As Passed by the Senate 1
122nd General Assembly 4
Regular Session Sub. S. B. No. 70 5
1997-1998 6
SENATORS DIX-KEARNS-B. JOHNSON-ZALESKI-CUPP-WATTS-GILLMOR- 8
HOWARD-OELSLAGER-CARNES-WHITE-LATTA-GAETH-LATELL- 9
SHEERER-GARDNER-HORN-ESPY-McLIN-DRAKE-HERINGTON- 10
DiDONATO-FURNEY-HAGAN-SCHAFRATH-FINAN 11
13
A B I L L
To amend section 3901.21 of the Revised Code to make 14
it an unfair practice for any insurer to cancel 15
or to refuse to issue or renew any life or health 16
insurance policy or contract because the
applicant or insured is a victim of domestic 18
violence or renders services to victims of 19
domestic violence as a social worker or
counselor, to prohibit insurers from taking other 20
adverse actions based on the applicant's or 22
insured's status as a victim of domestic
violence, and to provide civil and criminal 24
immunity to an insurer acting in compliance with
this act.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 26
Section 1. That section 3901.21 of the Revised Code be 28
amended to read as follows: 29
Sec. 3901.21. The following are hereby defined as unfair 38
and deceptive acts or practices in the business of insurance: 39
(A) Making, issuing, circulating, or causing or permitting 41
to be made, issued, or circulated, or preparing with intent to so 42
use, any estimate, illustration, circular, or statement 43
misrepresenting the terms of any policy issued or to be issued or 44
the benefits or advantages promised thereby or the dividends or 45
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share of the surplus to be received thereon, or making any false 46
or misleading statements as to the dividends or share of surplus 47
previously paid on similar policies, or making any misleading 48
representation or any misrepresentation as to the financial 49
condition of any insurer as shown by the last preceding verified 50
statement made by it to the insurance department of this state, 51
or as to the legal reserve system upon which any life insurer 52
operates, or using any name or title of any policy or class of 53
policies misrepresenting the true nature thereof, or making any 54
misrepresentation or incomplete comparison to any person for the 55
purpose of inducing or tending to induce such person to purchase, 56
amend, lapse, forfeit, change, or surrender insurance. 57
Any written statement concerning the premiums for a policy 59
which refers to the net cost after credit for an assumed 60
dividend, without an accurate written statement of the gross 61
premiums, cash values, and dividends based on the insurer's 62
current dividend scale, which are used to compute the net cost 63
for such policy, and a prominent warning that the rate of 64
dividend is not guaranteed, is a misrepresentation for the 65
purposes of this division. 66
(B) Making, publishing, disseminating, circulating, or 68
placing before the public or causing, directly or indirectly, to 69
be made, published, disseminated, circulated, or placed before 70
the public, in a newspaper, magazine, or other publication, or in 71
the form of a notice, circular, pamphlet, letter, or poster, or 72
over any radio station, or in any other way, or preparing with 73
intent to so use, an advertisement, announcement, or statement 74
containing any assertion, representation, or statement, with 75
respect to the business of insurance or with respect to any 76
person in the conduct of his THE PERSON'S insurance business, 77
which is untrue, deceptive, or misleading. 79
(C) Making, publishing, disseminating, or circulating, 81
directly or indirectly, or aiding, abetting, or encouraging the 82
making, publishing, disseminating, or circulating, or preparing 83
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with intent to so use, any statement, pamphlet, circular, 84
article, or literature, which is false as to the financial 85
condition of an insurer and which is calculated to injure any 86
person engaged in the business of insurance. 87
(D) Filing with any supervisory or other public official, 89
or making, publishing, disseminating, circulating, or delivering 90
to any person, or placing before the public, or causing directly 91
or indirectly to be made, published, disseminated, circulated, 92
delivered to any person, or placed before the public, any false 93
statement of financial condition of an insurer. 94
Making any false entry in any book, report, or statement of 96
any insurer with intent to deceive any agent or examiner lawfully 97
appointed to examine into its condition or into any of its 98
affairs, or any public official to whom such insurer is required 99
by law to report, or who has authority by law to examine into its 100
condition or into any of its affairs, or, with like intent, 101
willfully omitting to make a true entry of any material fact 102
pertaining to the business of such insurer in any book, report, 103
or statement of such insurer, or mutilating, destroying, 104
suppressing, withholding, or concealing any of its records. 105
(E) Issuing or delivering or permitting agents, officers, 107
or employees to issue or deliver agency company stock or other 108
capital stock or benefit certificates or shares in any common-law 109
corporation or securities or any special or advisory board 110
contracts or other contracts of any kind promising returns and 111
profits as an inducement to insurance. 112
(F) Making or permitting any unfair discrimination among 114
individuals of the same class and equal expectation of life in 115
