As Introduced 1
123rd General Assembly 4
Regular Session H. B. No. 730 5
1999-2000 6
REPRESENTATIVES GOODMAN-VERICH-PETERSON-EVANS-COUGHLIN- 8
CORBIN-WOMER BENJAMIN-ROBINSON-A. CORE-JOLIVETTE- 9
TERWILLEGER-JERSE-DAMSCHRODER-VESPER-STAPLETON-OLMAN- 10
HOLLISTER-BRITTON-METTLER-WIDENER-DISTEL-OGG-GRENDELL- 11
ASLANIDES-FLANNERY-WILSON-JACOBSON-TAYLOR-STEVENS 12
_________________________________________________________________ 13
A B I L L
To amend sections 3905.01, 3905.011, 3905.012, 15
3905.48, 3905.49, 3905.55, 3905.86, and 3905.99; 16
to amend, for the purpose of adopting a new
section number as indicated in parentheses, 17
section 3905.86 (3905.81); and to enact new 18
section 3905.86 and sections 2927.27, 2927.28,
2927.29, 3905.83, 3905.84, 3905.841, 3905.85, 20
3905.851, 3905.861, 3905.862, 3905.87 to 3905.92, 21
3905.921, 3905.93, 3905.931, 3905.932, 3905.933, 22
3905.934, 3905.94, 3905.941, and 3905.95 of the
Revised Code relative to the regulation of surety 23
bail bond agents and the apprehension or arrest 24
of a principal on bond.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 26
Section 1. That sections 3905.01, 3905.011, 3905.012, 29
3905.48, 3905.49, 3905.55, 3905.86, and 3905.99 be amended, 30
section 3905.86 (3905.81) be amended for the purpose of adopting 31
a new section number as indicated in parentheses, and new section 32
3905.86 and sections 2927.27, 2927.28, 2927.29, 3905.83, 3905.84, 33
3905.841, 3905.85, 3905.851, 3905.861, 3905.862, 3905.87,
3905.88, 3905.89, 3905.90, 3905.91, 3905.92, 3905.921, 3905.93, 35
3905.931, 3905.932, 3905.933, 3905.934, 3905.94, 3905.941, and 36
2
3905.95 of the Revised Code be enacted to read as follows:
Sec. 2927.27. NO PERSON, OTHER THAN A LAW ENFORCEMENT 38
OFFICER, SHALL BE AUTHORIZED TO APPREHEND, DETAIN, OR ARREST A 39
PRINCIPAL ON BOND, WHEREVER ISSUED, UNLESS THAT PERSON MEETS ALL 40
OF THE FOLLOWING CRITERIA: 41
(A) THE PERSON IS ANY OF THE FOLLOWING: 43
(1) QUALIFIED, LICENSED, AND APPOINTED AS A SURETY BAIL 44
BOND AGENT UNDER SECTIONS 3905.83 TO 3905.95 OF THE REVISED CODE; 46
(2) LICENSED AS A SURETY BAIL BOND AGENT BY THE STATE 48
WHERE THE BOND WAS WRITTEN; 49
(3) LICENSED AS A PRIVATE INVESTIGATOR UNDER CHAPTER 4749. 51
OF THE REVISED CODE; 52
(4) LICENSED AS A PRIVATE INVESTIGATOR BY THE STATE WHERE 54
THE BOND WAS WRITTEN; 55
(5) AN OFF-DUTY PEACE OFFICER, AS DEFINED IN SECTION 57
2921.51 OF THE REVISED CODE. 58
(B) THE PERSON, PRIOR TO APPREHENDING, DETAINING, OR 60
ARRESTING THE PRINCIPAL, HAS ENTERED INTO A WRITTEN CONTRACT WITH 61
THE SURETY OR WITH A LICENSED SURETY BAIL BOND AGENT APPOINTED BY
THE SURETY, WHICH CONTRACT SETS FORTH THE NAME OF THE PRINCIPAL 62
WHO IS TO BE APPREHENDED, DETAINED, OR ARRESTED. 63
FOR PURPOSES OF THIS DIVISION, "SURETY" HAS THE SAME 65
MEANING AS IN SECTION 3905.83 OF THE REVISED CODE. 66
(C) THE PERSON, PRIOR TO APPREHENDING, DETAINING, OR 68
ARRESTING THE PRINCIPAL, HAS NOTIFIED THE LOCAL LAW ENFORCEMENT 69
AGENCY HAVING JURISDICTION OVER THE AREA IN WHICH SUCH ACTIVITIES 70
WILL BE PERFORMED AND HAS PROVIDED ANY FORM OF IDENTIFICATION OR 71
OTHER INFORMATION REQUESTED BY THE LAW ENFORCEMENT AGENCY. 72
Sec. 2927.28. NO PERSON SHALL REPRESENT SELF TO BE A BAIL 74
ENFORCEMENT AGENT OR BOUNTY HUNTER, OR CLAIM ANY SIMILAR TITLE, 75
IN THIS STATE. 76
Sec. 2927.29. WHOEVER VIOLATES SECTION 2927.27 OR 2927.28 78
OF THE REVISED CODE IS GUILTY OF A MISDEMEANOR OF THE FIRST 80
DEGREE ON A FIRST OR SECOND OFFENSE AND OF A FELONY OF THE THIRD 81
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DEGREE ON EACH SUBSEQUENT OFFENSE.
Sec. 3905.01. (A) No person shall procure an application 91
or quote premiums for, discuss coverages of, or solicit, 92
negotiate, effect, procure, place, write, deliver, renew, or 93
bind, a policy of insurance, INCLUDING ANY FIDELITY, SURETY, OR 94
GUARANTY BOND, through any medium for risks residing, located, or 95
to be performed in this state, unless the person is licensed by 96
the superintendent of insurance in accordance with this chapter. 98
(B) Division (A) of this section does not apply to any of 102
the following persons:
(1) An insurer as defined in section 3901.32 of the 104
Revised Code;
(2) Any person who furnishes information regarding group 106
insurance, enrolls individuals in group insurance plans, issues 107
certificates under such plans, or otherwise assists in 108
administering such plans, if no commission or other form of 109
compensation related to premium or sales volume is paid for such 110
services; 111
(3) Any employee of a creditor with respect to insurance 113
products made available only in connection with a credit 115
transaction, including credit life insurance, credit disability 116
or accident and health insurance, credit property insurance,
mortgage life insurance, mortgage accident and health insurance, 117
involuntary unemployment insurance, individual life insurance, 118
and individual disability or accident and health insurance, if 119
the entire premium is financed as part of the credit transaction 120
and the following conditions are met:
(a) If the insurance product is an individual life 122
insurance policy, a licensed agent is responsible for the 123
insurance transaction.
(b) If the employee of the creditor is paid by the 125
insurance agent or by the insurance company, the employee holds a 126
limited authority license. 127
For purposes of division (B)(3) of this section, "credit 129
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property insurance" means insurance covering risks of loss, 130
damage, and destruction of property used as security for a credit 131
transaction, which insurance may also cover other property that 133
is merely incidental to the property used as security for the 135
credit transaction.
(4) Any employer, or officer or employee of an employer, 138
to the extent that the employer, officer, or employee is engaged 139
in the administration or operation of any employee benefits 140
program involving the use of insurance for the employer's 141
employees or the employees of a subsidiary or affiliate of the 142
employer, provided that the employer, officer, or employee is not 144
compensated, either directly or indirectly, in any manner by an 145
insurance agent or by the insurance company issuing the
insurance; 146
(5) An adjuster employed by or representing an insurer in 149
the adjustment of claims or a public insurance adjuster holding a 150
certificate of authority issued under Chapter 3951. of the 151
Revised Code when performing the duties of a public insurance 154
adjuster.
(C) Division (A) of this section does not apply to any of 158
the following activities when performed by an employee of, and at 159
the direction of, an insurer or licensed insurance agent: 160
(1) The acceptance of premiums other than the initial 162
premium; 163
(2) The gathering of information, such as names, 165
addresses, expiration dates of current insurance, and names of 166
current insurers; 167
(3) The setting of appointments for insurance agents, 169
provided that the person setting the appointment does not 170
communicate any information about insurance; 171
(4) The servicing of existing insurance policies issued by 174
or through the employee's employer, provided the servicing is not 175
part of a solicitation;
(5) The performance of clerical or ministerial duties. 178
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(D) The superintendent may adopt rules in accordance with 181
Chapter 119. of the Revised Code to set forth the specific acts 184
that comprise any of the activities described in this section, 185
the performance of which either requires or does not require 187
licensure as an agent.
Sec. 3905.011. (A) As used in this section and sections 197
3905.012 and 3905.013 of the Revised Code, "insurer" has the same 198
meaning as in section 3901.32 of the Revised Code. 200
(B) Any person that is licensed as an agent under section 203
3905.02 or 3905.18 of the Revised Code is eligible to be 204
appointed by one or more insurers authorized to do business in 205
this state. 206
(C)(1) Prior to BY appointing an agent, an insurer shall 209
certify CERTIFIES to the superintendent of insurance, in 210
accordance with rules adopted by the superintendent under section 211
3905.013 of the Revised Code, that the person is competent, 212
financially responsible, and suitable to represent the insurer. 213
(2) No agent shall represent to the public that the agent 215
has authority to represent a particular insurer until the insurer 217
has acknowledged that authority by appointment of the agent in 218
accordance with division (C)(1) of this section. 219
(D)(1) No insurer shall pay a commission, fee, or other 222
type of consideration, or give any other thing of value, to a 223
person that is required to be licensed by the superintendent 224
under this chapter for the sale of, or for any direct or indirect 225
connection with the sale of, any insurance sold by or on behalf 226
of the insurer, but is not so licensed.
(2) Nothing in this section prohibits an insurer from 228
entering into a compensation agreement with a creditor with 229
respect to insurance products made available only in connection 231
with a credit transaction, including credit life insurance,
credit disability or accident and health insurance, credit 232
property insurance, mortgage life insurance, mortgage accident 233
and health insurance, involuntary unemployment insurance, 234
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individual life insurance, and individual disability or accident 235
and health insurance, if the entire premium is financed as part 236
of the credit transaction. For purposes of division (D)(2) of 237
this section, "credit property insurance" has the same meaning as 238
in division (B)(3) of section 3905.01 of the Revised Code.
Sec. 3905.012. (A)(1) Except as provided in division 247
(A)(2) of this section, any person licensed as an agent under 249
section 3905.02 or, 3905.18, OR 3905.85 of the Revised Code, or 251
appointed as a solicitor under section 3905.03 of the Revised 253
Code, may at any time surrender any or all licenses held by the 254
person.
(2) No agent shall surrender the agent's licenses if the 257
superintendent of insurance is investigating any allegation of 258
wrongdoing by the agent or has initiated proceedings under
Chapter 119. of the Revised Code and notice of an opportunity for 259
a hearing has been issued to the agent, and any attempt to so 261
surrender is invalid.
