As Passed by the Senate 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- 15
SENATORS BRADY-WATTS-DRAKE-PRENTISS-SPADA
_________________________________________________________________ 17
A B I L L
To amend sections 3905.01, 3905.011, 3905.012, 19
3905.48, 3905.49, 3905.55, 3905.86, and 3905.99; 20
to amend, for the purpose of adopting a new
section number as indicated in parentheses, 21
section 3905.86 (3905.81); and to enact new 22
section 3905.86 and sections 2927.27, 3905.83, 23
3905.84, 3905.841, 3905.85, 3905.851, 3905.861, 24
3905.862, 3905.87 to 3905.92, 3905.921, 3905.93, 25
3905.931, 3905.932, 3905.933, 3905.934, 3905.94, 26
3905.941, and 3905.95 of the Revised Code 27
relative to the regulation of surety bail bond
agents and the apprehension or arrest of a 28
principal on bond.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 30
Section 1. That sections 3905.01, 3905.011, 3905.012, 33
3905.48, 3905.49, 3905.55, 3905.86, and 3905.99 be amended, 34
section 3905.86 (3905.81) be amended for the purpose of adopting 35
a new section number as indicated in parentheses, and new section 36
3905.86 and sections 2927.27, 3905.83, 3905.84, 3905.841, 37
2
3905.85, 3905.851, 3905.861, 3905.862, 3905.87, 3905.88, 3905.89, 38
3905.90, 3905.91, 3905.92, 3905.921, 3905.93, 3905.931, 3905.932, 39
3905.933, 3905.934, 3905.94, 3905.941, and 3905.95 of the Revised 40
Code be enacted to read as follows:
Sec. 2927.27. (A) NO PERSON, OTHER THAN A LAW ENFORCEMENT 42
OFFICER, SHALL APPREHEND, DETAIN, OR ARREST A PRINCIPAL ON BOND, 43
WHEREVER ISSUED, UNLESS THAT PERSON MEETS ALL OF THE FOLLOWING 44
CRITERIA: 45
(1) THE PERSON IS ANY OF THE FOLLOWING: 47
(a) QUALIFIED, LICENSED, AND APPOINTED AS A SURETY BAIL 48
BOND AGENT UNDER SECTIONS 3905.83 TO 3905.95 OF THE REVISED CODE; 50
(b) LICENSED AS A SURETY BAIL BOND AGENT BY THE STATE 52
WHERE THE BOND WAS WRITTEN; 53
(c) LICENSED AS A PRIVATE INVESTIGATOR UNDER CHAPTER 4749. 56
OF THE REVISED CODE; 57
(d) LICENSED AS A PRIVATE INVESTIGATOR BY THE STATE WHERE 59
THE BOND WAS WRITTEN; 60
(e) AN OFF-DUTY PEACE OFFICER, AS DEFINED IN SECTION 62
2921.51 OF THE REVISED CODE. 63
(2) THE PERSON, PRIOR TO APPREHENDING, DETAINING, OR 65
ARRESTING THE PRINCIPAL, HAS ENTERED INTO A WRITTEN CONTRACT WITH 66
THE SURETY OR WITH A LICENSED SURETY BAIL BOND AGENT APPOINTED BY 67
THE SURETY, WHICH CONTRACT SETS FORTH THE NAME OF THE PRINCIPAL 68
WHO IS TO BE APPREHENDED, DETAINED, OR ARRESTED. 69
FOR PURPOSES OF DIVISION(A) (2) OF THIS SECTION, "SURETY" 71
HAS THE SAME MEANING AS IN SECTION 3905.83 OF THE REVISED CODE. 73
(3) THE PERSON, PRIOR TO APPREHENDING, DETAINING, OR 75
ARRESTING THE PRINCIPAL, HAS NOTIFIED THE LOCAL LAW ENFORCEMENT 76
AGENCY HAVING JURISDICTION OVER THE AREA IN WHICH SUCH ACTIVITIES 77
WILL BE PERFORMED AND HAS PROVIDED ANY FORM OF IDENTIFICATION OR 78
OTHER INFORMATION REQUESTED BY THE LAW ENFORCEMENT AGENCY. 79
(B) NO PERSON SHALL REPRESENT THE PERSON'S SELF TO BE A 81
BAIL ENFORCEMENT AGENT OR BOUNTY HUNTER, OR CLAIM ANY SIMILAR 82
TITLE, IN THIS STATE. 83
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(C) (1) WHOEVER VIOLATES THIS SECTION IS GUILTY OF 85
ILLEGAL BAIL BOND AGENT PRACTICES. 86
(2) A VIOLATION OF DIVISION (A) OF THIS SECTION IS A 87
MISDEMEANOR OF THE FIRST DEGREE OR, IF THE OFFENDER PREVIOUSLY 88
HAS BEEN CONVICTED OF OR PLEADED GUILTY TO TWO OR MORE VIOLATIONS 89
OF DIVISION (A) OF THIS SECTION, A FELONY OF THE THIRD DEGREE. 90
(3) A VIOLATION OF DIVISION (B) OF THIS SECTION IS A 91
MISDEMEANOR OF THE FIRST DEGREE OR, IF THE OFFENDER PREVIOUSLY 93
HAS BEEN CONVICTED OF OR PLEADED GUILTY TO TWO OR MORE VIOLATIONS 94
OF DIVISION (B) OF THIS SECTION, A FELONY OF THE THIRD DEGREE. 95
Sec. 3905.01. (A) No person shall procure an application 105
or quote premiums for, discuss coverages of, or solicit, 106
negotiate, effect, procure, place, write, deliver, renew, or 107
bind, a policy of insurance, INCLUDING ANY FIDELITY, SURETY, OR 108
GUARANTY BOND, through any medium for risks residing, located, or 109
to be performed in this state, unless the person is licensed by 110
the superintendent of insurance in accordance with this chapter. 112
(B) Division (A) of this section does not apply to any of 116
the following persons:
(1) An insurer as defined in section 3901.32 of the 118
Revised Code;
(2) Any person who furnishes information regarding group 120
insurance, enrolls individuals in group insurance plans, issues 121
certificates under such plans, or otherwise assists in 122
administering such plans, if no commission or other form of 123
compensation related to premium or sales volume is paid for such 124
services; 125
(3) Any employee of a creditor with respect to insurance 127
products made available only in connection with a credit 129
transaction, including credit life insurance, credit disability 130
or accident and health insurance, credit property insurance,
mortgage life insurance, mortgage accident and health insurance, 131
involuntary unemployment insurance, individual life insurance, 132
and individual disability or accident and health insurance, if 133
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the entire premium is financed as part of the credit transaction 134
and the following conditions are met:
(a) If the insurance product is an individual life 136
insurance policy, a licensed agent is responsible for the 137
insurance transaction.
(b) If the employee of the creditor is paid by the 139
insurance agent or by the insurance company, the employee holds a 140
limited authority license. 141
For purposes of division (B)(3) of this section, "credit 143
property insurance" means insurance covering risks of loss, 144
damage, and destruction of property used as security for a credit 145
transaction, which insurance may also cover other property that 147
is merely incidental to the property used as security for the 149
credit transaction.
