As Passed by the House 1
123rd General Assembly 4
Regular Session Am. 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-MYERS 12
SALERNO-SCHULER-LOGAN-SULZER-MOTTLEY-J. BEATTY-ALLEN- 13
HOOPS-HARTNETT-PERRY-BOYD-KRUPINSKI-BARNES-DePIERO 14
_________________________________________________________________ 15
A B I L L
To amend sections 3905.01, 3905.011, 3905.012, 17
3905.48, 3905.49, 3905.55, 3905.86, and 3905.99; 18
to amend, for the purpose of adopting a new
section number as indicated in parentheses, 19
section 3905.86 (3905.81); and to enact new 20
section 3905.86 and sections 2927.27, 3905.83, 21
3905.84, 3905.841, 3905.85, 3905.851, 3905.861, 22
3905.862, 3905.87 to 3905.92, 3905.921, 3905.93, 23
3905.931, 3905.932, 3905.933, 3905.934, 3905.94, 24
3905.941, and 3905.95 of the Revised Code 25
relative to the regulation of surety bail bond
agents and the apprehension or arrest of a 26
principal on bond.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 28
Section 1. That sections 3905.01, 3905.011, 3905.012, 31
3905.48, 3905.49, 3905.55, 3905.86, and 3905.99 be amended, 32
section 3905.86 (3905.81) be amended for the purpose of adopting 33
a new section number as indicated in parentheses, and new section 34
3905.86 and sections 2927.27, 3905.83, 3905.84, 3905.841, 35
3905.85, 3905.851, 3905.861, 3905.862, 3905.87, 3905.88, 3905.89, 36
2
3905.90, 3905.91, 3905.92, 3905.921, 3905.93, 3905.931, 3905.932, 37
3905.933, 3905.934, 3905.94, 3905.941, and 3905.95 of the Revised 38
Code be enacted to read as follows:
Sec. 2927.27. (A) NO PERSON, OTHER THAN A LAW ENFORCEMENT 40
OFFICER, SHALL APPREHEND, DETAIN, OR ARREST A PRINCIPAL ON BOND, 41
WHEREVER ISSUED, UNLESS THAT PERSON MEETS ALL OF THE FOLLOWING 42
CRITERIA: 43
(1) THE PERSON IS ANY OF THE FOLLOWING: 45
(a) QUALIFIED, LICENSED, AND APPOINTED AS A SURETY BAIL 46
BOND AGENT UNDER SECTIONS 3905.83 TO 3905.95 OF THE REVISED CODE; 48
(b) LICENSED AS A SURETY BAIL BOND AGENT BY THE STATE 50
WHERE THE BOND WAS WRITTEN; 51
(c) LICENSED AS A PRIVATE INVESTIGATOR UNDER CHAPTER 4749. 54
OF THE REVISED CODE; 55
(d) LICENSED AS A PRIVATE INVESTIGATOR BY THE STATE WHERE 57
THE BOND WAS WRITTEN; 58
(e) AN OFF-DUTY PEACE OFFICER, AS DEFINED IN SECTION 60
2921.51 OF THE REVISED CODE. 61
(2) THE PERSON, PRIOR TO APPREHENDING, DETAINING, OR 63
ARRESTING THE PRINCIPAL, HAS ENTERED INTO A WRITTEN CONTRACT WITH 64
THE SURETY OR WITH A LICENSED SURETY BAIL BOND AGENT APPOINTED BY 65
THE SURETY, WHICH CONTRACT SETS FORTH THE NAME OF THE PRINCIPAL 66
WHO IS TO BE APPREHENDED, DETAINED, OR ARRESTED. 67
FOR PURPOSES OF DIVISION(A) (2) OF THIS SECTION, "SURETY" 69
HAS THE SAME MEANING AS IN SECTION 3905.83 OF THE REVISED CODE. 71
(3) THE PERSON, PRIOR TO APPREHENDING, DETAINING, OR 73
ARRESTING THE PRINCIPAL, HAS NOTIFIED THE LOCAL LAW ENFORCEMENT 74
AGENCY HAVING JURISDICTION OVER THE AREA IN WHICH SUCH ACTIVITIES 75
WILL BE PERFORMED AND HAS PROVIDED ANY FORM OF IDENTIFICATION OR 76
OTHER INFORMATION REQUESTED BY THE LAW ENFORCEMENT AGENCY. 77
(B) NO PERSON SHALL REPRESENT THE PERSON'S SELF TO BE A 79
BAIL ENFORCEMENT AGENT OR BOUNTY HUNTER, OR CLAIM ANY SIMILAR 80
TITLE, IN THIS STATE. 81
(C) (1) WHOEVER VIOLATES THIS SECTION IS GUILTY OF 83
3
ILLEGAL BAIL BOND AGENT PRACTICES. 84
(2) A VIOLATION OF DIVISION (A) OF THIS SECTION IS A 85
MISDEMEANOR OF THE FIRST DEGREE OR, IF THE OFFENDER PREVIOUSLY 86
HAS BEEN CONVICTED OF OR PLEADED GUILTY TO TWO OR MORE VIOLATIONS 87
OF DIVISION (A) OF THIS SECTION, A FELONY OF THE THIRD DEGREE. 88
(3) A VIOLATION OF DIVISION (B) OF THIS SECTION IS A 89
MISDEMEANOR OF THE FIRST DEGREE OR, IF THE OFFENDER PREVIOUSLY 91
HAS BEEN CONVICTED OF OR PLEADED GUILTY TO TWO OR MORE VIOLATIONS 92
OF DIVISION (B) OF THIS SECTION, A FELONY OF THE THIRD DEGREE. 93
Sec. 3905.01. (A) No person shall procure an application 103
or quote premiums for, discuss coverages of, or solicit, 104
negotiate, effect, procure, place, write, deliver, renew, or 105
bind, a policy of insurance, INCLUDING ANY FIDELITY, SURETY, OR 106
GUARANTY BOND, through any medium for risks residing, located, or 107
to be performed in this state, unless the person is licensed by 108
the superintendent of insurance in accordance with this chapter. 110
(B) Division (A) of this section does not apply to any of 114
the following persons:
(1) An insurer as defined in section 3901.32 of the 116
Revised Code;
(2) Any person who furnishes information regarding group 118
insurance, enrolls individuals in group insurance plans, issues 119
certificates under such plans, or otherwise assists in 120
administering such plans, if no commission or other form of 121
compensation related to premium or sales volume is paid for such 122
services; 123
(3) Any employee of a creditor with respect to insurance 125
products made available only in connection with a credit 127
transaction, including credit life insurance, credit disability 128
or accident and health insurance, credit property insurance,
mortgage life insurance, mortgage accident and health insurance, 129
involuntary unemployment insurance, individual life insurance, 130
and individual disability or accident and health insurance, if 131
the entire premium is financed as part of the credit transaction 132
4
and the following conditions are met:
(a) If the insurance product is an individual life 134
insurance policy, a licensed agent is responsible for the 135
insurance transaction.
(b) If the employee of the creditor is paid by the 137
insurance agent or by the insurance company, the employee holds a 138
limited authority license. 139
For purposes of division (B)(3) of this section, "credit 141
property insurance" means insurance covering risks of loss, 142
damage, and destruction of property used as security for a credit 143
transaction, which insurance may also cover other property that 145
is merely incidental to the property used as security for the 147
credit transaction.
(4) Any employer, or officer or employee of an employer, 150
to the extent that the employer, officer, or employee is engaged 151
in the administration or operation of any employee benefits 152
program involving the use of insurance for the employer's 153
employees or the employees of a subsidiary or affiliate of the 154
employer, provided that the employer, officer, or employee is not 156
compensated, either directly or indirectly, in any manner by an 157
insurance agent or by the insurance company issuing the
insurance; 158
(5) An adjuster employed by or representing an insurer in 161
the adjustment of claims or a public insurance adjuster holding a 162
certificate of authority issued under Chapter 3951. of the 163
Revised Code when performing the duties of a public insurance 166
adjuster.
(C) Division (A) of this section does not apply to any of 170
the following activities when performed by an employee of, and at 171
the direction of, an insurer or licensed insurance agent: 172
(1) The acceptance of premiums other than the initial 174
premium; 175
(2) The gathering of information, such as names, 177
addresses, expiration dates of current insurance, and names of 178
5
current insurers; 179
(3) The setting of appointments for insurance agents, 181
provided that the person setting the appointment does not 182
communicate any information about insurance; 183
(4) The servicing of existing insurance policies issued by 186
or through the employee's employer, provided the servicing is not 187
part of a solicitation;
(5) The performance of clerical or ministerial duties. 190
(D) The superintendent may adopt rules in accordance with 193
Chapter 119. of the Revised Code to set forth the specific acts 196
that comprise any of the activities described in this section, 197
the performance of which either requires or does not require 199
licensure as an agent.
Sec. 3905.011. (A) As used in this section and sections 209
3905.012 and 3905.013 of the Revised Code, "insurer" has the same 210
meaning as in section 3901.32 of the Revised Code. 212
(B) Any person that is licensed as an agent under section 215
3905.02 or 3905.18 of the Revised Code is eligible to be 216
appointed by one or more insurers authorized to do business in 217
this state. 218
(C)(1) Prior to BY appointing an agent, an insurer shall 221
certify CERTIFIES to the superintendent of insurance, in 222
accordance with rules adopted by the superintendent under section 223
3905.013 of the Revised Code, that the person is competent, 224
financially responsible, and suitable to represent the insurer. 225
(2) No agent shall represent to the public that the agent 227
has authority to represent a particular insurer until the insurer 229
has acknowledged that authority by appointment of the agent in 230
accordance with division (C)(1) of this section. 231
(D)(1) No insurer shall pay a commission, fee, or other 234
type of consideration, or give any other thing of value, to a 235
person that is required to be licensed by the superintendent 236
under this chapter for the sale of, or for any direct or indirect 237
connection with the sale of, any insurance sold by or on behalf 238
6
of the insurer, but is not so licensed.
(2) Nothing in this section prohibits an insurer from 240
entering into a compensation agreement with a creditor with 241
respect to insurance products made available only in connection 243
with a credit transaction, including credit life insurance,
credit disability or accident and health insurance, credit 244
property insurance, mortgage life insurance, mortgage accident 245
and health insurance, involuntary unemployment insurance, 246
individual life insurance, and individual disability or accident 247
and health insurance, if the entire premium is financed as part 248
of the credit transaction. For purposes of division (D)(2) of 249
this section, "credit property insurance" has the same meaning as 250
in division (B)(3) of section 3905.01 of the Revised Code.
Sec. 3905.012. (A)(1) Except as provided in division 259
(A)(2) of this section, any person licensed as an agent under 261
section 3905.02 or, 3905.18, OR 3905.85 of the Revised Code, or 263
appointed as a solicitor under section 3905.03 of the Revised 265
Code, may at any time surrender any or all licenses held by the 266
person.
