As Passed by the House 1
122nd General Assembly 4
Regular Session Am. 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-SHEERER- 9
GARDNER-HORN-ESPY-McLIN-DRAKE-HERINGTON-DiDONATO-FURNEY- 10
HAGAN-SCHAFRATH-FINAN-REPRESENTATIVES MOTTLEY-TAVARES- 11
HAINES-HOUSEHOLDER-HEALY-GARCIA-LEWIS-METELSKY-SCHUCK- 12
JERSE-BUCHY-REID-LOGAN-MAIER-THOMAS-PADGETT-TERWILLEGER- 13
PRINGLE-LUCAS-SULZER-PATTON-JOHNSON-WOMER BENJAMIN-SUTTON- 14
THOMPSON-BOYD-MEAD-FORD-SALERNO-CORBIN-METZGER-MYERS- 15
BRADING-CORE-OLMAN-MILLER-OPFER-BRADY-VESPER-GARDNER- 16
DAMSCHRODER-HARRIS-O'BRIEN-ROMAN-SYKES-GRENDELL 17
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A B I L L
To amend section 3901.21 of the Revised Code to make 20
it an unfair practice for an insurer to take 21
certain adverse actions against policies and 22
contracts of life and health insurance based on 24
an applicant's or insured's status as a victim of
domestic violence, and to provide civil and 26
criminal immunity to an insurer acting in 28
compliance with this act. 29
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 31
Section 1. That section 3901.21 of the Revised Code be 33
amended to read as follows: 34
Sec. 3901.21. The following are hereby defined as unfair 43
and deceptive acts or practices in the business of insurance: 44
(A) Making, issuing, circulating, or causing or permitting 46
to be made, issued, or circulated, or preparing with intent to so 47
use, any estimate, illustration, circular, or statement 48
misrepresenting the terms of any policy issued or to be issued or 49
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the benefits or advantages promised thereby or the dividends or 50
share of the surplus to be received thereon, or making any false 51
or misleading statements as to the dividends or share of surplus 52
previously paid on similar policies, or making any misleading 53
representation or any misrepresentation as to the financial 54
condition of any insurer as shown by the last preceding verified 55
statement made by it to the insurance department of this state, 56
or as to the legal reserve system upon which any life insurer 57
operates, or using any name or title of any policy or class of 58
policies misrepresenting the true nature thereof, or making any 59
misrepresentation or incomplete comparison to any person for the 60
purpose of inducing or tending to induce such person to purchase, 61
amend, lapse, forfeit, change, or surrender insurance. 62
Any written statement concerning the premiums for a policy 64
which refers to the net cost after credit for an assumed 65
dividend, without an accurate written statement of the gross 66
premiums, cash values, and dividends based on the insurer's 67
current dividend scale, which are used to compute the net cost 68
for such policy, and a prominent warning that the rate of 69
dividend is not guaranteed, is a misrepresentation for the 70
purposes of this division. 71
(B) Making, publishing, disseminating, circulating, or 73
placing before the public or causing, directly or indirectly, to 74
be made, published, disseminated, circulated, or placed before 75
the public, in a newspaper, magazine, or other publication, or in 76
the form of a notice, circular, pamphlet, letter, or poster, or 77
over any radio station, or in any other way, or preparing with 78
intent to so use, an advertisement, announcement, or statement 79
containing any assertion, representation, or statement, with 80
respect to the business of insurance or with respect to any 81
person in the conduct of his THE PERSON'S insurance business, 82
which is untrue, deceptive, or misleading. 84
(C) Making, publishing, disseminating, or circulating, 86
directly or indirectly, or aiding, abetting, or encouraging the 87
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making, publishing, disseminating, or circulating, or preparing 88
with intent to so use, any statement, pamphlet, circular, 89
article, or literature, which is false as to the financial 90
condition of an insurer and which is calculated to injure any 91