(4) Any employer, or officer or employee of an employer, 152
to the extent that the employer, officer, or employee is engaged 153
in the administration or operation of any employee benefits 154
program involving the use of insurance for the employer's 155
employees or the employees of a subsidiary or affiliate of the 156
employer, provided that the employer, officer, or employee is not 158
compensated, either directly or indirectly, in any manner by an 159
insurance agent or by the insurance company issuing the
insurance; 160
(5) An adjuster employed by or representing an insurer in 163
the adjustment of claims or a public insurance adjuster holding a 164
certificate of authority issued under Chapter 3951. of the 165
Revised Code when performing the duties of a public insurance 168
adjuster.
(C) Division (A) of this section does not apply to any of 172
the following activities when performed by an employee of, and at 173
the direction of, an insurer or licensed insurance agent: 174
(1) The acceptance of premiums other than the initial 176
premium; 177
(2) The gathering of information, such as names, 179
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addresses, expiration dates of current insurance, and names of 180
current insurers; 181
(3) The setting of appointments for insurance agents, 183
provided that the person setting the appointment does not 184
communicate any information about insurance; 185
(4) The servicing of existing insurance policies issued by 188
or through the employee's employer, provided the servicing is not 189
part of a solicitation;
(5) The performance of clerical or ministerial duties. 192
(D) The superintendent may adopt rules in accordance with 195
Chapter 119. of the Revised Code to set forth the specific acts 198
that comprise any of the activities described in this section, 199
the performance of which either requires or does not require 201
licensure as an agent.
Sec. 3905.011. (A) As used in this section and sections 211
3905.012 and 3905.013 of the Revised Code, "insurer" has the same 212
meaning as in section 3901.32 of the Revised Code. 214
(B) Any person that is licensed as an agent under section 217
3905.02 or 3905.18 of the Revised Code is eligible to be 218
appointed by one or more insurers authorized to do business in 219
this state. 220
(C)(1) Prior to BY appointing an agent, an insurer shall 223
certify CERTIFIES to the superintendent of insurance, in 224
accordance with rules adopted by the superintendent under section 225
3905.013 of the Revised Code, that the person is competent, 226
financially responsible, and suitable to represent the insurer. 227
(2) No agent shall represent to the public that the agent 229
has authority to represent a particular insurer until the insurer 231
has acknowledged that authority by appointment of the agent in 232
accordance with division (C)(1) of this section. 233
(D)(1) No insurer shall pay a commission, fee, or other 236
type of consideration, or give any other thing of value, to a 237
person that is required to be licensed by the superintendent 238
under this chapter for the sale of, or for any direct or indirect 239
6
connection with the sale of, any insurance sold by or on behalf 240
of the insurer, but is not so licensed.
(2) Nothing in this section prohibits an insurer from 242
entering into a compensation agreement with a creditor with 243
respect to insurance products made available only in connection 245
with a credit transaction, including credit life insurance,
credit disability or accident and health insurance, credit 246
property insurance, mortgage life insurance, mortgage accident 247
and health insurance, involuntary unemployment insurance, 248
individual life insurance, and individual disability or accident 249
and health insurance, if the entire premium is financed as part 250
of the credit transaction. For purposes of division (D)(2) of 251
this section, "credit property insurance" has the same meaning as 252
in division (B)(3) of section 3905.01 of the Revised Code.
Sec. 3905.012. (A)(1) Except as provided in division 261
(A)(2) of this section, any person licensed as an agent under 263
section 3905.02 or, 3905.18, OR 3905.85 of the Revised Code, or 265
appointed as a solicitor under section 3905.03 of the Revised 267
Code, may at any time surrender any or all licenses held by the 268
person.
(2) No agent shall surrender the agent's licenses if the 271
superintendent of insurance is investigating any allegation of 272
wrongdoing by the agent or has initiated proceedings under
Chapter 119. of the Revised Code and notice of an opportunity for 273
a hearing has been issued to the agent, and any attempt to so 275
surrender is invalid.
(B)(1) If an insurer or agent cancels the appointment of 278
an agent or solicitor due to suspected fraud, misrepresentation, 279
theft, conversion, or any other culpable misappropriation, the 280
insurer or agent shall promptly notify the superintendent. The 281
notice shall include a complete statement of the facts and the 282
reasons for the cancellation. 283
(2) In the absence of fraud or actual malice, an insurer 285
or agent is immune from any civil liability that otherwise might 286
7
be incurred or imposed as a result of any action taken by the 287
insurer or agent to comply with division (B)(1) of this section. 289
(C) If an agent's license is surrendered, revoked, or 291
suspended, all appointments held by the agent are void. If a new 293
license is issued to that person or if that person's previous 294
license is reinstated, any appointment of the person to represent 295
an insurer or agent must be made in accordance with the 296
requirements of this chapter.
(D)(1) Any agent, other than a corporation, partnership, 298
or limited liability company, who is no longer engaged in the 299
business of insurance in any capacity for which an agent's 300
license is required may apply to the superintendent for inactive 301
status. The superintendent may grant such status only if the 302
superintendent is satisfied that the person is not engaged in and 304
does not intend to engage in any of the activities set forth in 305
section 3905.01 of the Revised Code that requires an agent's 307
license. 308
(2) A person who has been granted inactive status is 310
exempt from any continuing education requirements imposed under 311
this chapter. 312
(3) The superintendent may adopt rules in accordance with 315
Chapter 119. of the Revised Code to establish procedures for 318
applying for inactive status, criteria used to determine
eligibility for such status, and standards and procedures for 319
transferring from inactive to active status. 320
(E) The superintendent may suspend or revoke a license, or 323
take any other disciplinary action authorized by this chapter, 324
regardless of whether the person is appointed or otherwise 325
authorized to represent an insurer or agent. 326
Sec. 3905.48. (A) No person, unless the person has 336
complied with division (B) of this section, shall be permitted to 338
take an examination for a license as an agent to engage in the
sale of any of the following types of insurance: 340
(1) Life insurance, annuity contracts, variable annuity 342
8
contracts, and variable life insurance; 343
(2) Sickness and accident insurance; 345
(3) All lines of property and casualty insurance; 347
(4) SURETY BAIL BONDS; 349
(5) All other lines of insurance for which an examination 351
is required for licensing, except title insurance. 352
(B) No person shall be permitted to take an examination 354
described in division (A) of this section unless either of the 355
following applies: 356
(1) The person has earned a bachelor's or associate's 358
degree in insurance in an accredited institution; 359
(2) The person has been granted a diploma for successfully 361
completing a high school curriculum under section 3313.61 of the 362
Revised Code or a certificate of high school equivalence under 363
rule 3301-41-1 of the Administrative Code, or been granted a 364
comparable diploma or certificate by another state, and has 365
successfully completed at least forty hours of study in a program 366
of insurance education approved by the superintendent of 367
insurance in consultation with the insurance agent education 368
advisory council under criteria established by the 369
superintendent. 370
Sec. 3905.49. (A) As used in this section: 379
(1) "Insurer" has the same meaning as in section 3901.32 382
of the Revised Code.
(2) "Refusal to issue or renew" means the decision of the 385
superintendent of insurance not to process either the initial 386
application for a license as an agent or the renewal of such a 387
license.
(3) "Revocation" means the permanent termination of all 390
authority to hold any license as an agent in this state.