(2) No agent shall surrender the agent's licenses if the 269
superintendent of insurance is investigating any allegation of 270
wrongdoing by the agent or has initiated proceedings under
Chapter 119. of the Revised Code and notice of an opportunity for 271
a hearing has been issued to the agent, and any attempt to so 273
surrender is invalid.
(B)(1) If an insurer or agent cancels the appointment of 276
an agent or solicitor due to suspected fraud, misrepresentation, 277
theft, conversion, or any other culpable misappropriation, the 278
insurer or agent shall promptly notify the superintendent. The 279
notice shall include a complete statement of the facts and the 280
reasons for the cancellation. 281
(2) In the absence of fraud or actual malice, an insurer 283
or agent is immune from any civil liability that otherwise might 284
be incurred or imposed as a result of any action taken by the 285
7
insurer or agent to comply with division (B)(1) of this section. 287
(C) If an agent's license is surrendered, revoked, or 289
suspended, all appointments held by the agent are void. If a new 291
license is issued to that person or if that person's previous 292
license is reinstated, any appointment of the person to represent 293
an insurer or agent must be made in accordance with the 294
requirements of this chapter.
(D)(1) Any agent, other than a corporation, partnership, 296
or limited liability company, who is no longer engaged in the 297
business of insurance in any capacity for which an agent's 298
license is required may apply to the superintendent for inactive 299
status. The superintendent may grant such status only if the 300
superintendent is satisfied that the person is not engaged in and 302
does not intend to engage in any of the activities set forth in 303
section 3905.01 of the Revised Code that requires an agent's 305
license. 306
(2) A person who has been granted inactive status is 308
exempt from any continuing education requirements imposed under 309
this chapter. 310
(3) The superintendent may adopt rules in accordance with 313
Chapter 119. of the Revised Code to establish procedures for 316
applying for inactive status, criteria used to determine
eligibility for such status, and standards and procedures for 317
transferring from inactive to active status. 318
(E) The superintendent may suspend or revoke a license, or 321
take any other disciplinary action authorized by this chapter, 322
regardless of whether the person is appointed or otherwise 323
authorized to represent an insurer or agent. 324
Sec. 3905.48. (A) No person, unless the person has 334
complied with division (B) of this section, shall be permitted to 336
take an examination for a license as an agent to engage in the
sale of any of the following types of insurance: 338
(1) Life insurance, annuity contracts, variable annuity 340
contracts, and variable life insurance; 341
8
(2) Sickness and accident insurance; 343
(3) All lines of property and casualty insurance; 345
(4) SURETY BAIL BONDS; 347
(5) All other lines of insurance for which an examination 349
is required for licensing, except title insurance. 350
(B) No person shall be permitted to take an examination 352
described in division (A) of this section unless either of the 353
following applies: 354
(1) The person has earned a bachelor's or associate's 356
degree in insurance in an accredited institution; 357
(2) The person has been granted a diploma for successfully 359
completing a high school curriculum under section 3313.61 of the 360
Revised Code or a certificate of high school equivalence under 361
rule 3301-41-1 of the Administrative Code, or been granted a 362
comparable diploma or certificate by another state, and has 363
successfully completed at least forty hours of study in a program 364
of insurance education approved by the superintendent of 365
insurance in consultation with the insurance agent education 366
advisory council under criteria established by the 367
superintendent. 368
Sec. 3905.49. (A) As used in this section: 377
(1) "Insurer" has the same meaning as in section 3901.32 380
of the Revised Code.
(2) "Refusal to issue or renew" means the decision of the 383
superintendent of insurance not to process either the initial 384
application for a license as an agent or the renewal of such a 385
license.
(3) "Revocation" means the permanent termination of all 388
authority to hold any license as an agent in this state.
(4) "Surrender for cause" means the voluntary termination 391
of all authority to hold any license as an agent in this state, 392
in lieu of a revocation or suspension order. 393
(5) "Suspension" means the termination of all authority to 396
hold any license as an agent in this state, for either a 397
9
specified period of time or an indefinite period of time and 398
under any terms or conditions determined by the superintendent. 399
(B) The superintendent may suspend, revoke, or refuse to 403
issue or renew any license as an agent, SURETY BAIL BOND AGENT, 404
surplus line broker, or limited insurance representative, or 405
impose any other sanction authorized under this chapter, for one 407
or more of the following reasons: 408
(1) Obtaining or attempting to obtain any license or 410
appointment through misrepresentation or fraud, including making 411
any materially untrue statement in an application for a license 414
or appointment;
(2) Violating or failing to comply with any insurance law, 418
rule, subpoena, consent agreement, or order of the 419
superintendent;
(3) Misappropriating or converting to the person's own use 422
any moneys belonging to policyholders, prospective policyholders, 423
beneficiaries, insurance companies, SURETIES, PRINCIPALS, or 424
others received in the course of the person's insurance business; 426
(4) Failing to timely submit an application for insurance. 429
For purposes of division (B)(4) of this section, a submission is 431
considered timely if it occurs within the time period expressly 432
provided for by the insurer, or within seven days after the agent 433
accepts a premium or an order to bind from a policyholder or 434
applicant, whichever is later.
(5) Knowingly misrepresenting the terms, benefits, value, 437
cost, or effective dates of any actual or proposed insurance 438
policy or, contract, OR BOND; 440
(6) Being convicted of a felony; 442
(7) Being convicted of a misdemeanor that involves the 445
misuse or theft of money or property belonging to another, fraud, 446
forgery, dishonest acts, or breach of a fiduciary duty, or that 448
is based on any act or omission relating to the business of
insurance, securities, or financial services; 449
(8) Committing an unfair trade act or practice under any 453
10
section of Title XXXIX of the Revised Code or any rule adopted 454
thereunder;
(9) Having an insurance license suspended or revoked in 457
any other state, province, or territory; 458
(10) Forging or causing the forgery of another's name to 462
any document related to or used in an insurance transaction; 463
(11) Possessing or using any unauthorized materials during 465
a licensing or continuing education examination or cheating on a 467
licensing or continuing education examination;
(12) Failing to disclose to an applicant for insurance or 470
policyholder upon accepting a premium or an order to bind 471
coverage from the applicant or policyholder, that the person has 472
not been appointed as agent by the insurer and is not an 473
appointed solicitor of an appointed agent;
(13) Having any professional license suspended or revoked 476
as a result of a mishandling of funds or breach of fiduciary 477
responsibilities; 478
(14) Causing or permitting a policyholder or applicant for 481
insurance to designate the person or the person's spouse, parent, 482
child, or sibling as the beneficiary of a policy or annuity sold 483
by the person, unless the person or a relative of the person is 484
the insured or applicant;
(15) Failing to provide a written response to the 486
department of insurance within thirty days after receipt of any 488
written inquiry from the department;
(16) Failing to notify the superintendent of any change in 491
the person's address, within thirty days after the change occurs, 493
as required by section 3905.54 of the Revised Code;
(17) Transferring or placing insurance with an insurer 495
other than the insurer expressly chosen by the applicant for 496
insurance or policyholder without the consent of the applicant or 497
policyholder or absent extenuating circumstances; 498
(18) Engaging in any fraudulent, DISHONEST, or coercive 500
practice in connection with the business of insurance; 501
11
(19) Failing to inform a policyholder or applicant for 503
insurance of the identity of the insurer or insurers, or the 504
identity of any other insurance agent, general agent, surplus 505
line broker, or licensee known to be involved in procuring, 506
placing, or continuing the insurance for the policyholder or 507
applicant, upon the binding of the coverage; 508
(20) In the case of an agent that is a corporation, 510
limited liability company, or partnership, failing to report an 511
individual licensee's violation to the department when the 512
violation was known or should have been known by one or more of 513
the partners, officers, managers, or members of the corporation, 514
limited liability company, or partnership; 515
(21) Submitting or using a document in the conduct of the 518
business of insurance when the person knew or should have known 519
that the document contained the forged signature of another 520
person;
(22) Misrepresenting the person's qualifications or using 523
in any way a professional designation that has not been conferred 524
upon the person by the appropriate accrediting organization; 525
(23) Obtaining a premium loan or causing a premium loan to 528
be made to or in the name of an insured without that person's 529
knowledge and written authorization;
(24) Failing to notify the superintendent of any 531
disciplinary action taken by the insurance authority of another 532
state, within sixty days after the action was taken, as required 534
by section 3905.54 of the Revised Code;
(25) Failing to file any of the reports or notices 536
required under this chapter; 537
(26) Submitting an application for insurance, or causing 540
the issuance of an insurance policy or contract, on behalf of an 541
applicant who did not request or authorize the insurance. 542
Division (B)(26) of this section does not apply to any policy 543
issued by an other than life insurance company.
(27) Using paper, software, or any other materials of or 546
12
provided by an insurer after the insurer has terminated the
authority of the licensee, if the use of such materials would 547
cause a reasonable person to believe that the licensee was acting 549
on behalf of or otherwise representing the insurer; 550
(28) Providing misleading, deceptive, or untrue 552
information to an applicant for insurance or a policyholder 553
regarding a particular insurance agent, company, or product; 555
(29) Soliciting, procuring an application for, or placing, 558
either directly or indirectly, any insurance policy when the 559
person is not authorized under this chapter to engage in such 560
activity;
(30) Soliciting, marketing, or selling any product or 562
service that offers benefits similar to insurance but is not 563
regulated by the superintendent, without fully disclosing to the 564
prospective purchaser that the product or service is not 565
insurance and is not regulated by the superintendent; 566
(31) Failing to fulfill a refund obligation in a timely 568
manner. For purposes of division (B)(31) of this section, a 570
rebuttable presumption exists that a refund obligation is not 571
fulfilled in a timely manner unless it is fulfilled within one of 572
the following time periods: 573
(a) Thirty days after the date the policyholder, 576
applicant, or insurer takes or requests action resulting in a 577
refund;
(b) Thirty days after the date of the insurer's refund 580
check, if the agent is expected to issue a portion of the total 581
refund;
(c) Forty-five days after the date of the agent's 584
statement of account on which the refund first appears. 585
(32) WITH RESPECT TO A SURETY BAIL BOND AGENT LICENSE, 587
REBATING OR OFFERING TO REBATE, OR UNLAWFULLY DIVIDING OR 588
OFFERING TO DIVIDE, ANY COMMISSION. 589
(C) Before denying, revoking, suspending, or refusing to 591
issue any license or imposing any penalty under this section or 593
13
section 3905.482 of the Revised Code, the superintendent shall
provide the licensee or applicant with notice and an opportunity 596
for hearing as provided in Chapter 119. of the Revised Code, 597
except as follows: 598
(1)(a) Any notice of opportunity for hearing, the hearing 600
officer's findings and recommendations, or the superintendent's 602
order shall be served by certified mail at the last known address 603
of the licensee or applicant. Service shall be evidenced by 604
return receipt signed by any person.
For purposes of this section, the "last known address" is 606
the address that appears in the licensing records of the 607
department of insurance.