(B)(1) If an insurer or agent cancels the appointment of 264
an agent or solicitor due to suspected fraud, misrepresentation, 265
theft, conversion, or any other culpable misappropriation, the 266
insurer or agent shall promptly notify the superintendent. The 267
notice shall include a complete statement of the facts and the 268
reasons for the cancellation. 269
(2) In the absence of fraud or actual malice, an insurer 271
or agent is immune from any civil liability that otherwise might 272
be incurred or imposed as a result of any action taken by the 273
insurer or agent to comply with division (B)(1) of this section. 275
(C) If an agent's license is surrendered, revoked, or 277
suspended, all appointments held by the agent are void. If a new 279
license is issued to that person or if that person's previous 280
license is reinstated, any appointment of the person to represent 281
an insurer or agent must be made in accordance with the 282
requirements of this chapter.
(D)(1) Any agent, other than a corporation, partnership, 284
7
or limited liability company, who is no longer engaged in the 285
business of insurance in any capacity for which an agent's 286
license is required may apply to the superintendent for inactive 287
status. The superintendent may grant such status only if the 288
superintendent is satisfied that the person is not engaged in and 290
does not intend to engage in any of the activities set forth in 291
section 3905.01 of the Revised Code that requires an agent's 293
license. 294
(2) A person who has been granted inactive status is 296
exempt from any continuing education requirements imposed under 297
this chapter. 298
(3) The superintendent may adopt rules in accordance with 301
Chapter 119. of the Revised Code to establish procedures for 304
applying for inactive status, criteria used to determine
eligibility for such status, and standards and procedures for 305
transferring from inactive to active status. 306
(E) The superintendent may suspend or revoke a license, or 309
take any other disciplinary action authorized by this chapter, 310
regardless of whether the person is appointed or otherwise 311
authorized to represent an insurer or agent. 312
Sec. 3905.48. (A) No person, unless the person has 322
complied with division (B) of this section, shall be permitted to 324
take an examination for a license as an agent to engage in the
sale of any of the following types of insurance: 326
(1) Life insurance, annuity contracts, variable annuity 328
contracts, and variable life insurance; 329
(2) Sickness and accident insurance; 331
(3) All lines of property and casualty insurance; 333
(4) SURETY BAIL BONDS; 335
(5) All other lines of insurance for which an examination 337
is required for licensing, except title insurance. 338
(B) No person shall be permitted to take an examination 340
described in division (A) of this section unless either of the 341
following applies: 342
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(1) The person has earned a bachelor's or associate's 344
degree in insurance in an accredited institution; 345
(2) The person has been granted a diploma for successfully 347
completing a high school curriculum under section 3313.61 of the 348
Revised Code or a certificate of high school equivalence under 349
rule 3301-41-1 of the Administrative Code, or been granted a 350
comparable diploma or certificate by another state, and has 351
successfully completed at least forty hours of study in a program 352
of insurance education approved by the superintendent of 353
insurance in consultation with the insurance agent education 354
advisory council under criteria established by the 355
superintendent. 356
Sec. 3905.49. (A) As used in this section: 365
(1) "Insurer" has the same meaning as in section 3901.32 368
of the Revised Code.
(2) "Refusal to issue or renew" means the decision of the 371
superintendent of insurance not to process either the initial 372
application for a license as an agent or the renewal of such a 373
license.
(3) "Revocation" means the permanent termination of all 376
authority to hold any license as an agent in this state.
(4) "Surrender for cause" means the voluntary termination 379
of all authority to hold any license as an agent in this state, 380
in lieu of a revocation or suspension order. 381
(5) "Suspension" means the termination of all authority to 384
hold any license as an agent in this state, for either a 385
specified period of time or an indefinite period of time and 386
under any terms or conditions determined by the superintendent. 387
(B) The superintendent may suspend, revoke, or refuse to 391
issue or renew any license as an agent, SURETY BAIL BOND AGENT, 392
surplus line broker, or limited insurance representative, or 393
impose any other sanction authorized under this chapter, for one 395
or more of the following reasons: 396
(1) Obtaining or attempting to obtain any license or 398
9
appointment through misrepresentation or fraud, including making 399
any materially untrue statement in an application for a license 402
or appointment;
(2) Violating or failing to comply with any insurance law, 406
rule, subpoena, consent agreement, or order of the 407
superintendent;
(3) Misappropriating or converting to the person's own use 410
any moneys belonging to policyholders, prospective policyholders, 411
beneficiaries, insurance companies, SURETIES, PRINCIPALS, or 412
others received in the course of the person's insurance business; 414
(4) Failing to timely submit an application for insurance. 417
For purposes of division (B)(4) of this section, a submission is 419
considered timely if it occurs within the time period expressly 420
provided for by the insurer, or within seven days after the agent 421
accepts a premium or an order to bind from a policyholder or 422
applicant, whichever is later.
(5) Knowingly misrepresenting the terms, benefits, value, 425
cost, or effective dates of any actual or proposed insurance 426
policy or, contract, OR BOND; 428
(6) Being convicted of a felony; 430
(7) Being convicted of a misdemeanor that involves the 433
misuse or theft of money or property belonging to another, fraud, 434
forgery, dishonest acts, or breach of a fiduciary duty, or that 436
is based on any act or omission relating to the business of
insurance, securities, or financial services; 437
(8) Committing an unfair trade act or practice under any 441
section of Title XXXIX of the Revised Code or any rule adopted 442
thereunder;
(9) Having an insurance license suspended or revoked in 445
any other state, province, or territory; 446
(10) Forging or causing the forgery of another's name to 450
any document related to or used in an insurance transaction; 451
(11) Possessing or using any unauthorized materials during 453
a licensing or continuing education examination or cheating on a 455
10
licensing or continuing education examination;
(12) Failing to disclose to an applicant for insurance or 458
policyholder upon accepting a premium or an order to bind 459
coverage from the applicant or policyholder, that the person has 460
not been appointed as agent by the insurer and is not an 461
appointed solicitor of an appointed agent;
(13) Having any professional license suspended or revoked 464
as a result of a mishandling of funds or breach of fiduciary 465
responsibilities; 466
(14) Causing or permitting a policyholder or applicant for 469
insurance to designate the person or the person's spouse, parent, 470
child, or sibling as the beneficiary of a policy or annuity sold 471
by the person, unless the person or a relative of the person is 472
the insured or applicant;
(15) Failing to provide a written response to the 474
department of insurance within thirty days after receipt of any 476
written inquiry from the department;
(16) Failing to notify the superintendent of any change in 479
the person's address, within thirty days after the change occurs, 481
as required by section 3905.54 of the Revised Code;
(17) Transferring or placing insurance with an insurer 483
other than the insurer expressly chosen by the applicant for 484
insurance or policyholder without the consent of the applicant or 485
policyholder or absent extenuating circumstances; 486
(18) Engaging in any fraudulent, DISHONEST, or coercive 488
practice in connection with the business of insurance; 489
(19) Failing to inform a policyholder or applicant for 491
insurance of the identity of the insurer or insurers, or the 492
identity of any other insurance agent, general agent, surplus 493
line broker, or licensee known to be involved in procuring, 494
placing, or continuing the insurance for the policyholder or 495
applicant, upon the binding of the coverage; 496
(20) In the case of an agent that is a corporation, 498
limited liability company, or partnership, failing to report an 499
11
individual licensee's violation to the department when the 500
violation was known or should have been known by one or more of 501
the partners, officers, managers, or members of the corporation, 502
limited liability company, or partnership; 503
(21) Submitting or using a document in the conduct of the 506
business of insurance when the person knew or should have known 507
that the document contained the forged signature of another 508
person;
(22) Misrepresenting the person's qualifications or using 511
in any way a professional designation that has not been conferred 512
upon the person by the appropriate accrediting organization; 513
(23) Obtaining a premium loan or causing a premium loan to 516
be made to or in the name of an insured without that person's 517
knowledge and written authorization;
(24) Failing to notify the superintendent of any 519
disciplinary action taken by the insurance authority of another 520
state, within sixty days after the action was taken, as required 522
by section 3905.54 of the Revised Code;
(25) Failing to file any of the reports or notices 524
required under this chapter; 525
(26) Submitting an application for insurance, or causing 528
the issuance of an insurance policy or contract, on behalf of an 529
applicant who did not request or authorize the insurance. 530
Division (B)(26) of this section does not apply to any policy 531
issued by an other than life insurance company.
(27) Using paper, software, or any other materials of or 534
provided by an insurer after the insurer has terminated the
authority of the licensee, if the use of such materials would 535
cause a reasonable person to believe that the licensee was acting 537
on behalf of or otherwise representing the insurer; 538
(28) Providing misleading, deceptive, or untrue 540
information to an applicant for insurance or a policyholder 541
regarding a particular insurance agent, company, or product; 543
(29) Soliciting, procuring an application for, or placing, 546
12
either directly or indirectly, any insurance policy when the 547
person is not authorized under this chapter to engage in such 548
activity;
(30) Soliciting, marketing, or selling any product or 550
service that offers benefits similar to insurance but is not 551
regulated by the superintendent, without fully disclosing to the 552
prospective purchaser that the product or service is not 553
insurance and is not regulated by the superintendent; 554
(31) Failing to fulfill a refund obligation in a timely 556
manner. For purposes of division (B)(31) of this section, a 558
rebuttable presumption exists that a refund obligation is not 559
fulfilled in a timely manner unless it is fulfilled within one of 560
the following time periods: 561
(a) Thirty days after the date the policyholder, 564
applicant, or insurer takes or requests action resulting in a 565
refund;
(b) Thirty days after the date of the insurer's refund 568
check, if the agent is expected to issue a portion of the total 569
refund;
(c) Forty-five days after the date of the agent's 572
statement of account on which the refund first appears. 573
(32) WITH RESPECT TO A SURETY BAIL BOND AGENT LICENSE, 575
REBATING OR OFFERING TO REBATE, OR UNLAWFULLY DIVIDING OR 576
OFFERING TO DIVIDE, ANY COMMISSION. 577
(C) Before denying, revoking, suspending, or refusing to 579
issue any license or imposing any penalty under this section or 581
section 3905.482 of the Revised Code, the superintendent shall
provide the licensee or applicant with notice and an opportunity 584
for hearing as provided in Chapter 119. of the Revised Code, 585
except as follows: 586
(1)(a) Any notice of opportunity for hearing, the hearing 588
officer's findings and recommendations, or the superintendent's 590
order shall be served by certified mail at the last known address 591
of the licensee or applicant. Service shall be evidenced by 592
13
return receipt signed by any person.
For purposes of this section, the "last known address" is 594
the address that appears in the licensing records of the 595
department of insurance.