(4) "Surrender for cause" means the voluntary termination 393
of all authority to hold any license as an agent in this state, 394
in lieu of a revocation or suspension order. 395
(5) "Suspension" means the termination of all authority to 398
9
hold any license as an agent in this state, for either a 399
specified period of time or an indefinite period of time and 400
under any terms or conditions determined by the superintendent. 401
(B) The superintendent may suspend, revoke, or refuse to 405
issue or renew any license as an agent, SURETY BAIL BOND AGENT, 406
surplus line broker, or limited insurance representative, or 407
impose any other sanction authorized under this chapter, for one 409
or more of the following reasons: 410
(1) Obtaining or attempting to obtain any license or 412
appointment through misrepresentation or fraud, including making 413
any materially untrue statement in an application for a license 416
or appointment;
(2) Violating or failing to comply with any insurance law, 420
rule, subpoena, consent agreement, or order of the 421
superintendent;
(3) Misappropriating or converting to the person's own use 424
any moneys belonging to policyholders, prospective policyholders, 425
beneficiaries, insurance companies, SURETIES, PRINCIPALS, or 426
others received in the course of the person's insurance business; 428
(4) Failing to timely submit an application for insurance. 431
For purposes of division (B)(4) of this section, a submission is 433
considered timely if it occurs within the time period expressly 434
provided for by the insurer, or within seven days after the agent 435
accepts a premium or an order to bind from a policyholder or 436
applicant, whichever is later.
(5) Knowingly misrepresenting the terms, benefits, value, 439
cost, or effective dates of any actual or proposed insurance 440
policy or, contract, OR BOND; 442
(6) Being convicted of a felony; 444
(7) Being convicted of a misdemeanor that involves the 447
misuse or theft of money or property belonging to another, fraud, 448
forgery, dishonest acts, or breach of a fiduciary duty, or that 450
is based on any act or omission relating to the business of
insurance, securities, or financial services; 451
10
(8) Committing an unfair trade act or practice under any 455
section of Title XXXIX of the Revised Code or any rule adopted 456
thereunder;
(9) Having an insurance license suspended or revoked in 459
any other state, province, or territory; 460
(10) Forging or causing the forgery of another's name to 464
any document related to or used in an insurance transaction; 465
(11) Possessing or using any unauthorized materials during 467
a licensing or continuing education examination or cheating on a 469
licensing or continuing education examination;
(12) Failing to disclose to an applicant for insurance or 472
policyholder upon accepting a premium or an order to bind 473
coverage from the applicant or policyholder, that the person has 474
not been appointed as agent by the insurer and is not an 475
appointed solicitor of an appointed agent;
(13) Having any professional license suspended or revoked 478
as a result of a mishandling of funds or breach of fiduciary 479
responsibilities; 480
(14) Causing or permitting a policyholder or applicant for 483
insurance to designate the person or the person's spouse, parent, 484
child, or sibling as the beneficiary of a policy or annuity sold 485
by the person, unless the person or a relative of the person is 486
the insured or applicant;
(15) Failing to provide a written response to the 488
department of insurance within thirty days after receipt of any 490
written inquiry from the department;
(16) Failing to notify the superintendent of any change in 493
the person's address, within thirty days after the change occurs, 495
as required by section 3905.54 of the Revised Code;
(17) Transferring or placing insurance with an insurer 497
other than the insurer expressly chosen by the applicant for 498
insurance or policyholder without the consent of the applicant or 499
policyholder or absent extenuating circumstances; 500
(18) Engaging in any fraudulent, DISHONEST, or coercive 502
11
practice in connection with the business of insurance; 503
(19) Failing to inform a policyholder or applicant for 505
insurance of the identity of the insurer or insurers, or the 506
identity of any other insurance agent, general agent, surplus 507
line broker, or licensee known to be involved in procuring, 508
placing, or continuing the insurance for the policyholder or 509
applicant, upon the binding of the coverage; 510
(20) In the case of an agent that is a corporation, 512
limited liability company, or partnership, failing to report an 513
individual licensee's violation to the department when the 514
violation was known or should have been known by one or more of 515
the partners, officers, managers, or members of the corporation, 516
limited liability company, or partnership; 517
(21) Submitting or using a document in the conduct of the 520
business of insurance when the person knew or should have known 521
that the document contained the forged signature of another 522
person;
(22) Misrepresenting the person's qualifications or using 525
in any way a professional designation that has not been conferred 526
upon the person by the appropriate accrediting organization; 527
(23) Obtaining a premium loan or causing a premium loan to 530
be made to or in the name of an insured without that person's 531
knowledge and written authorization;
(24) Failing to notify the superintendent of any 533
disciplinary action taken by the insurance authority of another 534
state, within sixty days after the action was taken, as required 536
by section 3905.54 of the Revised Code;
(25) Failing to file any of the reports or notices 538
required under this chapter; 539
(26) Submitting an application for insurance, or causing 542
the issuance of an insurance policy or contract, on behalf of an 543
applicant who did not request or authorize the insurance. 544
Division (B)(26) of this section does not apply to any policy 545
issued by an other than life insurance company.
12
(27) Using paper, software, or any other materials of or 548
provided by an insurer after the insurer has terminated the
authority of the licensee, if the use of such materials would 549
cause a reasonable person to believe that the licensee was acting 551
on behalf of or otherwise representing the insurer; 552
(28) Providing misleading, deceptive, or untrue 554
information to an applicant for insurance or a policyholder 555
regarding a particular insurance agent, company, or product; 557
(29) Soliciting, procuring an application for, or placing, 560
either directly or indirectly, any insurance policy when the 561
person is not authorized under this chapter to engage in such 562
activity;
(30) Soliciting, marketing, or selling any product or 564
service that offers benefits similar to insurance but is not 565
regulated by the superintendent, without fully disclosing to the 566
prospective purchaser that the product or service is not 567
insurance and is not regulated by the superintendent; 568
(31) Failing to fulfill a refund obligation in a timely 570
manner. For purposes of division (B)(31) of this section, a 572
rebuttable presumption exists that a refund obligation is not 573
fulfilled in a timely manner unless it is fulfilled within one of 574
the following time periods: 575
(a) Thirty days after the date the policyholder, 578
applicant, or insurer takes or requests action resulting in a 579
refund;
(b) Thirty days after the date of the insurer's refund 582
check, if the agent is expected to issue a portion of the total 583
refund;
(c) Forty-five days after the date of the agent's 586
statement of account on which the refund first appears. 587
(32) WITH RESPECT TO A SURETY BAIL BOND AGENT LICENSE, 589
REBATING OR OFFERING TO REBATE, OR UNLAWFULLY DIVIDING OR 590
OFFERING TO DIVIDE, ANY COMMISSION. 591
(C) Before denying, revoking, suspending, or refusing to 593
13
issue any license or imposing any penalty under this section or 595
section 3905.482 of the Revised Code, the superintendent shall
provide the licensee or applicant with notice and an opportunity 598
for hearing as provided in Chapter 119. of the Revised Code, 599
except as follows: 600
(1)(a) Any notice of opportunity for hearing, the hearing 602
officer's findings and recommendations, or the superintendent's 604
order shall be served by certified mail at the last known address 605
of the licensee or applicant. Service shall be evidenced by 606
return receipt signed by any person.
For purposes of this section, the "last known address" is 608
the address that appears in the licensing records of the 609
department of insurance.
(b) If the certified mail envelope is returned with an 612
endorsement showing that service was refused, or that the 613
envelope was unclaimed, the notice and all subsequent notices
required by Chapter 119. of the Revised Code may be served by 614
ordinary mail to the last known address of the licensee or 615
applicant. The mailing shall be evidenced by a certificate of 616
mailing. Service is deemed complete as of the date of such 617
certificate provided that the ordinary mail envelope is not 618
returned by the postal authorities with an endorsement showing 619
failure of delivery. The time period in which to request a 620
hearing, as provided in Chapter 119. of the Revised Code, begins 623
to run on the date of mailing. 624
(c) If service by ordinary mail fails, the superintendent 627
may cause a summary of the substantive provisions of the notice 628
to be published once a week for three consecutive weeks in a 629
newspaper of general circulation in the county where the last 630
known place of residence or business of the party is located. 631
The notice is considered served on the date of the third 632
publication.