(b) If the certified mail envelope is returned with an 610
endorsement showing that service was refused, or that the 611
envelope was unclaimed, the notice and all subsequent notices
required by Chapter 119. of the Revised Code may be served by 612
ordinary mail to the last known address of the licensee or 613
applicant. The mailing shall be evidenced by a certificate of 614
mailing. Service is deemed complete as of the date of such 615
certificate provided that the ordinary mail envelope is not 616
returned by the postal authorities with an endorsement showing 617
failure of delivery. The time period in which to request a 618
hearing, as provided in Chapter 119. of the Revised Code, begins 621
to run on the date of mailing. 622
(c) If service by ordinary mail fails, the superintendent 625
may cause a summary of the substantive provisions of the notice 626
to be published once a week for three consecutive weeks in a 627
newspaper of general circulation in the county where the last 628
known place of residence or business of the party is located. 629
The notice is considered served on the date of the third 630
publication.
(d) Any notice required to be served under Chapter 119. of 633
the Revised Code shall also be served upon the party's attorney 636
by ordinary mail if the attorney has entered an appearance in the 637
14
matter.
(e) The superintendent may, at any time, perfect service 640
on a party by personal delivery of the notice by an employee of 641
the department.
(f) Notices regarding the scheduling of hearings and all 644
other matters not described in division (C)(1)(a) of this section 646
shall be sent by ordinary mail to the party and to the party's 647
attorney.
(2) Any subpoena for the appearance of a witness or the 650
production of documents or other evidence at a hearing, or for 651
the purpose of taking testimony for use at a hearing, shall be 652
served by certified mail, return receipt requested, by an
attorney or by an employee of the department designated by the 653
superintendent. Such subpoenas shall be enforced in the manner 654
provided in section 119.09 of the Revised Code. Nothing in this 657
section shall be construed as limiting the superintendent's other 658
statutory powers to issue subpoenas. 659
(D) If the superintendent determines that a violation 661
described in this section has occurred, the superintendent may do 663
any of the following: 664
(1) Assess a civil forfeiture in an amount not exceeding 667
twenty-five thousand dollars per violation;
(2) Assess administrative costs to cover the expenses 669
incurred by the department in the administrative action, 670
including costs incurred in the investigation and hearing 671
processes. Any costs collected shall be paid into the state 672
treasury to the credit of the department of insurance operating 673
fund created in section 3901.021 of the Revised Code. 675
(3) Suspend all of the person's licenses for all lines of 677
insurance for either a specified period of time or an indefinite 678
period of time and under such terms and conditions as the 679
superintendent may determine; 680
(4) Permanently revoke all of the person's licenses for 682
all lines of insurance; 683
15
(5) Refuse to issue a license; 685
(6) Refuse to renew a license; 687
(7) Prohibit the person from being employed in any 689
capacity in the business of insurance and from having any 690
financial interest in any insurance agency, company, SURETY BAIL 691
BOND BUSINESS, or third-party administrator in this state. The 693
superintendent may, in the superintendent's discretion, determine 694
the nature, conditions, and duration of such restrictions. 695
(8) Order corrective actions in lieu of or in addition to 698
the other penalties listed in division (D) of this section. Such 699
an order may provide for the suspension of civil forfeitures, 700
license revocation, license suspension, or refusal to issue or 701
renew a license if the licensee complies with the terms and 702
conditions of the corrective action order. 703
(9) Accept a surrender for cause offered by the licensee, 706
which shall be for at least five years and shall prohibit the 707
licensee from seeking any license authorized under this chapter 708
during that time period. A surrender for cause may also include 709
a corrective action order as provided in division (D)(8) of this 710
section.
(E) The superintendent may consider the following factors 713
in denying a license, imposing suspensions, revocations, fines, 714
or other penalties, and issuing orders under this section: 715
(1) Whether the person acted in good faith; 717
(2) Whether the person made restitution for any pecuniary 720
losses suffered by other persons as a result of the person's 721
actions; 722
(3) The actual harm or potential for harm to others; 724
(4) The degree of trust placed in the person by, and the 726
vulnerability of, persons who were or could have been adversely 728
affected by the person's actions; 729
(5) Whether the person was the subject of any previous 732
administrative actions by the superintendent;
(6) The number of individuals adversely affected by the 735
16
person's acts or omissions;
(7) Whether the person voluntarily reported the violation, 737
and the extent of the person's cooperation and acceptance of 738
responsibility; 739
(8) Whether the person obstructed or impeded, or attempted 742
to obstruct or impede, the superintendent's investigation; 743
(9) The person's efforts to conceal the misconduct; 746
(10) Remedial efforts to prevent future violations; 749
(11) If the person was convicted of a criminal offense, 752
the nature of the offense, whether the conviction was based on 753
acts or omissions taken under any professional license, whether 754
the offense involved the breach of a fiduciary duty, the amount 755
of time that has passed, and the person's activities subsequent 756
to the conviction;
(12) Such other factors as the superintendent determines 758
to be appropriate under the circumstances. 759
(F)(1) A violation described in division (B)(1), (2), (3), 762
(5), (6), (7), (8), (9), (10), (11), (12), (13), (14), (17), 763
(18), (19), (20), (21), (22), (23), (25), (26), (27), (28), (29), 765
(30), or (31), OR (32) of this section is a class A offense for 766
which the superintendent may impose any penalty set forth in 767
division (D) of this section. 768
(2) A violation described in division (B)(4), (15), (16), 771
or (24) of this section is a class B offense for which the 773
superintendent may impose any penalty set forth in division 774
(D)(1), (2), (8), or (9) of this section. 776
(G) If a violation described in this section has caused, 779
is causing, or is about to cause substantial and material harm, 781
the superintendent may issue an order requiring that person to 782
cease and desist from engaging in the violation. Notice of the 783
order shall be mailed by certified mail, return receipt 784
requested, or served in any other manner provided for in this 785
section, immediately after its issuance to the person subject to 786
the order and to all persons known to be involved in the 787
17
violation. The superintendent may thereafter publicize or 788
otherwise make known to all interested parties that the order has 789
been issued.
The notice shall specify the particular act, omission, 791
practice, or transaction that is subject to the cease-and-desist 792
order and shall set a date, not more than fifteen days after the 793
date of the order, for a hearing on the continuation or 794
revocation of the order. The person shall comply with the order 795
immediately upon receipt of notice of the order. 796
The superintendent may, upon the application of a party and 799
for good cause shown, continue the hearing. Chapter 119. of the 800
Revised Code applies to such hearings to the extent that that 803
chapter does not conflict with the procedures set forth in this 804
section. The superintendent shall, within fifteen days after 805
objections are submitted to the hearing officer's report and 806
recommendation, issue a final order either confirming or revoking 807
the cease-and-desist order. The final order may be appealed as 808
provided under section 119.12 of the Revised Code. 810
The remedy under this division is cumulative and concurrent 813
with the other remedies available under this section.
(H) If the superintendent has reasonable cause to believe 816
that an order issued under this section has been violated in 817
whole or in part, the superintendent may request the attorney 818
general to commence and prosecute any appropriate action or 819
proceeding in the name of the state against such person. 820
The court may, in an action brought pursuant to this 822
division, impose any of the following: 823
(1) For each violation, a civil penalty of not more than 826
twenty-five thousand dollars;
(2) Injunctive relief; 828
(3) Restitution; 830
(4) Any other appropriate relief. 832
(I) WITH RESPECT TO A SURETY BAIL BOND AGENT LICENSE: 834
(1) UPON THE SUSPENSION OR REVOCATION OF A LICENSE, OR THE 836
18
ELIGIBILITY OF A SURETY BAIL BOND AGENT TO HOLD A LICENSE, THE 837
SUPERINTENDENT LIKEWISE MAY SUSPEND OR REVOKE THE LICENSE OR 838
ELIGIBILITY OF ANY SURETY BAIL BOND AGENT WHO IS EMPLOYED BY OR 839
ASSOCIATED WITH THAT AGENT AND WHO KNOWINGLY WAS A PARTY TO THE 840
ACT THAT RESULTED IN THE SUSPENSION OR REVOCATION. 841
(2) THE SUPERINTENDENT MAY REVOKE A LICENSE AS A SURETY 843
BAIL BOND AGENT IF THE LICENSEE IS ADJUDGED BANKRUPT. 844
(J) This section applies to both resident and nonresident 847
agents who are licensed under this chapter. 848
(J)(K) Nothing in this section shall be construed to 851
create or imply a private cause of action against an agent, 853
solicitor, or insurer.
Sec. 3905.55. (A) Except as provided in division (B) of 863
this section, an agent may charge a consumer a fee if all of the 864
following conditions are met: 865
(1) The fee is disclosed to the consumer in a manner that 868
separately identifies the fee and the premium.
(2) The fee is not calculated as a percentage of the 870
premium. 871
(3) The fee is not refunded, forgiven, waived, offset, or 874
reduced by any commission earned or received for any policy or 875
coverage sold.
(4) The amount of the fee, and the consumer's obligation 878
to pay the fee, are not conditioned upon the occurrence of a 879
future event or condition, such as the purchase, cancellation, 880
lapse, declination, or nonrenewal of insurance. 881
(5) The agent discloses to the consumer that the fee is 884
being charged by the agent and not by the insurance company, that 885
neither state law nor the insurance company requires the agent to 886
charge the fee, and that the fee is not refundable. 887
(6) The consumer consents to the fee. 889
(7) The agent, in charging the fee, does not discriminate 892
on the basis of race, sex, national origin, religion, disability, 893
health status, age, marital status, or geographic location, and 894
19
does not unfairly discriminate between persons of essentially the 895
same class and of essentially the same hazard or expectation of 896
life.
(B) A fee may not be charged for taking or submitting an 899
initial application for coverage with any one insurer or 900
different programs with the same insurer, or processing a change 901
to an existing policy, a cancellation, a claim, or a renewal, in 902
connection with any of the following personal lines policies: 903
(1) Private passenger automobile; 905
(2) Homeowners, including coverage for tenants or 907
condominium owners, owner-occupied fire or dwelling property 908
coverage, personal umbrella liability, or any other personal 909
lines-related coverage whether sold as a separate policy or as an 911
endorsement to another personal lines policy;
(3) Individual life insurance; 913
(4) Individual sickness or accident insurance; 915
(5) Disability income policies; 917
(6) Credit insurance products. 920
(C) Notwithstanding any other provision of this section, 923
an agent may charge a fee for agent services in connection with a 924
policy issued on a no-commission basis, if the agent provides the 925
consumer with prior disclosure of the fee and of the services to 926
be provided. 927
(D) In the event of a dispute between an agent and a 930
consumer regarding any disclosure required by this section, the 931
agent has the burden of proving that the disclosure was made. 932
(E)(1) No person shall fail to comply with this section. 935
(2) Whoever violates division (E)(1) of this section is 938
deemed to have engaged in an unfair and deceptive act or practice 940
in the business of insurance under sections 3901.19 to 3901.26 of 941
the Revised Code. 942
(F) THIS SECTION DOES NOT APPLY WITH RESPECT TO ANY 944
EXPENSE FEE CHARGED BY A SURETY BAIL BOND AGENT TO COVER THE 945
COSTS INCURRED BY THE SURETY BAIL BOND AGENT IN EXECUTING THE 946
20
BAIL BOND.
