As Reported by the Senate Insurance, Commerce 2
and Labor Committee 2
123rd General Assembly 5
Regular Session Am. H. B. No. 730 6
1999-2000 7
REPRESENTATIVES GOODMAN-VERICH-PETERSON-EVANS-COUGHLIN- 9
CORBIN-WOMER BENJAMIN-ROBINSON-A. CORE-JOLIVETTE- 10
TERWILLEGER-JERSE-DAMSCHRODER-VESPER-STAPLETON-OLMAN- 11
HOLLISTER-BRITTON-METTLER-WIDENER-DISTEL-OGG-GRENDELL- 12
ASLANIDES-FLANNERY-WILSON-JACOBSON-TAYLOR-STEVENS-MYERS 13
SALERNO-SCHULER-LOGAN-SULZER-MOTTLEY-J. BEATTY-ALLEN- 14
HOOPS-HARTNETT-PERRY-BOYD-KRUPINSKI-BARNES-DePIERO- 16
SENATORS BRADY-WATTS
_________________________________________________________________ 18
A B I L L
To amend sections 3905.01, 3905.011, 3905.012, 20
3905.48, 3905.49, 3905.55, 3905.86, and 3905.99; 21
to amend, for the purpose of adopting a new
section number as indicated in parentheses, 22
section 3905.86 (3905.81); and to enact new 23
section 3905.86 and sections 2927.27, 3905.83, 24
3905.84, 3905.841, 3905.85, 3905.851, 3905.861, 25
3905.862, 3905.87 to 3905.92, 3905.921, 3905.93, 26
3905.931, 3905.932, 3905.933, 3905.934, 3905.94, 27
3905.941, and 3905.95 of the Revised Code 28
relative to the regulation of surety bail bond
agents and the apprehension or arrest of a 29
principal on bond.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 31
Section 1. That sections 3905.01, 3905.011, 3905.012, 34
3905.48, 3905.49, 3905.55, 3905.86, and 3905.99 be amended, 35
section 3905.86 (3905.81) be amended for the purpose of adopting 36
a new section number as indicated in parentheses, and new section 37
2
3905.86 and sections 2927.27, 3905.83, 3905.84, 3905.841, 38
3905.85, 3905.851, 3905.861, 3905.862, 3905.87, 3905.88, 3905.89, 39
3905.90, 3905.91, 3905.92, 3905.921, 3905.93, 3905.931, 3905.932, 40
3905.933, 3905.934, 3905.94, 3905.941, and 3905.95 of the Revised 41
Code be enacted to read as follows:
Sec. 2927.27. (A) NO PERSON, OTHER THAN A LAW ENFORCEMENT 43
OFFICER, SHALL APPREHEND, DETAIN, OR ARREST A PRINCIPAL ON BOND, 44
WHEREVER ISSUED, UNLESS THAT PERSON MEETS ALL OF THE FOLLOWING 45
CRITERIA: 46
(1) THE PERSON IS ANY OF THE FOLLOWING: 48
(a) QUALIFIED, LICENSED, AND APPOINTED AS A SURETY BAIL 49
BOND AGENT UNDER SECTIONS 3905.83 TO 3905.95 OF THE REVISED CODE; 51
(b) LICENSED AS A SURETY BAIL BOND AGENT BY THE STATE 53
WHERE THE BOND WAS WRITTEN; 54
(c) LICENSED AS A PRIVATE INVESTIGATOR UNDER CHAPTER 4749. 57
OF THE REVISED CODE; 58
(d) LICENSED AS A PRIVATE INVESTIGATOR BY THE STATE WHERE 60
THE BOND WAS WRITTEN; 61
(e) AN OFF-DUTY PEACE OFFICER, AS DEFINED IN SECTION 63
2921.51 OF THE REVISED CODE. 64
(2) THE PERSON, PRIOR TO APPREHENDING, DETAINING, OR 66
ARRESTING THE PRINCIPAL, HAS ENTERED INTO A WRITTEN CONTRACT WITH 67
THE SURETY OR WITH A LICENSED SURETY BAIL BOND AGENT APPOINTED BY 68
THE SURETY, WHICH CONTRACT SETS FORTH THE NAME OF THE PRINCIPAL 69
WHO IS TO BE APPREHENDED, DETAINED, OR ARRESTED. 70
FOR PURPOSES OF DIVISION(A) (2) OF THIS SECTION, "SURETY" 72
HAS THE SAME MEANING AS IN SECTION 3905.83 OF THE REVISED CODE. 74
(3) THE PERSON, PRIOR TO APPREHENDING, DETAINING, OR 76
ARRESTING THE PRINCIPAL, HAS NOTIFIED THE LOCAL LAW ENFORCEMENT 77
AGENCY HAVING JURISDICTION OVER THE AREA IN WHICH SUCH ACTIVITIES 78
WILL BE PERFORMED AND HAS PROVIDED ANY FORM OF IDENTIFICATION OR 79
OTHER INFORMATION REQUESTED BY THE LAW ENFORCEMENT AGENCY. 80
(B) NO PERSON SHALL REPRESENT THE PERSON'S SELF TO BE A 82
BAIL ENFORCEMENT AGENT OR BOUNTY HUNTER, OR CLAIM ANY SIMILAR 83
3
TITLE, IN THIS STATE. 84
(C) (1) WHOEVER VIOLATES THIS SECTION IS GUILTY OF 86
ILLEGAL BAIL BOND AGENT PRACTICES. 87
(2) A VIOLATION OF DIVISION (A) OF THIS SECTION IS A 88
MISDEMEANOR OF THE FIRST DEGREE OR, IF THE OFFENDER PREVIOUSLY 89
HAS BEEN CONVICTED OF OR PLEADED GUILTY TO TWO OR MORE VIOLATIONS 90
OF DIVISION (A) OF THIS SECTION, A FELONY OF THE THIRD DEGREE. 91
(3) A VIOLATION OF DIVISION (B) OF THIS SECTION IS A 92
MISDEMEANOR OF THE FIRST DEGREE OR, IF THE OFFENDER PREVIOUSLY 94
HAS BEEN CONVICTED OF OR PLEADED GUILTY TO TWO OR MORE VIOLATIONS 95
OF DIVISION (B) OF THIS SECTION, A FELONY OF THE THIRD DEGREE. 96
Sec. 3905.01. (A) No person shall procure an application 106
or quote premiums for, discuss coverages of, or solicit, 107
negotiate, effect, procure, place, write, deliver, renew, or 108
bind, a policy of insurance, INCLUDING ANY FIDELITY, SURETY, OR 109
GUARANTY BOND, through any medium for risks residing, located, or 110
to be performed in this state, unless the person is licensed by 111
the superintendent of insurance in accordance with this chapter. 113
(B) Division (A) of this section does not apply to any of 117
the following persons:
(1) An insurer as defined in section 3901.32 of the 119
Revised Code;
(2) Any person who furnishes information regarding group 121
insurance, enrolls individuals in group insurance plans, issues 122
certificates under such plans, or otherwise assists in 123
administering such plans, if no commission or other form of 124
compensation related to premium or sales volume is paid for such 125
services; 126
(3) Any employee of a creditor with respect to insurance 128
products made available only in connection with a credit 130
transaction, including credit life insurance, credit disability 131
or accident and health insurance, credit property insurance,
mortgage life insurance, mortgage accident and health insurance, 132
involuntary unemployment insurance, individual life insurance, 133
4
and individual disability or accident and health insurance, if 134
the entire premium is financed as part of the credit transaction 135
and the following conditions are met:
(a) If the insurance product is an individual life 137
insurance policy, a licensed agent is responsible for the 138
insurance transaction.
(b) If the employee of the creditor is paid by the 140
insurance agent or by the insurance company, the employee holds a 141
limited authority license. 142
For purposes of division (B)(3) of this section, "credit 144
property insurance" means insurance covering risks of loss, 145
damage, and destruction of property used as security for a credit 146
transaction, which insurance may also cover other property that 148
is merely incidental to the property used as security for the 150
credit transaction.
(4) Any employer, or officer or employee of an employer, 153
to the extent that the employer, officer, or employee is engaged 154
in the administration or operation of any employee benefits 155
program involving the use of insurance for the employer's 156
employees or the employees of a subsidiary or affiliate of the 157
employer, provided that the employer, officer, or employee is not 159
compensated, either directly or indirectly, in any manner by an 160
insurance agent or by the insurance company issuing the
insurance; 161
(5) An adjuster employed by or representing an insurer in 164
the adjustment of claims or a public insurance adjuster holding a 165
certificate of authority issued under Chapter 3951. of the 166
Revised Code when performing the duties of a public insurance 169
adjuster.
(C) Division (A) of this section does not apply to any of 173
the following activities when performed by an employee of, and at 174
the direction of, an insurer or licensed insurance agent: 175
(1) The acceptance of premiums other than the initial 177
premium; 178
5
(2) The gathering of information, such as names, 180
addresses, expiration dates of current insurance, and names of 181
current insurers; 182
(3) The setting of appointments for insurance agents, 184
provided that the person setting the appointment does not 185
communicate any information about insurance; 186
(4) The servicing of existing insurance policies issued by 189
or through the employee's employer, provided the servicing is not 190
part of a solicitation;
(5) The performance of clerical or ministerial duties. 193
(D) The superintendent may adopt rules in accordance with 196
Chapter 119. of the Revised Code to set forth the specific acts 199
that comprise any of the activities described in this section, 200
the performance of which either requires or does not require 202
licensure as an agent.
Sec. 3905.011. (A) As used in this section and sections 212
3905.012 and 3905.013 of the Revised Code, "insurer" has the same 213
meaning as in section 3901.32 of the Revised Code. 215
(B) Any person that is licensed as an agent under section 218
3905.02 or 3905.18 of the Revised Code is eligible to be 219
appointed by one or more insurers authorized to do business in 220
this state. 221
(C)(1) Prior to BY appointing an agent, an insurer shall 224
certify CERTIFIES to the superintendent of insurance, in 225
accordance with rules adopted by the superintendent under section 226
3905.013 of the Revised Code, that the person is competent, 227
financially responsible, and suitable to represent the insurer. 228
(2) No agent shall represent to the public that the agent 230
has authority to represent a particular insurer until the insurer 232
has acknowledged that authority by appointment of the agent in 233
accordance with division (C)(1) of this section. 234
(D)(1) No insurer shall pay a commission, fee, or other 237
type of consideration, or give any other thing of value, to a 238
person that is required to be licensed by the superintendent 239
6
under this chapter for the sale of, or for any direct or indirect 240
connection with the sale of, any insurance sold by or on behalf 241
of the insurer, but is not so licensed.
(2) Nothing in this section prohibits an insurer from 243
entering into a compensation agreement with a creditor with 244
respect to insurance products made available only in connection 246
with a credit transaction, including credit life insurance,
credit disability or accident and health insurance, credit 247
property insurance, mortgage life insurance, mortgage accident 248
and health insurance, involuntary unemployment insurance, 249
individual life insurance, and individual disability or accident 250
and health insurance, if the entire premium is financed as part 251
of the credit transaction. For purposes of division (D)(2) of 252
this section, "credit property insurance" has the same meaning as 253
in division (B)(3) of section 3905.01 of the Revised Code.