the rates charged for any contract of life insurance or of life 116
annuity or in the dividends or other benefits payable thereon, or 117
in any other of the terms and conditions of such contract. 118
(G)(1) Except as otherwise expressly provided by law, 120
knowingly permitting or offering to make or making any contract 121
of life insurance, life annuity or accident and health insurance, 122
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or agreement as to such contract other than as plainly expressed 123
in the contract issued thereon, or paying or allowing, or giving 124
or offering to pay, allow, or give, directly or indirectly, as 125
inducement to such insurance, or annuity, any rebate of premiums 126
payable on the contract, or any special favor or advantage in the 127
dividends or other benefits thereon, or any valuable 128
consideration or inducement whatever not specified in the 129
contract; or giving, or selling, or purchasing, or offering to 130
give, sell, or purchase, as inducement to such insurance or 131
annuity or in connection therewith, any stocks, bonds, or other 132
securities, or other obligations of any insurance company or 133
other corporation, association, or partnership, or any dividends 134
or profits accrued thereon, or anything of value whatsoever not 135
specified in the contract. 136
(2) Nothing in division (F) or division (G)(1) of this 138
section shall be construed as prohibiting any of the following 139
practices: (a) in the case of any contract of life insurance or 140
life annuity, paying bonuses to policyholders or otherwise 141
abating their premiums in whole or in part out of surplus 142
accumulated from nonparticipating insurance, provided that any 143
such bonuses or abatement of premiums shall be fair and equitable 144
to policyholders and for the best interests of the company and 145
its policyholders; (b) in the case of life insurance policies 146
issued on the industrial debit plan, making allowance to 147
policyholders who have continuously for a specified period made 148
premium payments directly to an office of the insurer in an 149
amount which fairly represents the saving in collection expenses; 150
(c) readjustment of the rate of premium for a group insurance 151
policy based on the loss or expense experience thereunder, at the 152
end of the first or any subsequent policy year of insurance 153
thereunder, which may be made retroactive only for such policy 154
year. 155
(H) Making, issuing, circulating, or causing or permitting 157
to be made, issued, or circulated, or preparing with intent to so 158
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use, any statement to the effect that a policy of life insurance 159
is, is the equivalent of, or represents shares of capital stock 160
or any rights or options to subscribe for or otherwise acquire 161
any such shares in the life insurance company issuing that policy 162
or any other company. 163
(I) Making, issuing, circulating, or causing or permitting 165
to be made, issued or circulated, or preparing with intent to so 166
issue, any statement to the effect that payments to a 167
policyholder of the principal amounts of a pure endowment are 168
other than payments of a specific benefit for which specific 169
premiums have been paid. 170
(J) Making, issuing, circulating, or causing or permitting 172
to be made, issued, or circulated, or preparing with intent to so 173
use, any statement to the effect that any insurance company was 174
required to change a policy form or related material to comply 175
with Title XXXIX of the Revised Code or any regulation of the 176
superintendent of insurance, for the purpose of inducing or 177
intending to induce any policyholder or prospective policyholder 178
to purchase, amend, lapse, forfeit, change, or surrender 179
insurance. 180
(K) Aiding or abetting another to violate this section. 182
(L) Refusing to issue any policy of insurance, or 184
canceling or declining to renew such policy because of the sex or 185
marital status of the applicant, prospective insured, insured, or 186
policyholder. 187
(M) Making or permitting any unfair discrimination between 189
individuals of the same class and of essentially the same hazard 190
in the amount of premium, policy fees, or rates charged for any 191
policy or contract of insurance, other than life insurance, or in 192
the benefits payable thereunder, or in underwriting standards and 193
practices or eligibility requirements, or in any of the terms or 194
conditions of such contract, or in any other manner whatever. 195
(N) Refusing to make available disability income insurance 197
solely because the applicant's principal occupation is that of 198
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managing a household. 199
(O) Refusing, when offering maternity benefits under any 201
individual or group sickness and accident insurance policy, to 202
make maternity benefits available to the policyholder for the 203
individual or individuals to be covered under any comparable 204
policy to be issued for delivery in this state, including family 205
members if the policy otherwise provides coverage for family 206
members. Nothing in this division shall be construed to prohibit 207
an insurer from imposing a reasonable waiting period for such 208
benefits, but in no event shall such waiting period exceed two 209
hundred seventy days. 210
(P) Using, or permitting to be used, a pattern settlement 212