Sec. 3905.86 3905.81. (A) As used in this section: 955
(1) "Reinsurance intermediary-broker" means a person, 957
other than an officer or employee of the ceding insurer, that 958
solicits, negotiates, or places reinsurance cessions or 959
retrocessions on behalf of a ceding insurer without the authority 960
or power to bind reinsurance on behalf of such insurer. 961
(2)(a) "Reinsurance intermediary-manager" means a person 963
that has authority to bind or that manages all or part of the 964
assumed reinsurance business of a reinsurer, including the 965
management of a separate division, department, or underwriting 966
office, and that acts as an agent of the reinsurer whether known 967
as a reinsurance intermediary-manager, manager, or similar term. 968
(b) "Reinsurance intermediary-manager" does not include: 970
(i) An employee of the reinsurer; 972
(ii) A United States manager of the United States branch 974
of an alien reinsurer; 975
(iii) An underwriting manager that, pursuant to contract, 977
manages all of the reinsurance operations of the reinsurer, is 978
under common control with the reinsurer, subject to sections 979
3901.32 to 3901.37 of the Revised Code, and whose compensation is 980
not based on the volume of premiums written; 981
(iv) The manager of a group, association, pool, or 983
organization of insurers that engages in joint reinsurance and 984
that are subject to examination by the insurance regulatory 985
authority of the state in which the manager's principal business 986
office is located. 987
(B) No person shall act as a reinsurance 989
intermediary-broker or reinsurance intermediary-manager in this 990
state, or on behalf of an insurer or reinsurer domiciled in this 991
state, unless the person first obtains a license from the 992
superintendent of insurance in accordance with this section or 993
the superintendent accepts, in accordance with rules that he THE 994
SUPERINTENDENT may adopt under division (C) of this section, a 996
21
license issued to the person by the insurance regulatory 997
authority of another state.
(C) The superintendent of insurance shall adopt rules in 999
accordance with Chapter 119. of the Revised Code establishing the 1,000
standards and procedures for licensing reinsurance 1,001
intermediary-brokers and reinsurance intermediary-managers. The 1,002
superintendent may also adopt rules, in accordance with Chapter 1,003
119. of the Revised Code, for the acceptance of licenses issued 1,004
by insurance regulatory authorities of other states with statutes 1,005
similar to this section in lieu of requiring a license to be 1,006
obtained from the superintendent under division (B) of this 1,007
section. 1,008
(D) The fee for the issuance or renewal of a license shall 1,010
be five hundred dollars. The fee for accepting the license of 1,011
another state shall be one hundred dollars each year. All fees 1,012
collected pursuant to this section shall be paid into the state 1,013
treasury to the credit of the department of insurance operating 1,014
fund. 1,015
Sec. 3905.83. AS USED IN SECTIONS 3905.83 TO 3905.95 OF 1,017
THE REVISED CODE:
(A) "INSURER" MEANS ANY DOMESTIC, FOREIGN, OR ALIEN 1,020
INSURANCE COMPANY THAT HAS BEEN ISSUED A CERTIFICATE OF AUTHORITY 1,021
BY THE SUPERINTENDENT OF INSURANCE TO TRANSACT SURETY BUSINESS IN 1,022
THIS STATE.
(B) "MANAGING GENERAL AGENT" MEANS ANY PERSON THAT IS 1,025
APPOINTED OR EMPLOYED BY AN INSURER TO SUPERVISE OR OTHERWISE 1,026
MANAGE THE BAIL BOND BUSINESS WRITTEN IN THIS STATE BY SURETY 1,027
BAIL BOND AGENTS APPOINTED BY THE INSURER. 1,028
(C) "SURETY" MEANS AN INSURER THAT AGREES TO BE 1,031
RESPONSIBLE FOR THE FULFILLMENT OF THE OBLIGATION OF A PRINCIPAL 1,032
IF THE PRINCIPAL FAILS TO FULFILL THAT OBLIGATION. 1,033
Sec. 3905.84. NO PERSON SHALL ACT IN THE CAPACITY OF A 1,035
SURETY BAIL BOND AGENT, OR PERFORM ANY OF THE FUNCTIONS, DUTIES, 1,037
OR POWERS PRESCRIBED FOR SURETY BAIL BOND AGENTS UNDER SECTIONS 1,038
22
3905.83 TO 3905.95 OF THE REVISED CODE, UNLESS THAT PERSON IS
QUALIFIED, LICENSED, AND APPOINTED AS PROVIDED IN THOSE SECTIONS. 1,040
Sec. 3905.841. THE FOLLOWING PERSONS OR CLASSES OF PERSONS 1,042
SHALL NOT ACT AS SURETY BAIL BOND AGENTS OR EMPLOYEES OF A SURETY 1,043
BAIL BOND AGENT OR BAIL BOND BUSINESS AND SHALL NOT DIRECTLY OR 1,046
INDIRECTLY RECEIVE ANY BENEFITS FROM THE EXECUTION OF A BAIL
BOND, EXCEPT AS A PRINCIPAL: 1,047
(A) JAILERS OR OTHER PERSONS EMPLOYED IN A DETENTION 1,049
FACILITY, AS DEFINED IN SECTION 2921.01 OF THE REVISED CODE; 1,051
(B) PEACE OFFICERS AS DEFINED IN SECTION 2921.51 OF THE 1,053
REVISED CODE, OR OTHER EMPLOYEES OF A LAW ENFORCEMENT AGENCY; 1,054
(C) COMMITTING MAGISTRATES, EMPLOYEES OF A COURT, OR 1,056
EMPLOYEES OF THE CLERK OF ANY COURT; 1,057
(D) ATTORNEYS; 1,059
(E) ANY OTHER PERSONS HAVING THE POWER TO ARREST, OR 1,061
PERSONS WHO HAVE AUTHORITY OVER OR CONTROL OF, FEDERAL, STATE, 1,062
COUNTY, OR MUNICIPAL CORPORATION PRISONERS. 1,063
Sec. 3905.85. (A) AN APPLICANT FOR A LICENSE AS A SURETY 1,066
BAIL BOND AGENT SHALL SUBMIT AN APPLICATION FOR THE LICENSE IN A 1,067
MANNER PRESCRIBED BY THE SUPERINTENDENT OF INSURANCE. THE 1,068
APPLICATION SHALL BE ACCOMPANIED BY A ONE HUNDRED FIFTY DOLLAR 1,069
FEE AND A STATEMENT THAT GIVES THE APPLICANT'S NAME, AGE, 1,070
RESIDENCE, PRESENT OCCUPATION, OCCUPATION FOR THE FIVE YEARS NEXT 1,071
PRECEDING THE DATE OF THE APPLICATION, AND SUCH OTHER INFORMATION 1,072
AS THE SUPERINTENDENT MAY REQUIRE. 1,073
THE APPLICANT SHALL ALSO REQUEST A CRIMINAL RECORDS CHECK 1,075
CONDUCTED BY THE SUPERINTENDENT OF THE BUREAU OF CRIMINAL 1,076
IDENTIFICATION AND INVESTIGATION IN ACCORDANCE WITH SECTION 1,077
109.572 OF THE REVISED CODE, AND DIRECT THAT THE BUREAU'S WRITTEN 1,079
RESPONSE TO THAT REQUEST BE TRANSMITTED TO THE SUPERINTENDENT OF 1,080
INSURANCE, OR TO THE SUPERINTENDENT'S DESIGNEE, AS SPECIFIED ON 1,082
THE FORM PRESCRIBED PURSUANT TO THAT SECTION. IF THE
SUPERINTENDENT OF INSURANCE OR THE SUPERINTENDENT'S DESIGNEE 1,083
FAILS TO RECEIVE THE BUREAU'S RESPONSE TO THE APPLICANT'S REQUEST 1,084
23
FOR A CRIMINAL RECORDS CHECK, THE SUPERINTENDENT MAY REFUSE TO 1,085
ISSUE A LICENSE UNDER THIS SECTION. THE APPLICANT SHALL PAY ANY 1,086
FEE REQUIRED BY THE BUREAU FOR CONDUCTING THE CRIMINAL RECORDS 1,087
CHECK.
AN APPLICANT FOR A LICENSE SHALL SUBMIT TO AN EXAMINATION 1,089
AS TO THE QUALIFICATIONS SET FORTH IN DIVISION (B) OF THIS 1,090
SECTION.
(B) THE SUPERINTENDENT OF INSURANCE SHALL ISSUE TO AN 1,093
APPLICANT A LICENSE THAT STATES IN SUBSTANCE THAT THE PERSON IS 1,094
AUTHORIZED TO DO THE BUSINESS OF A SURETY BAIL BOND AGENT, IF THE 1,095
SUPERINTENDENT IS SATISFIED THAT ALL OF THE FOLLOWING APPLY: 1,096
(1) IF THE APPLICANT IS A NATURAL PERSON, THE APPLICANT IS 1,098
EIGHTEEN YEARS OF AGE OR OLDER. 1,099
(2) THE APPLICANT IS A PERSON OF HIGH CHARACTER AND 1,101
INTEGRITY. 1,102
(3) THE APPLICANT HAS SUCCESSFULLY COMPLETED THE 1,104
EDUCATIONAL REQUIREMENTS SET FORTH IN SECTION 3905.48 OF THE 1,106
REVISED CODE.