(d) Any notice required to be served under Chapter 119. of 635
the Revised Code shall also be served upon the party's attorney 638
14
by ordinary mail if the attorney has entered an appearance in the 639
matter.
(e) The superintendent may, at any time, perfect service 642
on a party by personal delivery of the notice by an employee of 643
the department.
(f) Notices regarding the scheduling of hearings and all 646
other matters not described in division (C)(1)(a) of this section 648
shall be sent by ordinary mail to the party and to the party's 649
attorney.
(2) Any subpoena for the appearance of a witness or the 652
production of documents or other evidence at a hearing, or for 653
the purpose of taking testimony for use at a hearing, shall be 654
served by certified mail, return receipt requested, by an
attorney or by an employee of the department designated by the 655
superintendent. Such subpoenas shall be enforced in the manner 656
provided in section 119.09 of the Revised Code. Nothing in this 659
section shall be construed as limiting the superintendent's other 660
statutory powers to issue subpoenas. 661
(D) If the superintendent determines that a violation 663
described in this section has occurred, the superintendent may do 665
any of the following: 666
(1) Assess a civil forfeiture in an amount not exceeding 669
twenty-five thousand dollars per violation;
(2) Assess administrative costs to cover the expenses 671
incurred by the department in the administrative action, 672
including costs incurred in the investigation and hearing 673
processes. Any costs collected shall be paid into the state 674
treasury to the credit of the department of insurance operating 675
fund created in section 3901.021 of the Revised Code. 677
(3) Suspend all of the person's licenses for all lines of 679
insurance for either a specified period of time or an indefinite 680
period of time and under such terms and conditions as the 681
superintendent may determine; 682
(4) Permanently revoke all of the person's licenses for 684
15
all lines of insurance; 685
(5) Refuse to issue a license; 687
(6) Refuse to renew a license; 689
(7) Prohibit the person from being employed in any 691
capacity in the business of insurance and from having any 692
financial interest in any insurance agency, company, SURETY BAIL 693
BOND BUSINESS, or third-party administrator in this state. The 695
superintendent may, in the superintendent's discretion, determine 696
the nature, conditions, and duration of such restrictions. 697
(8) Order corrective actions in lieu of or in addition to 700
the other penalties listed in division (D) of this section. Such 701
an order may provide for the suspension of civil forfeitures, 702
license revocation, license suspension, or refusal to issue or 703
renew a license if the licensee complies with the terms and 704
conditions of the corrective action order. 705
(9) Accept a surrender for cause offered by the licensee, 708
which shall be for at least five years and shall prohibit the 709
licensee from seeking any license authorized under this chapter 710
during that time period. A surrender for cause may also include 711
a corrective action order as provided in division (D)(8) of this 712
section.
(E) The superintendent may consider the following factors 715
in denying a license, imposing suspensions, revocations, fines, 716
or other penalties, and issuing orders under this section: 717
(1) Whether the person acted in good faith; 719
(2) Whether the person made restitution for any pecuniary 722
losses suffered by other persons as a result of the person's 723
actions; 724
(3) The actual harm or potential for harm to others; 726
(4) The degree of trust placed in the person by, and the 728
vulnerability of, persons who were or could have been adversely 730
affected by the person's actions; 731
(5) Whether the person was the subject of any previous 734
administrative actions by the superintendent;
16
(6) The number of individuals adversely affected by the 737
person's acts or omissions;
(7) Whether the person voluntarily reported the violation, 739
and the extent of the person's cooperation and acceptance of 740
responsibility; 741
(8) Whether the person obstructed or impeded, or attempted 744
to obstruct or impede, the superintendent's investigation; 745
(9) The person's efforts to conceal the misconduct; 748
(10) Remedial efforts to prevent future violations; 751
(11) If the person was convicted of a criminal offense, 754
the nature of the offense, whether the conviction was based on 755
acts or omissions taken under any professional license, whether 756
the offense involved the breach of a fiduciary duty, the amount 757
of time that has passed, and the person's activities subsequent 758
to the conviction;
(12) Such other factors as the superintendent determines 760
to be appropriate under the circumstances. 761
(F)(1) A violation described in division (B)(1), (2), (3), 764
(5), (6), (7), (8), (9), (10), (11), (12), (13), (14), (17), 765
(18), (19), (20), (21), (22), (23), (25), (26), (27), (28), (29), 767
(30), or (31), OR (32) of this section is a class A offense for 768
which the superintendent may impose any penalty set forth in 769
division (D) of this section. 770
(2) A violation described in division (B)(4), (15), (16), 773
or (24) of this section is a class B offense for which the 775
superintendent may impose any penalty set forth in division 776
(D)(1), (2), (8), or (9) of this section. 778
(G) If a violation described in this section has caused, 781
is causing, or is about to cause substantial and material harm, 783
the superintendent may issue an order requiring that person to 784
cease and desist from engaging in the violation. Notice of the 785
order shall be mailed by certified mail, return receipt 786
requested, or served in any other manner provided for in this 787
section, immediately after its issuance to the person subject to 788
17
the order and to all persons known to be involved in the 789
violation. The superintendent may thereafter publicize or 790
otherwise make known to all interested parties that the order has 791
been issued.
The notice shall specify the particular act, omission, 793
practice, or transaction that is subject to the cease-and-desist 794
order and shall set a date, not more than fifteen days after the 795
date of the order, for a hearing on the continuation or 796
revocation of the order. The person shall comply with the order 797
immediately upon receipt of notice of the order. 798
The superintendent may, upon the application of a party and 801
for good cause shown, continue the hearing. Chapter 119. of the 802
Revised Code applies to such hearings to the extent that that 805
chapter does not conflict with the procedures set forth in this 806
section. The superintendent shall, within fifteen days after 807
objections are submitted to the hearing officer's report and 808
recommendation, issue a final order either confirming or revoking 809
the cease-and-desist order. The final order may be appealed as 810
provided under section 119.12 of the Revised Code. 812
The remedy under this division is cumulative and concurrent 815
with the other remedies available under this section.
(H) If the superintendent has reasonable cause to believe 818
that an order issued under this section has been violated in 819
whole or in part, the superintendent may request the attorney 820
general to commence and prosecute any appropriate action or 821
proceeding in the name of the state against such person. 822
The court may, in an action brought pursuant to this 824
division, impose any of the following: 825
(1) For each violation, a civil penalty of not more than 828
twenty-five thousand dollars;
(2) Injunctive relief; 830
(3) Restitution; 832
(4) Any other appropriate relief. 834
(I) WITH RESPECT TO A SURETY BAIL BOND AGENT LICENSE: 836
18
(1) UPON THE SUSPENSION OR REVOCATION OF A LICENSE, OR THE 838
ELIGIBILITY OF A SURETY BAIL BOND AGENT TO HOLD A LICENSE, THE 839
SUPERINTENDENT LIKEWISE MAY SUSPEND OR REVOKE THE LICENSE OR 840
ELIGIBILITY OF ANY SURETY BAIL BOND AGENT WHO IS EMPLOYED BY OR 841
ASSOCIATED WITH THAT AGENT AND WHO KNOWINGLY WAS A PARTY TO THE 842
ACT THAT RESULTED IN THE SUSPENSION OR REVOCATION. 843
(2) THE SUPERINTENDENT MAY REVOKE A LICENSE AS A SURETY 845
BAIL BOND AGENT IF THE LICENSEE IS ADJUDGED BANKRUPT. 846
(J) This section applies to both resident and nonresident 849
agents who are licensed under this chapter. 850
(J)(K) Nothing in this section shall be construed to 853
create or imply a private cause of action against an agent, 855
solicitor, or insurer.