as the basis of any offer of settlement. As used in this 213
division, "pattern settlement" means a method by which liability 214
is routinely imputed to a claimant without an investigation of 215
the particular occurrence upon which the claim is based and by 216
using a predetermined formula for the assignment of liability 217
arising out of occurrences of a similar nature. Nothing in this 218
division shall be construed to prohibit an insurer from 219
determining a claimant's liability by applying formulas or 220
guidelines to the facts and circumstances disclosed by the 221
insurer's investigation of the particular occurrence upon which a 222
claim is based. 223
(Q) Refusing to insure, or refusing to continue to insure, 225
or limiting the amount, extent, or kind of life or sickness and 226
accident insurance or annuity coverage available to an 227
individual, or charging an individual a different rate for the 228
same coverage solely because of blindness or partial blindness. 229
With respect to all other conditions, including the underlying 230
cause of blindness or partial blindness, persons who are blind or 231
partially blind shall be subject to the same standards of sound 232
actuarial principles or actual or reasonably anticipated 233
actuarial experience as are sighted persons. Refusal to insure 234
includes, but is not limited to, denial by an insurer of 235
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disability insurance coverage on the grounds that the policy 236
defines "disability" as being presumed in the event that the 237
eyesight of the insured is lost. However, an insurer may exclude 238
from coverage disabilities consisting solely of blindness or 239
partial blindness when such conditions existed at the time the 240
policy was issued. To the extent that the provisions of this 241
division may appear to conflict with any provision of section 242
3999.16 of the Revised Code, this division applies. 243
(R)(1) Directly or indirectly offering to sell, selling, 245
or delivering, issuing for delivery, renewing, or using or 246
otherwise marketing any policy of insurance or insurance product 247
in connection with or in any way related to the grant of a 248
student loan guaranteed in whole or in part by an agency or 249
commission of this state or the United States, except insurance 250
that is required under federal or state law as a condition for 251
obtaining such a loan and the premium for which is included in 252
the fees and charges applicable to the loan; or, in the case of 253
an insurer or insurance agent, knowingly permitting any lender 254
making such loans to engage in such acts or practices in 255
connection with the insurer's or agent's insurance business. 256
(2) Except in the case of a violation of division (G) of 258
this section, division (R)(1) of this section does not apply to 259
either of the following: 260
(a) Acts or practices of an insurer, its agents, 262
representatives, or employees in connection with the grant of a 263
guaranteed student loan to its insured or the insured's spouse or 264
dependent children where such acts or practices take place more 265
than ninety days after the effective date of the insurance; 266
(b) Acts or practices of an insurer, its agents, 268
representatives, or employees in connection with the 269
solicitation, processing, or issuance of an insurance policy or 270
product covering the student loan borrower or his THE BORROWER'S 271
spouse or dependent children, where such acts or practices take 273
place more than one hundred eighty days after the date on which 274
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the borrower is notified that the student loan was approved. 275
(S) Denying coverage, under any health insurance or health 277
care policy, contract, or plan providing family coverage, to any 278
natural or adopted child of the named insured or subscriber 279
solely on the basis that the child does not reside in the 280
household of the named insured or subscriber. 281
(T)(1) Using any underwriting standard or engaging in any 283
other act or practice that, directly or indirectly, due solely to 284
the actual or expected health condition of one or more 285
individuals, does either of the following:
(a) Terminates or fails to renew an existing individual 287
policy, contract, or plan of health benefits, or a health benefit 288
plan issued to a small employer as those terms are defined in 289
section 3924.01 of the Revised Code, for which an individual 290
would otherwise be eligible;
(b) With respect to a health benefit plan issued to a 292
small employer, as those terms are defined in section 3924.01 of 293
the Revised Code, excludes or causes the exclusion of an 294
individual from coverage under an existing employer-provided 295
policy, contract, or plan of health benefits, except that an 296
insurer may exclude, on the basis of health status, a late
enrollee as defined in section 3924.01 of the Revised Code. 297
(2) The superintendent of insurance may adopt rules in 299
accordance with Chapter 119. of the Revised Code for purposes of 300
implementing division (T)(1) of this section. 301
(U) With respect to a health benefit plan issued to a 303
small employer, as those terms are defined in section 3924.01 of 304
the Revised Code, negligently or willfully placing coverage for 305
adverse risks with a certain carrier, as defined in section 306
3924.01 of the Revised Code.