(C) A SURETY BAIL BOND AGENT LICENSE ISSUED PURSUANT TO 1,108
THIS SECTION AUTHORIZES THE HOLDER, WHEN APPOINTED BY AN INSURER, 1,109
TO EXECUTE OR COUNTERSIGN BAIL BONDS IN CONNECTION WITH JUDICIAL 1,110
PROCEEDINGS AND TO RECEIVE MONEY OR OTHER THINGS OF VALUE FOR 1,111
THOSE SERVICES. HOWEVER, THE HOLDER SHALL NOT EXECUTE OR DELIVER 1,112
A BOND DURING THE FIRST ONE HUNDRED EIGHTY DAYS AFTER THE LICENSE 1,113
IS INITIALLY ISSUED. THIS RESTRICTION DOES NOT APPLY WITH 1,114
RESPECT TO LICENSE RENEWALS. 1,115
(D) THE SUPERINTENDENT OF INSURANCE MAY SUSPEND OR REVOKE 1,117
A SURETY BAIL BOND AGENT'S LICENSE AS PROVIDED IN SECTION 1,119
3905.482 OF THE REVISED CODE, AND MAY SUSPEND, REVOKE, OR REFUSE 1,120
TO ISSUE OR RENEW SUCH A LICENSE AS PROVIDED IN SECTION 3905.49 1,121
OF THE REVISED CODE. 1,122
IF THE SUPERINTENDENT REFUSES TO ISSUE SUCH A LICENSE BASED 1,124
IN WHOLE OR IN PART UPON THE BUREAU'S WRITTEN RESPONSE TO A 1,125
CRIMINAL RECORDS CHECK REQUESTED PURSUANT TO DIVISION (A) OF THIS 1,126
24
SECTION, THE SUPERINTENDENT SHALL SEND A COPY OF THE RESPONSE 1,127
THAT THE BUREAU TRANSMITTED TO THE SUPERINTENDENT OR TO THE 1,128
SUPERINTENDENT'S DESIGNEE, TO THE APPLICANT AT THE APPLICANT'S 1,129
HOME ADDRESS UPON THE APPLICANT'S SUBMISSION OF A WRITTEN REQUEST 1,130
TO THE SUPERINTENDENT. 1,131
(E) ANY PERSON LICENSED AS A SURETY BAIL BOND AGENT MAY 1,133
SURRENDER THE PERSON'S LICENSE IN ACCORDANCE WITH SECTION 1,134
3905.012 OF THE REVISED CODE. 1,135
(F) UNLESS REVOKED OR SUSPENDED BY THE SUPERINTENDENT OR 1,137
SURRENDERED BY THE SURETY BAIL BOND AGENT, SUCH A LICENSE MAY, IN 1,138
THE DISCRETION OF THE SUPERINTENDENT AND THE PAYMENT OF A ONE 1,139
HUNDRED FIFTY DOLLAR FEE, BE CONTINUED PAST THE LAST DAY OF 1,140
FEBRUARY NEXT AFTER ITS ISSUE AND AFTER THE LAST DAY OF FEBRUARY 1,141
IN EACH SUCCEEDING YEAR. 1,142
(G) THE SUPERINTENDENT OF INSURANCE MAY PRESCRIBE THE 1,144
FORMS TO BE USED AS EVIDENCE OF THE ISSUANCE OF A LICENSE UNDER 1,145
THIS SECTION. THE SUPERINTENDENT SHALL REQUIRE EACH LICENSEE TO 1,146
ACQUIRE, FROM A SOURCE DESIGNATED BY THE SUPERINTENDENT, A WALLET 1,147
IDENTIFICATION CARD THAT INCLUDES THE LICENSEE'S PHOTOGRAPH AND 1,148
ANY OTHER INFORMATION REQUIRED BY THE SUPERINTENDENT. THE 1,149
LICENSEE SHALL KEEP THE WALLET IDENTIFICATION CARD ON THE 1,150
LICENSEE'S PERSON WHILE ENGAGING IN THE BAIL BOND BUSINESS. 1,151
(H)(1) THE SUPERINTENDENT OF INSURANCE SHALL NOT ISSUE OR 1,153
RENEW THE LICENSE OF A CORPORATION, PARTNERSHIP, OR LIMITED 1,154
LIABILITY COMPANY ORGANIZED UNDER THE LAWS OF THIS OR ANY OTHER 1,155
STATE UNLESS THE CORPORATION, PARTNERSHIP, OR LIMITED LIABILITY 1,156
COMPANY IS QUALIFIED TO DO BUSINESS IN THIS STATE UNDER THE 1,157
APPLICABLE PROVISIONS OF TITLE XVII OF THE REVISED CODE. 1,159
(2) THE FAILURE OF A CORPORATION, PARTNERSHIP, OR LIMITED 1,161
LIABILITY COMPANY TO BE IN GOOD STANDING WITH THE SECRETARY OF 1,162
STATE OR TO MAINTAIN A VALID APPOINTMENT OF STATUTORY AGENT IS 1,163
GROUNDS FOR SUSPENDING, REVOKING, OR REFUSING TO RENEW ITS 1,164
LICENSE.
(3) BY APPLYING FOR A SURETY BAIL BOND AGENT LICENSE UNDER 1,166
25
THIS SECTION, AN INDIVIDUAL, CORPORATION, PARTNERSHIP, OR LIMITED 1,167
LIABILITY COMPANY CONSENTS TO THE JURISDICTION OF THE COURTS OF 1,168
THIS STATE.
(I) A SURETY BAIL BOND AGENT LICENSED PURSUANT TO THIS 1,171
SECTION IS AN OFFICER OF THE COURT. 1,172
(J) ANY FEE COLLECTED UNDER THIS SECTION SHALL BE PAID 1,174
INTO THE STATE TREASURY TO THE CREDIT OF THE DEPARTMENT OF 1,175
INSURANCE OPERATING FUND CREATED BY SECTION 3901.021 OF THE 1,176
REVISED CODE.
Sec. 3905.851. A SURETY BAIL BOND AGENT QUALIFIED, 1,178
LICENSED, AND APPOINTED IN ACCORDANCE WITH SECTIONS 3905.83 TO 1,179
3905.95 OF THE REVISED CODE SHALL NOT BE REQUIRED TO PAY ANY 1,181
LICENSING FEE IMPOSED BY A POLITICAL SUBDIVISION OF THIS STATE TO 1,182
PERFORM ANY OF THE FUNCTIONS, DUTIES, OR POWERS PRESCRIBED FOR 1,183
SURETY BAIL BOND AGENTS UNDER THOSE SECTIONS.
Sec. 3905.86. (A) ANY PERSON LICENSED AS A SURETY BAIL 1,185
BOND AGENT MAY BE APPOINTED BY AN INSURER IN ACCORDANCE WITH THIS 1,186
SECTION.
(B) EACH INSURER SHALL CERTIFY TO THE SUPERINTENDENT OF 1,189
INSURANCE BEFORE THE THIRTIETH DAY OF JUNE EACH YEAR THE NAMES 1,190
AND ADDRESSES OF THE SURETY BAIL BOND AGENTS FOR WHOM IT REQUESTS 1,191
APPOINTMENTS OR THE CONTINUANCE OF APPOINTMENTS. ALL INSURERS 1,192
SHALL PAY TO THE SUPERINTENDENT A FEE OF TWENTY DOLLARS FOR EACH 1,193
SUCH APPOINTMENT WHEN ISSUED AND FOR EACH CONTINUANCE THEREAFTER. 1,194
SUCH AN APPOINTMENT, UNLESS CANCELED BY THE INSURER, MAY BE 1,195
CONTINUED IN FORCE PAST THE THIRTIETH DAY OF JUNE NEXT AFTER ITS 1,196
ISSUE AND AFTER THE THIRTIETH DAY OF JUNE OF EACH SUCCEEDING YEAR 1,197
PROVIDED THAT THE APPOINTEE IS LICENSED AND IS ELIGIBLE FOR THE 1,198
APPOINTMENT. 1,199
ANY FEE COLLECTED UNDER THIS DIVISION SHALL BE PAID INTO 1,201
THE STATE TREASURY TO THE CREDIT OF THE DEPARTMENT OF INSURANCE 1,202
OPERATING FUND CREATED BY SECTION 3901.021 OF THE REVISED CODE. 1,205
(C)(1) BY APPOINTING A SURETY BAIL BOND AGENT, AN INSURER 1,207
CERTIFIES TO THE SUPERINTENDENT THAT THE PERSON IS COMPETENT, 1,209
26
FINANCIALLY RESPONSIBLE, AND SUITABLE TO REPRESENT THE INSURER. 1,210
(2) AN INSURER SHALL BE BOUND BY THE ACTS OF THE PERSON 1,212
NAMED IN THE APPOINTMENT WITHIN THAT PERSON'S ACTUAL OR APPARENT 1,213
AUTHORITY AS ITS AGENT. 1,214
(D) A SURETY BAIL BOND AGENT SHALL NOT REPRESENT TO THE 1,216
PUBLIC THAT THE AGENT HAS AUTHORITY TO REPRESENT A PARTICULAR 1,218
INSURER UNTIL THE INSURER HAS ACKNOWLEDGED THAT AUTHORITY BY 1,219
APPOINTMENT OF THE AGENT IN ACCORDANCE WITH THIS SECTION. 1,220
Sec. 3905.861. AN INSURER THAT APPOINTS A SURETY BAIL BOND 1,222
AGENT WHO IS A MEMBER OF AN AGENCY, PARTNERSHIP, CORPORATION, OR 1,224
LIMITED LIABILITY COMPANY SHALL REQUIRE THAT ALL OTHER SURETY 1,226
BAIL BOND AGENTS WHO ARE MEMBERS OF THE SAME AGENCY, PARTNERSHIP, 1,227
CORPORATION, OR LIMITED LIABILITY COMPANY BE APPOINTED TO
REPRESENT THAT INSURER. 1,228
Sec. 3905.862. UPON THE EXPIRATION OR CANCELLATION OF A 1,230
SURETY BAIL BOND AGENT'S APPOINTMENT, THE AGENT SHALL NOT ENGAGE 1,233
OR ATTEMPT TO ENGAGE IN ANY ACTIVITY REQUIRING SUCH AN
APPOINTMENT. HOWEVER, AN INSURER THAT CANCELS THE APPOINTMENT OF 1,234
A SURETY BAIL BOND AGENT MAY AUTHORIZE THE AGENT TO CONTINUE TO 1,236
ATTEMPT THE ARREST AND SURRENDER OF A DEFENDANT FOR WHOM A BAIL 1,237
BOND HAD BEEN WRITTEN PRIOR TO THE CANCELLATION AND TO SEEK 1,238
DISCHARGE OF FORFEITURES AND JUDGMENTS.
Sec. 3905.87. (A) A SURETY BAIL BOND AGENT SHALL NOT FILE 1,240
A BOND IN ANY COURT OF THIS STATE UNLESS BOTH OF THE FOLLOWING 1,242
CONDITIONS ARE MET:
