3923.232, 3923.233, or 3923.234 of the Revised Code by engaging 312
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in any unfair, discriminatory reimbursement practice. 313
(X) Intentionally establishing an unfair premium for, or 315
misrepresenting the cost of, any insurance policy financed under 316
a premium finance agreement of an insurance premium finance 317
company. 318
(Y)(1)(a) LIMITING COVERAGE UNDER, REFUSING TO ISSUE, 320
CANCELING, OR REFUSING TO RENEW, ANY INDIVIDUAL POLICY OR 322
CONTRACT OF LIFE OR HEALTH INSURANCE, FOR THE REASON THAT THE 323
INSURED OR APPLICANT FOR INSURANCE IS OR HAS BEEN A VICTIM OF 325
DOMESTIC VIOLENCE OR RENDERS SERVICES TO VICTIMS OF DOMESTIC
VIOLENCE AS A SOCIAL WORKER OR COUNSELOR; 327
(b) ADDING A SURCHARGE OR RATING FACTOR TO A PREMIUM OF 329
ANY INDIVIDUAL POLICY OR CONTRACT OF LIFE OR HEALTH INSURANCE FOR 330
THE REASON THAT THE INSURED OR APPLICANT FOR INSURANCE IS OR HAS 331
BEEN A VICTIM OF DOMESTIC VIOLENCE OR RENDERS SERVICES TO VICTIMS 332
OF DOMESTIC VIOLENCE AS A SOCIAL WORKER OR COUNSELOR; 334
(c) DENYING COVERAGE UNDER, OR LIMITING COVERAGE UNDER, 336
ANY POLICY OR CONTRACT OF LIFE OR HEALTH INSURANCE, FOR THE 338
REASON THAT A CLAIM UNDER THE POLICY OR CONTRACT ARISES FROM AN 339
INCIDENT OF DOMESTIC VIOLENCE;
(d) INQUIRING, DIRECTLY OR INDIRECTLY, OF AN INSURED 341
UNDER, OR OF AN APPLICANT FOR, A POLICY OR CONTRACT OF LIFE OR 342
HEALTH INSURANCE, AS TO WHETHER THE INSURED OR APPLICANT IS OR 343
HAS BEEN A VICTIM OF DOMESTIC VIOLENCE, INQUIRING AS TO WHETHER 344
THE INSURED OR APPLICANT HAS SOUGHT SHELTER OR PROTECTION FROM 345
DOMESTIC VIOLENCE OR HAS SOUGHT MEDICAL OR PSYCHOLOGICAL
TREATMENT AS A VICTIM OF DOMESTIC VIOLENCE, OR INQUIRING AS TO 346
WHETHER THE INSURED OR APPLICANT RENDERS SERVICES TO VICTIMS OF 348
DOMESTIC VIOLENCE AS A SOCIAL WORKER OR COUNSELOR. 349
(2) NOTHING IN DIVISION (Y)(1) OF THIS SECTION SHALL BE 351
CONSTRUED TO PROHIBIT AN INSURER FROM INQUIRING AS TO, OR FROM 352
UNDERWRITING OR RATING A RISK ON THE BASIS OF, A PERSON'S 354
PHYSICAL OR MENTAL CONDITION, EVEN IF THE CONDITION HAS BEEN 356
CAUSED BY DOMESTIC VIOLENCE, PROVIDED THAT ALL OF THE FOLLOWING
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APPLY: 357
(a) THE INSURER ROUTINELY CONSIDERS THE CONDITION IN 359
UNDERWRITING OR IN RATING RISKS, AND DOES SO IN THE SAME MANNER 360
FOR A VICTIM OF DOMESTIC VIOLENCE AS FOR AN INSURED OR APPLICANT 361
WHO IS NOT A VICTIM OF DOMESTIC VIOLENCE; 362
(b) THE INSURER DOES NOT REFUSE TO ISSUE, CANCEL, OR 364
REFUSE TO RENEW ANY POLICY OR CONTRACT OF LIFE OR HEALTH 365
INSURANCE SOLELY ON THE BASIS OF THE CONDITION, EXCEPT WHERE THE 366
REFUSAL TO ISSUE, THE CANCELLATION, OR THE REFUSAL TO RENEW IS 367
BASED ON SOUND ACTUARIAL PRINCIPLES OR IS RELATED TO ACTUAL OR
REASONABLY ANTICIPATED EXPERIENCE; 368
(c) THE INSURER DOES NOT CONSIDER A PERSON'S STATUS AS 370
BEING OR AS HAVING BEEN A VICTIM OF DOMESTIC VIOLENCE, IN ITSELF, 371
TO BE A PHYSICAL OR MENTAL CONDITION; 372
(d) THE UNDERWRITING OR RATING OF A RISK ON THE BASIS OF 374
THE CONDITION IS NOT USED TO EVADE THE INTENT OF DIVISION (Y)(1) 376
OF THIS SECTION, OR OF ANY OTHER PROVISION OF THE REVISED CODE. 378
(3) NOTHING IN DIVISION (Y)(1) OF THIS SECTION SHALL BE 380
CONSTRUED TO PROHIBIT AN INSURER FROM REFUSING TO ISSUE A POLICY 381
OR CONTRACT OF LIFE INSURANCE INSURING THE LIFE OF A PERSON WHO 382
IS OR HAS BEEN A VICTIM OF DOMESTIC VIOLENCE IF THE PERSON WHO 383
COMMITTED THE ACT OF DOMESTIC VIOLENCE IS THE APPLICANT FOR THE 384
INSURANCE OR WOULD BE THE OWNER OF THE INSURANCE POLICY OR 385
CONTRACT.