Sec. 3905.55. (A) Except as provided in division (B) of 865
this section, an agent may charge a consumer a fee if all of the 866
following conditions are met: 867
(1) The fee is disclosed to the consumer in a manner that 870
separately identifies the fee and the premium.
(2) The fee is not calculated as a percentage of the 872
premium. 873
(3) The fee is not refunded, forgiven, waived, offset, or 876
reduced by any commission earned or received for any policy or 877
coverage sold.
(4) The amount of the fee, and the consumer's obligation 880
to pay the fee, are not conditioned upon the occurrence of a 881
future event or condition, such as the purchase, cancellation, 882
lapse, declination, or nonrenewal of insurance. 883
(5) The agent discloses to the consumer that the fee is 886
being charged by the agent and not by the insurance company, that 887
neither state law nor the insurance company requires the agent to 888
charge the fee, and that the fee is not refundable. 889
(6) The consumer consents to the fee. 891
(7) The agent, in charging the fee, does not discriminate 894
on the basis of race, sex, national origin, religion, disability, 895
19
health status, age, marital status, or geographic location, and 896
does not unfairly discriminate between persons of essentially the 897
same class and of essentially the same hazard or expectation of 898
life.
(B) A fee may not be charged for taking or submitting an 901
initial application for coverage with any one insurer or 902
different programs with the same insurer, or processing a change 903
to an existing policy, a cancellation, a claim, or a renewal, in 904
connection with any of the following personal lines policies: 905
(1) Private passenger automobile; 907
(2) Homeowners, including coverage for tenants or 909
condominium owners, owner-occupied fire or dwelling property 910
coverage, personal umbrella liability, or any other personal 911
lines-related coverage whether sold as a separate policy or as an 913
endorsement to another personal lines policy;
(3) Individual life insurance; 915
(4) Individual sickness or accident insurance; 917
(5) Disability income policies; 919
(6) Credit insurance products. 922
(C) Notwithstanding any other provision of this section, 925
an agent may charge a fee for agent services in connection with a 926
policy issued on a no-commission basis, if the agent provides the 927
consumer with prior disclosure of the fee and of the services to 928
be provided. 929
(D) In the event of a dispute between an agent and a 932
consumer regarding any disclosure required by this section, the 933
agent has the burden of proving that the disclosure was made. 934
(E)(1) No person shall fail to comply with this section. 937
(2) Whoever violates division (E)(1) of this section is 940
deemed to have engaged in an unfair and deceptive act or practice 942
in the business of insurance under sections 3901.19 to 3901.26 of 943
the Revised Code. 944
(F) THIS SECTION DOES NOT APPLY WITH RESPECT TO ANY 946
EXPENSE FEE CHARGED BY A SURETY BAIL BOND AGENT TO COVER THE 947
20
COSTS INCURRED BY THE SURETY BAIL BOND AGENT IN EXECUTING THE 948
BAIL BOND.
Sec. 3905.86 3905.81. (A) As used in this section: 957
(1) "Reinsurance intermediary-broker" means a person, 959
other than an officer or employee of the ceding insurer, that 960
solicits, negotiates, or places reinsurance cessions or 961
retrocessions on behalf of a ceding insurer without the authority 962
or power to bind reinsurance on behalf of such insurer. 963
(2)(a) "Reinsurance intermediary-manager" means a person 965
that has authority to bind or that manages all or part of the 966
assumed reinsurance business of a reinsurer, including the 967
management of a separate division, department, or underwriting 968
office, and that acts as an agent of the reinsurer whether known 969
as a reinsurance intermediary-manager, manager, or similar term. 970
(b) "Reinsurance intermediary-manager" does not include: 972
(i) An employee of the reinsurer; 974
(ii) A United States manager of the United States branch 976
of an alien reinsurer; 977
(iii) An underwriting manager that, pursuant to contract, 979
manages all of the reinsurance operations of the reinsurer, is 980
under common control with the reinsurer, subject to sections 981
3901.32 to 3901.37 of the Revised Code, and whose compensation is 982
not based on the volume of premiums written; 983
(iv) The manager of a group, association, pool, or 985
organization of insurers that engages in joint reinsurance and 986
that are subject to examination by the insurance regulatory 987
authority of the state in which the manager's principal business 988
office is located. 989
(B) No person shall act as a reinsurance 991
intermediary-broker or reinsurance intermediary-manager in this 992
state, or on behalf of an insurer or reinsurer domiciled in this 993
state, unless the person first obtains a license from the 994
superintendent of insurance in accordance with this section or 995
the superintendent accepts, in accordance with rules that he THE 996
21
SUPERINTENDENT may adopt under division (C) of this section, a 998
license issued to the person by the insurance regulatory 999
authority of another state.
(C) The superintendent of insurance shall adopt rules in 1,001
accordance with Chapter 119. of the Revised Code establishing the 1,002
standards and procedures for licensing reinsurance 1,003
intermediary-brokers and reinsurance intermediary-managers. The 1,004
superintendent may also adopt rules, in accordance with Chapter 1,005
119. of the Revised Code, for the acceptance of licenses issued 1,006
by insurance regulatory authorities of other states with statutes 1,007
similar to this section in lieu of requiring a license to be 1,008
obtained from the superintendent under division (B) of this 1,009
section. 1,010
(D) The fee for the issuance or renewal of a license shall 1,012
be five hundred dollars. The fee for accepting the license of 1,013
another state shall be one hundred dollars each year. All fees 1,014
collected pursuant to this section shall be paid into the state 1,015
treasury to the credit of the department of insurance operating 1,016
fund. 1,017
Sec. 3905.83. AS USED IN SECTIONS 3905.83 TO 3905.95 OF 1,019
THE REVISED CODE:
(A) "INSURER" MEANS ANY DOMESTIC, FOREIGN, OR ALIEN 1,022
INSURANCE COMPANY THAT HAS BEEN ISSUED A CERTIFICATE OF AUTHORITY 1,023
BY THE SUPERINTENDENT OF INSURANCE TO TRANSACT SURETY BUSINESS IN 1,024
THIS STATE.