(1) THE AGENT HAS REGISTERED WITH THE CLERK OF THAT COURT, 1,244
IF REGISTRATION IS REQUIRED BY THE COURT. 1,245
(2) THE AGENT HAS REGISTERED WITH THE CLERK OF THE COURT 1,247
OF COMMON PLEAS OF THE COUNTY IN WHICH THE AGENT RESIDES. 1,248
(B) TO REGISTER, A SURETY BAIL BOND AGENT SHALL FILE, WITH 1,250
THE CLERK OF THE COURT, A CERTIFIED COPY OF THE SURETY BAIL BOND 1,252
AGENT'S APPOINTMENT BY POWER OF ATTORNEY FROM EACH INSURER THAT 1,254
THE SURETY BAIL BOND AGENT REPRESENTS. REGISTRATION AND FILING 1,255
OF A CERTIFIED COPY OF A RENEWED POWER OF ATTORNEY SHALL BE 1,256
27
PERFORMED BY THE FIRST DAY OF AUGUST OF EACH ODD-NUMBERED YEAR. 1,257
THE CLERK OF THE COURT SHALL NOT ACCEPT THE REGISTRATION OF A
SURETY BAIL BOND AGENT UNLESS THE SURETY BAIL BOND AGENT IS 1,258
CURRENTLY LICENSED AND APPOINTED IN ACCORDANCE WITH SECTIONS 1,260
3905.83 TO 3905.95 OF THE REVISED CODE.
Sec. 3905.88. (A) EACH INDIVIDUAL WHO IS ISSUED A LICENSE 1,262
AS A SURETY BAIL BOND AGENT SHALL COMPLETE, IN ACCORDANCE WITH 1,264
SECTION 3905.481 OF THE REVISED CODE, AT LEAST FOURTEEN HOURS OF
CONTINUING EDUCATION OFFERED IN A COURSE OR PROGRAM OF STUDY 1,266
RELATED TO THE BAIL BOND BUSINESS THAT IS APPROVED BY THE 1,267
SUPERINTENDENT OF INSURANCE IN CONSULTATION WITH THE INSURANCE 1,268
AGENT EDUCATION ADVISORY COUNCIL. 1,269
(B) THE SUPERINTENDENT SHALL, IN ACCORDANCE WITH SECTION 1,271
3905.482 OF THE REVISED CODE, SUSPEND OR REVOKE THE LICENSE OF 1,273
ANY SURETY BAIL BOND AGENT WHO FAILS TO MEET THE REQUIREMENTS OF 1,274
DIVISION (A) OF THIS SECTION AND HAS NOT BEEN GRANTED AN 1,275
EXTENSION OF TIME WITHIN WHICH TO COMPLETE THE REQUIREMENTS. 1,276
(C) THE SUPERINTENDENT SHALL ADOPT, IN ACCORDANCE WITH 1,280
CHAPTER 119. OF THE REVISED CODE, ANY RULE NECESSARY TO CARRY OUT 1,283
THE SUPERINTENDENT'S DUTIES UNDER THIS SECTION. 1,284
Sec. 3905.89. EACH PERSON LICENSED UNDER SECTIONS 3905.83 1,286
TO 3905.95 OF THE REVISED CODE SHALL NOTIFY IN WRITING THE 1,288
APPROPRIATE INSURER OR MANAGING GENERAL AGENT, AND THE CLERK OF 1,289
THE COURT OF COMMON PLEAS OF THE COUNTY IN WHICH THE LICENSEE 1,290
RESIDES, WITHIN THIRTY DAYS AFTER A CHANGE IN THE LICENSEE'S 1,291
PRINCIPAL BUSINESS ADDRESS OR TELEPHONE NUMBER.
THIS NOTIFICATION REQUIREMENT IS IN ADDITION TO THE 1,293
NOTIFICATION REQUIREMENTS SET FORTH IN SECTION 3905.54 OF THE 1,294
REVISED CODE.
Sec. 3905.90. EACH SURETY BAIL BOND AGENT SHALL MAINTAIN 1,296
ALL RECORDS OF SURETY BONDS EXECUTED OR COUNTERSIGNED BY THE 1,298
SURETY BAIL BOND AGENT FOR AT LEAST THREE YEARS AFTER THE 1,300
LIABILITY OF THE SURETY HAS BEEN TERMINATED. THOSE RECORDS SHALL 1,301
BE OPEN, AT ALL TIMES, TO EXAMINATION, INSPECTION, AND
28
PHOTOGRAPHIC REPRODUCTION BY ANY EMPLOYEE OR AGENT OF THE 1,302
DEPARTMENT OF INSURANCE, OR BY ANY AUTHORIZED REPRESENTATIVE OF 1,303
THE INSURER OR MANAGING GENERAL AGENT. THE SUPERINTENDENT OF 1,304
INSURANCE AT ANY TIME MAY REQUIRE THE LICENSEE TO FURNISH TO THE 1,305
DEPARTMENT, IN THE MANNER AND FORM THAT THE SUPERINTENDENT
REQUIRES, ANY INFORMATION CONCERNING THE SURETY BOND BUSINESS OF 1,306
THE LICENSEE.
Sec. 3905.91. (A) ALL BUILD-UP FUNDS POSTED BY A SURETY 1,308
BAIL BOND AGENT OR MANAGING GENERAL AGENT, EITHER WITH AN INSURER 1,310
OR MANAGING GENERAL AGENT REPRESENTING AN INSURER, SHALL BE 1,311
MAINTAINED IN AN INDIVIDUAL BUILD-UP TRUST ACCOUNT FOR THE SURETY 1,312
BAIL BOND AGENT BY THE INSURER OR THE MANAGING GENERAL AGENT. 1,314
THE INSURER OR MANAGING GENERAL AGENT SHALL ESTABLISH THE ACCOUNT
IN A FEDERALLY INSURED BANK OR SAVINGS AND LOAN ASSOCIATION IN 1,315
THIS STATE JOINTLY IN THE NAME OF THE SURETY BAIL BOND AGENT AND 1,316
THE INSURER OR MANAGING GENERAL AGENT, OR IN TRUST FOR THE SURETY 1,317
BAIL BOND AGENT BY THE INSURER OR MANAGING GENERAL AGENT. THE 1,319
ACCOUNT SHALL BE OPEN TO INSPECTION AND EXAMINATION BY THE
DEPARTMENT OF INSURANCE AT ALL TIMES. THE INSURER OR MANAGING 1,320
GENERAL AGENT SHALL MAINTAIN AN ACCOUNTING OF ALL OF THOSE FUNDS, 1,321
WHICH ACCOUNTING DESIGNATES THE AMOUNTS COLLECTED ON EACH BOND 1,322
WRITTEN.
(B) BUILD-UP FUNDS SHALL NOT EXCEED FORTY PER CENT OF THE 1,324
PREMIUM AS ESTABLISHED BY THE SURETY BAIL BOND AGENT'S CONTRACT 1,325
AGREEMENT WITH THE INSURER OR MANAGING GENERAL AGENT. BUILD-UP 1,327
FUNDS RECEIVED SHALL BE IMMEDIATELY DEPOSITED TO THE BUILD-UP 1,328
TRUST ACCOUNT. INTEREST EARNED ON BUILD-UP TRUST ACCOUNTS SHALL 1,329
ACCRUE TO THE SURETY BAIL BOND AGENT.
(C) BUILD-UP FUNDS ARE DUE UPON TERMINATION OF THE SURETY 1,331
BAIL BOND AGENT'S CONTRACT AND DISCHARGE OF LIABILITIES ON THE 1,333
BONDS FOR WHICH THE BUILD-UP FUNDS WERE POSTED. THE INSURER OR 1,334
MANAGING GENERAL AGENT SHALL PAY THE FUNDS TO THE SURETY BAIL 1,335
BOND AGENT NOT LATER THAN SIX MONTHS AFTER THE FUNDS ARE DUE. 1,336
Sec. 3905.92. (A) A SURETY BAIL BOND AGENT THAT ACCEPTS 1,338
29
COLLATERAL SECURITY OR OTHER INDEMNITY SHALL COMPLY WITH ALL OF 1,339
THE FOLLOWING REQUIREMENTS: 1,340
(1) THE COLLATERAL SECURITY OR OTHER INDEMNITY SHALL BE 1,342
REASONABLE IN RELATION TO THE AMOUNT OF THE BOND. 1,343
(2) THE COLLATERAL SECURITY OR OTHER INDEMNITY SHALL NOT 1,345
BE USED BY THE SURETY BAIL BOND AGENT FOR PERSONAL BENEFIT OR 1,346
GAIN AND SHALL BE RETURNED IN THE SAME CONDITION AS RECEIVED. 1,347
(3) ACCEPTABLE FORMS OF COLLATERAL SECURITY OR INDEMNITY 1,349
INCLUDE CASH OR ITS EQUIVALENT, A PROMISSORY NOTE, AN INDEMNITY 1,350
AGREEMENT, A REAL PROPERTY MORTGAGE IN THE NAME OF THE SURETY, 1,351
AND ANY FILING UNDER CHAPTER 1309. OF THE REVISED CODE. IF THE 1,353
SURETY BAIL BOND AGENT ACCEPTS ON A BOND COLLATERAL SECURITY IN 1,354
EXCESS OF FIFTY THOUSAND DOLLARS IN CASH, THE CASH AMOUNT SHALL 1,355
BE MADE PAYABLE TO THE SURETY IN THE FORM OF A CASHIER'S CHECK, 1,356
UNITED STATES POSTAL MONEY ORDER, CERTIFICATE OF DEPOSIT, OR WIRE 1,358
TRANSFER.
(4) THE SURETY BAIL BOND AGENT SHALL PROVIDE TO THE PERSON 1,360
GIVING THE COLLATERAL SECURITY OR OTHER INDEMNITY, A WRITTEN, 1,361
NUMBERED RECEIPT THAT DESCRIBES IN A DETAILED MANNER THE 1,362
COLLATERAL SECURITY OR OTHER INDEMNITY RECEIVED, ALONG WITH 1,363
COPIES OF ANY DOCUMENTS RENDERED. 1,364
(5) THE COLLATERAL SECURITY OR OTHER INDEMNITY SHALL BE 1,366
RECEIVED AND HELD IN THE SURETY'S NAME BY THE SURETY BAIL BOND 1,367
AGENT IN A FIDUCIARY CAPACITY AND, PRIOR TO ANY FORFEITURE OF 1,368
BAIL, SHALL BE KEPT SEPARATE AND APART FROM ANY OTHER FUNDS OR 1,369
ASSETS OF THE SURETY BAIL BOND AGENT. HOWEVER, WHEN COLLATERAL 1,370
SECURITY IN EXCESS OF FIFTY THOUSAND DOLLARS IN CASH OR ITS 1,371
EQUIVALENT IS RECEIVED ON A BOND, THE SURETY BAIL BOND AGENT 1,372
PROMPTLY SHALL FORWARD THE ENTIRE AMOUNT TO THE SURETY OR 1,373
MANAGING GENERAL AGENT.
(B) COLLATERAL SECURITY MAY BE PLACED IN AN 1,375
INTEREST-BEARING ACCOUNT IN A FEDERALLY INSURED BANK OR SAVINGS 1,376
AND LOAN ASSOCIATION IN THIS STATE, TO ACCRUE TO THE BENEFIT OF 1,377
THE PERSON GIVING THE COLLATERAL SECURITY. THE SURETY BAIL BOND 1,378
30
AGENT, SURETY, OR MANAGING GENERAL AGENT SHALL NOT MAKE ANY 1,379
PECUNIARY GAIN ON THE COLLATERAL SECURITY DEPOSITED. 1,380
(C)(1) THE SURETY IS LIABLE FOR ALL COLLATERAL SECURITY OR 1,382
OTHER INDEMNITY ACCEPTED BY A SURETY BAIL BOND AGENT. IF, UPON 1,383
FINAL TERMINATION OF LIABILITY ON A BOND, THE SURETY BAIL BOND 1,384
AGENT OR MANAGING GENERAL AGENT FAILS TO RETURN THE COLLATERAL 1,385
SECURITY TO THE PERSON THAT GAVE IT, THE SURETY SHALL RETURN THE 1,386
ACTUAL COLLATERAL TO THAT PERSON OR, IN THE EVENT THAT THE SURETY 1,387
CANNOT LOCATE THE COLLATERAL, SHALL PAY THE PERSON IN ACCORDANCE 1,388
WITH THIS SECTION. 1,389
(2) A SURETY'S LIABILITY AS DESCRIBED IN DIVISION (C)(1) 1,391
OF THIS SECTION SURVIVES THE TERMINATION OF THE SURETY BAIL BOND 1,392
AGENT'S APPOINTMENT, WITH RESPECT TO THOSE BONDS THAT WERE 1,393
EXECUTED BY THE SURETY BAIL BOND AGENT PRIOR TO THE TERMINATION 1,394
OF THE APPOINTMENT.