(b) If the certified mail envelope is returned with an 598
endorsement showing that service was refused, or that the 599
envelope was unclaimed, the notice and all subsequent notices
required by Chapter 119. of the Revised Code may be served by 600
ordinary mail to the last known address of the licensee or 601
applicant. The mailing shall be evidenced by a certificate of 602
mailing. Service is deemed complete as of the date of such 603
certificate provided that the ordinary mail envelope is not 604
returned by the postal authorities with an endorsement showing 605
failure of delivery. The time period in which to request a 606
hearing, as provided in Chapter 119. of the Revised Code, begins 609
to run on the date of mailing. 610
(c) If service by ordinary mail fails, the superintendent 613
may cause a summary of the substantive provisions of the notice 614
to be published once a week for three consecutive weeks in a 615
newspaper of general circulation in the county where the last 616
known place of residence or business of the party is located. 617
The notice is considered served on the date of the third 618
publication.
(d) Any notice required to be served under Chapter 119. of 621
the Revised Code shall also be served upon the party's attorney 624
by ordinary mail if the attorney has entered an appearance in the 625
matter.
(e) The superintendent may, at any time, perfect service 628
on a party by personal delivery of the notice by an employee of 629
the department.
(f) Notices regarding the scheduling of hearings and all 632
other matters not described in division (C)(1)(a) of this section 634
shall be sent by ordinary mail to the party and to the party's 635
attorney.
14
(2) Any subpoena for the appearance of a witness or the 638
production of documents or other evidence at a hearing, or for 639
the purpose of taking testimony for use at a hearing, shall be 640
served by certified mail, return receipt requested, by an
attorney or by an employee of the department designated by the 641
superintendent. Such subpoenas shall be enforced in the manner 642
provided in section 119.09 of the Revised Code. Nothing in this 645
section shall be construed as limiting the superintendent's other 646
statutory powers to issue subpoenas. 647
(D) If the superintendent determines that a violation 649
described in this section has occurred, the superintendent may do 651
any of the following: 652
(1) Assess a civil forfeiture in an amount not exceeding 655
twenty-five thousand dollars per violation;
(2) Assess administrative costs to cover the expenses 657
incurred by the department in the administrative action, 658
including costs incurred in the investigation and hearing 659
processes. Any costs collected shall be paid into the state 660
treasury to the credit of the department of insurance operating 661
fund created in section 3901.021 of the Revised Code. 663
(3) Suspend all of the person's licenses for all lines of 665
insurance for either a specified period of time or an indefinite 666
period of time and under such terms and conditions as the 667
superintendent may determine; 668
(4) Permanently revoke all of the person's licenses for 670
all lines of insurance; 671
(5) Refuse to issue a license; 673
(6) Refuse to renew a license; 675
(7) Prohibit the person from being employed in any 677
capacity in the business of insurance and from having any 678
financial interest in any insurance agency, company, SURETY BAIL 679
BOND BUSINESS, or third-party administrator in this state. The 681
superintendent may, in the superintendent's discretion, determine 682
the nature, conditions, and duration of such restrictions. 683
15
(8) Order corrective actions in lieu of or in addition to 686
the other penalties listed in division (D) of this section. Such 687
an order may provide for the suspension of civil forfeitures, 688
license revocation, license suspension, or refusal to issue or 689
renew a license if the licensee complies with the terms and 690
conditions of the corrective action order. 691
(9) Accept a surrender for cause offered by the licensee, 694
which shall be for at least five years and shall prohibit the 695
licensee from seeking any license authorized under this chapter 696
during that time period. A surrender for cause may also include 697
a corrective action order as provided in division (D)(8) of this 698
section.
(E) The superintendent may consider the following factors 701
in denying a license, imposing suspensions, revocations, fines, 702
or other penalties, and issuing orders under this section: 703
(1) Whether the person acted in good faith; 705
(2) Whether the person made restitution for any pecuniary 708
losses suffered by other persons as a result of the person's 709
actions; 710
(3) The actual harm or potential for harm to others; 712
(4) The degree of trust placed in the person by, and the 714
vulnerability of, persons who were or could have been adversely 716
affected by the person's actions; 717
(5) Whether the person was the subject of any previous 720
administrative actions by the superintendent;
(6) The number of individuals adversely affected by the 723
person's acts or omissions;
(7) Whether the person voluntarily reported the violation, 725
and the extent of the person's cooperation and acceptance of 726
responsibility; 727
(8) Whether the person obstructed or impeded, or attempted 730
to obstruct or impede, the superintendent's investigation; 731
(9) The person's efforts to conceal the misconduct; 734
(10) Remedial efforts to prevent future violations; 737
16
(11) If the person was convicted of a criminal offense, 740
the nature of the offense, whether the conviction was based on 741
acts or omissions taken under any professional license, whether 742
the offense involved the breach of a fiduciary duty, the amount 743
of time that has passed, and the person's activities subsequent 744
to the conviction;
(12) Such other factors as the superintendent determines 746
to be appropriate under the circumstances. 747
(F)(1) A violation described in division (B)(1), (2), (3), 750
(5), (6), (7), (8), (9), (10), (11), (12), (13), (14), (17), 751
(18), (19), (20), (21), (22), (23), (25), (26), (27), (28), (29), 753
(30), or (31), OR (32) of this section is a class A offense for 754
which the superintendent may impose any penalty set forth in 755
division (D) of this section. 756
(2) A violation described in division (B)(4), (15), (16), 759
or (24) of this section is a class B offense for which the 761
superintendent may impose any penalty set forth in division 762
(D)(1), (2), (8), or (9) of this section. 764
(G) If a violation described in this section has caused, 767
is causing, or is about to cause substantial and material harm, 769
the superintendent may issue an order requiring that person to 770
cease and desist from engaging in the violation. Notice of the 771
order shall be mailed by certified mail, return receipt 772
requested, or served in any other manner provided for in this 773
section, immediately after its issuance to the person subject to 774
the order and to all persons known to be involved in the 775
violation. The superintendent may thereafter publicize or 776
otherwise make known to all interested parties that the order has 777
been issued.
The notice shall specify the particular act, omission, 779
practice, or transaction that is subject to the cease-and-desist 780
order and shall set a date, not more than fifteen days after the 781
date of the order, for a hearing on the continuation or 782
revocation of the order. The person shall comply with the order 783
17
immediately upon receipt of notice of the order. 784
The superintendent may, upon the application of a party and 787
for good cause shown, continue the hearing. Chapter 119. of the 788
Revised Code applies to such hearings to the extent that that 791
chapter does not conflict with the procedures set forth in this 792
section. The superintendent shall, within fifteen days after 793
objections are submitted to the hearing officer's report and 794
recommendation, issue a final order either confirming or revoking 795
the cease-and-desist order. The final order may be appealed as 796
provided under section 119.12 of the Revised Code. 798
The remedy under this division is cumulative and concurrent 801
with the other remedies available under this section.
(H) If the superintendent has reasonable cause to believe 804
that an order issued under this section has been violated in 805
whole or in part, the superintendent may request the attorney 806
general to commence and prosecute any appropriate action or 807
proceeding in the name of the state against such person. 808
The court may, in an action brought pursuant to this 810
division, impose any of the following: 811
(1) For each violation, a civil penalty of not more than 814
twenty-five thousand dollars;
(2) Injunctive relief; 816
(3) Restitution; 818
(4) Any other appropriate relief. 820
(I) WITH RESPECT TO A SURETY BAIL BOND AGENT LICENSE: 822
(1) UPON THE SUSPENSION OR REVOCATION OF A LICENSE, OR THE 824
ELIGIBILITY OF A SURETY BAIL BOND AGENT TO HOLD A LICENSE, THE 825
SUPERINTENDENT LIKEWISE MAY SUSPEND OR REVOKE THE LICENSE OR 826
ELIGIBILITY OF ANY SURETY BAIL BOND AGENT WHO IS EMPLOYED BY OR 827
ASSOCIATED WITH THAT AGENT AND WHO KNOWINGLY WAS A PARTY TO THE 828
ACT THAT RESULTED IN THE SUSPENSION OR REVOCATION. 829
(2) THE SUPERINTENDENT MAY REVOKE A LICENSE AS A SURETY 831
BAIL BOND AGENT IF THE LICENSEE IS ADJUDGED BANKRUPT. 832
(J) This section applies to both resident and nonresident 835
18
agents who are licensed under this chapter. 836
(J)(K) Nothing in this section shall be construed to 839
create or imply a private cause of action against an agent, 841
solicitor, or insurer.
Sec. 3905.55. (A) Except as provided in division (B) of 851
this section, an agent may charge a consumer a fee if all of the 852
following conditions are met: 853
(1) The fee is disclosed to the consumer in a manner that 856
separately identifies the fee and the premium.
(2) The fee is not calculated as a percentage of the 858
premium. 859
(3) The fee is not refunded, forgiven, waived, offset, or 862
reduced by any commission earned or received for any policy or 863
coverage sold.
(4) The amount of the fee, and the consumer's obligation 866
to pay the fee, are not conditioned upon the occurrence of a 867
future event or condition, such as the purchase, cancellation, 868
lapse, declination, or nonrenewal of insurance. 869
(5) The agent discloses to the consumer that the fee is 872
being charged by the agent and not by the insurance company, that 873
neither state law nor the insurance company requires the agent to 874
charge the fee, and that the fee is not refundable. 875
(6) The consumer consents to the fee. 877
(7) The agent, in charging the fee, does not discriminate 880
on the basis of race, sex, national origin, religion, disability, 881
health status, age, marital status, or geographic location, and 882
does not unfairly discriminate between persons of essentially the 883
same class and of essentially the same hazard or expectation of 884
life.
(B) A fee may not be charged for taking or submitting an 887
initial application for coverage with any one insurer or 888
different programs with the same insurer, or processing a change 889
to an existing policy, a cancellation, a claim, or a renewal, in 890
connection with any of the following personal lines policies: 891
19
(1) Private passenger automobile; 893
(2) Homeowners, including coverage for tenants or 895
condominium owners, owner-occupied fire or dwelling property 896
coverage, personal umbrella liability, or any other personal 897
lines-related coverage whether sold as a separate policy or as an 899
endorsement to another personal lines policy;
(3) Individual life insurance; 901
(4) Individual sickness or accident insurance; 903
(5) Disability income policies; 905
(6) Credit insurance products. 908
(C) Notwithstanding any other provision of this section, 911
an agent may charge a fee for agent services in connection with a 912
policy issued on a no-commission basis, if the agent provides the 913
consumer with prior disclosure of the fee and of the services to 914
be provided. 915
(D) In the event of a dispute between an agent and a 918
consumer regarding any disclosure required by this section, the 919
agent has the burden of proving that the disclosure was made. 920
(E)(1) No person shall fail to comply with this section. 923
(2) Whoever violates division (E)(1) of this section is 926
deemed to have engaged in an unfair and deceptive act or practice 928
in the business of insurance under sections 3901.19 to 3901.26 of 929
the Revised Code. 930
(F) THIS SECTION DOES NOT APPLY WITH RESPECT TO ANY 932
EXPENSE FEE CHARGED BY A SURETY BAIL BOND AGENT TO COVER THE 933
COSTS INCURRED BY THE SURETY BAIL BOND AGENT IN EXECUTING THE 934
BAIL BOND.