person engaged in the business of insurance. 92
(D) Filing with any supervisory or other public official, 94
or making, publishing, disseminating, circulating, or delivering 95
to any person, or placing before the public, or causing directly 96
or indirectly to be made, published, disseminated, circulated, 97
delivered to any person, or placed before the public, any false 98
statement of financial condition of an insurer. 99
Making any false entry in any book, report, or statement of 101
any insurer with intent to deceive any agent or examiner lawfully 102
appointed to examine into its condition or into any of its 103
affairs, or any public official to whom such insurer is required 104
by law to report, or who has authority by law to examine into its 105
condition or into any of its affairs, or, with like intent, 106
willfully omitting to make a true entry of any material fact 107
pertaining to the business of such insurer in any book, report, 108
or statement of such insurer, or mutilating, destroying, 109
suppressing, withholding, or concealing any of its records. 110
(E) Issuing or delivering or permitting agents, officers, 112
or employees to issue or deliver agency company stock or other 113
capital stock or benefit certificates or shares in any common-law 114
corporation or securities or any special or advisory board 115
contracts or other contracts of any kind promising returns and 116
profits as an inducement to insurance. 117
(F) Making or permitting any unfair discrimination among 119
individuals of the same class and equal expectation of life in 120
the rates charged for any contract of life insurance or of life 121
annuity or in the dividends or other benefits payable thereon, or 122
in any other of the terms and conditions of such contract. 123
(G)(1) Except as otherwise expressly provided by law, 125
knowingly permitting or offering to make or making any contract 126
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of life insurance, life annuity or accident and health insurance, 127
or agreement as to such contract other than as plainly expressed 128
in the contract issued thereon, or paying or allowing, or giving 129
or offering to pay, allow, or give, directly or indirectly, as 130
inducement to such insurance, or annuity, any rebate of premiums 131
payable on the contract, or any special favor or advantage in the 132
dividends or other benefits thereon, or any valuable 133
consideration or inducement whatever not specified in the 134
contract; or giving, or selling, or purchasing, or offering to 135
give, sell, or purchase, as inducement to such insurance or 136
annuity or in connection therewith, any stocks, bonds, or other 137
securities, or other obligations of any insurance company or 138
other corporation, association, or partnership, or any dividends 139
or profits accrued thereon, or anything of value whatsoever not 140
specified in the contract. 141
(2) Nothing in division (F) or division (G)(1) of this 143
section shall be construed as prohibiting any of the following 144
practices: (a) in the case of any contract of life insurance or 145
life annuity, paying bonuses to policyholders or otherwise 146
abating their premiums in whole or in part out of surplus 147
accumulated from nonparticipating insurance, provided that any 148
such bonuses or abatement of premiums shall be fair and equitable 149
to policyholders and for the best interests of the company and 150
its policyholders; (b) in the case of life insurance policies 151
issued on the industrial debit plan, making allowance to 152
policyholders who have continuously for a specified period made 153
premium payments directly to an office of the insurer in an 154
amount which fairly represents the saving in collection expenses; 155
(c) readjustment of the rate of premium for a group insurance 156
policy based on the loss or expense experience thereunder, at the 157
end of the first or any subsequent policy year of insurance 158
thereunder, which may be made retroactive only for such policy 159
year. 160