(D) IF A FORFEITURE OCCURS, THE SURETY BAIL BOND AGENT OR 1,396
SURETY SHALL GIVE THE PRINCIPAL AND THE PERSON THAT GAVE THE 1,397
COLLATERAL SECURITY TEN DAYS' WRITTEN NOTICE OF INTENT TO CONVERT 1,398
THE COLLATERAL DEPOSIT INTO CASH TO SATISFY THE FORFEITURE. THE 1,399
NOTICE SHALL BE SENT BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED, 1,400
TO THE LAST KNOWN ADDRESS OF THE PRINCIPAL AND THE PERSON THAT 1,401
GAVE THE COLLATERAL. 1,402
THE SURETY BAIL BOND AGENT OR SURETY SHALL CONVERT THE 1,404
COLLATERAL DEPOSIT INTO CASH WITHIN A REASONABLE PERIOD OF TIME 1,405
AND RETURN THAT WHICH IS IN EXCESS OF THE FACE VALUE OF THE BOND 1,406
MINUS THE ACTUAL AND REASONABLE EXPENSES OF CONVERTING THE 1,408
COLLATERAL INTO CASH. IN NO EVENT SHALL THESE EXPENSES EXCEED
TEN PER CENT OF THE FACE VALUE OF THE BOND. HOWEVER, UPON MOTION 1,409
AND PROOF THAT THE ACTUAL AND REASONABLE EXPENSES EXCEED TEN PER 1,410
CENT, THE COURT MAY ALLOW RECOVERY OF THE FULL AMOUNT OF THE 1,411
ACTUAL AND REASONABLE EXPENSES. IF THERE IS A REMISSION OF 1,412
FORFEITURE THAT REQUIRED THE SURETY TO PAY THE BOND TO THE COURT, 1,413
THE SURETY SHALL PAY TO THE PERSON THAT GAVE THE COLLATERAL THE 1,415
VALUE OF ANY COLLATERAL RECEIVED FOR THE BOND MINUS THE ACTUAL 1,416
31
AND REASONABLE EXPENSES PERMITTED TO BE RECOVERED UNDER THIS 1,417
DIVISION.
(E) A SURETY BAIL BOND AGENT OR SURETY SHALL NOT SOLICIT 1,419
OR ACCEPT A WAIVER OF ANY OF THE PROVISIONS OF THIS SECTION, OR 1,420
ENTER INTO ANY AGREEMENT AS TO THE VALUE OF THE COLLATERAL. 1,421
(F) NO PERSON SHALL FAIL TO COMPLY WITH THIS SECTION. 1,423
Sec. 3905.921. (A) IF COLLATERAL SECURITY OR OTHER 1,425
INDEMNITY IS ACCEPTED ON A BOND, THE SURETY BAIL BOND AGENT, 1,426
MANAGING GENERAL AGENT, OR SURETY SHALL MAKE, UPON DEMAND, A 1,427
WRITTEN REQUEST TO THE COURT FOR A DISCHARGE OF THE BOND TO BE 1,428
DELIVERED TO THE SURETY OR THE SURETY'S AGENT. 1,429
IF THE OBLIGATION OF THE SURETY ON THE BOND IS RELEASED IN 1,431
WRITING BY THE COURT AND A DISCHARGE IS PROVIDED TO THE SURETY OR 1,432
THE SURETY'S AGENT, THE COLLATERAL SECURITY OR OTHER INDEMNITY, 1,433
EXCEPT A PROMISSORY NOTE OR AN INDEMNITY AGREEMENT, SHALL BE 1,434
RETURNED, WITHIN TWENTY-ONE DAYS AFTER THE DISCHARGE IS PROVIDED, 1,435
TO THE PERSON THAT GAVE THE COLLATERAL SECURITY OR OTHER 1,436
INDEMNITY, UNLESS ANOTHER DISPOSITION IS PROVIDED FOR BY LEGAL 1,437
ASSIGNMENT OF THE RIGHT TO RECEIVE THE COLLATERAL TO ANOTHER 1,438
PERSON. IF, DESPITE DILIGENT INQUIRY BY THE SURETY OR THE 1,439
SURETY'S AGENT TO DETERMINE THAT THE BOND HAS BEEN DISCHARGED, 1,440
THE COURT FAILS TO PROVIDE A WRITTEN DISCHARGE WITHIN THIRTY DAYS 1,441
AFTER THE WRITTEN REQUEST WAS MADE TO THE COURT, THE BOND SHALL 1,442
BE CONSIDERED CANCELED BY OPERATION OF LAW, AND THE COLLATERAL 1,443
SECURITY OR OTHER INDEMNITY, EXCEPT A PROMISSORY NOTE OR AN 1,444
INDEMNITY AGREEMENT, SHALL BE RETURNED, WITHIN TWENTY-ONE DAYS 1,445
AFTER THE WRITTEN REQUEST FOR DISCHARGE WAS MADE TO THE COURT, TO 1,446
THE PERSON THAT GAVE THE COLLATERAL SECURITY OR OTHER INDEMNITY. 1,447
(B) NO FEE OR OTHER CHARGE, OTHER THAN THOSE AUTHORIZED BY 1,449
SECTIONS 3905.83 TO 3905.95 OF THE REVISED CODE OR BY RULE OF THE 1,450
SUPERINTENDENT OF INSURANCE, SHALL BE DEDUCTED FROM THE 1,452
COLLATERAL DUE. HOWEVER, ALLOWABLE EXPENSES INCURRED IN THE
APPREHENSION OF A DEFENDANT BECAUSE OF A FORFEITURE OF BOND OR 1,453
JUDGMENT MAY BE DEDUCTED IF THOSE EXPENSES ARE ACCOUNTED FOR. 1,455
32
(C)(1) NO PERSON SHALL FAIL TO RETURN COLLATERAL SECURITY 1,457
IN ACCORDANCE WITH THIS SECTION. 1,458
(2) A VIOLATION OF DIVISION (C)(1) OF THIS SECTION SHALL 1,460
BE PUNISHABLE AS FOLLOWS: 1,461
(a) IF THE COLLATERAL IS OF A VALUE OF LESS THAN FIVE 1,464
HUNDRED DOLLARS, A VIOLATION IS A MISDEMEANOR OF THE FIRST
DEGREE;
(b) IF THE COLLATERAL IS OF A VALUE OF AT LEAST FIVE 1,466
HUNDRED DOLLARS BUT LESS THAN FIVE THOUSAND DOLLARS, A VIOLATION 1,468
IS A FELONY OF THE FIFTH DEGREE;
(c) IF THE COLLATERAL IS OF A VALUE OF AT LEAST FIVE 1,470
THOUSAND DOLLARS BUT LESS THAN TEN THOUSAND DOLLARS, A VIOLATION 1,471
IS A FELONY OF THE FOURTH DEGREE; 1,472
(d) IF THE COLLATERAL IS OF A VALUE OF TEN THOUSAND 1,474
DOLLARS OR MORE, A VIOLATION IS A FELONY OF THE THIRD DEGREE. 1,476
Sec. 3905.93. A SURETY BAIL BOND AGENT SHALL NOT EXECUTE A 1,478
BAIL BOND WITHOUT DOING BOTH OF THE FOLLOWING: 1,480
(A) CHARGING THE PREMIUM RATE FILED WITH AND APPROVED BY 1,482
THE SUPERINTENDENT OF INSURANCE; 1,483
(B) DISCLOSING THE EXPENSE FEE THAT WILL BE CHARGED TO 1,486
COVER THE COSTS INCURRED BY THE AGENT IN EXECUTING THE BOND. 1,487
Sec. 3905.931. (A) NO INSURER, MANAGING GENERAL AGENT, OR 1,489
SURETY BAIL BOND AGENT SHALL FURNISH TO ANY PERSON ANY BLANK 1,490
FORM, APPLICATION, STATIONERY, BUSINESS CARD, OR OTHER SUPPLIES 1,492
TO BE USED IN SOLICITING, NEGOTIATING, OR EFFECTING BAIL BONDS 1,493
UNLESS THE PERSON IS LICENSED TO ACT AS A SURETY BAIL BOND AGENT 1,495
AND IS APPOINTED BY AN INSURER. THIS DIVISION DOES NOT PROHIBIT
AN UNLICENSED EMPLOYEE, UNDER THE DIRECT SUPERVISION AND CONTROL 1,496
OF A LICENSED AND APPOINTED SURETY BAIL BOND AGENT, FROM 1,497
POSSESSING OR EXECUTING IN THE SURETY BOND OFFICE, ANY FORM, 1,499
OTHER THAN A POWER OF ATTORNEY, BOND FORM, OR COLLATERAL RECEIPT, 1,500
WHILE ACTING WITHIN THE SCOPE OF THE EMPLOYEE'S EMPLOYMENT. 1,501
(B) AN INSURER THAT FURNISHES ANY OF THE SUPPLIES 1,504
MENTIONED IN DIVISION (A) OF THIS SECTION TO ANY SURETY BAIL BOND 1,505
33
AGENT OR OTHER PERSON NOT APPOINTED BY AN INSURER AND THAT 1,507
ACCEPTS ANY BAIL BOND BUSINESS FROM OR WRITES ANY BAIL BOND
BUSINESS FOR THAT SURETY BAIL BOND AGENT OR OTHER PERSON IS 1,509
LIABLE ON THE BOND TO THE SAME EXTENT AND IN THE SAME MANNER AS 1,511
IF THE SURETY BAIL BOND AGENT OR OTHER PERSON HAD BEEN APPOINTED
OR AUTHORIZED BY AN INSURER TO ACT IN ITS BEHALF. 1,514
Sec. 3905.932. A SURETY BAIL BOND AGENT OR INSURER SHALL 1,516
NOT DO ANY OF THE FOLLOWING: 1,517
(A) SUGGEST OR ADVISE THE EMPLOYMENT OF, OR NAME FOR 1,519
EMPLOYMENT, ANY PARTICULAR ATTORNEY TO REPRESENT ITS PRINCIPAL; 1,520
(B) DIRECTLY OR INDIRECTLY SOLICIT BUSINESS IN, OR ON THE 1,522
PROPERTY OR GROUNDS OF, A DETENTION FACILITY, AS DEFINED IN 1,524
SECTION 2921.01 OF THE REVISED CODE, OR IN, OR ON THE PROPERTY OR 1,525
GROUNDS OF, ANY COURT. FOR PURPOSES OF THIS DIVISION, "SOLICIT" 1,526
INCLUDES THE DISTRIBUTION OF BUSINESS CARDS, PRINT ADVERTISING, 1,527
OR ANY OTHER WRITTEN INFORMATION DIRECTED TO PRISONERS OR 1,528
POTENTIAL INDEMNITORS, UNLESS A REQUEST IS INITIATED BY THE
PRISONER OR POTENTIAL INDEMNITOR. PERMISSIBLE PRINT ADVERTISING 1,529
IN A DETENTION FACILITY IS STRICTLY LIMITED TO A LISTING IN A 1,530
TELEPHONE DIRECTORY AND THE POSTING OF THE SURETY BAIL BOND 1,531
AGENT'S NAME, ADDRESS, AND TELEPHONE NUMBER IN A DESIGNATED 1,532
LOCATION WITHIN THE DETENTION FACILITY.