Sec. 3905.86 3905.81. (A) As used in this section: 943
(1) "Reinsurance intermediary-broker" means a person, 945
other than an officer or employee of the ceding insurer, that 946
solicits, negotiates, or places reinsurance cessions or 947
retrocessions on behalf of a ceding insurer without the authority 948
or power to bind reinsurance on behalf of such insurer. 949
(2)(a) "Reinsurance intermediary-manager" means a person 951
20
that has authority to bind or that manages all or part of the 952
assumed reinsurance business of a reinsurer, including the 953
management of a separate division, department, or underwriting 954
office, and that acts as an agent of the reinsurer whether known 955
as a reinsurance intermediary-manager, manager, or similar term. 956
(b) "Reinsurance intermediary-manager" does not include: 958
(i) An employee of the reinsurer; 960
(ii) A United States manager of the United States branch 962
of an alien reinsurer; 963
(iii) An underwriting manager that, pursuant to contract, 965
manages all of the reinsurance operations of the reinsurer, is 966
under common control with the reinsurer, subject to sections 967
3901.32 to 3901.37 of the Revised Code, and whose compensation is 968
not based on the volume of premiums written; 969
(iv) The manager of a group, association, pool, or 971
organization of insurers that engages in joint reinsurance and 972
that are subject to examination by the insurance regulatory 973
authority of the state in which the manager's principal business 974
office is located. 975
(B) No person shall act as a reinsurance 977
intermediary-broker or reinsurance intermediary-manager in this 978
state, or on behalf of an insurer or reinsurer domiciled in this 979
state, unless the person first obtains a license from the 980
superintendent of insurance in accordance with this section or 981
the superintendent accepts, in accordance with rules that he THE 982
SUPERINTENDENT may adopt under division (C) of this section, a 984
license issued to the person by the insurance regulatory 985
authority of another state.
(C) The superintendent of insurance shall adopt rules in 987
accordance with Chapter 119. of the Revised Code establishing the 988
standards and procedures for licensing reinsurance 989
intermediary-brokers and reinsurance intermediary-managers. The 990
superintendent may also adopt rules, in accordance with Chapter 991
119. of the Revised Code, for the acceptance of licenses issued 992
21
by insurance regulatory authorities of other states with statutes 993
similar to this section in lieu of requiring a license to be 994
obtained from the superintendent under division (B) of this 995
section. 996
(D) The fee for the issuance or renewal of a license shall 998
be five hundred dollars. The fee for accepting the license of 999
another state shall be one hundred dollars each year. All fees 1,000
collected pursuant to this section shall be paid into the state 1,001
treasury to the credit of the department of insurance operating 1,002
fund. 1,003
Sec. 3905.83. AS USED IN SECTIONS 3905.83 TO 3905.95 OF 1,005
THE REVISED CODE:
(A) "INSURER" MEANS ANY DOMESTIC, FOREIGN, OR ALIEN 1,008
INSURANCE COMPANY THAT HAS BEEN ISSUED A CERTIFICATE OF AUTHORITY 1,009
BY THE SUPERINTENDENT OF INSURANCE TO TRANSACT SURETY BUSINESS IN 1,010
THIS STATE.
(B) "MANAGING GENERAL AGENT" MEANS ANY PERSON THAT IS 1,013
APPOINTED OR EMPLOYED BY AN INSURER TO SUPERVISE OR OTHERWISE 1,014
MANAGE THE BAIL BOND BUSINESS WRITTEN IN THIS STATE BY SURETY 1,015
BAIL BOND AGENTS APPOINTED BY THE INSURER. 1,016
(C) "SURETY" MEANS AN INSURER THAT AGREES TO BE 1,019
RESPONSIBLE FOR THE FULFILLMENT OF THE OBLIGATION OF A PRINCIPAL 1,020
IF THE PRINCIPAL FAILS TO FULFILL THAT OBLIGATION. 1,021
Sec. 3905.84. NO PERSON SHALL ACT IN THE CAPACITY OF A 1,023
SURETY BAIL BOND AGENT, OR PERFORM ANY OF THE FUNCTIONS, DUTIES, 1,025
OR POWERS PRESCRIBED FOR SURETY BAIL BOND AGENTS UNDER SECTIONS 1,026
3905.83 TO 3905.95 OF THE REVISED CODE, UNLESS THAT PERSON IS
QUALIFIED, LICENSED, AND APPOINTED AS PROVIDED IN THOSE SECTIONS. 1,028
Sec. 3905.841. THE FOLLOWING PERSONS OR CLASSES OF PERSONS 1,030
SHALL NOT ACT AS SURETY BAIL BOND AGENTS OR EMPLOYEES OF A SURETY 1,031
BAIL BOND AGENT OR BAIL BOND BUSINESS AND SHALL NOT DIRECTLY OR 1,034
INDIRECTLY RECEIVE ANY BENEFITS FROM THE EXECUTION OF A BAIL
BOND, EXCEPT AS A PRINCIPAL: 1,035
(A) JAILERS OR OTHER PERSONS EMPLOYED IN A DETENTION 1,037
22
FACILITY, AS DEFINED IN SECTION 2921.01 OF THE REVISED CODE; 1,039
(B) PEACE OFFICERS AS DEFINED IN SECTION 2921.51 OF THE 1,041
REVISED CODE, OR OTHER EMPLOYEES OF A LAW ENFORCEMENT AGENCY; 1,042
(C) COMMITTING MAGISTRATES, EMPLOYEES OF A COURT, OR 1,044
EMPLOYEES OF THE CLERK OF ANY COURT; 1,045
(D) ATTORNEYS; 1,047
(E) ANY OTHER PERSONS HAVING THE POWER TO ARREST, OR 1,049
PERSONS WHO HAVE AUTHORITY OVER OR CONTROL OF, FEDERAL, STATE, 1,050
COUNTY, OR MUNICIPAL CORPORATION PRISONERS. 1,051
Sec. 3905.85. (A) AN APPLICANT FOR A LICENSE AS A SURETY 1,054
BAIL BOND AGENT SHALL SUBMIT AN APPLICATION FOR THE LICENSE IN A 1,055
MANNER PRESCRIBED BY THE SUPERINTENDENT OF INSURANCE. THE 1,056
APPLICATION SHALL BE ACCOMPANIED BY A ONE HUNDRED FIFTY DOLLAR 1,057
FEE AND A STATEMENT THAT GIVES THE APPLICANT'S NAME, AGE, 1,058
RESIDENCE, PRESENT OCCUPATION, OCCUPATION FOR THE FIVE YEARS NEXT 1,059
PRECEDING THE DATE OF THE APPLICATION, AND SUCH OTHER INFORMATION 1,060
AS THE SUPERINTENDENT MAY REQUIRE. 1,061
THE APPLICANT SHALL ALSO REQUEST A CRIMINAL RECORDS CHECK 1,063
CONDUCTED BY THE SUPERINTENDENT OF THE BUREAU OF CRIMINAL 1,064
IDENTIFICATION AND INVESTIGATION IN ACCORDANCE WITH SECTION 1,065
109.572 OF THE REVISED CODE, AND DIRECT THAT THE BUREAU'S WRITTEN 1,067
RESPONSE TO THAT REQUEST BE TRANSMITTED TO THE SUPERINTENDENT OF 1,068
INSURANCE, OR TO THE SUPERINTENDENT'S DESIGNEE, AS SPECIFIED ON 1,070
THE FORM PRESCRIBED PURSUANT TO THAT SECTION. IF THE
SUPERINTENDENT OF INSURANCE OR THE SUPERINTENDENT'S DESIGNEE 1,071
FAILS TO RECEIVE THE BUREAU'S RESPONSE TO THE APPLICANT'S REQUEST 1,072
FOR A CRIMINAL RECORDS CHECK, THE SUPERINTENDENT MAY REFUSE TO 1,073
ISSUE A LICENSE UNDER THIS SECTION. THE APPLICANT SHALL PAY ANY 1,074
FEE REQUIRED BY THE BUREAU FOR CONDUCTING THE CRIMINAL RECORDS 1,075
CHECK.
AN APPLICANT FOR A LICENSE SHALL SUBMIT TO AN EXAMINATION 1,077
AS TO THE QUALIFICATIONS SET FORTH IN DIVISION (B) OF THIS 1,078
SECTION.
(B) THE SUPERINTENDENT OF INSURANCE SHALL ISSUE TO AN 1,081
23
APPLICANT A LICENSE THAT STATES IN SUBSTANCE THAT THE PERSON IS 1,082
AUTHORIZED TO DO THE BUSINESS OF A SURETY BAIL BOND AGENT, IF THE 1,083
SUPERINTENDENT IS SATISFIED THAT ALL OF THE FOLLOWING APPLY: 1,084
(1) IF THE APPLICANT IS A NATURAL PERSON, THE APPLICANT IS 1,086
EIGHTEEN YEARS OF AGE OR OLDER. 1,087
(2) THE APPLICANT IS A PERSON OF HIGH CHARACTER AND 1,089
INTEGRITY. 1,090
(3) THE APPLICANT HAS SUCCESSFULLY COMPLETED THE 1,092
EDUCATIONAL REQUIREMENTS SET FORTH IN SECTION 3905.48 OF THE 1,094
REVISED CODE.