Sec. 3905.012. (A)(1) Except as provided in division 262
(A)(2) of this section, any person licensed as an agent under 264
section 3905.02 or, 3905.18, OR 3905.85 of the Revised Code, or 266
appointed as a solicitor under section 3905.03 of the Revised 268
Code, may at any time surrender any or all licenses held by the 269
person.
(2) No agent shall surrender the agent's licenses if the 272
superintendent of insurance is investigating any allegation of 273
wrongdoing by the agent or has initiated proceedings under
Chapter 119. of the Revised Code and notice of an opportunity for 274
a hearing has been issued to the agent, and any attempt to so 276
surrender is invalid.
(B)(1) If an insurer or agent cancels the appointment of 279
an agent or solicitor due to suspected fraud, misrepresentation, 280
theft, conversion, or any other culpable misappropriation, the 281
insurer or agent shall promptly notify the superintendent. The 282
notice shall include a complete statement of the facts and the 283
reasons for the cancellation. 284
(2) In the absence of fraud or actual malice, an insurer 286
7
or agent is immune from any civil liability that otherwise might 287
be incurred or imposed as a result of any action taken by the 288
insurer or agent to comply with division (B)(1) of this section. 290
(C) If an agent's license is surrendered, revoked, or 292
suspended, all appointments held by the agent are void. If a new 294
license is issued to that person or if that person's previous 295
license is reinstated, any appointment of the person to represent 296
an insurer or agent must be made in accordance with the 297
requirements of this chapter.
(D)(1) Any agent, other than a corporation, partnership, 299
or limited liability company, who is no longer engaged in the 300
business of insurance in any capacity for which an agent's 301
license is required may apply to the superintendent for inactive 302
status. The superintendent may grant such status only if the 303
superintendent is satisfied that the person is not engaged in and 305
does not intend to engage in any of the activities set forth in 306
section 3905.01 of the Revised Code that requires an agent's 308
license. 309
(2) A person who has been granted inactive status is 311
exempt from any continuing education requirements imposed under 312
this chapter. 313
(3) The superintendent may adopt rules in accordance with 316
Chapter 119. of the Revised Code to establish procedures for 319
applying for inactive status, criteria used to determine
eligibility for such status, and standards and procedures for 320
transferring from inactive to active status. 321
(E) The superintendent may suspend or revoke a license, or 324
take any other disciplinary action authorized by this chapter, 325
regardless of whether the person is appointed or otherwise 326
authorized to represent an insurer or agent. 327
Sec. 3905.48. (A) No person, unless the person has 337
complied with division (B) of this section, shall be permitted to 339
take an examination for a license as an agent to engage in the
sale of any of the following types of insurance: 341
8
(1) Life insurance, annuity contracts, variable annuity 343
contracts, and variable life insurance; 344
(2) Sickness and accident insurance; 346
(3) All lines of property and casualty insurance; 348
(4) SURETY BAIL BONDS; 350
(5) All other lines of insurance for which an examination 352
is required for licensing, except title insurance. 353
(B) No person shall be permitted to take an examination 355
described in division (A) of this section unless either of the 356
following applies: 357
(1) The person has earned a bachelor's or associate's 359
degree in insurance in an accredited institution; 360
(2) The person has been granted a diploma for successfully 362
completing a high school curriculum under section 3313.61 of the 363
Revised Code or a certificate of high school equivalence under 364
rule 3301-41-1 of the Administrative Code, or been granted a 365
comparable diploma or certificate by another state, and has 366
successfully completed at least forty hours of study in a program 367
of insurance education approved by the superintendent of 368
insurance in consultation with the insurance agent education 369
advisory council under criteria established by the 370
superintendent. 371
Sec. 3905.49. (A) As used in this section: 380
(1) "Insurer" has the same meaning as in section 3901.32 383
of the Revised Code.
(2) "Refusal to issue or renew" means the decision of the 386
superintendent of insurance not to process either the initial 387
application for a license as an agent or the renewal of such a 388
license.
(3) "Revocation" means the permanent termination of all 391
authority to hold any license as an agent in this state.
(4) "Surrender for cause" means the voluntary termination 394
of all authority to hold any license as an agent in this state, 395
in lieu of a revocation or suspension order. 396
9
(5) "Suspension" means the termination of all authority to 399
hold any license as an agent in this state, for either a 400
specified period of time or an indefinite period of time and 401
under any terms or conditions determined by the superintendent. 402
(B) The superintendent may suspend, revoke, or refuse to 406
issue or renew any license as an agent, SURETY BAIL BOND AGENT, 407
surplus line broker, or limited insurance representative, or 408
impose any other sanction authorized under this chapter, for one 410
or more of the following reasons: 411
(1) Obtaining or attempting to obtain any license or 413
appointment through misrepresentation or fraud, including making 414
any materially untrue statement in an application for a license 417
or appointment;
(2) Violating or failing to comply with any insurance law, 421
rule, subpoena, consent agreement, or order of the 422
superintendent;
(3) Misappropriating or converting to the person's own use 425
any moneys belonging to policyholders, prospective policyholders, 426
beneficiaries, insurance companies, SURETIES, PRINCIPALS, or 427
others received in the course of the person's insurance business; 429
(4) Failing to timely submit an application for insurance. 432
For purposes of division (B)(4) of this section, a submission is 434
considered timely if it occurs within the time period expressly 435
provided for by the insurer, or within seven days after the agent 436
accepts a premium or an order to bind from a policyholder or 437
applicant, whichever is later.
(5) Knowingly misrepresenting the terms, benefits, value, 440
cost, or effective dates of any actual or proposed insurance 441
policy or, contract, OR BOND; 443
(6) Being convicted of a felony; 445
(7) Being convicted of a misdemeanor that involves the 448
misuse or theft of money or property belonging to another, fraud, 449
forgery, dishonest acts, or breach of a fiduciary duty, or that 451
is based on any act or omission relating to the business of
10
insurance, securities, or financial services; 452
(8) Committing an unfair trade act or practice under any 456
section of Title XXXIX of the Revised Code or any rule adopted 457
thereunder;
(9) Having an insurance license suspended or revoked in 460
any other state, province, or territory; 461
(10) Forging or causing the forgery of another's name to 465
any document related to or used in an insurance transaction; 466
(11) Possessing or using any unauthorized materials during 468
a licensing or continuing education examination or cheating on a 470
licensing or continuing education examination;
(12) Failing to disclose to an applicant for insurance or 473
policyholder upon accepting a premium or an order to bind 474
coverage from the applicant or policyholder, that the person has 475
not been appointed as agent by the insurer and is not an 476
appointed solicitor of an appointed agent;
(13) Having any professional license suspended or revoked 479
as a result of a mishandling of funds or breach of fiduciary 480
responsibilities; 481
(14) Causing or permitting a policyholder or applicant for 484
insurance to designate the person or the person's spouse, parent, 485
child, or sibling as the beneficiary of a policy or annuity sold 486
by the person, unless the person or a relative of the person is 487
the insured or applicant;
(15) Failing to provide a written response to the 489
department of insurance within thirty days after receipt of any 491
written inquiry from the department;
(16) Failing to notify the superintendent of any change in 494
the person's address, within thirty days after the change occurs, 496
as required by section 3905.54 of the Revised Code;
(17) Transferring or placing insurance with an insurer 498
other than the insurer expressly chosen by the applicant for 499
insurance or policyholder without the consent of the applicant or 500
policyholder or absent extenuating circumstances; 501
11
(18) Engaging in any fraudulent, DISHONEST, or coercive 503
practice in connection with the business of insurance; 504
(19) Failing to inform a policyholder or applicant for 506
insurance of the identity of the insurer or insurers, or the 507
identity of any other insurance agent, general agent, surplus 508
line broker, or licensee known to be involved in procuring, 509
placing, or continuing the insurance for the policyholder or 510
applicant, upon the binding of the coverage; 511
(20) In the case of an agent that is a corporation, 513
limited liability company, or partnership, failing to report an 514
individual licensee's violation to the department when the 515
violation was known or should have been known by one or more of 516
the partners, officers, managers, or members of the corporation, 517
limited liability company, or partnership; 518
(21) Submitting or using a document in the conduct of the 521
business of insurance when the person knew or should have known 522
that the document contained the forged signature of another 523
person;
(22) Misrepresenting the person's qualifications or using 526
in any way a professional designation that has not been conferred 527
upon the person by the appropriate accrediting organization; 528
(23) Obtaining a premium loan or causing a premium loan to 531
be made to or in the name of an insured without that person's 532
knowledge and written authorization;
(24) Failing to notify the superintendent of any 534
disciplinary action taken by the insurance authority of another 535
state, within sixty days after the action was taken, as required 537
by section 3905.54 of the Revised Code;
(25) Failing to file any of the reports or notices 539
required under this chapter; 540
(26) Submitting an application for insurance, or causing 543
the issuance of an insurance policy or contract, on behalf of an 544
applicant who did not request or authorize the insurance. 545
Division (B)(26) of this section does not apply to any policy 546
12
issued by an other than life insurance company.
(27) Using paper, software, or any other materials of or 549
provided by an insurer after the insurer has terminated the
authority of the licensee, if the use of such materials would 550
cause a reasonable person to believe that the licensee was acting 552
on behalf of or otherwise representing the insurer; 553
(28) Providing misleading, deceptive, or untrue 555
information to an applicant for insurance or a policyholder 556
regarding a particular insurance agent, company, or product; 558
(29) Soliciting, procuring an application for, or placing, 561
either directly or indirectly, any insurance policy when the 562
person is not authorized under this chapter to engage in such 563
activity;
(30) Soliciting, marketing, or selling any product or 565
service that offers benefits similar to insurance but is not 566
regulated by the superintendent, without fully disclosing to the 567
prospective purchaser that the product or service is not 568
insurance and is not regulated by the superintendent; 569
(31) Failing to fulfill a refund obligation in a timely 571
manner. For purposes of division (B)(31) of this section, a 573
rebuttable presumption exists that a refund obligation is not 574
fulfilled in a timely manner unless it is fulfilled within one of 575
the following time periods: 576
(a) Thirty days after the date the policyholder, 579
applicant, or insurer takes or requests action resulting in a 580
refund;
(b) Thirty days after the date of the insurer's refund 583
check, if the agent is expected to issue a portion of the total 584
refund;
(c) Forty-five days after the date of the agent's 587
statement of account on which the refund first appears. 588
(32) WITH RESPECT TO A SURETY BAIL BOND AGENT LICENSE, 590
REBATING OR OFFERING TO REBATE, OR UNLAWFULLY DIVIDING OR 591
OFFERING TO DIVIDE, ANY COMMISSION. 592
13
(C) Before denying, revoking, suspending, or refusing to 594
issue any license or imposing any penalty under this section or 596
section 3905.482 of the Revised Code, the superintendent shall
provide the licensee or applicant with notice and an opportunity 599
for hearing as provided in Chapter 119. of the Revised Code, 600
except as follows: 601
(1)(a) Any notice of opportunity for hearing, the hearing 603
officer's findings and recommendations, or the superintendent's 605
order shall be served by certified mail at the last known address 606
of the licensee or applicant. Service shall be evidenced by 607
return receipt signed by any person.