(H) Making, issuing, circulating, or causing or permitting 162
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to be made, issued, or circulated, or preparing with intent to so 163
use, any statement to the effect that a policy of life insurance 164
is, is the equivalent of, or represents shares of capital stock 165
or any rights or options to subscribe for or otherwise acquire 166
any such shares in the life insurance company issuing that policy 167
or any other company. 168
(I) Making, issuing, circulating, or causing or permitting 170
to be made, issued or circulated, or preparing with intent to so 171
issue, any statement to the effect that payments to a 172
policyholder of the principal amounts of a pure endowment are 173
other than payments of a specific benefit for which specific 174
premiums have been paid. 175
(J) Making, issuing, circulating, or causing or permitting 177
to be made, issued, or circulated, or preparing with intent to so 178
use, any statement to the effect that any insurance company was 179
required to change a policy form or related material to comply 180
with Title XXXIX of the Revised Code or any regulation of the 181
superintendent of insurance, for the purpose of inducing or 182
intending to induce any policyholder or prospective policyholder 183
to purchase, amend, lapse, forfeit, change, or surrender 184
insurance. 185
(K) Aiding or abetting another to violate this section. 187
(L) Refusing to issue any policy of insurance, or 189
canceling or declining to renew such policy because of the sex or 190
marital status of the applicant, prospective insured, insured, or 191
policyholder. 192
(M) Making or permitting any unfair discrimination between 194
individuals of the same class and of essentially the same hazard 195
in the amount of premium, policy fees, or rates charged for any 196
policy or contract of insurance, other than life insurance, or in 197
the benefits payable thereunder, or in underwriting standards and 198
practices or eligibility requirements, or in any of the terms or 199
conditions of such contract, or in any other manner whatever. 200
(N) Refusing to make available disability income insurance 202
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solely because the applicant's principal occupation is that of 203
managing a household. 204
(O) Refusing, when offering maternity benefits under any 206
individual or group sickness and accident insurance policy, to 207
make maternity benefits available to the policyholder for the 208
individual or individuals to be covered under any comparable 209
policy to be issued for delivery in this state, including family 210
members if the policy otherwise provides coverage for family 211
members. Nothing in this division shall be construed to prohibit 212
an insurer from imposing a reasonable waiting period for such 213
benefits, but in no event shall such waiting period exceed two 214
hundred seventy days. 215
(P) Using, or permitting to be used, a pattern settlement 217
as the basis of any offer of settlement. As used in this 218
division, "pattern settlement" means a method by which liability 219
is routinely imputed to a claimant without an investigation of 220
the particular occurrence upon which the claim is based and by 221
using a predetermined formula for the assignment of liability 222
arising out of occurrences of a similar nature. Nothing in this 223
division shall be construed to prohibit an insurer from 224
determining a claimant's liability by applying formulas or 225
guidelines to the facts and circumstances disclosed by the 226
insurer's investigation of the particular occurrence upon which a 227
claim is based. 228
(Q) Refusing to insure, or refusing to continue to insure, 230
or limiting the amount, extent, or kind of life or sickness and 231
accident insurance or annuity coverage available to an 232
individual, or charging an individual a different rate for the 233
same coverage solely because of blindness or partial blindness. 234
With respect to all other conditions, including the underlying 235