(4) AN INSURER IS IMMUNE FROM ANY CIVIL OR CRIMINAL 388
LIABILITY THAT OTHERWISE MIGHT BE INCURRED OR IMPOSED AS A RESULT
OF ANY ACTION TAKEN BY THE INSURER TO COMPLY WITH DIVISION (Y) OF 390
THIS SECTION.
(5) AS USED IN DIVISION (Y) OF THIS SECTION: 392
(a) "DOMESTIC VIOLENCE" MEANS ANY OF THE FOLLOWING ACTS: 395
(i) KNOWINGLY CAUSING OR ATTEMPTING TO CAUSE PHYSICAL HARM 397
TO A FAMILY OR HOUSEHOLD MEMBER; 399
(ii) RECKLESSLY CAUSING SERIOUS PHYSICAL HARM TO A FAMILY 401
OR HOUSEHOLD MEMBER; 403
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(iii) KNOWINGLY CAUSING, BY THREAT OF FORCE, A FAMILY OR 405
HOUSEHOLD MEMBER TO BELIEVE THAT THE PERSON WILL CAUSE IMMINENT 406
PHYSICAL HARM TO THE FAMILY OR HOUSEHOLD MEMBER. 407
FOR THE PURPOSE OF DIVISION (Y)(5)(a) OF THIS SECTION, 410
"FAMILY OR HOUSEHOLD MEMBER" HAS THE SAME MEANING AS IN SECTION 411
2919.25 OF THE REVISED CODE. 412
NOTHING IN DIVISION (Y)(5)(a) OF THIS SECTION SHALL BE 415
CONSTRUED TO REQUIRE, AS A CONDITION TO THE APPLICATION OF 416
DIVISION (Y) OF THIS SECTION, THAT THE ACT DESCRIBED IN DIVISION 418
(Y)(5)(a) BE THE BASIS OF A CRIMINAL PROSECUTION. 419
(b) "SOCIAL WORKER" MEANS ANY PERSON WHO IS LICENSED OR 421
CERTIFIED UNDER CHAPTER 4757. OF THE REVISED CODE TO PRACTICE 424
SOCIAL WORK, OR WHO IS REGISTERED UNDER CHAPTER 4757. OF THE 426
REVISED CODE AS A SOCIAL WORK ASSISTANT. 427
(c) "COUNSELOR" MEANS ANY PERSON WHO IS LICENSED UNDER 430
CHAPTER 4757. OF THE REVISED CODE TO ENGAGE IN THE PRACTICE OF 432
PROFESSIONAL COUNSELING.
With respect to private passenger automobile insurance, no 434
insurer shall charge different premium rates to persons residing 435
within the limits of any municipal corporation based solely on 436
the location of the residence of the insured within those limits. 437
The enumeration in sections 3901.19 to 3901.26 of the 439
Revised Code of specific unfair or deceptive acts or practices in 440
the business of insurance is not exclusive or restrictive or 441
intended to limit the powers of the superintendent of insurance 442
to adopt rules to implement this section, or to take action under 443
other sections of the Revised Code. 444
This section does not prohibit the sale of shares of any 446
investment company registered under the "Investment Company Act 447
of 1940," 54 Stat. 789, 15 U.S.C.A. 80a-1, as amended, or any 448
policies, annuities, or other contracts described in section 449
3907.15 of the Revised Code. 450
As used in this section, "estimate," "statement," 452
"representation," "misrepresentation," "advertisement," or 453
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"announcement" includes oral or written occurrences. 454
Section 2. That existing section 3901.21 of the Revised 456
Code is hereby repealed. 457