(C) A SURETY BAIL BOND AGENT LICENSE ISSUED PURSUANT TO 1,096
THIS SECTION AUTHORIZES THE HOLDER, WHEN APPOINTED BY AN INSURER, 1,097
TO EXECUTE OR COUNTERSIGN BAIL BONDS IN CONNECTION WITH JUDICIAL 1,098
PROCEEDINGS AND TO RECEIVE MONEY OR OTHER THINGS OF VALUE FOR 1,099
THOSE SERVICES. HOWEVER, THE HOLDER SHALL NOT EXECUTE OR DELIVER 1,100
A BOND DURING THE FIRST ONE HUNDRED EIGHTY DAYS AFTER THE LICENSE 1,101
IS INITIALLY ISSUED. THIS RESTRICTION DOES NOT APPLY WITH 1,102
RESPECT TO LICENSE RENEWALS. 1,103
(D) THE SUPERINTENDENT OF INSURANCE MAY SUSPEND OR REVOKE 1,105
A SURETY BAIL BOND AGENT'S LICENSE AS PROVIDED IN SECTION 1,107
3905.482 OF THE REVISED CODE, AND MAY SUSPEND, REVOKE, OR REFUSE 1,108
TO ISSUE OR RENEW SUCH A LICENSE AS PROVIDED IN SECTION 3905.49 1,109
OF THE REVISED CODE. 1,110
IF THE SUPERINTENDENT REFUSES TO ISSUE SUCH A LICENSE BASED 1,112
IN WHOLE OR IN PART UPON THE BUREAU'S WRITTEN RESPONSE TO A 1,113
CRIMINAL RECORDS CHECK REQUESTED PURSUANT TO DIVISION (A) OF THIS 1,114
SECTION, THE SUPERINTENDENT SHALL SEND A COPY OF THE RESPONSE 1,115
THAT THE BUREAU TRANSMITTED TO THE SUPERINTENDENT OR TO THE 1,116
SUPERINTENDENT'S DESIGNEE, TO THE APPLICANT AT THE APPLICANT'S 1,117
HOME ADDRESS UPON THE APPLICANT'S SUBMISSION OF A WRITTEN REQUEST 1,118
TO THE SUPERINTENDENT. 1,119
(E) ANY PERSON LICENSED AS A SURETY BAIL BOND AGENT MAY 1,121
SURRENDER THE PERSON'S LICENSE IN ACCORDANCE WITH SECTION 1,122
3905.012 OF THE REVISED CODE. 1,123
24
(F) UNLESS REVOKED OR SUSPENDED BY THE SUPERINTENDENT OR 1,125
SURRENDERED BY THE SURETY BAIL BOND AGENT, SUCH A LICENSE MAY, IN 1,126
THE DISCRETION OF THE SUPERINTENDENT AND THE PAYMENT OF A ONE 1,127
HUNDRED FIFTY DOLLAR FEE, BE CONTINUED PAST THE LAST DAY OF 1,128
FEBRUARY NEXT AFTER ITS ISSUE AND AFTER THE LAST DAY OF FEBRUARY 1,129
IN EACH SUCCEEDING YEAR. 1,130
(G) THE SUPERINTENDENT OF INSURANCE MAY PRESCRIBE THE 1,132
FORMS TO BE USED AS EVIDENCE OF THE ISSUANCE OF A LICENSE UNDER 1,133
THIS SECTION. THE SUPERINTENDENT SHALL REQUIRE EACH LICENSEE TO 1,134
ACQUIRE, FROM A SOURCE DESIGNATED BY THE SUPERINTENDENT, A WALLET 1,135
IDENTIFICATION CARD THAT INCLUDES THE LICENSEE'S PHOTOGRAPH AND 1,136
ANY OTHER INFORMATION REQUIRED BY THE SUPERINTENDENT. THE 1,137
LICENSEE SHALL KEEP THE WALLET IDENTIFICATION CARD ON THE 1,138
LICENSEE'S PERSON WHILE ENGAGING IN THE BAIL BOND BUSINESS. 1,139
(H)(1) THE SUPERINTENDENT OF INSURANCE SHALL NOT ISSUE OR 1,141
RENEW THE LICENSE OF A CORPORATION, PARTNERSHIP, OR LIMITED 1,142
LIABILITY COMPANY ORGANIZED UNDER THE LAWS OF THIS OR ANY OTHER 1,143
STATE UNLESS THE CORPORATION, PARTNERSHIP, OR LIMITED LIABILITY 1,144
COMPANY IS QUALIFIED TO DO BUSINESS IN THIS STATE UNDER THE 1,145
APPLICABLE PROVISIONS OF TITLE XVII OF THE REVISED CODE. 1,147
(2) THE FAILURE OF A CORPORATION, PARTNERSHIP, OR LIMITED 1,149
LIABILITY COMPANY TO BE IN GOOD STANDING WITH THE SECRETARY OF 1,150
STATE OR TO MAINTAIN A VALID APPOINTMENT OF STATUTORY AGENT IS 1,151
GROUNDS FOR SUSPENDING, REVOKING, OR REFUSING TO RENEW ITS 1,152
LICENSE.
(3) BY APPLYING FOR A SURETY BAIL BOND AGENT LICENSE UNDER 1,154
THIS SECTION, AN INDIVIDUAL, CORPORATION, PARTNERSHIP, OR LIMITED 1,155
LIABILITY COMPANY CONSENTS TO THE JURISDICTION OF THE COURTS OF 1,156
THIS STATE.
(I) A SURETY BAIL BOND AGENT LICENSED PURSUANT TO THIS 1,159
SECTION IS AN OFFICER OF THE COURT. 1,160
(J) ANY FEE COLLECTED UNDER THIS SECTION SHALL BE PAID 1,162
INTO THE STATE TREASURY TO THE CREDIT OF THE DEPARTMENT OF 1,163
INSURANCE OPERATING FUND CREATED BY SECTION 3901.021 OF THE 1,164
25
REVISED CODE.
Sec. 3905.851. A SURETY BAIL BOND AGENT QUALIFIED, 1,166
LICENSED, AND APPOINTED IN ACCORDANCE WITH SECTIONS 3905.83 TO 1,167
3905.95 OF THE REVISED CODE SHALL NOT BE REQUIRED TO PAY ANY 1,169
LICENSING FEE IMPOSED BY A POLITICAL SUBDIVISION OF THIS STATE TO 1,170
PERFORM ANY OF THE FUNCTIONS, DUTIES, OR POWERS PRESCRIBED FOR 1,171
SURETY BAIL BOND AGENTS UNDER THOSE SECTIONS.
Sec. 3905.86. (A) ANY PERSON LICENSED AS A SURETY BAIL 1,173
BOND AGENT MAY BE APPOINTED BY AN INSURER IN ACCORDANCE WITH THIS 1,174
SECTION.
(B) EACH INSURER SHALL CERTIFY TO THE SUPERINTENDENT OF 1,177
INSURANCE BEFORE THE THIRTIETH DAY OF JUNE EACH YEAR THE NAMES 1,178
AND ADDRESSES OF THE SURETY BAIL BOND AGENTS FOR WHOM IT REQUESTS 1,179
APPOINTMENTS OR THE CONTINUANCE OF APPOINTMENTS. ALL INSURERS 1,180
SHALL PAY TO THE SUPERINTENDENT A FEE OF TWENTY DOLLARS FOR EACH 1,181
SUCH APPOINTMENT WHEN ISSUED AND FOR EACH CONTINUANCE THEREAFTER. 1,182
SUCH AN APPOINTMENT, UNLESS CANCELED BY THE INSURER, MAY BE 1,183
CONTINUED IN FORCE PAST THE THIRTIETH DAY OF JUNE NEXT AFTER ITS 1,184
ISSUE AND AFTER THE THIRTIETH DAY OF JUNE OF EACH SUCCEEDING YEAR 1,185
PROVIDED THAT THE APPOINTEE IS LICENSED AND IS ELIGIBLE FOR THE 1,186
APPOINTMENT. 1,187
ANY FEE COLLECTED UNDER THIS DIVISION SHALL BE PAID INTO 1,189
THE STATE TREASURY TO THE CREDIT OF THE DEPARTMENT OF INSURANCE 1,190
OPERATING FUND CREATED BY SECTION 3901.021 OF THE REVISED CODE. 1,193
(C)(1) BY APPOINTING A SURETY BAIL BOND AGENT, AN INSURER 1,195
CERTIFIES TO THE SUPERINTENDENT THAT THE PERSON IS COMPETENT, 1,197
FINANCIALLY RESPONSIBLE, AND SUITABLE TO REPRESENT THE INSURER. 1,198
(2) AN INSURER SHALL BE BOUND BY THE ACTS OF THE PERSON 1,200
NAMED IN THE APPOINTMENT WITHIN THAT PERSON'S ACTUAL OR APPARENT 1,201
AUTHORITY AS ITS AGENT. 1,202
(D) A SURETY BAIL BOND AGENT SHALL NOT REPRESENT TO THE 1,204
PUBLIC THAT THE AGENT HAS AUTHORITY TO REPRESENT A PARTICULAR 1,206
INSURER UNTIL THE INSURER HAS ACKNOWLEDGED THAT AUTHORITY BY 1,207
APPOINTMENT OF THE AGENT IN ACCORDANCE WITH THIS SECTION. 1,208
26
Sec. 3905.861. AN INSURER THAT APPOINTS A SURETY BAIL BOND 1,210
AGENT WHO IS A MEMBER OF AN AGENCY, PARTNERSHIP, CORPORATION, OR 1,212
LIMITED LIABILITY COMPANY SHALL REQUIRE THAT ALL OTHER SURETY 1,214
BAIL BOND AGENTS WHO ARE MEMBERS OF THE SAME AGENCY, PARTNERSHIP, 1,215
CORPORATION, OR LIMITED LIABILITY COMPANY BE APPOINTED TO
REPRESENT THAT INSURER. 1,216
Sec. 3905.862. UPON THE EXPIRATION OR CANCELLATION OF A 1,218
SURETY BAIL BOND AGENT'S APPOINTMENT, THE AGENT SHALL NOT ENGAGE 1,221
OR ATTEMPT TO ENGAGE IN ANY ACTIVITY REQUIRING SUCH AN
APPOINTMENT. HOWEVER, AN INSURER THAT CANCELS THE APPOINTMENT OF 1,222
A SURETY BAIL BOND AGENT MAY AUTHORIZE THE AGENT TO CONTINUE TO 1,224
ATTEMPT THE ARREST AND SURRENDER OF A DEFENDANT FOR WHOM A BAIL 1,225
BOND HAD BEEN WRITTEN PRIOR TO THE CANCELLATION AND TO SEEK 1,226
DISCHARGE OF FORFEITURES AND JUDGMENTS.
Sec. 3905.87. (A) A SURETY BAIL BOND AGENT SHALL NOT FILE 1,228
A BOND IN ANY COURT OF THIS STATE UNLESS BOTH OF THE FOLLOWING 1,230
CONDITIONS ARE MET:
(1) THE AGENT HAS REGISTERED WITH THE CLERK OF THAT COURT, 1,232
IF REGISTRATION IS REQUIRED BY THE COURT. 1,233
(2) THE AGENT HAS REGISTERED WITH THE CLERK OF THE COURT 1,235
OF COMMON PLEAS OF THE COUNTY IN WHICH THE AGENT RESIDES. 1,236
(B) TO REGISTER, A SURETY BAIL BOND AGENT SHALL FILE, WITH 1,238
THE CLERK OF THE COURT, A CERTIFIED COPY OF THE SURETY BAIL BOND 1,240
AGENT'S APPOINTMENT BY POWER OF ATTORNEY FROM EACH INSURER THAT 1,242
THE SURETY BAIL BOND AGENT REPRESENTS. REGISTRATION AND FILING 1,243
OF A CERTIFIED COPY OF A RENEWED POWER OF ATTORNEY SHALL BE 1,244
PERFORMED BY THE FIRST DAY OF AUGUST OF EACH ODD-NUMBERED YEAR. 1,245
THE CLERK OF THE COURT SHALL NOT ACCEPT THE REGISTRATION OF A
SURETY BAIL BOND AGENT UNLESS THE SURETY BAIL BOND AGENT IS 1,246
CURRENTLY LICENSED AND APPOINTED IN ACCORDANCE WITH SECTIONS 1,248
3905.83 TO 3905.95 OF THE REVISED CODE.
Sec. 3905.88. (A) EACH INDIVIDUAL WHO IS ISSUED A LICENSE 1,250
AS A SURETY BAIL BOND AGENT SHALL COMPLETE, IN ACCORDANCE WITH 1,252
SECTION 3905.481 OF THE REVISED CODE, AT LEAST FOURTEEN HOURS OF
27
CONTINUING EDUCATION OFFERED IN A COURSE OR PROGRAM OF STUDY 1,254
RELATED TO THE BAIL BOND BUSINESS THAT IS APPROVED BY THE 1,255
SUPERINTENDENT OF INSURANCE IN CONSULTATION WITH THE INSURANCE 1,256
AGENT EDUCATION ADVISORY COUNCIL. 1,257
(B) THE SUPERINTENDENT SHALL, IN ACCORDANCE WITH SECTION 1,259
3905.482 OF THE REVISED CODE, SUSPEND OR REVOKE THE LICENSE OF 1,261
ANY SURETY BAIL BOND AGENT WHO FAILS TO MEET THE REQUIREMENTS OF 1,262
DIVISION (A) OF THIS SECTION AND HAS NOT BEEN GRANTED AN 1,263
EXTENSION OF TIME WITHIN WHICH TO COMPLETE THE REQUIREMENTS. 1,264
(C) THE SUPERINTENDENT SHALL ADOPT, IN ACCORDANCE WITH 1,268
CHAPTER 119. OF THE REVISED CODE, ANY RULE NECESSARY TO CARRY OUT 1,271
THE SUPERINTENDENT'S DUTIES UNDER THIS SECTION. 1,272
Sec. 3905.89. EACH PERSON LICENSED UNDER SECTIONS 3905.83 1,274
TO 3905.95 OF THE REVISED CODE SHALL NOTIFY IN WRITING THE 1,276
APPROPRIATE INSURER OR MANAGING GENERAL AGENT, AND THE CLERK OF 1,277
THE COURT OF COMMON PLEAS OF THE COUNTY IN WHICH THE LICENSEE 1,278
RESIDES, WITHIN THIRTY DAYS AFTER A CHANGE IN THE LICENSEE'S 1,279
PRINCIPAL BUSINESS ADDRESS OR TELEPHONE NUMBER.
THIS NOTIFICATION REQUIREMENT IS IN ADDITION TO THE 1,281
NOTIFICATION REQUIREMENTS SET FORTH IN SECTION 3905.54 OF THE 1,282
REVISED CODE.
Sec. 3905.90. EACH SURETY BAIL BOND AGENT SHALL MAINTAIN 1,284
ALL RECORDS OF SURETY BONDS EXECUTED OR COUNTERSIGNED BY THE 1,286
SURETY BAIL BOND AGENT FOR AT LEAST THREE YEARS AFTER THE 1,288
LIABILITY OF THE SURETY HAS BEEN TERMINATED. THOSE RECORDS SHALL 1,289
BE OPEN, AT ALL TIMES, TO EXAMINATION, INSPECTION, AND
PHOTOGRAPHIC REPRODUCTION BY ANY EMPLOYEE OR AGENT OF THE 1,290
DEPARTMENT OF INSURANCE, OR BY ANY AUTHORIZED REPRESENTATIVE OF 1,291
THE INSURER OR MANAGING GENERAL AGENT. THE SUPERINTENDENT OF 1,292
INSURANCE AT ANY TIME MAY REQUIRE THE LICENSEE TO FURNISH TO THE 1,293
DEPARTMENT, IN THE MANNER AND FORM THAT THE SUPERINTENDENT
REQUIRES, ANY INFORMATION CONCERNING THE SURETY BOND BUSINESS OF 1,294
THE LICENSEE.
Sec. 3905.91. (A) ALL BUILD-UP FUNDS POSTED BY A SURETY 1,296
28
BAIL BOND AGENT OR MANAGING GENERAL AGENT, EITHER WITH AN INSURER 1,298
OR MANAGING GENERAL AGENT REPRESENTING AN INSURER, SHALL BE 1,299
MAINTAINED IN AN INDIVIDUAL BUILD-UP TRUST ACCOUNT FOR THE SURETY 1,300
BAIL BOND AGENT BY THE INSURER OR THE MANAGING GENERAL AGENT. 1,302
THE INSURER OR MANAGING GENERAL AGENT SHALL ESTABLISH THE ACCOUNT
IN A FEDERALLY INSURED BANK OR SAVINGS AND LOAN ASSOCIATION IN 1,303
THIS STATE JOINTLY IN THE NAME OF THE SURETY BAIL BOND AGENT AND 1,304
THE INSURER OR MANAGING GENERAL AGENT, OR IN TRUST FOR THE SURETY 1,305
BAIL BOND AGENT BY THE INSURER OR MANAGING GENERAL AGENT. THE 1,307
ACCOUNT SHALL BE OPEN TO INSPECTION AND EXAMINATION BY THE
DEPARTMENT OF INSURANCE AT ALL TIMES. THE INSURER OR MANAGING 1,308
GENERAL AGENT SHALL MAINTAIN AN ACCOUNTING OF ALL OF THOSE FUNDS, 1,309
WHICH ACCOUNTING DESIGNATES THE AMOUNTS COLLECTED ON EACH BOND 1,310
WRITTEN.
(B) BUILD-UP FUNDS SHALL NOT EXCEED FORTY PER CENT OF THE 1,312
PREMIUM AS ESTABLISHED BY THE SURETY BAIL BOND AGENT'S CONTRACT 1,313
AGREEMENT WITH THE INSURER OR MANAGING GENERAL AGENT. BUILD-UP 1,315
FUNDS RECEIVED SHALL BE IMMEDIATELY DEPOSITED TO THE BUILD-UP 1,316
TRUST ACCOUNT. INTEREST EARNED ON BUILD-UP TRUST ACCOUNTS SHALL 1,317
ACCRUE TO THE SURETY BAIL BOND AGENT.
(C) BUILD-UP FUNDS ARE DUE UPON TERMINATION OF THE SURETY 1,319
BAIL BOND AGENT'S CONTRACT AND DISCHARGE OF LIABILITIES ON THE 1,321
BONDS FOR WHICH THE BUILD-UP FUNDS WERE POSTED. THE INSURER OR 1,322
MANAGING GENERAL AGENT SHALL PAY THE FUNDS TO THE SURETY BAIL 1,323
BOND AGENT NOT LATER THAN SIX MONTHS AFTER THE FUNDS ARE DUE. 1,324
Sec. 3905.92. (A) A SURETY BAIL BOND AGENT THAT ACCEPTS 1,326
COLLATERAL SECURITY OR OTHER INDEMNITY SHALL COMPLY WITH ALL OF 1,327
THE FOLLOWING REQUIREMENTS: 1,328
(1) THE COLLATERAL SECURITY OR OTHER INDEMNITY SHALL BE 1,330
REASONABLE IN RELATION TO THE AMOUNT OF THE BOND. 1,331
(2) THE COLLATERAL SECURITY OR OTHER INDEMNITY SHALL NOT 1,333
BE USED BY THE SURETY BAIL BOND AGENT FOR PERSONAL BENEFIT OR 1,334
GAIN AND SHALL BE RETURNED IN THE SAME CONDITION AS RECEIVED. 1,335
(3) ACCEPTABLE FORMS OF COLLATERAL SECURITY OR INDEMNITY 1,337
29
INCLUDE CASH OR ITS EQUIVALENT, A PROMISSORY NOTE, AN INDEMNITY 1,338
AGREEMENT, A REAL PROPERTY MORTGAGE IN THE NAME OF THE SURETY, 1,339
AND ANY FILING UNDER CHAPTER 1309. OF THE REVISED CODE. IF THE 1,341
SURETY BAIL BOND AGENT ACCEPTS ON A BOND COLLATERAL SECURITY IN 1,342
EXCESS OF FIFTY THOUSAND DOLLARS IN CASH, THE CASH AMOUNT SHALL 1,343
BE MADE PAYABLE TO THE SURETY IN THE FORM OF A CASHIER'S CHECK, 1,344
UNITED STATES POSTAL MONEY ORDER, CERTIFICATE OF DEPOSIT, OR WIRE 1,346
TRANSFER.
(4) THE SURETY BAIL BOND AGENT SHALL PROVIDE TO THE PERSON 1,348
GIVING THE COLLATERAL SECURITY OR OTHER INDEMNITY, A WRITTEN, 1,349
NUMBERED RECEIPT THAT DESCRIBES IN A DETAILED MANNER THE 1,350
COLLATERAL SECURITY OR OTHER INDEMNITY RECEIVED, ALONG WITH 1,351
COPIES OF ANY DOCUMENTS RENDERED. 1,352
(5) THE COLLATERAL SECURITY OR OTHER INDEMNITY SHALL BE 1,354
RECEIVED AND HELD IN THE SURETY'S NAME BY THE SURETY BAIL BOND 1,355
AGENT IN A FIDUCIARY CAPACITY AND, PRIOR TO ANY FORFEITURE OF 1,356
BAIL, SHALL BE KEPT SEPARATE AND APART FROM ANY OTHER FUNDS OR 1,357
ASSETS OF THE SURETY BAIL BOND AGENT. HOWEVER, WHEN COLLATERAL 1,358
SECURITY IN EXCESS OF FIFTY THOUSAND DOLLARS IN CASH OR ITS 1,359
EQUIVALENT IS RECEIVED ON A BOND, THE SURETY BAIL BOND AGENT 1,360
PROMPTLY SHALL FORWARD THE ENTIRE AMOUNT TO THE SURETY OR 1,361
MANAGING GENERAL AGENT.
(B) COLLATERAL SECURITY MAY BE PLACED IN AN 1,363
INTEREST-BEARING ACCOUNT IN A FEDERALLY INSURED BANK OR SAVINGS 1,364
AND LOAN ASSOCIATION IN THIS STATE, TO ACCRUE TO THE BENEFIT OF 1,365
THE PERSON GIVING THE COLLATERAL SECURITY. THE SURETY BAIL BOND 1,366
AGENT, SURETY, OR MANAGING GENERAL AGENT SHALL NOT MAKE ANY 1,367
PECUNIARY GAIN ON THE COLLATERAL SECURITY DEPOSITED. 1,368
(C)(1) THE SURETY IS LIABLE FOR ALL COLLATERAL SECURITY OR 1,370
OTHER INDEMNITY ACCEPTED BY A SURETY BAIL BOND AGENT. IF, UPON 1,371
FINAL TERMINATION OF LIABILITY ON A BOND, THE SURETY BAIL BOND 1,372
AGENT OR MANAGING GENERAL AGENT FAILS TO RETURN THE COLLATERAL 1,373
SECURITY TO THE PERSON THAT GAVE IT, THE SURETY SHALL RETURN THE 1,374
ACTUAL COLLATERAL TO THAT PERSON OR, IN THE EVENT THAT THE SURETY 1,375
30
CANNOT LOCATE THE COLLATERAL, SHALL PAY THE PERSON IN ACCORDANCE 1,376
WITH THIS SECTION. 1,377
(2) A SURETY'S LIABILITY AS DESCRIBED IN DIVISION (C)(1) 1,379
OF THIS SECTION SURVIVES THE TERMINATION OF THE SURETY BAIL BOND 1,380
AGENT'S APPOINTMENT, WITH RESPECT TO THOSE BONDS THAT WERE 1,381
EXECUTED BY THE SURETY BAIL BOND AGENT PRIOR TO THE TERMINATION 1,382
OF THE APPOINTMENT.