(C) WEAR OR OTHERWISE DISPLAY ANY IDENTIFICATION, OTHER 1,534
THAN WALLET IDENTIFICATION CARD REQUIRED UNDER DIVISION (G) OF 1,535
SECTION 3905.85 OF THE REVISED CODE, IN OR ON THE PROPERTY OR 1,537
GROUNDS OF A DETENTION FACILITY, AS DEFINED IN SECTION 2921.01 OF 1,538
THE REVISED CODE, OR IN OR ON THE PROPERTY OR GROUNDS OF ANY 1,539
COURT;
(D) PAY A FEE OR REBATE OR GIVE OR PROMISE ANYTHING OF 1,541
VALUE TO A JAILER, LAW ENFORCEMENT OFFICER, COMMITTING 1,542
MAGISTRATE, OR OTHER PERSON WHO HAS POWER TO ARREST OR TO HOLD IN 1,543
CUSTODY, OR TO ANY PUBLIC OFFICIAL OR PUBLIC EMPLOYEE, IN ORDER 1,544
TO SECURE A SETTLEMENT, COMPROMISE, REMISSION, OR REDUCTION OF 1,545
THE AMOUNT OF ANY BAIL BOND OR ESTREATMENT OF BAIL;
34
(E) PAY A FEE OR REBATE OR GIVE OR PROMISE ANYTHING OF 1,547
VALUE TO AN ATTORNEY IN A BAIL BOND MATTER, EXCEPT IN DEFENSE OF 1,548
ANY ACTION ON A BOND;
(F) PAY A FEE OR REBATE OR GIVE OR PROMISE ANYTHING OF 1,550
VALUE TO THE PRINCIPAL OR TO ANYONE IN THE PRINCIPAL'S BEHALF; 1,551
(G) PARTICIPATE IN THE CAPACITY OF AN ATTORNEY AT A TRIAL 1,553
OR HEARING OF A PRINCIPAL; 1,554
(H) ACCEPT ANYTHING OF VALUE FROM A PRINCIPAL FOR 1,556
PROVIDING A BAIL BOND, OTHER THAN THE PREMIUM FILED WITH AND 1,557
APPROVED BY THE SUPERINTENDENT OF INSURANCE AND AN EXPENSE FEE, 1,558
EXCEPT THAT THE SURETY BAIL BOND AGENT MAY, IN ACCORDANCE WITH 1,559
SECTION 3905.92 OF THE REVISED CODE, ACCEPT COLLATERAL SECURITY 1,560
OR OTHER INDEMNITY FROM A PRINCIPAL OR OTHER PERSON TOGETHER WITH 1,561
DOCUMENTARY STAMP TAXES IF APPLICABLE. NO FEES, EXPENSES, OR 1,562
CHARGES OF ANY KIND SHALL BE DEDUCTED FROM THE COLLATERAL HELD OR 1,563
ANY RETURN PREMIUM DUE, EXCEPT AS AUTHORIZED BY SECTIONS 3905.83 1,564
TO 3905.95 OF THE REVISED CODE OR BY RULE OF THE SUPERINTENDENT.
A SURETY BAIL BOND AGENT, UPON WRITTEN AGREEMENT WITH ANOTHER 1,566
PARTY, MAY RECEIVE A FEE OR OTHER COMPENSATION FOR RETURNING TO 1,568
CUSTODY AN INDIVIDUAL WHO HAS FLED THE JURISDICTION OF THE COURT 1,569
OR CAUSED THE FORFEITURE OF A BOND.
(I) EXECUTE A BOND IN THIS STATE ON THE PERSON'S OWN 1,571
BEHALF;
(J) EXECUTE A BOND IN THIS STATE IF A JUDGMENT HAS BEEN 1,573
ENTERED ON A BOND EXECUTED BY THE SURETY BAIL BOND AGENT, WHICH 1,574
JUDGMENT HAS REMAINED UNPAID FOR AT LEAST SIXTY DAYS AFTER ALL 1,575
APPEALS HAVE BEEN EXHAUSTED, UNLESS THE FULL AMOUNT OF THE 1,576
JUDGMENT IS DEPOSITED WITH THE CLERK OF THE COURT. 1,577
Sec. 3905.933. (A) A SURETY BAIL BOND AGENT SHALL NOT 1,579
SIGN OR COUNTERSIGN IN BLANK ANY BOND, OR GIVE A POWER OF 1,581
ATTORNEY TO, OR OTHERWISE AUTHORIZE, ANYONE TO COUNTERSIGN THE 1,582
SURETY BAIL BOND AGENT'S NAME TO A BOND UNLESS THE PERSON SO 1,584
AUTHORIZED IS A LICENSED AND APPOINTED SURETY BAIL BOND AGENT
DIRECTLY EMPLOYED BY THE SURETY BAIL BOND AGENT GIVING THAT 1,586
35
AUTHORITY.
(B) A SURETY BAIL BOND AGENT SHALL NOT DIVIDE WITH ANY 1,588
OTHER PERSON, OR SHARE IN, ANY COMMISSIONS PAYABLE ON ACCOUNT OF 1,590
A BAIL BOND, EXCEPT AS BETWEEN OTHER SURETY BAIL BOND AGENTS THAT 1,591
ARE LICENSED OR OTHERWISE QUALIFIED TO ENGAGE IN THE BAIL BOND 1,592
BUSINESS IN THEIR STATE OF DOMICILE.
Sec. 3905.934. (A) A SURETY BAIL BOND AGENT SHALL NOT 1,594
MAKE, PUBLISH, OR OTHERWISE DISSEMINATE, DIRECTLY OR INDIRECTLY, 1,595
ANY MISLEADING OR FALSE ADVERTISEMENT, OR ENGAGE IN ANY OTHER 1,596
DECEPTIVE TRADE PRACTICE. 1,597
(B) ALL ADVERTISING BY A SURETY BAIL BOND AGENT SHALL 1,599
INCLUDE THE ADDRESS OF RECORD OF THE AGENT ON FILE WITH THE 1,601
DEPARTMENT OF INSURANCE. 1,602
Sec. 3905.94. IF THE SUPERINTENDENT OF INSURANCE, IN 1,604
ACCORDANCE WITH SECTION 3905.49 OF THE REVISED CODE, SUSPENDS OR 1,605
REVOKES A PERSON'S LICENSE AS A SURETY BAIL BOND AGENT, THE 1,607
PERSON, DURING THE PERIOD OF SUSPENSION OR REVOCATION, SHALL NOT 1,608
BE EMPLOYED BY ANY SURETY BAIL BOND AGENT, HAVE ANY OWNERSHIP 1,609
INTEREST IN ANY BUSINESS INVOLVING BAIL BONDS, OR HAVE ANY 1,610
FINANCIAL INTEREST OF ANY TYPE IN ANY BAIL BOND BUSINESS. 1,611
Sec. 3905.941. UPON THE SURRENDER, SUSPENSION, OR 1,613
REVOCATION OF A SURETY BAIL BOND AGENT'S LICENSE, THE APPOINTING 1,614
INSURER OR MANAGING GENERAL AGENT IMMEDIATELY SHALL DESIGNATE A 1,616
LICENSED AND APPOINTED SURETY BAIL BOND AGENT TO ADMINISTER ALL 1,617
BAIL BONDS PREVIOUSLY WRITTEN BY THE LICENSEE.
Sec. 3905.95. THE SUPERINTENDENT OF INSURANCE SHALL ADOPT, 1,620
IN ACCORDANCE WITH CHAPTER 119. OF THE REVISED CODE, ANY RULES 1,623
NECESSARY TO IMPLEMENT SECTIONS 3905.83 TO 3905.95 OF THE REVISED 1,624
CODE.
Sec. 3905.99. (A) Whoever violates sections 3905.181, 1,633
3905.21, or 3905.23 of the Revised Code shall be fined not less 1,634
than twenty-five nor more than five hundred dollars or imprisoned 1,635
not more than six months, or both.
(B) Whoever violates section 3905.31 or 3905.33 of the 1,637
36
Revised Code shall be fined not less than twenty-five nor more 1,638
than five hundred dollars or imprisoned not more than one year, 1,639
or both.
(C) Whoever violates section 3905.37 or 3905.43 of the 1,641
Revised Code shall be fined not less than one hundred nor more 1,642
than five hundred dollars.
(D) Whoever violates section 3905.01, DIVISION (F) OF 1,644
SECTION 3905.92, OR DIVISION (A) OF SECTION 3905.931 of the 1,646
Revised Code is guilty of a misdemeanor of the first degree. 1,648
(E) WHOEVER VIOLATES SECTION 3905.84 OF THE REVISED CODE 1,651
IS GUILTY OF A MISDEMEANOR OF THE FIRST DEGREE ON A FIRST OR 1,652
SECOND OFFENSE AND OF A FELONY OF THE THIRD DEGREE ON EACH
SUBSEQUENT OFFENSE. 1,653
Section 2. That existing sections 3905.01, 3905.011, 1,655
3905.012, 3905.48, 3905.49, 3905.55, 3905.86, and 3905.99 of the 1,656
Revised Code are hereby repealed. 1,657
Section 3. Sections 1 and 2 of this act shall take effect 1,659
six months after the effective date of this act. 1,660
Section 4. Any person who, on the effective date of this 1,662
act, is licensed as a property/casualty insurance agent in this 1,663
state and is actively engaged in the business of posting bail 1,664
bonds, is not subject to section 3905.841 of the Revised Code, as 1,665
enacted by this act, and shall not be required to take an 1,666
examination for licensure as a surety bail bond agent, if the 1,667
person applies for the license during the six-month period 1,668
immediately following the effective date of this act. 1,669
Section 5. It is the intent of the General Assembly that 1,671
the Superintendent of Insurance take any action necessary to 1,672
provide for an orderly transition for those persons who, on the 1,673
effective date of this act, perform the functions, duties, or 1,675
powers prescribed for surety bail bond agents under this act. 1,676
Consequently, the Department of Insurance shall accept license 1,677
applications submitted by such persons beginning on the effective 1,678
date of this act and shall make every effort possible to act upon 1,679
37
such applications within the six-month period immediately 1,680
following that date.