(B) "MANAGING GENERAL AGENT" MEANS ANY PERSON THAT IS 1,027
APPOINTED OR EMPLOYED BY AN INSURER TO SUPERVISE OR OTHERWISE 1,028
MANAGE THE BAIL BOND BUSINESS WRITTEN IN THIS STATE BY SURETY 1,029
BAIL BOND AGENTS APPOINTED BY THE INSURER. 1,030
(C) "SURETY" MEANS AN INSURER THAT AGREES TO BE 1,033
RESPONSIBLE FOR THE FULFILLMENT OF THE OBLIGATION OF A PRINCIPAL 1,034
IF THE PRINCIPAL FAILS TO FULFILL THAT OBLIGATION. 1,035
Sec. 3905.84. NO PERSON SHALL ACT IN THE CAPACITY OF A 1,037
SURETY BAIL BOND AGENT, OR PERFORM ANY OF THE FUNCTIONS, DUTIES, 1,039
22
OR POWERS PRESCRIBED FOR SURETY BAIL BOND AGENTS UNDER SECTIONS 1,040
3905.83 TO 3905.95 OF THE REVISED CODE, UNLESS THAT PERSON IS
QUALIFIED, LICENSED, AND APPOINTED AS PROVIDED IN THOSE SECTIONS. 1,042
Sec. 3905.841. THE FOLLOWING PERSONS OR CLASSES OF PERSONS 1,044
SHALL NOT ACT AS SURETY BAIL BOND AGENTS OR EMPLOYEES OF A SURETY 1,045
BAIL BOND AGENT OR BAIL BOND BUSINESS AND SHALL NOT DIRECTLY OR 1,048
INDIRECTLY RECEIVE ANY BENEFITS FROM THE EXECUTION OF A BAIL
BOND, EXCEPT AS A PRINCIPAL: 1,049
(A) JAILERS OR OTHER PERSONS EMPLOYED IN A DETENTION 1,051
FACILITY, AS DEFINED IN SECTION 2921.01 OF THE REVISED CODE; 1,053
(B) PEACE OFFICERS AS DEFINED IN SECTION 2921.51 OF THE 1,055
REVISED CODE, OR OTHER EMPLOYEES OF A LAW ENFORCEMENT AGENCY; 1,056
(C) COMMITTING MAGISTRATES, EMPLOYEES OF A COURT, OR 1,058
EMPLOYEES OF THE CLERK OF ANY COURT; 1,059
(D) ATTORNEYS; 1,061
(E) ANY OTHER PERSONS HAVING THE POWER TO ARREST, OR 1,063
PERSONS WHO HAVE AUTHORITY OVER OR CONTROL OF, FEDERAL, STATE, 1,064
COUNTY, OR MUNICIPAL CORPORATION PRISONERS. 1,065
Sec. 3905.85. (A) AN APPLICANT FOR A LICENSE AS A SURETY 1,068
BAIL BOND AGENT SHALL SUBMIT AN APPLICATION FOR THE LICENSE IN A 1,069
MANNER PRESCRIBED BY THE SUPERINTENDENT OF INSURANCE. THE 1,070
APPLICATION SHALL BE ACCOMPANIED BY A ONE HUNDRED FIFTY DOLLAR 1,071
FEE AND A STATEMENT THAT GIVES THE APPLICANT'S NAME, AGE, 1,072
RESIDENCE, PRESENT OCCUPATION, OCCUPATION FOR THE FIVE YEARS NEXT 1,073
PRECEDING THE DATE OF THE APPLICATION, AND SUCH OTHER INFORMATION 1,074
AS THE SUPERINTENDENT MAY REQUIRE. 1,075
THE APPLICANT SHALL ALSO REQUEST A CRIMINAL RECORDS CHECK 1,077
CONDUCTED BY THE SUPERINTENDENT OF THE BUREAU OF CRIMINAL 1,078
IDENTIFICATION AND INVESTIGATION IN ACCORDANCE WITH SECTION 1,079
109.572 OF THE REVISED CODE, AND DIRECT THAT THE BUREAU'S WRITTEN 1,081
RESPONSE TO THAT REQUEST BE TRANSMITTED TO THE SUPERINTENDENT OF 1,082
INSURANCE, OR TO THE SUPERINTENDENT'S DESIGNEE, AS SPECIFIED ON 1,084
THE FORM PRESCRIBED PURSUANT TO THAT SECTION. IF THE
SUPERINTENDENT OF INSURANCE OR THE SUPERINTENDENT'S DESIGNEE 1,085
23
FAILS TO RECEIVE THE BUREAU'S RESPONSE TO THE APPLICANT'S REQUEST 1,086
FOR A CRIMINAL RECORDS CHECK, THE SUPERINTENDENT MAY REFUSE TO 1,087
ISSUE A LICENSE UNDER THIS SECTION. THE APPLICANT SHALL PAY ANY 1,088
FEE REQUIRED BY THE BUREAU FOR CONDUCTING THE CRIMINAL RECORDS 1,089
CHECK.
AN APPLICANT FOR A LICENSE SHALL SUBMIT TO AN EXAMINATION 1,091
AS TO THE QUALIFICATIONS SET FORTH IN DIVISION (B) OF THIS 1,092
SECTION.
(B) THE SUPERINTENDENT OF INSURANCE SHALL ISSUE TO AN 1,095
APPLICANT A LICENSE THAT STATES IN SUBSTANCE THAT THE PERSON IS 1,096
AUTHORIZED TO DO THE BUSINESS OF A SURETY BAIL BOND AGENT, IF THE 1,097
SUPERINTENDENT IS SATISFIED THAT ALL OF THE FOLLOWING APPLY: 1,098
(1) IF THE APPLICANT IS A NATURAL PERSON, THE APPLICANT IS 1,100
EIGHTEEN YEARS OF AGE OR OLDER. 1,101
(2) THE APPLICANT IS A PERSON OF HIGH CHARACTER AND 1,103
INTEGRITY. 1,104
(3) THE APPLICANT HAS SUCCESSFULLY COMPLETED THE 1,106
EDUCATIONAL REQUIREMENTS SET FORTH IN SECTION 3905.48 OF THE 1,108
REVISED CODE.