For purposes of this section, the "last known address" is 609
the address that appears in the licensing records of the 610
department of insurance.
(b) If the certified mail envelope is returned with an 613
endorsement showing that service was refused, or that the 614
envelope was unclaimed, the notice and all subsequent notices
required by Chapter 119. of the Revised Code may be served by 615
ordinary mail to the last known address of the licensee or 616
applicant. The mailing shall be evidenced by a certificate of 617
mailing. Service is deemed complete as of the date of such 618
certificate provided that the ordinary mail envelope is not 619
returned by the postal authorities with an endorsement showing 620
failure of delivery. The time period in which to request a 621
hearing, as provided in Chapter 119. of the Revised Code, begins 624
to run on the date of mailing. 625
(c) If service by ordinary mail fails, the superintendent 628
may cause a summary of the substantive provisions of the notice 629
to be published once a week for three consecutive weeks in a 630
newspaper of general circulation in the county where the last 631
known place of residence or business of the party is located. 632
The notice is considered served on the date of the third 633
publication.
(d) Any notice required to be served under Chapter 119. of 636
14
the Revised Code shall also be served upon the party's attorney 639
by ordinary mail if the attorney has entered an appearance in the 640
matter.
(e) The superintendent may, at any time, perfect service 643
on a party by personal delivery of the notice by an employee of 644
the department.
(f) Notices regarding the scheduling of hearings and all 647
other matters not described in division (C)(1)(a) of this section 649
shall be sent by ordinary mail to the party and to the party's 650
attorney.
(2) Any subpoena for the appearance of a witness or the 653
production of documents or other evidence at a hearing, or for 654
the purpose of taking testimony for use at a hearing, shall be 655
served by certified mail, return receipt requested, by an
attorney or by an employee of the department designated by the 656
superintendent. Such subpoenas shall be enforced in the manner 657
provided in section 119.09 of the Revised Code. Nothing in this 660
section shall be construed as limiting the superintendent's other 661
statutory powers to issue subpoenas. 662
(D) If the superintendent determines that a violation 664
described in this section has occurred, the superintendent may do 666
any of the following: 667
(1) Assess a civil forfeiture in an amount not exceeding 670
twenty-five thousand dollars per violation;
(2) Assess administrative costs to cover the expenses 672
incurred by the department in the administrative action, 673
including costs incurred in the investigation and hearing 674
processes. Any costs collected shall be paid into the state 675
treasury to the credit of the department of insurance operating 676
fund created in section 3901.021 of the Revised Code. 678
(3) Suspend all of the person's licenses for all lines of 680
insurance for either a specified period of time or an indefinite 681
period of time and under such terms and conditions as the 682
superintendent may determine; 683
15
(4) Permanently revoke all of the person's licenses for 685
all lines of insurance; 686
(5) Refuse to issue a license; 688
(6) Refuse to renew a license; 690
(7) Prohibit the person from being employed in any 692
capacity in the business of insurance and from having any 693
financial interest in any insurance agency, company, SURETY BAIL 694
BOND BUSINESS, or third-party administrator in this state. The 696
superintendent may, in the superintendent's discretion, determine 697
the nature, conditions, and duration of such restrictions. 698
(8) Order corrective actions in lieu of or in addition to 701
the other penalties listed in division (D) of this section. Such 702
an order may provide for the suspension of civil forfeitures, 703
license revocation, license suspension, or refusal to issue or 704
renew a license if the licensee complies with the terms and 705
conditions of the corrective action order. 706
(9) Accept a surrender for cause offered by the licensee, 709
which shall be for at least five years and shall prohibit the 710
licensee from seeking any license authorized under this chapter 711
during that time period. A surrender for cause may also include 712
a corrective action order as provided in division (D)(8) of this 713
section.
(E) The superintendent may consider the following factors 716
in denying a license, imposing suspensions, revocations, fines, 717
or other penalties, and issuing orders under this section: 718
(1) Whether the person acted in good faith; 720
(2) Whether the person made restitution for any pecuniary 723
losses suffered by other persons as a result of the person's 724
actions; 725
(3) The actual harm or potential for harm to others; 727
(4) The degree of trust placed in the person by, and the 729
vulnerability of, persons who were or could have been adversely 731
affected by the person's actions; 732
(5) Whether the person was the subject of any previous 735
16
administrative actions by the superintendent;
(6) The number of individuals adversely affected by the 738
person's acts or omissions;
(7) Whether the person voluntarily reported the violation, 740
and the extent of the person's cooperation and acceptance of 741
responsibility; 742
(8) Whether the person obstructed or impeded, or attempted 745
to obstruct or impede, the superintendent's investigation; 746
(9) The person's efforts to conceal the misconduct; 749
(10) Remedial efforts to prevent future violations; 752
(11) If the person was convicted of a criminal offense, 755
the nature of the offense, whether the conviction was based on 756
acts or omissions taken under any professional license, whether 757
the offense involved the breach of a fiduciary duty, the amount 758
of time that has passed, and the person's activities subsequent 759
to the conviction;
(12) Such other factors as the superintendent determines 761
to be appropriate under the circumstances. 762
(F)(1) A violation described in division (B)(1), (2), (3), 765
(5), (6), (7), (8), (9), (10), (11), (12), (13), (14), (17), 766
(18), (19), (20), (21), (22), (23), (25), (26), (27), (28), (29), 768
(30), or (31), OR (32) of this section is a class A offense for 769
which the superintendent may impose any penalty set forth in 770
division (D) of this section. 771
(2) A violation described in division (B)(4), (15), (16), 774
or (24) of this section is a class B offense for which the 776
superintendent may impose any penalty set forth in division 777
(D)(1), (2), (8), or (9) of this section. 779
(G) If a violation described in this section has caused, 782
is causing, or is about to cause substantial and material harm, 784
the superintendent may issue an order requiring that person to 785
cease and desist from engaging in the violation. Notice of the 786
order shall be mailed by certified mail, return receipt 787
requested, or served in any other manner provided for in this 788
17
section, immediately after its issuance to the person subject to 789
the order and to all persons known to be involved in the 790
violation. The superintendent may thereafter publicize or 791
otherwise make known to all interested parties that the order has 792
been issued.
The notice shall specify the particular act, omission, 794
practice, or transaction that is subject to the cease-and-desist 795
order and shall set a date, not more than fifteen days after the 796
date of the order, for a hearing on the continuation or 797
revocation of the order. The person shall comply with the order 798
immediately upon receipt of notice of the order. 799
The superintendent may, upon the application of a party and 802
for good cause shown, continue the hearing. Chapter 119. of the 803
Revised Code applies to such hearings to the extent that that 806
chapter does not conflict with the procedures set forth in this 807
section. The superintendent shall, within fifteen days after 808
objections are submitted to the hearing officer's report and 809
recommendation, issue a final order either confirming or revoking 810
the cease-and-desist order. The final order may be appealed as 811
provided under section 119.12 of the Revised Code. 813
The remedy under this division is cumulative and concurrent 816
with the other remedies available under this section.
(H) If the superintendent has reasonable cause to believe 819
that an order issued under this section has been violated in 820
whole or in part, the superintendent may request the attorney 821
general to commence and prosecute any appropriate action or 822
proceeding in the name of the state against such person. 823
The court may, in an action brought pursuant to this 825
division, impose any of the following: 826
(1) For each violation, a civil penalty of not more than 829
twenty-five thousand dollars;
(2) Injunctive relief; 831
(3) Restitution; 833
(4) Any other appropriate relief. 835
18
(I) WITH RESPECT TO A SURETY BAIL BOND AGENT LICENSE: 837
(1) UPON THE SUSPENSION OR REVOCATION OF A LICENSE, OR THE 839
ELIGIBILITY OF A SURETY BAIL BOND AGENT TO HOLD A LICENSE, THE 840
SUPERINTENDENT LIKEWISE MAY SUSPEND OR REVOKE THE LICENSE OR 841
ELIGIBILITY OF ANY SURETY BAIL BOND AGENT WHO IS EMPLOYED BY OR 842
ASSOCIATED WITH THAT AGENT AND WHO KNOWINGLY WAS A PARTY TO THE 843
ACT THAT RESULTED IN THE SUSPENSION OR REVOCATION. 844
(2) THE SUPERINTENDENT MAY REVOKE A LICENSE AS A SURETY 846
BAIL BOND AGENT IF THE LICENSEE IS ADJUDGED BANKRUPT. 847
(J) This section applies to both resident and nonresident 850
agents who are licensed under this chapter. 851
(J)(K) Nothing in this section shall be construed to 854
create or imply a private cause of action against an agent, 856
solicitor, or insurer.
Sec. 3905.55. (A) Except as provided in division (B) of 866
this section, an agent may charge a consumer a fee if all of the 867
following conditions are met: 868
(1) The fee is disclosed to the consumer in a manner that 871
separately identifies the fee and the premium.
(2) The fee is not calculated as a percentage of the 873
premium. 874
(3) The fee is not refunded, forgiven, waived, offset, or 877
reduced by any commission earned or received for any policy or 878
coverage sold.
(4) The amount of the fee, and the consumer's obligation 881
to pay the fee, are not conditioned upon the occurrence of a 882
future event or condition, such as the purchase, cancellation, 883
lapse, declination, or nonrenewal of insurance. 884
(5) The agent discloses to the consumer that the fee is 887
being charged by the agent and not by the insurance company, that 888
neither state law nor the insurance company requires the agent to 889
charge the fee, and that the fee is not refundable. 890
(6) The consumer consents to the fee. 892
(7) The agent, in charging the fee, does not discriminate 895
19
on the basis of race, sex, national origin, religion, disability, 896
health status, age, marital status, or geographic location, and 897
does not unfairly discriminate between persons of essentially the 898
same class and of essentially the same hazard or expectation of 899
life.
(B) A fee may not be charged for taking or submitting an 902
initial application for coverage with any one insurer or 903
different programs with the same insurer, or processing a change 904
to an existing policy, a cancellation, a claim, or a renewal, in 905
connection with any of the following personal lines policies: 906
(1) Private passenger automobile; 908
(2) Homeowners, including coverage for tenants or 910
condominium owners, owner-occupied fire or dwelling property 911
coverage, personal umbrella liability, or any other personal 912
lines-related coverage whether sold as a separate policy or as an 914
endorsement to another personal lines policy;
(3) Individual life insurance; 916
(4) Individual sickness or accident insurance; 918
(5) Disability income policies; 920
(6) Credit insurance products. 923
(C) Notwithstanding any other provision of this section, 926
an agent may charge a fee for agent services in connection with a 927
policy issued on a no-commission basis, if the agent provides the 928
consumer with prior disclosure of the fee and of the services to 929
be provided. 930
(D) In the event of a dispute between an agent and a 933
consumer regarding any disclosure required by this section, the 934
agent has the burden of proving that the disclosure was made. 935
(E)(1) No person shall fail to comply with this section. 938
(2) Whoever violates division (E)(1) of this section is 941
deemed to have engaged in an unfair and deceptive act or practice 943
in the business of insurance under sections 3901.19 to 3901.26 of 944
the Revised Code. 945
(F) THIS SECTION DOES NOT APPLY WITH RESPECT TO ANY 947
20
EXPENSE FEE CHARGED BY A SURETY BAIL BOND AGENT TO COVER THE 948
COSTS INCURRED BY THE SURETY BAIL BOND AGENT IN EXECUTING THE 949
BAIL BOND.