(D) IF A FORFEITURE OCCURS, THE SURETY BAIL BOND AGENT OR 1,384
SURETY SHALL GIVE THE PRINCIPAL AND THE PERSON THAT GAVE THE 1,385
COLLATERAL SECURITY TEN DAYS' WRITTEN NOTICE OF INTENT TO CONVERT 1,386
THE COLLATERAL DEPOSIT INTO CASH TO SATISFY THE FORFEITURE. THE 1,387
NOTICE SHALL BE SENT BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED, 1,388
TO THE LAST KNOWN ADDRESS OF THE PRINCIPAL AND THE PERSON THAT 1,389
GAVE THE COLLATERAL. 1,390
THE SURETY BAIL BOND AGENT OR SURETY SHALL CONVERT THE 1,392
COLLATERAL DEPOSIT INTO CASH WITHIN A REASONABLE PERIOD OF TIME 1,393
AND RETURN THAT WHICH IS IN EXCESS OF THE FACE VALUE OF THE BOND 1,394
MINUS THE ACTUAL AND REASONABLE EXPENSES OF CONVERTING THE 1,396
COLLATERAL INTO CASH. IN NO EVENT SHALL THESE EXPENSES EXCEED
TEN PER CENT OF THE FACE VALUE OF THE BOND. HOWEVER, UPON MOTION 1,397
AND PROOF THAT THE ACTUAL AND REASONABLE EXPENSES EXCEED TEN PER 1,398
CENT, THE COURT MAY ALLOW RECOVERY OF THE FULL AMOUNT OF THE 1,399
ACTUAL AND REASONABLE EXPENSES. IF THERE IS A REMISSION OF 1,400
FORFEITURE THAT REQUIRED THE SURETY TO PAY THE BOND TO THE COURT, 1,401
THE SURETY SHALL PAY TO THE PERSON THAT GAVE THE COLLATERAL THE 1,403
VALUE OF ANY COLLATERAL RECEIVED FOR THE BOND MINUS THE ACTUAL 1,404
AND REASONABLE EXPENSES PERMITTED TO BE RECOVERED UNDER THIS 1,405
DIVISION.
(E) A SURETY BAIL BOND AGENT OR SURETY SHALL NOT SOLICIT 1,407
OR ACCEPT A WAIVER OF ANY OF THE PROVISIONS OF THIS SECTION, OR 1,408
ENTER INTO ANY AGREEMENT AS TO THE VALUE OF THE COLLATERAL. 1,409
(F) NO PERSON SHALL FAIL TO COMPLY WITH THIS SECTION. 1,411
Sec. 3905.921. (A) IF COLLATERAL SECURITY OR OTHER 1,413
INDEMNITY IS ACCEPTED ON A BOND, THE SURETY BAIL BOND AGENT, 1,414
31
MANAGING GENERAL AGENT, OR SURETY SHALL MAKE, UPON DEMAND, A 1,415
WRITTEN REQUEST TO THE COURT FOR A DISCHARGE OF THE BOND TO BE 1,416
DELIVERED TO THE SURETY OR THE SURETY'S AGENT. 1,417
IF THE OBLIGATION OF THE SURETY ON THE BOND IS RELEASED IN 1,419
WRITING BY THE COURT AND A DISCHARGE IS PROVIDED TO THE SURETY OR 1,420
THE SURETY'S AGENT, THE COLLATERAL SECURITY OR OTHER INDEMNITY, 1,421
EXCEPT A PROMISSORY NOTE OR AN INDEMNITY AGREEMENT, SHALL BE 1,422
RETURNED, WITHIN TWENTY-ONE DAYS AFTER THE DISCHARGE IS PROVIDED, 1,423
TO THE PERSON THAT GAVE THE COLLATERAL SECURITY OR OTHER 1,424
INDEMNITY, UNLESS ANOTHER DISPOSITION IS PROVIDED FOR BY LEGAL 1,425
ASSIGNMENT OF THE RIGHT TO RECEIVE THE COLLATERAL TO ANOTHER 1,426
PERSON. IF, DESPITE DILIGENT INQUIRY BY THE SURETY OR THE 1,427
SURETY'S AGENT TO DETERMINE THAT THE BOND HAS BEEN DISCHARGED, 1,428
THE COURT FAILS TO PROVIDE A WRITTEN DISCHARGE WITHIN SEVEN DAYS 1,429
AFTER THE WRITTEN REQUEST WAS MADE TO THE COURT, THE BOND SHALL 1,430
BE CONSIDERED CANCELED BY OPERATION OF LAW, AND THE COLLATERAL 1,431
SECURITY OR OTHER INDEMNITY, EXCEPT A PROMISSORY NOTE OR AN 1,432
INDEMNITY AGREEMENT, SHALL BE RETURNED, WITHIN TWENTY-ONE DAYS 1,433
AFTER THE WRITTEN REQUEST FOR DISCHARGE WAS MADE TO THE COURT, TO 1,434
THE PERSON THAT GAVE THE COLLATERAL SECURITY OR OTHER INDEMNITY. 1,435
(B) NO FEE OR OTHER CHARGE, OTHER THAN THOSE AUTHORIZED BY 1,437
SECTIONS 3905.83 TO 3905.95 OF THE REVISED CODE OR BY RULE OF THE 1,438
SUPERINTENDENT OF INSURANCE, SHALL BE DEDUCTED FROM THE 1,440
COLLATERAL DUE. HOWEVER, ALLOWABLE EXPENSES INCURRED IN THE
APPREHENSION OF A DEFENDANT BECAUSE OF A FORFEITURE OF BOND OR 1,441
JUDGMENT MAY BE DEDUCTED IF THOSE EXPENSES ARE ACCOUNTED FOR. 1,443
(C)(1) NO PERSON SHALL FAIL TO RETURN COLLATERAL SECURITY 1,445
IN ACCORDANCE WITH THIS SECTION. 1,446
(2) A VIOLATION OF DIVISION (C)(1) OF THIS SECTION SHALL 1,448
BE PUNISHABLE AS FOLLOWS: 1,449
(a) IF THE COLLATERAL IS OF A VALUE OF LESS THAN FIVE 1,452
HUNDRED DOLLARS, A VIOLATION IS A MISDEMEANOR OF THE FIRST
DEGREE;
(b) IF THE COLLATERAL IS OF A VALUE OF AT LEAST FIVE 1,454
32
HUNDRED DOLLARS BUT LESS THAN FIVE THOUSAND DOLLARS, A VIOLATION 1,456
IS A FELONY OF THE FIFTH DEGREE;
(c) IF THE COLLATERAL IS OF A VALUE OF AT LEAST FIVE 1,458
THOUSAND DOLLARS BUT LESS THAN TEN THOUSAND DOLLARS, A VIOLATION 1,459
IS A FELONY OF THE FOURTH DEGREE; 1,460
(d) IF THE COLLATERAL IS OF A VALUE OF TEN THOUSAND 1,462
DOLLARS OR MORE, A VIOLATION IS A FELONY OF THE THIRD DEGREE. 1,464
Sec. 3905.93. A SURETY BAIL BOND AGENT SHALL NOT EXECUTE A 1,466
BAIL BOND WITHOUT DOING BOTH OF THE FOLLOWING: 1,468
(A) CHARGING THE PREMIUM RATE FILED WITH AND APPROVED BY 1,470
THE SUPERINTENDENT OF INSURANCE; 1,471
(B) DISCLOSING THE EXPENSE FEE THAT WILL BE CHARGED TO 1,474
COVER THE COSTS INCURRED BY THE AGENT IN EXECUTING THE BOND. 1,475
Sec. 3905.931. (A) NO INSURER, MANAGING GENERAL AGENT, OR 1,477
SURETY BAIL BOND AGENT SHALL FURNISH TO ANY PERSON ANY BLANK 1,478
FORM, APPLICATION, STATIONERY, BUSINESS CARD, OR OTHER SUPPLIES 1,480
TO BE USED IN SOLICITING, NEGOTIATING, OR EFFECTING BAIL BONDS 1,481
UNLESS THE PERSON IS LICENSED TO ACT AS A SURETY BAIL BOND AGENT 1,483
AND IS APPOINTED BY AN INSURER. THIS DIVISION DOES NOT PROHIBIT
AN UNLICENSED EMPLOYEE, UNDER THE DIRECT SUPERVISION AND CONTROL 1,484
OF A LICENSED AND APPOINTED SURETY BAIL BOND AGENT, FROM 1,485
POSSESSING OR EXECUTING IN THE SURETY BOND OFFICE, ANY FORM, 1,487
OTHER THAN A POWER OF ATTORNEY, BOND FORM, OR COLLATERAL RECEIPT, 1,488
WHILE ACTING WITHIN THE SCOPE OF THE EMPLOYEE'S EMPLOYMENT. 1,489
(B) AN INSURER THAT FURNISHES ANY OF THE SUPPLIES 1,492
MENTIONED IN DIVISION (A) OF THIS SECTION TO ANY SURETY BAIL BOND 1,493
AGENT OR OTHER PERSON NOT APPOINTED BY AN INSURER AND THAT 1,495
ACCEPTS ANY BAIL BOND BUSINESS FROM OR WRITES ANY BAIL BOND
BUSINESS FOR THAT SURETY BAIL BOND AGENT OR OTHER PERSON IS 1,497
LIABLE ON THE BOND TO THE SAME EXTENT AND IN THE SAME MANNER AS 1,499
IF THE SURETY BAIL BOND AGENT OR OTHER PERSON HAD BEEN APPOINTED
OR AUTHORIZED BY AN INSURER TO ACT IN ITS BEHALF. 1,502
Sec. 3905.932. A SURETY BAIL BOND AGENT OR INSURER SHALL 1,504
NOT DO ANY OF THE FOLLOWING: 1,505
33
(A) SUGGEST OR ADVISE THE EMPLOYMENT OF, OR NAME FOR 1,507
EMPLOYMENT, ANY PARTICULAR ATTORNEY TO REPRESENT ITS PRINCIPAL; 1,508
(B) DIRECTLY OR INDIRECTLY SOLICIT BUSINESS IN, OR ON THE 1,510
PROPERTY OR GROUNDS OF, A DETENTION FACILITY, AS DEFINED IN 1,512
SECTION 2921.01 OF THE REVISED CODE, OR IN, OR ON THE PROPERTY OR 1,513
GROUNDS OF, ANY COURT. FOR PURPOSES OF THIS DIVISION, "SOLICIT" 1,514
INCLUDES THE DISTRIBUTION OF BUSINESS CARDS, PRINT ADVERTISING, 1,515
OR ANY OTHER WRITTEN INFORMATION DIRECTED TO PRISONERS OR 1,516
POTENTIAL INDEMNITORS, UNLESS A REQUEST IS INITIATED BY THE
PRISONER OR POTENTIAL INDEMNITOR. PERMISSIBLE PRINT ADVERTISING 1,517
IN A DETENTION FACILITY IS STRICTLY LIMITED TO A LISTING IN A 1,518
TELEPHONE DIRECTORY AND THE POSTING OF THE SURETY BAIL BOND 1,519
AGENT'S NAME, ADDRESS, AND TELEPHONE NUMBER IN A DESIGNATED 1,520
LOCATION WITHIN THE DETENTION FACILITY.