cause of blindness or partial blindness, persons who are blind or 236
partially blind shall be subject to the same standards of sound 237
actuarial principles or actual or reasonably anticipated 238
actuarial experience as are sighted persons. Refusal to insure 239
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includes, but is not limited to, denial by an insurer of 240
disability insurance coverage on the grounds that the policy 241
defines "disability" as being presumed in the event that the 242
eyesight of the insured is lost. However, an insurer may exclude 243
from coverage disabilities consisting solely of blindness or 244
partial blindness when such conditions existed at the time the 245
policy was issued. To the extent that the provisions of this 246
division may appear to conflict with any provision of section 247
3999.16 of the Revised Code, this division applies. 248
(R)(1) Directly or indirectly offering to sell, selling, 250
or delivering, issuing for delivery, renewing, or using or 251
otherwise marketing any policy of insurance or insurance product 252
in connection with or in any way related to the grant of a 253
student loan guaranteed in whole or in part by an agency or 254
commission of this state or the United States, except insurance 255
that is required under federal or state law as a condition for 256
obtaining such a loan and the premium for which is included in 257
the fees and charges applicable to the loan; or, in the case of 258
an insurer or insurance agent, knowingly permitting any lender 259
making such loans to engage in such acts or practices in 260
connection with the insurer's or agent's insurance business. 261
(2) Except in the case of a violation of division (G) of 263
this section, division (R)(1) of this section does not apply to 264
either of the following: 265
(a) Acts or practices of an insurer, its agents, 267
representatives, or employees in connection with the grant of a 268
guaranteed student loan to its insured or the insured's spouse or 269
dependent children where such acts or practices take place more 270
than ninety days after the effective date of the insurance; 271
(b) Acts or practices of an insurer, its agents, 273
representatives, or employees in connection with the 274
solicitation, processing, or issuance of an insurance policy or 275
product covering the student loan borrower or his THE BORROWER'S 276
spouse or dependent children, where such acts or practices take 278
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place more than one hundred eighty days after the date on which 279
the borrower is notified that the student loan was approved. 280
(S) Denying coverage, under any health insurance or health 282
care policy, contract, or plan providing family coverage, to any 283
natural or adopted child of the named insured or subscriber 284
solely on the basis that the child does not reside in the 285
household of the named insured or subscriber. 286
(T)(1) Using any underwriting standard or engaging in any 288
other act or practice that, directly or indirectly, due solely to 289
the actual or expected health condition of one or more 290
individuals, does either of the following:
(a) Terminates or fails to renew an existing individual 292
policy, contract, or plan of health benefits, or a health benefit 293
plan issued to a small employer as those terms are defined in 294
section 3924.01 of the Revised Code, for which an individual 295
would otherwise be eligible;
(b) With respect to a health benefit plan issued to a 297
small employer, as those terms are defined in section 3924.01 of 298
the Revised Code, excludes or causes the exclusion of an 299
individual from coverage under an existing employer-provided 300
policy, contract, or plan of health benefits, except that an 301
insurer may exclude, on the basis of health status, a late
enrollee as defined in section 3924.01 of the Revised Code. 302
(2) The superintendent of insurance may adopt rules in 304
accordance with Chapter 119. of the Revised Code for purposes of 305