Sec. 3905.86 3905.81. (A) As used in this section: 958
(1) "Reinsurance intermediary-broker" means a person, 960
other than an officer or employee of the ceding insurer, that 961
solicits, negotiates, or places reinsurance cessions or 962
retrocessions on behalf of a ceding insurer without the authority 963
or power to bind reinsurance on behalf of such insurer. 964
(2)(a) "Reinsurance intermediary-manager" means a person 966
that has authority to bind or that manages all or part of the 967
assumed reinsurance business of a reinsurer, including the 968
management of a separate division, department, or underwriting 969
office, and that acts as an agent of the reinsurer whether known 970
as a reinsurance intermediary-manager, manager, or similar term. 971
(b) "Reinsurance intermediary-manager" does not include: 973
(i) An employee of the reinsurer; 975
(ii) A United States manager of the United States branch 977
of an alien reinsurer; 978
(iii) An underwriting manager that, pursuant to contract, 980
manages all of the reinsurance operations of the reinsurer, is 981
under common control with the reinsurer, subject to sections 982
3901.32 to 3901.37 of the Revised Code, and whose compensation is 983
not based on the volume of premiums written; 984
(iv) The manager of a group, association, pool, or 986
organization of insurers that engages in joint reinsurance and 987
that are subject to examination by the insurance regulatory 988
authority of the state in which the manager's principal business 989
office is located. 990
(B) No person shall act as a reinsurance 992
intermediary-broker or reinsurance intermediary-manager in this 993
state, or on behalf of an insurer or reinsurer domiciled in this 994
state, unless the person first obtains a license from the 995
superintendent of insurance in accordance with this section or 996
21
the superintendent accepts, in accordance with rules that he THE 997
SUPERINTENDENT may adopt under division (C) of this section, a 999
license issued to the person by the insurance regulatory 1,000
authority of another state.
(C) The superintendent of insurance shall adopt rules in 1,002
accordance with Chapter 119. of the Revised Code establishing the 1,003
standards and procedures for licensing reinsurance 1,004
intermediary-brokers and reinsurance intermediary-managers. The 1,005
superintendent may also adopt rules, in accordance with Chapter 1,006
119. of the Revised Code, for the acceptance of licenses issued 1,007
by insurance regulatory authorities of other states with statutes 1,008
similar to this section in lieu of requiring a license to be 1,009
obtained from the superintendent under division (B) of this 1,010
section. 1,011
(D) The fee for the issuance or renewal of a license shall 1,013
be five hundred dollars. The fee for accepting the license of 1,014
another state shall be one hundred dollars each year. All fees 1,015
collected pursuant to this section shall be paid into the state 1,016
treasury to the credit of the department of insurance operating 1,017
fund. 1,018
Sec. 3905.83. AS USED IN SECTIONS 3905.83 TO 3905.95 OF 1,020
THE REVISED CODE:
(A) "INSURER" MEANS ANY DOMESTIC, FOREIGN, OR ALIEN 1,023
INSURANCE COMPANY THAT HAS BEEN ISSUED A CERTIFICATE OF AUTHORITY 1,024
BY THE SUPERINTENDENT OF INSURANCE TO TRANSACT SURETY BUSINESS IN 1,025
THIS STATE.
(B) "MANAGING GENERAL AGENT" MEANS ANY PERSON THAT IS 1,028
APPOINTED OR EMPLOYED BY AN INSURER TO SUPERVISE OR OTHERWISE 1,029
MANAGE THE BAIL BOND BUSINESS WRITTEN IN THIS STATE BY SURETY 1,030
BAIL BOND AGENTS APPOINTED BY THE INSURER. 1,031
(C) "SURETY" MEANS AN INSURER THAT AGREES TO BE 1,034
RESPONSIBLE FOR THE FULFILLMENT OF THE OBLIGATION OF A PRINCIPAL 1,035
IF THE PRINCIPAL FAILS TO FULFILL THAT OBLIGATION. 1,036
Sec. 3905.84. NO PERSON SHALL ACT IN THE CAPACITY OF A 1,038
22
SURETY BAIL BOND AGENT, OR PERFORM ANY OF THE FUNCTIONS, DUTIES, 1,040
OR POWERS PRESCRIBED FOR SURETY BAIL BOND AGENTS UNDER SECTIONS 1,041
3905.83 TO 3905.95 OF THE REVISED CODE, UNLESS THAT PERSON IS
QUALIFIED, LICENSED, AND APPOINTED AS PROVIDED IN THOSE SECTIONS. 1,043
Sec. 3905.841. THE FOLLOWING PERSONS OR CLASSES OF PERSONS 1,045
SHALL NOT ACT AS SURETY BAIL BOND AGENTS OR EMPLOYEES OF A SURETY 1,046
BAIL BOND AGENT OR BAIL BOND BUSINESS AND SHALL NOT DIRECTLY OR 1,049
INDIRECTLY RECEIVE ANY BENEFITS FROM THE EXECUTION OF A BAIL
BOND, EXCEPT AS A PRINCIPAL: 1,050
(A) JAILERS OR OTHER PERSONS EMPLOYED IN A DETENTION 1,052
FACILITY, AS DEFINED IN SECTION 2921.01 OF THE REVISED CODE; 1,054
(B) PEACE OFFICERS AS DEFINED IN SECTION 2921.51 OF THE 1,056
REVISED CODE, OR OTHER EMPLOYEES OF A LAW ENFORCEMENT AGENCY; 1,057
(C) COMMITTING MAGISTRATES, EMPLOYEES OF A COURT, OR 1,059
EMPLOYEES OF THE CLERK OF ANY COURT; 1,060
(D) ATTORNEYS; 1,062
(E) ANY OTHER PERSONS HAVING THE POWER TO ARREST, OR 1,064
PERSONS WHO HAVE AUTHORITY OVER OR CONTROL OF, FEDERAL, STATE, 1,065
COUNTY, OR MUNICIPAL CORPORATION PRISONERS. 1,066
Sec. 3905.85. (A) AN APPLICANT FOR A LICENSE AS A SURETY 1,069
BAIL BOND AGENT SHALL SUBMIT AN APPLICATION FOR THE LICENSE IN A 1,070
MANNER PRESCRIBED BY THE SUPERINTENDENT OF INSURANCE. THE 1,071
APPLICATION SHALL BE ACCOMPANIED BY A ONE HUNDRED FIFTY DOLLAR 1,072
FEE AND A STATEMENT THAT GIVES THE APPLICANT'S NAME, AGE, 1,073
RESIDENCE, PRESENT OCCUPATION, OCCUPATION FOR THE FIVE YEARS NEXT 1,074
PRECEDING THE DATE OF THE APPLICATION, AND SUCH OTHER INFORMATION 1,075
AS THE SUPERINTENDENT MAY REQUIRE. 1,076
THE APPLICANT SHALL ALSO REQUEST A CRIMINAL RECORDS CHECK 1,078
CONDUCTED BY THE SUPERINTENDENT OF THE BUREAU OF CRIMINAL 1,079
IDENTIFICATION AND INVESTIGATION IN ACCORDANCE WITH SECTION 1,080
109.572 OF THE REVISED CODE, AND DIRECT THAT THE BUREAU'S WRITTEN 1,082
RESPONSE TO THAT REQUEST BE TRANSMITTED TO THE SUPERINTENDENT OF 1,083
INSURANCE, OR TO THE SUPERINTENDENT'S DESIGNEE, AS SPECIFIED ON 1,085
THE FORM PRESCRIBED PURSUANT TO THAT SECTION. IF THE
23
SUPERINTENDENT OF INSURANCE OR THE SUPERINTENDENT'S DESIGNEE 1,086
FAILS TO RECEIVE THE BUREAU'S RESPONSE TO THE APPLICANT'S REQUEST 1,087
FOR A CRIMINAL RECORDS CHECK, THE SUPERINTENDENT MAY REFUSE TO 1,088
ISSUE A LICENSE UNDER THIS SECTION. THE APPLICANT SHALL PAY ANY 1,089
FEE REQUIRED BY THE BUREAU FOR CONDUCTING THE CRIMINAL RECORDS 1,090
CHECK.
AN APPLICANT FOR A LICENSE SHALL SUBMIT TO AN EXAMINATION 1,092
AS TO THE QUALIFICATIONS SET FORTH IN DIVISION (B) OF THIS 1,093
SECTION.
(B) THE SUPERINTENDENT OF INSURANCE SHALL ISSUE TO AN 1,096
APPLICANT A LICENSE THAT STATES IN SUBSTANCE THAT THE PERSON IS 1,097
AUTHORIZED TO DO THE BUSINESS OF A SURETY BAIL BOND AGENT, IF THE 1,098
SUPERINTENDENT IS SATISFIED THAT ALL OF THE FOLLOWING APPLY: 1,099
(1) IF THE APPLICANT IS A NATURAL PERSON, THE APPLICANT IS 1,101
EIGHTEEN YEARS OF AGE OR OLDER. 1,102
(2) THE APPLICANT IS A PERSON OF HIGH CHARACTER AND 1,104
INTEGRITY. 1,105
(3) THE APPLICANT HAS SUCCESSFULLY COMPLETED THE 1,107
EDUCATIONAL REQUIREMENTS SET FORTH IN SECTION 3905.48 OF THE 1,109
REVISED CODE.