(C) A SURETY BAIL BOND AGENT LICENSE ISSUED PURSUANT TO 1,110
THIS SECTION AUTHORIZES THE HOLDER, WHEN APPOINTED BY AN INSURER, 1,111
TO EXECUTE OR COUNTERSIGN BAIL BONDS IN CONNECTION WITH JUDICIAL 1,112
PROCEEDINGS AND TO RECEIVE MONEY OR OTHER THINGS OF VALUE FOR 1,113
THOSE SERVICES. HOWEVER, THE HOLDER SHALL NOT EXECUTE OR DELIVER 1,114
A BOND DURING THE FIRST ONE HUNDRED EIGHTY DAYS AFTER THE LICENSE 1,115
IS INITIALLY ISSUED. THIS RESTRICTION DOES NOT APPLY WITH 1,116
RESPECT TO LICENSE RENEWALS. 1,117
(D) THE SUPERINTENDENT OF INSURANCE MAY SUSPEND OR REVOKE 1,119
A SURETY BAIL BOND AGENT'S LICENSE AS PROVIDED IN SECTION 1,121
3905.482 OF THE REVISED CODE, AND MAY SUSPEND, REVOKE, OR REFUSE 1,122
TO ISSUE OR RENEW SUCH A LICENSE AS PROVIDED IN SECTION 3905.49 1,123
OF THE REVISED CODE. 1,124
IF THE SUPERINTENDENT REFUSES TO ISSUE SUCH A LICENSE BASED 1,126
IN WHOLE OR IN PART UPON THE BUREAU'S WRITTEN RESPONSE TO A 1,127
24
CRIMINAL RECORDS CHECK REQUESTED PURSUANT TO DIVISION (A) OF THIS 1,128
SECTION, THE SUPERINTENDENT SHALL SEND A COPY OF THE RESPONSE 1,129
THAT THE BUREAU TRANSMITTED TO THE SUPERINTENDENT OR TO THE 1,130
SUPERINTENDENT'S DESIGNEE, TO THE APPLICANT AT THE APPLICANT'S 1,131
HOME ADDRESS UPON THE APPLICANT'S SUBMISSION OF A WRITTEN REQUEST 1,132
TO THE SUPERINTENDENT. 1,133
(E) ANY PERSON LICENSED AS A SURETY BAIL BOND AGENT MAY 1,135
SURRENDER THE PERSON'S LICENSE IN ACCORDANCE WITH SECTION 1,136
3905.012 OF THE REVISED CODE. 1,137
(F) UNLESS REVOKED OR SUSPENDED BY THE SUPERINTENDENT OR 1,139
SURRENDERED BY THE SURETY BAIL BOND AGENT, SUCH A LICENSE MAY, IN 1,140
THE DISCRETION OF THE SUPERINTENDENT AND THE PAYMENT OF A ONE 1,141
HUNDRED FIFTY DOLLAR FEE, BE CONTINUED PAST THE LAST DAY OF 1,142
FEBRUARY NEXT AFTER ITS ISSUE AND AFTER THE LAST DAY OF FEBRUARY 1,143
IN EACH SUCCEEDING YEAR. 1,144
(G) THE SUPERINTENDENT OF INSURANCE MAY PRESCRIBE THE 1,146
FORMS TO BE USED AS EVIDENCE OF THE ISSUANCE OF A LICENSE UNDER 1,147
THIS SECTION. THE SUPERINTENDENT SHALL REQUIRE EACH LICENSEE TO 1,148
ACQUIRE, FROM A SOURCE DESIGNATED BY THE SUPERINTENDENT, A WALLET 1,149
IDENTIFICATION CARD THAT INCLUDES THE LICENSEE'S PHOTOGRAPH AND 1,150
ANY OTHER INFORMATION REQUIRED BY THE SUPERINTENDENT. THE 1,151
LICENSEE SHALL KEEP THE WALLET IDENTIFICATION CARD ON THE 1,152
LICENSEE'S PERSON WHILE ENGAGING IN THE BAIL BOND BUSINESS. 1,153
(H)(1) THE SUPERINTENDENT OF INSURANCE SHALL NOT ISSUE OR 1,155
RENEW THE LICENSE OF A CORPORATION, PARTNERSHIP, OR LIMITED 1,156
LIABILITY COMPANY ORGANIZED UNDER THE LAWS OF THIS OR ANY OTHER 1,157
STATE UNLESS THE CORPORATION, PARTNERSHIP, OR LIMITED LIABILITY 1,158
COMPANY IS QUALIFIED TO DO BUSINESS IN THIS STATE UNDER THE 1,159
APPLICABLE PROVISIONS OF TITLE XVII OF THE REVISED CODE. 1,161
(2) THE FAILURE OF A CORPORATION, PARTNERSHIP, OR LIMITED 1,163
LIABILITY COMPANY TO BE IN GOOD STANDING WITH THE SECRETARY OF 1,164
STATE OR TO MAINTAIN A VALID APPOINTMENT OF STATUTORY AGENT IS 1,165
GROUNDS FOR SUSPENDING, REVOKING, OR REFUSING TO RENEW ITS 1,166
LICENSE.
25
(3) BY APPLYING FOR A SURETY BAIL BOND AGENT LICENSE UNDER 1,168
THIS SECTION, AN INDIVIDUAL, CORPORATION, PARTNERSHIP, OR LIMITED 1,169
LIABILITY COMPANY CONSENTS TO THE JURISDICTION OF THE COURTS OF 1,170
THIS STATE.
(I) A SURETY BAIL BOND AGENT LICENSED PURSUANT TO THIS 1,173
SECTION IS AN OFFICER OF THE COURT. 1,174
(J) ANY FEE COLLECTED UNDER THIS SECTION SHALL BE PAID 1,176
INTO THE STATE TREASURY TO THE CREDIT OF THE DEPARTMENT OF 1,177
INSURANCE OPERATING FUND CREATED BY SECTION 3901.021 OF THE 1,178
REVISED CODE.
Sec. 3905.851. A SURETY BAIL BOND AGENT QUALIFIED, 1,180
LICENSED, AND APPOINTED IN ACCORDANCE WITH SECTIONS 3905.83 TO 1,181
3905.95 OF THE REVISED CODE SHALL NOT BE REQUIRED TO PAY ANY 1,183
LICENSING FEE IMPOSED BY A POLITICAL SUBDIVISION OF THIS STATE TO 1,184
PERFORM ANY OF THE FUNCTIONS, DUTIES, OR POWERS PRESCRIBED FOR 1,185
SURETY BAIL BOND AGENTS UNDER THOSE SECTIONS.
Sec. 3905.86. (A) ANY PERSON LICENSED AS A SURETY BAIL 1,187
BOND AGENT MAY BE APPOINTED BY AN INSURER IN ACCORDANCE WITH THIS 1,188
SECTION.
(B) EACH INSURER SHALL CERTIFY TO THE SUPERINTENDENT OF 1,191
INSURANCE BEFORE THE THIRTIETH DAY OF JUNE EACH YEAR THE NAMES 1,192
AND ADDRESSES OF THE SURETY BAIL BOND AGENTS FOR WHOM IT REQUESTS 1,193
APPOINTMENTS OR THE CONTINUANCE OF APPOINTMENTS. ALL INSURERS 1,194
SHALL PAY TO THE SUPERINTENDENT A FEE OF TWENTY DOLLARS FOR EACH 1,195
SUCH APPOINTMENT WHEN ISSUED AND FOR EACH CONTINUANCE THEREAFTER. 1,196
SUCH AN APPOINTMENT, UNLESS CANCELED BY THE INSURER, MAY BE 1,197
CONTINUED IN FORCE PAST THE THIRTIETH DAY OF JUNE NEXT AFTER ITS 1,198
ISSUE AND AFTER THE THIRTIETH DAY OF JUNE OF EACH SUCCEEDING YEAR 1,199
PROVIDED THAT THE APPOINTEE IS LICENSED AND IS ELIGIBLE FOR THE 1,200
APPOINTMENT. 1,201
ANY FEE COLLECTED UNDER THIS DIVISION SHALL BE PAID INTO 1,203
THE STATE TREASURY TO THE CREDIT OF THE DEPARTMENT OF INSURANCE 1,204
OPERATING FUND CREATED BY SECTION 3901.021 OF THE REVISED CODE. 1,207
(C)(1) BY APPOINTING A SURETY BAIL BOND AGENT, AN INSURER 1,209
26
CERTIFIES TO THE SUPERINTENDENT THAT THE PERSON IS COMPETENT, 1,211
FINANCIALLY RESPONSIBLE, AND SUITABLE TO REPRESENT THE INSURER. 1,212
(2) AN INSURER SHALL BE BOUND BY THE ACTS OF THE PERSON 1,214
NAMED IN THE APPOINTMENT WITHIN THAT PERSON'S ACTUAL OR APPARENT 1,215
AUTHORITY AS ITS AGENT. 1,216
(D) A SURETY BAIL BOND AGENT SHALL NOT REPRESENT TO THE 1,218
PUBLIC THAT THE AGENT HAS AUTHORITY TO REPRESENT A PARTICULAR 1,220
INSURER UNTIL THE INSURER HAS ACKNOWLEDGED THAT AUTHORITY BY 1,221
APPOINTMENT OF THE AGENT IN ACCORDANCE WITH THIS SECTION. 1,222
Sec. 3905.861. AN INSURER THAT APPOINTS A SURETY BAIL BOND 1,224
AGENT WHO IS A MEMBER OF AN AGENCY, PARTNERSHIP, CORPORATION, OR 1,226
LIMITED LIABILITY COMPANY SHALL REQUIRE THAT ALL OTHER SURETY 1,228
BAIL BOND AGENTS WHO ARE MEMBERS OF THE SAME AGENCY, PARTNERSHIP, 1,229
CORPORATION, OR LIMITED LIABILITY COMPANY BE APPOINTED TO
REPRESENT THAT INSURER. 1,230
Sec. 3905.862. UPON THE EXPIRATION OR CANCELLATION OF A 1,232
SURETY BAIL BOND AGENT'S APPOINTMENT, THE AGENT SHALL NOT ENGAGE 1,235
OR ATTEMPT TO ENGAGE IN ANY ACTIVITY REQUIRING SUCH AN
APPOINTMENT. HOWEVER, AN INSURER THAT CANCELS THE APPOINTMENT OF 1,236
A SURETY BAIL BOND AGENT MAY AUTHORIZE THE AGENT TO CONTINUE TO 1,238
ATTEMPT THE ARREST AND SURRENDER OF A DEFENDANT FOR WHOM A BAIL 1,239
BOND HAD BEEN WRITTEN PRIOR TO THE CANCELLATION AND TO SEEK 1,240
DISCHARGE OF FORFEITURES AND JUDGMENTS.