implementing division (T)(1) of this section. 306
(U) With respect to a health benefit plan issued to a 308
small employer, as those terms are defined in section 3924.01 of 309
the Revised Code, negligently or willfully placing coverage for 310
adverse risks with a certain carrier, as defined in section 311
3924.01 of the Revised Code.
(V) Using any program, scheme, device, or other unfair act 313
or practice that, directly or indirectly, causes or results in 314
the placing of coverage for adverse risks with another carrier, 315
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as defined in section 3924.01 of the Revised Code. 316
(W) Failing to comply with section 3923.23, 3923.231, 318
3923.232, 3923.233, or 3923.234 of the Revised Code by engaging 319
in any unfair, discriminatory reimbursement practice. 320
(X) Intentionally establishing an unfair premium for, or 322
misrepresenting the cost of, any insurance policy financed under 323
a premium finance agreement of an insurance premium finance 324
company. 325
(Y)(1)(a) LIMITING COVERAGE UNDER, REFUSING TO ISSUE, 327
CANCELING, OR REFUSING TO RENEW, ANY INDIVIDUAL POLICY OR 329
CONTRACT OF LIFE INSURANCE, OR LIMITING COVERAGE UNDER OR 332
REFUSING TO ISSUE ANY INDIVIDUAL POLICY OR CONTRACT OF HEALTH 333
INSURANCE, FOR THE REASON THAT THE INSURED OR APPLICANT FOR 334
INSURANCE IS OR HAS BEEN A VICTIM OF DOMESTIC VIOLENCE; 336
(b) ADDING A SURCHARGE OR RATING FACTOR TO A PREMIUM OF 338
ANY INDIVIDUAL POLICY OR CONTRACT OF LIFE OR HEALTH INSURANCE FOR 339
THE REASON THAT THE INSURED OR APPLICANT FOR INSURANCE IS OR HAS 340
BEEN A VICTIM OF DOMESTIC VIOLENCE; 341
(c) DENYING COVERAGE UNDER, OR LIMITING COVERAGE UNDER, 343
ANY POLICY OR CONTRACT OF LIFE OR HEALTH INSURANCE, FOR THE 345
REASON THAT A CLAIM UNDER THE POLICY OR CONTRACT ARISES FROM AN 346
INCIDENT OF DOMESTIC VIOLENCE;
(d) INQUIRING, DIRECTLY OR INDIRECTLY, OF AN INSURED 348
UNDER, OR OF AN APPLICANT FOR, A POLICY OR CONTRACT OF LIFE OR 349
HEALTH INSURANCE, AS TO WHETHER THE INSURED OR APPLICANT IS OR 350
HAS BEEN A VICTIM OF DOMESTIC VIOLENCE, OR INQUIRING AS TO 351
WHETHER THE INSURED OR APPLICANT HAS SOUGHT SHELTER OR PROTECTION 352
FROM DOMESTIC VIOLENCE OR HAS SOUGHT MEDICAL OR PSYCHOLOGICAL
TREATMENT AS A VICTIM OF DOMESTIC VIOLENCE. 353
(2) NOTHING IN DIVISION (Y)(1) OF THIS SECTION SHALL BE 355
CONSTRUED TO PROHIBIT AN INSURER FROM INQUIRING AS TO, OR FROM 356
UNDERWRITING OR RATING A RISK ON THE BASIS OF, A PERSON'S 358
PHYSICAL OR MENTAL CONDITION, EVEN IF THE CONDITION HAS BEEN 360
CAUSED BY DOMESTIC VIOLENCE, PROVIDED THAT ALL OF THE FOLLOWING
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APPLY: 361
(a) THE INSURER ROUTINELY CONSIDERS THE CONDITION IN 363
UNDERWRITING OR IN RATING RISKS, AND DOES SO IN THE SAME MANNER 364
FOR A VICTIM OF DOMESTIC VIOLENCE AS FOR AN INSURED OR APPLICANT 365
WHO IS NOT A VICTIM OF DOMESTIC VIOLENCE; 366
(b) THE INSURER DOES NOT REFUSE TO ISSUE ANY POLICY OR 369
CONTRACT OF LIFE OR HEALTH INSURANCE OR CANCEL OR REFUSE TO RENEW 371
ANY POLICY OR CONTRACT OF LIFE INSURANCE, SOLELY ON THE BASIS OF
THE CONDITION, EXCEPT WHERE SUCH REFUSAL TO ISSUE, CANCELLATION, 372
OR REFUSAL TO RENEW IS BASED ON SOUND ACTUARIAL PRINCIPLES OR IS 373
RELATED TO ACTUAL OR REASONABLY ANTICIPATED EXPERIENCE; 374
(c) THE INSURER DOES NOT CONSIDER A PERSON'S STATUS AS 376
BEING OR AS HAVING BEEN A VICTIM OF DOMESTIC VIOLENCE, IN ITSELF, 377
TO BE A PHYSICAL OR MENTAL CONDITION; 378
(d) THE UNDERWRITING OR RATING OF A RISK ON THE BASIS OF 380
THE CONDITION IS NOT USED TO EVADE THE INTENT OF DIVISION (Y)(1) 382
OF THIS SECTION, OR OF ANY OTHER PROVISION OF THE REVISED CODE. 384
(3)(a) NOTHING IN DIVISION (Y)(1) OF THIS SECTION SHALL BE 387
CONSTRUED TO PROHIBIT AN INSURER FROM REFUSING TO ISSUE A POLICY 388
OR CONTRACT OF LIFE INSURANCE INSURING THE LIFE OF A PERSON WHO 389
IS OR HAS BEEN A VICTIM OF DOMESTIC VIOLENCE IF THE PERSON WHO 390
COMMITTED THE ACT OF DOMESTIC VIOLENCE IS THE APPLICANT FOR THE 391
INSURANCE OR WOULD BE THE OWNER OF THE INSURANCE POLICY OR 392
CONTRACT.