(C) A SURETY BAIL BOND AGENT LICENSE ISSUED PURSUANT TO 1,111
THIS SECTION AUTHORIZES THE HOLDER, WHEN APPOINTED BY AN INSURER, 1,112
TO EXECUTE OR COUNTERSIGN BAIL BONDS IN CONNECTION WITH JUDICIAL 1,113
PROCEEDINGS AND TO RECEIVE MONEY OR OTHER THINGS OF VALUE FOR 1,114
THOSE SERVICES. HOWEVER, THE HOLDER SHALL NOT EXECUTE OR DELIVER 1,115
A BOND DURING THE FIRST ONE HUNDRED EIGHTY DAYS AFTER THE LICENSE 1,116
IS INITIALLY ISSUED. THIS RESTRICTION DOES NOT APPLY WITH 1,117
RESPECT TO LICENSE RENEWALS. 1,118
(D) THE SUPERINTENDENT OF INSURANCE MAY SUSPEND OR REVOKE 1,120
A SURETY BAIL BOND AGENT'S LICENSE AS PROVIDED IN SECTION 1,122
3905.482 OF THE REVISED CODE, AND MAY SUSPEND, REVOKE, OR REFUSE 1,123
TO ISSUE OR RENEW SUCH A LICENSE AS PROVIDED IN SECTION 3905.49 1,124
OF THE REVISED CODE. 1,125
IF THE SUPERINTENDENT REFUSES TO ISSUE SUCH A LICENSE BASED 1,127
24
IN WHOLE OR IN PART UPON THE BUREAU'S WRITTEN RESPONSE TO A 1,128
CRIMINAL RECORDS CHECK REQUESTED PURSUANT TO DIVISION (A) OF THIS 1,129
SECTION, THE SUPERINTENDENT SHALL SEND A COPY OF THE RESPONSE 1,130
THAT THE BUREAU TRANSMITTED TO THE SUPERINTENDENT OR TO THE 1,131
SUPERINTENDENT'S DESIGNEE, TO THE APPLICANT AT THE APPLICANT'S 1,132
HOME ADDRESS UPON THE APPLICANT'S SUBMISSION OF A WRITTEN REQUEST 1,133
TO THE SUPERINTENDENT. 1,134
(E) ANY PERSON LICENSED AS A SURETY BAIL BOND AGENT MAY 1,136
SURRENDER THE PERSON'S LICENSE IN ACCORDANCE WITH SECTION 1,137
3905.012 OF THE REVISED CODE. 1,138
(F) UNLESS REVOKED OR SUSPENDED BY THE SUPERINTENDENT OR 1,140
SURRENDERED BY THE SURETY BAIL BOND AGENT, SUCH A LICENSE MAY, IN 1,141
THE DISCRETION OF THE SUPERINTENDENT AND THE PAYMENT OF A ONE 1,142
HUNDRED FIFTY DOLLAR FEE, BE CONTINUED PAST THE LAST DAY OF 1,143
FEBRUARY NEXT AFTER ITS ISSUE AND AFTER THE LAST DAY OF FEBRUARY 1,144
IN EACH SUCCEEDING YEAR. 1,145
(G) THE SUPERINTENDENT OF INSURANCE MAY PRESCRIBE THE 1,147
FORMS TO BE USED AS EVIDENCE OF THE ISSUANCE OF A LICENSE UNDER 1,148
THIS SECTION. THE SUPERINTENDENT SHALL REQUIRE EACH LICENSEE TO 1,149
ACQUIRE, FROM A SOURCE DESIGNATED BY THE SUPERINTENDENT, A WALLET 1,150
IDENTIFICATION CARD THAT INCLUDES THE LICENSEE'S PHOTOGRAPH AND 1,151
ANY OTHER INFORMATION REQUIRED BY THE SUPERINTENDENT. THE 1,152
LICENSEE SHALL KEEP THE WALLET IDENTIFICATION CARD ON THE 1,153
LICENSEE'S PERSON WHILE ENGAGING IN THE BAIL BOND BUSINESS. 1,154
(H)(1) THE SUPERINTENDENT OF INSURANCE SHALL NOT ISSUE OR 1,156
RENEW THE LICENSE OF A CORPORATION, PARTNERSHIP, OR LIMITED 1,157
LIABILITY COMPANY ORGANIZED UNDER THE LAWS OF THIS OR ANY OTHER 1,158
STATE UNLESS THE CORPORATION, PARTNERSHIP, OR LIMITED LIABILITY 1,159
COMPANY IS QUALIFIED TO DO BUSINESS IN THIS STATE UNDER THE 1,160
APPLICABLE PROVISIONS OF TITLE XVII OF THE REVISED CODE. 1,162
(2) THE FAILURE OF A CORPORATION, PARTNERSHIP, OR LIMITED 1,164
LIABILITY COMPANY TO BE IN GOOD STANDING WITH THE SECRETARY OF 1,165
STATE OR TO MAINTAIN A VALID APPOINTMENT OF STATUTORY AGENT IS 1,166
GROUNDS FOR SUSPENDING, REVOKING, OR REFUSING TO RENEW ITS 1,167
25
LICENSE.
(3) BY APPLYING FOR A SURETY BAIL BOND AGENT LICENSE UNDER 1,169
THIS SECTION, AN INDIVIDUAL, CORPORATION, PARTNERSHIP, OR LIMITED 1,170
LIABILITY COMPANY CONSENTS TO THE JURISDICTION OF THE COURTS OF 1,171
THIS STATE.
(I) A SURETY BAIL BOND AGENT LICENSED PURSUANT TO THIS 1,174
SECTION IS AN OFFICER OF THE COURT. 1,175
(J) ANY FEE COLLECTED UNDER THIS SECTION SHALL BE PAID 1,177
INTO THE STATE TREASURY TO THE CREDIT OF THE DEPARTMENT OF 1,178
INSURANCE OPERATING FUND CREATED BY SECTION 3901.021 OF THE 1,179
REVISED CODE.
Sec. 3905.851. A SURETY BAIL BOND AGENT QUALIFIED, 1,181
LICENSED, AND APPOINTED IN ACCORDANCE WITH SECTIONS 3905.83 TO 1,182
3905.95 OF THE REVISED CODE SHALL NOT BE REQUIRED TO PAY ANY 1,184
LICENSING FEE IMPOSED BY A POLITICAL SUBDIVISION OF THIS STATE TO 1,185
PERFORM ANY OF THE FUNCTIONS, DUTIES, OR POWERS PRESCRIBED FOR 1,186
SURETY BAIL BOND AGENTS UNDER THOSE SECTIONS.
Sec. 3905.86. (A) ANY PERSON LICENSED AS A SURETY BAIL 1,188
BOND AGENT MAY BE APPOINTED BY AN INSURER IN ACCORDANCE WITH THIS 1,189
SECTION.
(B) EACH INSURER SHALL CERTIFY TO THE SUPERINTENDENT OF 1,192
INSURANCE BEFORE THE THIRTIETH DAY OF JUNE EACH YEAR THE NAMES 1,193
AND ADDRESSES OF THE SURETY BAIL BOND AGENTS FOR WHOM IT REQUESTS 1,194
APPOINTMENTS OR THE CONTINUANCE OF APPOINTMENTS. ALL INSURERS 1,195
SHALL PAY TO THE SUPERINTENDENT A FEE OF TWENTY DOLLARS FOR EACH 1,196
SUCH APPOINTMENT WHEN ISSUED AND FOR EACH CONTINUANCE THEREAFTER. 1,197
SUCH AN APPOINTMENT, UNLESS CANCELED BY THE INSURER, MAY BE 1,198
CONTINUED IN FORCE PAST THE THIRTIETH DAY OF JUNE NEXT AFTER ITS 1,199
ISSUE AND AFTER THE THIRTIETH DAY OF JUNE OF EACH SUCCEEDING YEAR 1,200
PROVIDED THAT THE APPOINTEE IS LICENSED AND IS ELIGIBLE FOR THE 1,201
APPOINTMENT. 1,202
ANY FEE COLLECTED UNDER THIS DIVISION SHALL BE PAID INTO 1,204
THE STATE TREASURY TO THE CREDIT OF THE DEPARTMENT OF INSURANCE 1,205
OPERATING FUND CREATED BY SECTION 3901.021 OF THE REVISED CODE. 1,208
26
(C)(1) BY APPOINTING A SURETY BAIL BOND AGENT, AN INSURER 1,210
CERTIFIES TO THE SUPERINTENDENT THAT THE PERSON IS COMPETENT, 1,212
FINANCIALLY RESPONSIBLE, AND SUITABLE TO REPRESENT THE INSURER. 1,213
(2) AN INSURER SHALL BE BOUND BY THE ACTS OF THE PERSON 1,215
NAMED IN THE APPOINTMENT WITHIN THAT PERSON'S ACTUAL OR APPARENT 1,216
AUTHORITY AS ITS AGENT. 1,217
(D) A SURETY BAIL BOND AGENT SHALL NOT REPRESENT TO THE 1,219
PUBLIC THAT THE AGENT HAS AUTHORITY TO REPRESENT A PARTICULAR 1,221
INSURER UNTIL THE INSURER HAS ACKNOWLEDGED THAT AUTHORITY BY 1,222
APPOINTMENT OF THE AGENT IN ACCORDANCE WITH THIS SECTION. 1,223
Sec. 3905.861. AN INSURER THAT APPOINTS A SURETY BAIL BOND 1,225
AGENT WHO IS A MEMBER OF AN AGENCY, PARTNERSHIP, CORPORATION, OR 1,227
LIMITED LIABILITY COMPANY SHALL REQUIRE THAT ALL OTHER SURETY 1,229
BAIL BOND AGENTS WHO ARE MEMBERS OF THE SAME AGENCY, PARTNERSHIP, 1,230
CORPORATION, OR LIMITED LIABILITY COMPANY BE APPOINTED TO
REPRESENT THAT INSURER. 1,231
Sec. 3905.862. UPON THE EXPIRATION OR CANCELLATION OF A 1,233
SURETY BAIL BOND AGENT'S APPOINTMENT, THE AGENT SHALL NOT ENGAGE 1,236
OR ATTEMPT TO ENGAGE IN ANY ACTIVITY REQUIRING SUCH AN
APPOINTMENT. HOWEVER, AN INSURER THAT CANCELS THE APPOINTMENT OF 1,237
A SURETY BAIL BOND AGENT MAY AUTHORIZE THE AGENT TO CONTINUE TO 1,239
ATTEMPT THE ARREST AND SURRENDER OF A DEFENDANT FOR WHOM A BAIL 1,240
BOND HAD BEEN WRITTEN PRIOR TO THE CANCELLATION AND TO SEEK 1,241
DISCHARGE OF FORFEITURES AND JUDGMENTS.