(C) WEAR OR OTHERWISE DISPLAY ANY IDENTIFICATION, OTHER 1,522
THAN WALLET IDENTIFICATION CARD REQUIRED UNDER DIVISION (G) OF 1,523
SECTION 3905.85 OF THE REVISED CODE, IN OR ON THE PROPERTY OR 1,525
GROUNDS OF A DETENTION FACILITY, AS DEFINED IN SECTION 2921.01 OF 1,526
THE REVISED CODE, OR IN OR ON THE PROPERTY OR GROUNDS OF ANY 1,527
COURT;
(D) PAY A FEE OR REBATE OR GIVE OR PROMISE ANYTHING OF 1,529
VALUE TO A JAILER, LAW ENFORCEMENT OFFICER, COMMITTING 1,530
MAGISTRATE, OR OTHER PERSON WHO HAS POWER TO ARREST OR TO HOLD IN 1,531
CUSTODY, OR TO ANY PUBLIC OFFICIAL OR PUBLIC EMPLOYEE, IN ORDER 1,532
TO SECURE A SETTLEMENT, COMPROMISE, REMISSION, OR REDUCTION OF 1,533
THE AMOUNT OF ANY BAIL BOND OR ESTREATMENT OF BAIL;
(E) PAY A FEE OR REBATE OR GIVE OR PROMISE ANYTHING OF 1,535
VALUE TO AN ATTORNEY IN A BAIL BOND MATTER, EXCEPT IN DEFENSE OF 1,536
ANY ACTION ON A BOND;
(F) PAY A FEE OR REBATE OR GIVE OR PROMISE ANYTHING OF 1,538
VALUE TO THE PRINCIPAL OR TO ANYONE IN THE PRINCIPAL'S BEHALF; 1,539
(G) PARTICIPATE IN THE CAPACITY OF AN ATTORNEY AT A TRIAL 1,541
OR HEARING OF A PRINCIPAL; 1,542
(H) ACCEPT ANYTHING OF VALUE FROM A PRINCIPAL FOR 1,544
34
PROVIDING A BAIL BOND, OTHER THAN THE PREMIUM FILED WITH AND 1,545
APPROVED BY THE SUPERINTENDENT OF INSURANCE AND AN EXPENSE FEE, 1,546
EXCEPT THAT THE SURETY BAIL BOND AGENT MAY, IN ACCORDANCE WITH 1,547
SECTION 3905.92 OF THE REVISED CODE, ACCEPT COLLATERAL SECURITY 1,548
OR OTHER INDEMNITY FROM A PRINCIPAL OR OTHER PERSON TOGETHER WITH 1,549
DOCUMENTARY STAMP TAXES IF APPLICABLE. NO FEES, EXPENSES, OR 1,550
CHARGES OF ANY KIND SHALL BE DEDUCTED FROM THE COLLATERAL HELD OR 1,551
ANY RETURN PREMIUM DUE, EXCEPT AS AUTHORIZED BY SECTIONS 3905.83 1,552
TO 3905.95 OF THE REVISED CODE OR BY RULE OF THE SUPERINTENDENT.
A SURETY BAIL BOND AGENT, UPON WRITTEN AGREEMENT WITH ANOTHER 1,554
PARTY, MAY RECEIVE A FEE OR OTHER COMPENSATION FOR RETURNING TO 1,556
CUSTODY AN INDIVIDUAL WHO HAS FLED THE JURISDICTION OF THE COURT 1,557
OR CAUSED THE FORFEITURE OF A BOND.
(I) EXECUTE A BOND IN THIS STATE ON THE PERSON'S OWN 1,559
BEHALF;
(J) EXECUTE A BOND IN THIS STATE IF A JUDGMENT HAS BEEN 1,561
ENTERED ON A BOND EXECUTED BY THE SURETY BAIL BOND AGENT, WHICH 1,562
JUDGMENT HAS REMAINED UNPAID FOR AT LEAST SIXTY DAYS AFTER ALL 1,563
APPEALS HAVE BEEN EXHAUSTED, UNLESS THE FULL AMOUNT OF THE 1,564
JUDGMENT IS DEPOSITED WITH THE CLERK OF THE COURT. 1,565
Sec. 3905.933. (A) A SURETY BAIL BOND AGENT SHALL NOT 1,567
SIGN OR COUNTERSIGN IN BLANK ANY BOND, OR GIVE A POWER OF 1,569
ATTORNEY TO, OR OTHERWISE AUTHORIZE, ANYONE TO COUNTERSIGN THE 1,570
SURETY BAIL BOND AGENT'S NAME TO A BOND UNLESS THE PERSON SO 1,572
AUTHORIZED IS A LICENSED AND APPOINTED SURETY BAIL BOND AGENT
DIRECTLY EMPLOYED BY THE SURETY BAIL BOND AGENT GIVING THAT 1,574
AUTHORITY.
(B) A SURETY BAIL BOND AGENT SHALL NOT DIVIDE WITH ANY 1,576
OTHER PERSON, OR SHARE IN, ANY COMMISSIONS PAYABLE ON ACCOUNT OF 1,578
A BAIL BOND, EXCEPT AS BETWEEN OTHER SURETY BAIL BOND AGENTS THAT 1,579
ARE LICENSED OR OTHERWISE QUALIFIED TO ENGAGE IN THE BAIL BOND 1,580
BUSINESS IN THEIR STATE OF DOMICILE.
Sec. 3905.934. (A) A SURETY BAIL BOND AGENT SHALL NOT 1,582
MAKE, PUBLISH, OR OTHERWISE DISSEMINATE, DIRECTLY OR INDIRECTLY, 1,583
35
ANY MISLEADING OR FALSE ADVERTISEMENT, OR ENGAGE IN ANY OTHER 1,584
DECEPTIVE TRADE PRACTICE. 1,585
(B) ALL ADVERTISING BY A SURETY BAIL BOND AGENT SHALL 1,587
INCLUDE THE ADDRESS OF RECORD OF THE AGENT ON FILE WITH THE 1,589
DEPARTMENT OF INSURANCE. 1,590
Sec. 3905.94. IF THE SUPERINTENDENT OF INSURANCE, IN 1,592
ACCORDANCE WITH SECTION 3905.49 OF THE REVISED CODE, SUSPENDS OR 1,593
REVOKES A PERSON'S LICENSE AS A SURETY BAIL BOND AGENT, THE 1,595
PERSON, DURING THE PERIOD OF SUSPENSION OR REVOCATION, SHALL NOT 1,596
BE EMPLOYED BY ANY SURETY BAIL BOND AGENT, HAVE ANY OWNERSHIP 1,597
INTEREST IN ANY BUSINESS INVOLVING BAIL BONDS, OR HAVE ANY 1,598
FINANCIAL INTEREST OF ANY TYPE IN ANY BAIL BOND BUSINESS. 1,599
Sec. 3905.941. UPON THE SURRENDER, SUSPENSION, OR 1,601
REVOCATION OF A SURETY BAIL BOND AGENT'S LICENSE, THE APPOINTING 1,602
INSURER OR MANAGING GENERAL AGENT IMMEDIATELY SHALL DESIGNATE A 1,604
LICENSED AND APPOINTED SURETY BAIL BOND AGENT TO ADMINISTER ALL 1,605
BAIL BONDS PREVIOUSLY WRITTEN BY THE LICENSEE.
Sec. 3905.95. THE SUPERINTENDENT OF INSURANCE SHALL ADOPT, 1,608
IN ACCORDANCE WITH CHAPTER 119. OF THE REVISED CODE, ANY RULES 1,611
NECESSARY TO IMPLEMENT SECTIONS 3905.83 TO 3905.95 OF THE REVISED 1,612
CODE.
Sec. 3905.99. (A) Whoever violates sections 3905.181, 1,621
3905.21, or 3905.23 of the Revised Code shall be fined not less 1,622
than twenty-five nor more than five hundred dollars or imprisoned 1,623
not more than six months, or both.
(B) Whoever violates section 3905.31 or 3905.33 of the 1,625
Revised Code shall be fined not less than twenty-five nor more 1,626
than five hundred dollars or imprisoned not more than one year, 1,627
or both.
(C) Whoever violates section 3905.37 or 3905.43 of the 1,629
Revised Code shall be fined not less than one hundred nor more 1,630
than five hundred dollars.
(D) Whoever violates section 3905.01, DIVISION (F) OF 1,632
SECTION 3905.92, OR DIVISION (A) OF SECTION 3905.931 of the 1,634
36
Revised Code is guilty of a misdemeanor of the first degree. 1,636
(E) WHOEVER VIOLATES SECTION 3905.84 OF THE REVISED CODE 1,639
IS GUILTY OF A MISDEMEANOR OF THE FIRST DEGREE ON A FIRST OR 1,640
SECOND OFFENSE AND OF A FELONY OF THE THIRD DEGREE ON EACH
SUBSEQUENT OFFENSE. 1,641
Section 2. That existing sections 3905.01, 3905.011, 1,643
3905.012, 3905.48, 3905.49, 3905.55, 3905.86, and 3905.99 of the 1,644
Revised Code are hereby repealed. 1,645
Section 3. Sections 1 and 2 of this act shall take effect 1,647
six months after the effective date of this act. 1,648
Section 4. Any person who, on the effective date of this 1,650
act, is licensed as a property/casualty insurance agent in this 1,651
state and is actively engaged in the business of posting bail 1,652
bonds, is not subject to section 3905.841 of the Revised Code, as 1,653
enacted by this act, and shall not be required to take an 1,654
examination for licensure as a surety bail bond agent, if the 1,655
person applies for the license during the six-month period 1,656
immediately following the effective date of this act. 1,657
Section 5. It is the intent of the General Assembly that 1,659
the Superintendent of Insurance take any action necessary to 1,660
provide for an orderly transition for those persons who, on the 1,661
effective date of this act, perform the functions, duties, or 1,663
powers prescribed for surety bail bond agents under this act. 1,664
Consequently, the Department of Insurance shall accept license 1,665
applications submitted by such persons beginning on the effective 1,666
date of this act and shall make every effort possible to act upon 1,667
such applications within the six-month period immediately 1,668
following that date.