(V) Using any program, scheme, device, or other unfair act 308
or practice that, directly or indirectly, causes or results in 309
the placing of coverage for adverse risks with another carrier, 310
as defined in section 3924.01 of the Revised Code. 311
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(W) Failing to comply with section 3923.23, 3923.231, 313
3923.232, 3923.233, or 3923.234 of the Revised Code by engaging 314
in any unfair, discriminatory reimbursement practice. 315
(X) Intentionally establishing an unfair premium for, or 317
misrepresenting the cost of, any insurance policy financed under 318
a premium finance agreement of an insurance premium finance 319
company. 320
(Y)(1)(a) LIMITING COVERAGE UNDER, REFUSING TO ISSUE, 322
CANCELING, OR REFUSING TO RENEW, ANY INDIVIDUAL POLICY OR 324
CONTRACT OF LIFE OR HEALTH INSURANCE, FOR THE REASON THAT THE 325
INSURED OR APPLICANT FOR INSURANCE IS OR HAS BEEN A VICTIM OF 327
DOMESTIC VIOLENCE OR RENDERS SERVICES TO VICTIMS OF DOMESTIC
VIOLENCE AS A SOCIAL WORKER OR COUNSELOR; 329
(b) ADDING A SURCHARGE OR RATING FACTOR TO A PREMIUM OF 331
ANY INDIVIDUAL POLICY OR CONTRACT OF LIFE OR HEALTH INSURANCE FOR 332
THE REASON THAT THE INSURED OR APPLICANT FOR INSURANCE IS OR HAS 333
BEEN A VICTIM OF DOMESTIC VIOLENCE OR RENDERS SERVICES TO VICTIMS 334
OF DOMESTIC VIOLENCE AS A SOCIAL WORKER OR COUNSELOR; 336
(c) DENYING COVERAGE UNDER, OR LIMITING COVERAGE UNDER, 338
ANY POLICY OR CONTRACT OF LIFE OR HEALTH INSURANCE, FOR THE 340
REASON THAT A CLAIM UNDER THE POLICY OR CONTRACT ARISES FROM AN 341
INCIDENT OF DOMESTIC VIOLENCE;
(d) INQUIRING, DIRECTLY OR INDIRECTLY, OF AN INSURED 343
UNDER, OR OF AN APPLICANT FOR, A POLICY OR CONTRACT OF LIFE OR 344
HEALTH INSURANCE, AS TO WHETHER THE INSURED OR APPLICANT IS OR 345
HAS BEEN A VICTIM OF DOMESTIC VIOLENCE, INQUIRING AS TO WHETHER 346
THE INSURED OR APPLICANT HAS SOUGHT SHELTER OR PROTECTION FROM 347
DOMESTIC VIOLENCE OR HAS SOUGHT MEDICAL OR PSYCHOLOGICAL
TREATMENT AS A VICTIM OF DOMESTIC VIOLENCE, OR INQUIRING AS TO 348
WHETHER THE INSURED OR APPLICANT RENDERS SERVICES TO VICTIMS OF 350
DOMESTIC VIOLENCE AS A SOCIAL WORKER OR COUNSELOR. 351
(2) NOTHING IN DIVISION (Y)(1) OF THIS SECTION SHALL BE 353
CONSTRUED TO PROHIBIT AN INSURER FROM INQUIRING AS TO, OR FROM 354
UNDERWRITING OR RATING A RISK ON THE BASIS OF, A PERSON'S 356
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PHYSICAL OR MENTAL CONDITION, EVEN IF THE CONDITION HAS BEEN 358
CAUSED BY DOMESTIC VIOLENCE, PROVIDED THAT ALL OF THE FOLLOWING
APPLY: 359
(a) THE INSURER ROUTINELY CONSIDERS THE CONDITION IN 361
UNDERWRITING OR IN RATING RISKS, AND DOES SO IN THE SAME MANNER 362
FOR A VICTIM OF DOMESTIC VIOLENCE AS FOR AN INSURED OR APPLICANT 363
WHO IS NOT A VICTIM OF DOMESTIC VIOLENCE; 364
(b) THE INSURER DOES NOT REFUSE TO ISSUE, CANCEL, OR 366
REFUSE TO RENEW ANY POLICY OR CONTRACT OF LIFE OR HEALTH 367
INSURANCE SOLELY ON THE BASIS OF THE CONDITION, EXCEPT WHERE THE 368
REFUSAL TO ISSUE, THE CANCELLATION, OR THE REFUSAL TO RENEW IS 369
BASED ON SOUND ACTUARIAL PRINCIPLES OR IS RELATED TO ACTUAL OR
REASONABLY ANTICIPATED EXPERIENCE; 370
(c) THE INSURER DOES NOT CONSIDER A PERSON'S STATUS AS 372
BEING OR AS HAVING BEEN A VICTIM OF DOMESTIC VIOLENCE, IN ITSELF, 373
TO BE A PHYSICAL OR MENTAL CONDITION; 374
(d) THE UNDERWRITING OR RATING OF A RISK ON THE BASIS OF 376
THE CONDITION IS NOT USED TO EVADE THE INTENT OF DIVISION (Y)(1) 378
OF THIS SECTION, OR OF ANY OTHER PROVISION OF THE REVISED CODE. 380
(3) NOTHING IN DIVISION (Y)(1) OF THIS SECTION SHALL BE 382
CONSTRUED TO PROHIBIT AN INSURER FROM REFUSING TO ISSUE A POLICY 383
OR CONTRACT OF LIFE INSURANCE INSURING THE LIFE OF A PERSON WHO 384
IS OR HAS BEEN A VICTIM OF DOMESTIC VIOLENCE IF THE PERSON WHO 385
COMMITTED THE ACT OF DOMESTIC VIOLENCE IS THE APPLICANT FOR THE 386
INSURANCE OR WOULD BE THE OWNER OF THE INSURANCE POLICY OR 387
CONTRACT.