Sec. 3905.87. (A) A SURETY BAIL BOND AGENT SHALL NOT FILE 1,243
A BOND IN ANY COURT OF THIS STATE UNLESS BOTH OF THE FOLLOWING 1,245
CONDITIONS ARE MET:
(1) THE AGENT HAS REGISTERED WITH THE CLERK OF THAT COURT, 1,247
IF REGISTRATION IS REQUIRED BY THE COURT. 1,248
(2) THE AGENT HAS REGISTERED WITH THE CLERK OF THE COURT 1,250
OF COMMON PLEAS OF THE COUNTY IN WHICH THE AGENT RESIDES. 1,251
(B) TO REGISTER, A SURETY BAIL BOND AGENT SHALL FILE, WITH 1,253
THE CLERK OF THE COURT, A CERTIFIED COPY OF THE SURETY BAIL BOND 1,255
AGENT'S APPOINTMENT BY POWER OF ATTORNEY FROM EACH INSURER THAT 1,257
27
THE SURETY BAIL BOND AGENT REPRESENTS. REGISTRATION AND FILING 1,258
OF A CERTIFIED COPY OF A RENEWED POWER OF ATTORNEY SHALL BE 1,259
PERFORMED BY THE FIRST DAY OF AUGUST OF EACH ODD-NUMBERED YEAR. 1,260
THE CLERK OF THE COURT SHALL NOT ACCEPT THE REGISTRATION OF A
SURETY BAIL BOND AGENT UNLESS THE SURETY BAIL BOND AGENT IS 1,261
CURRENTLY LICENSED AND APPOINTED IN ACCORDANCE WITH SECTIONS 1,263
3905.83 TO 3905.95 OF THE REVISED CODE.
Sec. 3905.88. (A) EACH INDIVIDUAL WHO IS ISSUED A LICENSE 1,265
AS A SURETY BAIL BOND AGENT SHALL COMPLETE, IN ACCORDANCE WITH 1,267
SECTION 3905.481 OF THE REVISED CODE, AT LEAST FOURTEEN HOURS OF
CONTINUING EDUCATION OFFERED IN A COURSE OR PROGRAM OF STUDY 1,269
RELATED TO THE BAIL BOND BUSINESS THAT IS APPROVED BY THE 1,270
SUPERINTENDENT OF INSURANCE IN CONSULTATION WITH THE INSURANCE 1,271
AGENT EDUCATION ADVISORY COUNCIL. 1,272
(B) THE SUPERINTENDENT SHALL, IN ACCORDANCE WITH SECTION 1,274
3905.482 OF THE REVISED CODE, SUSPEND OR REVOKE THE LICENSE OF 1,276
ANY SURETY BAIL BOND AGENT WHO FAILS TO MEET THE REQUIREMENTS OF 1,277
DIVISION (A) OF THIS SECTION AND HAS NOT BEEN GRANTED AN 1,278
EXTENSION OF TIME WITHIN WHICH TO COMPLETE THE REQUIREMENTS. 1,279
(C) THE SUPERINTENDENT SHALL ADOPT, IN ACCORDANCE WITH 1,283
CHAPTER 119. OF THE REVISED CODE, ANY RULE NECESSARY TO CARRY OUT 1,286
THE SUPERINTENDENT'S DUTIES UNDER THIS SECTION. 1,287
Sec. 3905.89. EACH PERSON LICENSED UNDER SECTIONS 3905.83 1,289
TO 3905.95 OF THE REVISED CODE SHALL NOTIFY IN WRITING THE 1,291
APPROPRIATE INSURER OR MANAGING GENERAL AGENT, AND THE CLERK OF 1,292
THE COURT OF COMMON PLEAS OF THE COUNTY IN WHICH THE LICENSEE 1,293
RESIDES, WITHIN THIRTY DAYS AFTER A CHANGE IN THE LICENSEE'S 1,294
PRINCIPAL BUSINESS ADDRESS OR TELEPHONE NUMBER.
THIS NOTIFICATION REQUIREMENT IS IN ADDITION TO THE 1,296
NOTIFICATION REQUIREMENTS SET FORTH IN SECTION 3905.54 OF THE 1,297
REVISED CODE.
Sec. 3905.90. EACH SURETY BAIL BOND AGENT SHALL MAINTAIN 1,299
ALL RECORDS OF SURETY BONDS EXECUTED OR COUNTERSIGNED BY THE 1,301
SURETY BAIL BOND AGENT FOR AT LEAST THREE YEARS AFTER THE 1,303
28
LIABILITY OF THE SURETY HAS BEEN TERMINATED. THOSE RECORDS SHALL 1,304
BE OPEN, AT ALL TIMES, TO EXAMINATION, INSPECTION, AND
PHOTOGRAPHIC REPRODUCTION BY ANY EMPLOYEE OR AGENT OF THE 1,305
DEPARTMENT OF INSURANCE, OR BY ANY AUTHORIZED REPRESENTATIVE OF 1,306
THE INSURER OR MANAGING GENERAL AGENT. THE SUPERINTENDENT OF 1,307
INSURANCE AT ANY TIME MAY REQUIRE THE LICENSEE TO FURNISH TO THE 1,308
DEPARTMENT, IN THE MANNER AND FORM THAT THE SUPERINTENDENT
REQUIRES, ANY INFORMATION CONCERNING THE SURETY BOND BUSINESS OF 1,309
THE LICENSEE.
Sec. 3905.91. (A) ALL BUILD-UP FUNDS POSTED BY A SURETY 1,311
BAIL BOND AGENT OR MANAGING GENERAL AGENT, EITHER WITH AN INSURER 1,313
OR MANAGING GENERAL AGENT REPRESENTING AN INSURER, SHALL BE 1,314
MAINTAINED IN AN INDIVIDUAL BUILD-UP TRUST ACCOUNT FOR THE SURETY 1,315
BAIL BOND AGENT BY THE INSURER OR THE MANAGING GENERAL AGENT. 1,317
THE INSURER OR MANAGING GENERAL AGENT SHALL ESTABLISH THE ACCOUNT
IN A FEDERALLY INSURED BANK OR SAVINGS AND LOAN ASSOCIATION IN 1,318
THIS STATE JOINTLY IN THE NAME OF THE SURETY BAIL BOND AGENT AND 1,319
THE INSURER OR MANAGING GENERAL AGENT, OR IN TRUST FOR THE SURETY 1,320
BAIL BOND AGENT BY THE INSURER OR MANAGING GENERAL AGENT. THE 1,322
ACCOUNT SHALL BE OPEN TO INSPECTION AND EXAMINATION BY THE
DEPARTMENT OF INSURANCE AT ALL TIMES. THE INSURER OR MANAGING 1,323
GENERAL AGENT SHALL MAINTAIN AN ACCOUNTING OF ALL OF THOSE FUNDS, 1,324
WHICH ACCOUNTING DESIGNATES THE AMOUNTS COLLECTED ON EACH BOND 1,325
WRITTEN.
(B) BUILD-UP FUNDS SHALL NOT EXCEED FORTY PER CENT OF THE 1,327
PREMIUM AS ESTABLISHED BY THE SURETY BAIL BOND AGENT'S CONTRACT 1,328
AGREEMENT WITH THE INSURER OR MANAGING GENERAL AGENT. BUILD-UP 1,330
FUNDS RECEIVED SHALL BE IMMEDIATELY DEPOSITED TO THE BUILD-UP 1,331
TRUST ACCOUNT. INTEREST EARNED ON BUILD-UP TRUST ACCOUNTS SHALL 1,332
ACCRUE TO THE SURETY BAIL BOND AGENT.
(C) BUILD-UP FUNDS ARE DUE UPON TERMINATION OF THE SURETY 1,334
BAIL BOND AGENT'S CONTRACT AND DISCHARGE OF LIABILITIES ON THE 1,336
BONDS FOR WHICH THE BUILD-UP FUNDS WERE POSTED. THE INSURER OR 1,337
MANAGING GENERAL AGENT SHALL PAY THE FUNDS TO THE SURETY BAIL 1,338
29
BOND AGENT NOT LATER THAN SIX MONTHS AFTER THE FUNDS ARE DUE. 1,339
Sec. 3905.92. (A) A SURETY BAIL BOND AGENT THAT ACCEPTS 1,341
COLLATERAL SECURITY OR OTHER INDEMNITY SHALL COMPLY WITH ALL OF 1,342
THE FOLLOWING REQUIREMENTS: 1,343
(1) THE COLLATERAL SECURITY OR OTHER INDEMNITY SHALL BE 1,345
REASONABLE IN RELATION TO THE AMOUNT OF THE BOND. 1,346
(2) THE COLLATERAL SECURITY OR OTHER INDEMNITY SHALL NOT 1,348
BE USED BY THE SURETY BAIL BOND AGENT FOR PERSONAL BENEFIT OR 1,349
GAIN AND SHALL BE RETURNED IN THE SAME CONDITION AS RECEIVED. 1,350
(3) ACCEPTABLE FORMS OF COLLATERAL SECURITY OR INDEMNITY 1,352
INCLUDE CASH OR ITS EQUIVALENT, A PROMISSORY NOTE, AN INDEMNITY 1,353
AGREEMENT, A REAL PROPERTY MORTGAGE IN THE NAME OF THE SURETY, 1,354
AND ANY FILING UNDER CHAPTER 1309. OF THE REVISED CODE. IF THE 1,356
SURETY BAIL BOND AGENT ACCEPTS ON A BOND COLLATERAL SECURITY IN 1,357
EXCESS OF FIFTY THOUSAND DOLLARS IN CASH, THE CASH AMOUNT SHALL 1,358
BE MADE PAYABLE TO THE SURETY IN THE FORM OF A CASHIER'S CHECK, 1,359
UNITED STATES POSTAL MONEY ORDER, CERTIFICATE OF DEPOSIT, OR WIRE 1,361
TRANSFER.
(4) THE SURETY BAIL BOND AGENT SHALL PROVIDE TO THE PERSON 1,363
GIVING THE COLLATERAL SECURITY OR OTHER INDEMNITY, A WRITTEN, 1,364
NUMBERED RECEIPT THAT DESCRIBES IN A DETAILED MANNER THE 1,365
COLLATERAL SECURITY OR OTHER INDEMNITY RECEIVED, ALONG WITH 1,366
COPIES OF ANY DOCUMENTS RENDERED. 1,367
(5) THE COLLATERAL SECURITY OR OTHER INDEMNITY SHALL BE 1,369
RECEIVED AND HELD IN THE SURETY'S NAME BY THE SURETY BAIL BOND 1,370
AGENT IN A FIDUCIARY CAPACITY AND, PRIOR TO ANY FORFEITURE OF 1,371
BAIL, SHALL BE KEPT SEPARATE AND APART FROM ANY OTHER FUNDS OR 1,372
ASSETS OF THE SURETY BAIL BOND AGENT. HOWEVER, WHEN COLLATERAL 1,373
SECURITY IN EXCESS OF FIFTY THOUSAND DOLLARS IN CASH OR ITS 1,374
EQUIVALENT IS RECEIVED ON A BOND, THE SURETY BAIL BOND AGENT 1,375
PROMPTLY SHALL FORWARD THE ENTIRE AMOUNT TO THE SURETY OR 1,376
MANAGING GENERAL AGENT.
(B) COLLATERAL SECURITY MAY BE PLACED IN AN 1,378
INTEREST-BEARING ACCOUNT IN A FEDERALLY INSURED BANK OR SAVINGS 1,379
30
AND LOAN ASSOCIATION IN THIS STATE, TO ACCRUE TO THE BENEFIT OF 1,380
THE PERSON GIVING THE COLLATERAL SECURITY. THE SURETY BAIL BOND 1,381
AGENT, SURETY, OR MANAGING GENERAL AGENT SHALL NOT MAKE ANY 1,382
PECUNIARY GAIN ON THE COLLATERAL SECURITY DEPOSITED. 1,383
(C)(1) THE SURETY IS LIABLE FOR ALL COLLATERAL SECURITY OR 1,385
OTHER INDEMNITY ACCEPTED BY A SURETY BAIL BOND AGENT. IF, UPON 1,386
FINAL TERMINATION OF LIABILITY ON A BOND, THE SURETY BAIL BOND 1,387
AGENT OR MANAGING GENERAL AGENT FAILS TO RETURN THE COLLATERAL 1,388
SECURITY TO THE PERSON THAT GAVE IT, THE SURETY SHALL RETURN THE 1,389
ACTUAL COLLATERAL TO THAT PERSON OR, IN THE EVENT THAT THE SURETY 1,390
CANNOT LOCATE THE COLLATERAL, SHALL PAY THE PERSON IN ACCORDANCE 1,391
WITH THIS SECTION. 1,392
(2) A SURETY'S LIABILITY AS DESCRIBED IN DIVISION (C)(1) 1,394
OF THIS SECTION SURVIVES THE TERMINATION OF THE SURETY BAIL BOND 1,395
AGENT'S APPOINTMENT, WITH RESPECT TO THOSE BONDS THAT WERE 1,396
EXECUTED BY THE SURETY BAIL BOND AGENT PRIOR TO THE TERMINATION 1,397
OF THE APPOINTMENT.