(b) NOTHING IN DIVISION (Y)(2) OF THIS SECTION SHALL BE 395
CONSTRUED TO PERMIT AN INSURER TO CANCEL OR REFUSE TO RENEW ANY 396
POLICY OR CONTRACT OF HEALTH INSURANCE IN VIOLATION OF THE 397
"HEALTH INSURANCE PORTABILITY AND ACCOUNTABILITY ACT OF 1996," 398
110 STAT. 1955, 42 U.S.C.A. 300gg-41(b), AS AMENDED, OR IN A 400
MANNER THAT VIOLATES OR IS INCONSISTENT WITH ANY PROVISION OF THE 401
REVISED CODE THAT IMPLEMENTS THE "HEALTH INSURANCE PORTABILITY 403
AND ACCOUNTABILITY ACT OF 1996." 404
(4) AN INSURER IS IMMUNE FROM ANY CIVIL OR CRIMINAL 407
LIABILITY THAT OTHERWISE MIGHT BE INCURRED OR IMPOSED AS A RESULT
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OF ANY ACTION TAKEN BY THE INSURER TO COMPLY WITH DIVISION (Y) OF 409
THIS SECTION.
(5) AS USED IN DIVISION (Y) OF THIS SECTION, "DOMESTIC 412
VIOLENCE" MEANS ANY OF THE FOLLOWING ACTS: 413
(a) KNOWINGLY CAUSING OR ATTEMPTING TO CAUSE PHYSICAL HARM 415
TO A FAMILY OR HOUSEHOLD MEMBER; 417
(b) RECKLESSLY CAUSING SERIOUS PHYSICAL HARM TO A FAMILY 419
OR HOUSEHOLD MEMBER; 421
(c) KNOWINGLY CAUSING, BY THREAT OF FORCE, A FAMILY OR 423
HOUSEHOLD MEMBER TO BELIEVE THAT THE PERSON WILL CAUSE IMMINENT 424
PHYSICAL HARM TO THE FAMILY OR HOUSEHOLD MEMBER. 425
FOR THE PURPOSE OF DIVISION (Y)(5) OF THIS SECTION, "FAMILY 429
OR HOUSEHOLD MEMBER" HAS THE SAME MEANING AS IN SECTION 2919.25
OF THE REVISED CODE. 430
NOTHING IN DIVISION (Y)(5) OF THIS SECTION SHALL BE 433
CONSTRUED TO REQUIRE, AS A CONDITION TO THE APPLICATION OF 434
DIVISION (Y) OF THIS SECTION, THAT THE ACT DESCRIBED IN DIVISION 436
(Y)(5) OF THIS SECTION BE THE BASIS OF A CRIMINAL PROSECUTION. 438
With respect to private passenger automobile insurance, no 440
insurer shall charge different premium rates to persons residing 441
within the limits of any municipal corporation based solely on 442
the location of the residence of the insured within those limits. 443
The enumeration in sections 3901.19 to 3901.26 of the 445
Revised Code of specific unfair or deceptive acts or practices in 446
the business of insurance is not exclusive or restrictive or 447
intended to limit the powers of the superintendent of insurance 448
to adopt rules to implement this section, or to take action under 449
other sections of the Revised Code. 450
This section does not prohibit the sale of shares of any 452
investment company registered under the "Investment Company Act 453
of 1940," 54 Stat. 789, 15 U.S.C.A. 80a-1, as amended, or any 454
policies, annuities, or other contracts described in section 455
3907.15 of the Revised Code. 456
As used in this section, "estimate," "statement," 458
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"representation," "misrepresentation," "advertisement," or 459
"announcement" includes oral or written occurrences. 460
Section 2. That existing section 3901.21 of the Revised 462
Code is hereby repealed. 463