(4) AN INSURER IS IMMUNE FROM ANY CIVIL OR CRIMINAL 390
LIABILITY THAT OTHERWISE MIGHT BE INCURRED OR IMPOSED AS A RESULT
OF ANY ACTION TAKEN BY THE INSURER TO COMPLY WITH DIVISION (Y) OF 392
THIS SECTION.
(5) AS USED IN DIVISION (Y) OF THIS SECTION: 394
(a) "DOMESTIC VIOLENCE" MEANS ANY OF THE FOLLOWING ACTS: 397
(i) KNOWINGLY CAUSING OR ATTEMPTING TO CAUSE PHYSICAL HARM 399
TO A FAMILY OR HOUSEHOLD MEMBER; 401
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(ii) RECKLESSLY CAUSING SERIOUS PHYSICAL HARM TO A FAMILY 403
OR HOUSEHOLD MEMBER; 405
(iii) KNOWINGLY CAUSING, BY THREAT OF FORCE, A FAMILY OR 407
HOUSEHOLD MEMBER TO BELIEVE THAT THE PERSON WILL CAUSE IMMINENT 408
PHYSICAL HARM TO THE FAMILY OR HOUSEHOLD MEMBER. 409
FOR THE PURPOSE OF DIVISION (Y)(5)(a) OF THIS SECTION, 412
"FAMILY OR HOUSEHOLD MEMBER" HAS THE SAME MEANING AS IN SECTION 413
2919.25 OF THE REVISED CODE. 414
NOTHING IN DIVISION (Y)(5)(a) OF THIS SECTION SHALL BE 417
CONSTRUED TO REQUIRE, AS A CONDITION TO THE APPLICATION OF 418
DIVISION (Y) OF THIS SECTION, THAT THE ACT DESCRIBED IN DIVISION 420
(Y)(5)(a) BE THE BASIS OF A CRIMINAL PROSECUTION. 421
(b) "SOCIAL WORKER" MEANS ANY PERSON WHO IS LICENSED OR 423
CERTIFIED UNDER CHAPTER 4757. OF THE REVISED CODE TO PRACTICE 426
SOCIAL WORK, OR WHO IS REGISTERED UNDER CHAPTER 4757. OF THE 428
REVISED CODE AS A SOCIAL WORK ASSISTANT. 429
(c) "COUNSELOR" MEANS ANY PERSON WHO IS LICENSED UNDER 432
CHAPTER 4757. OF THE REVISED CODE TO ENGAGE IN THE PRACTICE OF 434
PROFESSIONAL COUNSELING.
With respect to private passenger automobile insurance, no 436
insurer shall charge different premium rates to persons residing 437
within the limits of any municipal corporation based solely on 438
the location of the residence of the insured within those limits. 439
The enumeration in sections 3901.19 to 3901.26 of the 441
Revised Code of specific unfair or deceptive acts or practices in 442
the business of insurance is not exclusive or restrictive or 443
intended to limit the powers of the superintendent of insurance 444
to adopt rules to implement this section, or to take action under 445
other sections of the Revised Code. 446
This section does not prohibit the sale of shares of any 448
investment company registered under the "Investment Company Act 449
of 1940," 54 Stat. 789, 15 U.S.C.A. 80a-1, as amended, or any 450
policies, annuities, or other contracts described in section 451
3907.15 of the Revised Code. 452
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As used in this section, "estimate," "statement," 454
"representation," "misrepresentation," "advertisement," or 455
"announcement" includes oral or written occurrences. 456
Section 2. That existing section 3901.21 of the Revised 458
Code is hereby repealed. 459