(D) IF A FORFEITURE OCCURS, THE SURETY BAIL BOND AGENT OR 1,399
SURETY SHALL GIVE THE PRINCIPAL AND THE PERSON THAT GAVE THE 1,400
COLLATERAL SECURITY TEN DAYS' WRITTEN NOTICE OF INTENT TO CONVERT 1,401
THE COLLATERAL DEPOSIT INTO CASH TO SATISFY THE FORFEITURE. THE 1,402
NOTICE SHALL BE SENT BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED, 1,403
TO THE LAST KNOWN ADDRESS OF THE PRINCIPAL AND THE PERSON THAT 1,404
GAVE THE COLLATERAL. 1,405
THE SURETY BAIL BOND AGENT OR SURETY SHALL CONVERT THE 1,407
COLLATERAL DEPOSIT INTO CASH WITHIN A REASONABLE PERIOD OF TIME 1,408
AND RETURN THAT WHICH IS IN EXCESS OF THE FACE VALUE OF THE BOND 1,409
MINUS THE ACTUAL AND REASONABLE EXPENSES OF CONVERTING THE 1,411
COLLATERAL INTO CASH. IN NO EVENT SHALL THESE EXPENSES EXCEED
TEN PER CENT OF THE FACE VALUE OF THE BOND. HOWEVER, UPON MOTION 1,412
AND PROOF THAT THE ACTUAL AND REASONABLE EXPENSES EXCEED TEN PER 1,413
CENT, THE COURT MAY ALLOW RECOVERY OF THE FULL AMOUNT OF THE 1,414
ACTUAL AND REASONABLE EXPENSES. IF THERE IS A REMISSION OF 1,415
FORFEITURE THAT REQUIRED THE SURETY TO PAY THE BOND TO THE COURT, 1,416
31
THE SURETY SHALL PAY TO THE PERSON THAT GAVE THE COLLATERAL THE 1,418
VALUE OF ANY COLLATERAL RECEIVED FOR THE BOND MINUS THE ACTUAL 1,419
AND REASONABLE EXPENSES PERMITTED TO BE RECOVERED UNDER THIS 1,420
DIVISION.
(E) A SURETY BAIL BOND AGENT OR SURETY SHALL NOT SOLICIT 1,422
OR ACCEPT A WAIVER OF ANY OF THE PROVISIONS OF THIS SECTION, OR 1,423
ENTER INTO ANY AGREEMENT AS TO THE VALUE OF THE COLLATERAL. 1,424
(F) NO PERSON SHALL FAIL TO COMPLY WITH THIS SECTION. 1,426
Sec. 3905.921. (A) IF COLLATERAL SECURITY OR OTHER 1,428
INDEMNITY IS ACCEPTED ON A BOND, THE SURETY BAIL BOND AGENT, 1,429
MANAGING GENERAL AGENT, OR SURETY SHALL MAKE, UPON DEMAND, A 1,430
WRITTEN REQUEST TO THE COURT FOR A DISCHARGE OF THE BOND TO BE 1,431
DELIVERED TO THE SURETY OR THE SURETY'S AGENT. 1,432
IF THE OBLIGATION OF THE SURETY ON THE BOND IS RELEASED IN 1,434
WRITING BY THE COURT AND A DISCHARGE IS PROVIDED TO THE SURETY OR 1,435
THE SURETY'S AGENT, THE COLLATERAL SECURITY OR OTHER INDEMNITY, 1,436
EXCEPT A PROMISSORY NOTE OR AN INDEMNITY AGREEMENT, SHALL BE 1,437
RETURNED, WITHIN TWENTY-ONE DAYS AFTER THE DISCHARGE IS PROVIDED, 1,438
TO THE PERSON THAT GAVE THE COLLATERAL SECURITY OR OTHER 1,439
INDEMNITY, UNLESS ANOTHER DISPOSITION IS PROVIDED FOR BY LEGAL 1,440
ASSIGNMENT OF THE RIGHT TO RECEIVE THE COLLATERAL TO ANOTHER 1,441
PERSON. IF, DESPITE DILIGENT INQUIRY BY THE SURETY OR THE 1,442
SURETY'S AGENT TO DETERMINE THAT THE BOND HAS BEEN DISCHARGED, 1,443
THE COURT FAILS TO PROVIDE A WRITTEN DISCHARGE WITHIN THIRTY DAYS 1,444
AFTER THE WRITTEN REQUEST WAS MADE TO THE COURT, THE BOND SHALL 1,445
BE CONSIDERED CANCELED BY OPERATION OF LAW, AND THE COLLATERAL 1,446
SECURITY OR OTHER INDEMNITY, EXCEPT A PROMISSORY NOTE OR AN 1,447
INDEMNITY AGREEMENT, SHALL BE RETURNED, WITHIN TWENTY-ONE DAYS 1,448
AFTER THE WRITTEN REQUEST FOR DISCHARGE WAS MADE TO THE COURT, TO 1,449
THE PERSON THAT GAVE THE COLLATERAL SECURITY OR OTHER INDEMNITY. 1,450
(B) NO FEE OR OTHER CHARGE, OTHER THAN THOSE AUTHORIZED BY 1,452
SECTIONS 3905.83 TO 3905.95 OF THE REVISED CODE OR BY RULE OF THE 1,453
SUPERINTENDENT OF INSURANCE, SHALL BE DEDUCTED FROM THE 1,455
COLLATERAL DUE. HOWEVER, ALLOWABLE EXPENSES INCURRED IN THE
32
APPREHENSION OF A DEFENDANT BECAUSE OF A FORFEITURE OF BOND OR 1,456
JUDGMENT MAY BE DEDUCTED IF THOSE EXPENSES ARE ACCOUNTED FOR. 1,458
(C)(1) NO PERSON SHALL FAIL TO RETURN COLLATERAL SECURITY 1,460
IN ACCORDANCE WITH THIS SECTION. 1,461
(2) A VIOLATION OF DIVISION (C)(1) OF THIS SECTION SHALL 1,463
BE PUNISHABLE AS FOLLOWS: 1,464
(a) IF THE COLLATERAL IS OF A VALUE OF LESS THAN FIVE 1,467
HUNDRED DOLLARS, A VIOLATION IS A MISDEMEANOR OF THE FIRST
DEGREE;
(b) IF THE COLLATERAL IS OF A VALUE OF AT LEAST FIVE 1,469
HUNDRED DOLLARS BUT LESS THAN FIVE THOUSAND DOLLARS, A VIOLATION 1,471
IS A FELONY OF THE FIFTH DEGREE;
(c) IF THE COLLATERAL IS OF A VALUE OF AT LEAST FIVE 1,473
THOUSAND DOLLARS BUT LESS THAN TEN THOUSAND DOLLARS, A VIOLATION 1,474
IS A FELONY OF THE FOURTH DEGREE; 1,475
(d) IF THE COLLATERAL IS OF A VALUE OF TEN THOUSAND 1,477
DOLLARS OR MORE, A VIOLATION IS A FELONY OF THE THIRD DEGREE. 1,479
Sec. 3905.93. A SURETY BAIL BOND AGENT SHALL NOT EXECUTE A 1,481
BAIL BOND WITHOUT DOING BOTH OF THE FOLLOWING: 1,483
(A) CHARGING THE PREMIUM RATE FILED WITH AND APPROVED BY 1,485
THE SUPERINTENDENT OF INSURANCE; 1,486
(B) DISCLOSING THE EXPENSE FEE THAT WILL BE CHARGED TO 1,489
COVER THE COSTS INCURRED BY THE AGENT IN EXECUTING THE BOND. 1,490
Sec. 3905.931. (A) NO INSURER, MANAGING GENERAL AGENT, OR 1,492
SURETY BAIL BOND AGENT SHALL FURNISH TO ANY PERSON ANY BLANK 1,493
FORM, APPLICATION, STATIONERY, BUSINESS CARD, OR OTHER SUPPLIES 1,495
TO BE USED IN SOLICITING, NEGOTIATING, OR EFFECTING BAIL BONDS 1,496
UNLESS THE PERSON IS LICENSED TO ACT AS A SURETY BAIL BOND AGENT 1,498
AND IS APPOINTED BY AN INSURER. THIS DIVISION DOES NOT PROHIBIT
AN UNLICENSED EMPLOYEE, UNDER THE DIRECT SUPERVISION AND CONTROL 1,499
OF A LICENSED AND APPOINTED SURETY BAIL BOND AGENT, FROM 1,500
POSSESSING OR EXECUTING IN THE SURETY BOND OFFICE, ANY FORM, 1,502
OTHER THAN A POWER OF ATTORNEY, BOND FORM, OR COLLATERAL RECEIPT, 1,503
WHILE ACTING WITHIN THE SCOPE OF THE EMPLOYEE'S EMPLOYMENT. 1,504
33
(B) AN INSURER THAT FURNISHES ANY OF THE SUPPLIES 1,507
MENTIONED IN DIVISION (A) OF THIS SECTION TO ANY SURETY BAIL BOND 1,508
AGENT OR OTHER PERSON NOT APPOINTED BY AN INSURER AND THAT 1,510
ACCEPTS ANY BAIL BOND BUSINESS FROM OR WRITES ANY BAIL BOND
BUSINESS FOR THAT SURETY BAIL BOND AGENT OR OTHER PERSON IS 1,512
LIABLE ON THE BOND TO THE SAME EXTENT AND IN THE SAME MANNER AS 1,514
IF THE SURETY BAIL BOND AGENT OR OTHER PERSON HAD BEEN APPOINTED
OR AUTHORIZED BY AN INSURER TO ACT IN ITS BEHALF. 1,517
Sec. 3905.932. A SURETY BAIL BOND AGENT OR INSURER SHALL 1,519
NOT DO ANY OF THE FOLLOWING: 1,520
(A) SUGGEST OR ADVISE THE EMPLOYMENT OF, OR NAME FOR 1,522
EMPLOYMENT, ANY PARTICULAR ATTORNEY TO REPRESENT ITS PRINCIPAL; 1,523
(B) DIRECTLY OR INDIRECTLY SOLICIT BUSINESS IN, OR ON THE 1,525
PROPERTY OR GROUNDS OF, A DETENTION FACILITY, AS DEFINED IN 1,527
SECTION 2921.01 OF THE REVISED CODE, OR IN, OR ON THE PROPERTY OR 1,528
GROUNDS OF, ANY COURT. FOR PURPOSES OF THIS DIVISION, "SOLICIT" 1,529
INCLUDES THE DISTRIBUTION OF BUSINESS CARDS, PRINT ADVERTISING, 1,530
OR ANY OTHER WRITTEN INFORMATION DIRECTED TO PRISONERS OR 1,531
POTENTIAL INDEMNITORS, UNLESS A REQUEST IS INITIATED BY THE
PRISONER OR POTENTIAL INDEMNITOR. PERMISSIBLE PRINT ADVERTISING 1,532
IN A DETENTION FACILITY IS STRICTLY LIMITED TO A LISTING IN A 1,533
TELEPHONE DIRECTORY AND THE POSTING OF THE SURETY BAIL BOND 1,534
AGENT'S NAME, ADDRESS, AND TELEPHONE NUMBER IN A DESIGNATED 1,535
LOCATION WITHIN THE DETENTION FACILITY.
(C) WEAR OR OTHERWISE DISPLAY ANY IDENTIFICATION, OTHER 1,537
THAN WALLET IDENTIFICATION CARD REQUIRED UNDER DIVISION (G) OF 1,538
SECTION 3905.85 OF THE REVISED CODE, IN OR ON THE PROPERTY OR 1,540
GROUNDS OF A DETENTION FACILITY, AS DEFINED IN SECTION 2921.01 OF 1,541
THE REVISED CODE, OR IN OR ON THE PROPERTY OR GROUNDS OF ANY 1,542
COURT;
(D) PAY A FEE OR REBATE OR GIVE OR PROMISE ANYTHING OF 1,544
VALUE TO A JAILER, LAW ENFORCEMENT OFFICER, COMMITTING 1,545
MAGISTRATE, OR OTHER PERSON WHO HAS POWER TO ARREST OR TO HOLD IN 1,546
CUSTODY, OR TO ANY PUBLIC OFFICIAL OR PUBLIC EMPLOYEE, IN ORDER 1,547
34
TO SECURE A SETTLEMENT, COMPROMISE, REMISSION, OR REDUCTION OF 1,548
THE AMOUNT OF ANY BAIL BOND OR ESTREATMENT OF BAIL;
(E) PAY A FEE OR REBATE OR GIVE OR PROMISE ANYTHING OF 1,550
VALUE TO AN ATTORNEY IN A BAIL BOND MATTER, EXCEPT IN DEFENSE OF 1,551
ANY ACTION ON A BOND;
(F) PAY A FEE OR REBATE OR GIVE OR PROMISE ANYTHING OF 1,553
VALUE TO THE PRINCIPAL OR TO ANYONE IN THE PRINCIPAL'S BEHALF; 1,554
(G) PARTICIPATE IN THE CAPACITY OF AN ATTORNEY AT A TRIAL 1,556
OR HEARING OF A PRINCIPAL; 1,557
(H) ACCEPT ANYTHING OF VALUE FROM A PRINCIPAL FOR 1,559
PROVIDING A BAIL BOND, OTHER THAN THE PREMIUM FILED WITH AND 1,560
APPROVED BY THE SUPERINTENDENT OF INSURANCE AND AN EXPENSE FEE, 1,561
EXCEPT THAT THE SURETY BAIL BOND AGENT MAY, IN ACCORDANCE WITH 1,562
SECTION 3905.92 OF THE REVISED CODE, ACCEPT COLLATERAL SECURITY 1,563
OR OTHER INDEMNITY FROM A PRINCIPAL OR OTHER PERSON TOGETHER WITH 1,564
DOCUMENTARY STAMP TAXES IF APPLICABLE. NO FEES, EXPENSES, OR 1,565
CHARGES OF ANY KIND SHALL BE DEDUCTED FROM THE COLLATERAL HELD OR 1,566
ANY RETURN PREMIUM DUE, EXCEPT AS AUTHORIZED BY SECTIONS 3905.83 1,567
TO 3905.95 OF THE REVISED CODE OR BY RULE OF THE SUPERINTENDENT.
A SURETY BAIL BOND AGENT, UPON WRITTEN AGREEMENT WITH ANOTHER 1,569
PARTY, MAY RECEIVE A FEE OR OTHER COMPENSATION FOR RETURNING TO 1,571
CUSTODY AN INDIVIDUAL WHO HAS FLED THE JURISDICTION OF THE COURT 1,572
OR CAUSED THE FORFEITURE OF A BOND.
(I) EXECUTE A BOND IN THIS STATE ON THE PERSON'S OWN 1,574
BEHALF;
(J) EXECUTE A BOND IN THIS STATE IF A JUDGMENT HAS BEEN 1,576
ENTERED ON A BOND EXECUTED BY THE SURETY BAIL BOND AGENT, WHICH 1,577
JUDGMENT HAS REMAINED UNPAID FOR AT LEAST SIXTY DAYS AFTER ALL 1,578
APPEALS HAVE BEEN EXHAUSTED, UNLESS THE FULL AMOUNT OF THE 1,579
JUDGMENT IS DEPOSITED WITH THE CLERK OF THE COURT. 1,580
Sec. 3905.933. (A) A SURETY BAIL BOND AGENT SHALL NOT 1,582
SIGN OR COUNTERSIGN IN BLANK ANY BOND, OR GIVE A POWER OF 1,584
ATTORNEY TO, OR OTHERWISE AUTHORIZE, ANYONE TO COUNTERSIGN THE 1,585
SURETY BAIL BOND AGENT'S NAME TO A BOND UNLESS THE PERSON SO 1,587
35
AUTHORIZED IS A LICENSED AND APPOINTED SURETY BAIL BOND AGENT
DIRECTLY EMPLOYED BY THE SURETY BAIL BOND AGENT GIVING THAT 1,589
AUTHORITY.
(B) A SURETY BAIL BOND AGENT SHALL NOT DIVIDE WITH ANY 1,591
OTHER PERSON, OR SHARE IN, ANY COMMISSIONS PAYABLE ON ACCOUNT OF 1,593
A BAIL BOND, EXCEPT AS BETWEEN OTHER SURETY BAIL BOND AGENTS THAT 1,594
ARE LICENSED OR OTHERWISE QUALIFIED TO ENGAGE IN THE BAIL BOND 1,595
BUSINESS IN THEIR STATE OF DOMICILE.
Sec. 3905.934. (A) A SURETY BAIL BOND AGENT SHALL NOT 1,597
MAKE, PUBLISH, OR OTHERWISE DISSEMINATE, DIRECTLY OR INDIRECTLY, 1,598
ANY MISLEADING OR FALSE ADVERTISEMENT, OR ENGAGE IN ANY OTHER 1,599
DECEPTIVE TRADE PRACTICE. 1,600
(B) ALL ADVERTISING BY A SURETY BAIL BOND AGENT SHALL 1,602
INCLUDE THE ADDRESS OF RECORD OF THE AGENT ON FILE WITH THE 1,604
DEPARTMENT OF INSURANCE. 1,605
Sec. 3905.94. IF THE SUPERINTENDENT OF INSURANCE, IN 1,607
ACCORDANCE WITH SECTION 3905.49 OF THE REVISED CODE, SUSPENDS OR 1,608
REVOKES A PERSON'S LICENSE AS A SURETY BAIL BOND AGENT, THE 1,610
PERSON, DURING THE PERIOD OF SUSPENSION OR REVOCATION, SHALL NOT 1,611
BE EMPLOYED BY ANY SURETY BAIL BOND AGENT, HAVE ANY OWNERSHIP 1,612
INTEREST IN ANY BUSINESS INVOLVING BAIL BONDS, OR HAVE ANY 1,613
FINANCIAL INTEREST OF ANY TYPE IN ANY BAIL BOND BUSINESS. 1,614
Sec. 3905.941. UPON THE SURRENDER, SUSPENSION, OR 1,616
REVOCATION OF A SURETY BAIL BOND AGENT'S LICENSE, THE APPOINTING 1,617
INSURER OR MANAGING GENERAL AGENT IMMEDIATELY SHALL DESIGNATE A 1,619
LICENSED AND APPOINTED SURETY BAIL BOND AGENT TO ADMINISTER ALL 1,620
BAIL BONDS PREVIOUSLY WRITTEN BY THE LICENSEE.
Sec. 3905.95. THE SUPERINTENDENT OF INSURANCE SHALL ADOPT, 1,623
IN ACCORDANCE WITH CHAPTER 119. OF THE REVISED CODE, ANY RULES 1,626
NECESSARY TO IMPLEMENT SECTIONS 3905.83 TO 3905.95 OF THE REVISED 1,627
CODE.
Sec. 3905.99. (A) Whoever violates sections 3905.181, 1,636
3905.21, or 3905.23 of the Revised Code shall be fined not less 1,637
than twenty-five nor more than five hundred dollars or imprisoned 1,638
36
not more than six months, or both.
(B) Whoever violates section 3905.31 or 3905.33 of the 1,640
Revised Code shall be fined not less than twenty-five nor more 1,641
than five hundred dollars or imprisoned not more than one year, 1,642
or both.
(C) Whoever violates section 3905.37 or 3905.43 of the 1,644
Revised Code shall be fined not less than one hundred nor more 1,645
than five hundred dollars.
(D) Whoever violates section 3905.01, DIVISION (F) OF 1,647
SECTION 3905.92, OR DIVISION (A) OF SECTION 3905.931 of the 1,649
Revised Code is guilty of a misdemeanor of the first degree. 1,651
(E) WHOEVER VIOLATES SECTION 3905.84 OF THE REVISED CODE 1,654
IS GUILTY OF A MISDEMEANOR OF THE FIRST DEGREE ON A FIRST OR 1,655
SECOND OFFENSE AND OF A FELONY OF THE THIRD DEGREE ON EACH
SUBSEQUENT OFFENSE. 1,656
Section 2. That existing sections 3905.01, 3905.011, 1,658
3905.012, 3905.48, 3905.49, 3905.55, 3905.86, and 3905.99 of the 1,659
Revised Code are hereby repealed. 1,660
Section 3. Sections 1 and 2 of this act shall take effect 1,662
six months after the effective date of this act. 1,663
Section 4. Any person who, on the effective date of this 1,665
act, is licensed as a property/casualty insurance agent in this 1,666
state and is actively engaged in the business of posting bail 1,667
bonds, is not subject to section 3905.841 of the Revised Code, as 1,668
enacted by this act, and shall not be required to take an 1,669
examination for licensure as a surety bail bond agent, if the 1,670
person applies for the license during the six-month period 1,671
immediately following the effective date of this act. 1,672
Section 5. It is the intent of the General Assembly that 1,674
the Superintendent of Insurance take any action necessary to 1,675
provide for an orderly transition for those persons who, on the 1,676
effective date of this act, perform the functions, duties, or 1,678
powers prescribed for surety bail bond agents under this act. 1,679
Consequently, the Department of Insurance shall accept license 1,680
37
applications submitted by such persons beginning on the effective 1,681
date of this act and shall make every effort possible to act upon 1,682
such applications within the six-month period immediately 1,683
following that date.