Sec. 3905.87. (A) A SURETY BAIL BOND AGENT SHALL NOT FILE 1,242
A BOND IN ANY COURT OF THIS STATE UNLESS BOTH OF THE FOLLOWING 1,244
CONDITIONS ARE MET:
(1) THE AGENT HAS REGISTERED WITH THE CLERK OF THAT COURT, 1,246
IF REGISTRATION IS REQUIRED BY THE COURT. 1,247
(2) THE AGENT HAS REGISTERED WITH THE CLERK OF THE COURT 1,249
OF COMMON PLEAS OF THE COUNTY IN WHICH THE AGENT RESIDES. 1,250
(B) TO REGISTER, A SURETY BAIL BOND AGENT SHALL FILE, WITH 1,252
THE CLERK OF THE COURT, A CERTIFIED COPY OF THE SURETY BAIL BOND 1,254
AGENT'S APPOINTMENT BY POWER OF ATTORNEY FROM EACH INSURER THAT 1,256
THE SURETY BAIL BOND AGENT REPRESENTS. REGISTRATION AND FILING 1,257
27
OF A CERTIFIED COPY OF A RENEWED POWER OF ATTORNEY SHALL BE 1,258
PERFORMED BY THE FIRST DAY OF AUGUST OF EACH ODD-NUMBERED YEAR. 1,259
THE CLERK OF THE COURT SHALL NOT ACCEPT THE REGISTRATION OF A
SURETY BAIL BOND AGENT UNLESS THE SURETY BAIL BOND AGENT IS 1,260
CURRENTLY LICENSED AND APPOINTED IN ACCORDANCE WITH SECTIONS 1,262
3905.83 TO 3905.95 OF THE REVISED CODE.
Sec. 3905.88. (A) EACH INDIVIDUAL WHO IS ISSUED A LICENSE 1,264
AS A SURETY BAIL BOND AGENT SHALL COMPLETE, IN ACCORDANCE WITH 1,266
SECTION 3905.481 OF THE REVISED CODE, AT LEAST FOURTEEN HOURS OF
CONTINUING EDUCATION OFFERED IN A COURSE OR PROGRAM OF STUDY 1,268
RELATED TO THE BAIL BOND BUSINESS THAT IS APPROVED BY THE 1,269
SUPERINTENDENT OF INSURANCE IN CONSULTATION WITH THE INSURANCE 1,270
AGENT EDUCATION ADVISORY COUNCIL. 1,271
(B) THE SUPERINTENDENT SHALL, IN ACCORDANCE WITH SECTION 1,273
3905.482 OF THE REVISED CODE, SUSPEND OR REVOKE THE LICENSE OF 1,275
ANY SURETY BAIL BOND AGENT WHO FAILS TO MEET THE REQUIREMENTS OF 1,276
DIVISION (A) OF THIS SECTION AND HAS NOT BEEN GRANTED AN 1,277
EXTENSION OF TIME WITHIN WHICH TO COMPLETE THE REQUIREMENTS. 1,278
(C) THE SUPERINTENDENT SHALL ADOPT, IN ACCORDANCE WITH 1,282
CHAPTER 119. OF THE REVISED CODE, ANY RULE NECESSARY TO CARRY OUT 1,285
THE SUPERINTENDENT'S DUTIES UNDER THIS SECTION. 1,286
Sec. 3905.89. EACH PERSON LICENSED UNDER SECTIONS 3905.83 1,288
TO 3905.95 OF THE REVISED CODE SHALL NOTIFY IN WRITING THE 1,290
APPROPRIATE INSURER OR MANAGING GENERAL AGENT, AND THE CLERK OF 1,291
THE COURT OF COMMON PLEAS OF THE COUNTY IN WHICH THE LICENSEE 1,292
RESIDES, WITHIN THIRTY DAYS AFTER A CHANGE IN THE LICENSEE'S 1,293
PRINCIPAL BUSINESS ADDRESS OR TELEPHONE NUMBER.
THIS NOTIFICATION REQUIREMENT IS IN ADDITION TO THE 1,295
NOTIFICATION REQUIREMENTS SET FORTH IN SECTION 3905.54 OF THE 1,296
REVISED CODE.
Sec. 3905.90. EACH SURETY BAIL BOND AGENT SHALL MAINTAIN 1,298
ALL RECORDS OF SURETY BONDS EXECUTED OR COUNTERSIGNED BY THE 1,300
SURETY BAIL BOND AGENT FOR AT LEAST THREE YEARS AFTER THE 1,302
LIABILITY OF THE SURETY HAS BEEN TERMINATED. THOSE RECORDS SHALL 1,303
28
BE OPEN, AT ALL TIMES, TO EXAMINATION, INSPECTION, AND
PHOTOGRAPHIC REPRODUCTION BY ANY EMPLOYEE OR AGENT OF THE 1,304
DEPARTMENT OF INSURANCE, OR BY ANY AUTHORIZED REPRESENTATIVE OF 1,305
THE INSURER OR MANAGING GENERAL AGENT. THE SUPERINTENDENT OF 1,306
INSURANCE AT ANY TIME MAY REQUIRE THE LICENSEE TO FURNISH TO THE 1,307
DEPARTMENT, IN THE MANNER AND FORM THAT THE SUPERINTENDENT
REQUIRES, ANY INFORMATION CONCERNING THE SURETY BOND BUSINESS OF 1,308
THE LICENSEE.
Sec. 3905.91. (A) ALL BUILD-UP FUNDS POSTED BY A SURETY 1,310
BAIL BOND AGENT OR MANAGING GENERAL AGENT, EITHER WITH AN INSURER 1,312
OR MANAGING GENERAL AGENT REPRESENTING AN INSURER, SHALL BE 1,313
MAINTAINED IN AN INDIVIDUAL BUILD-UP TRUST ACCOUNT FOR THE SURETY 1,314
BAIL BOND AGENT BY THE INSURER OR THE MANAGING GENERAL AGENT. 1,316
THE INSURER OR MANAGING GENERAL AGENT SHALL ESTABLISH THE ACCOUNT
IN A FEDERALLY INSURED BANK OR SAVINGS AND LOAN ASSOCIATION IN 1,317
THIS STATE JOINTLY IN THE NAME OF THE SURETY BAIL BOND AGENT AND 1,318
THE INSURER OR MANAGING GENERAL AGENT, OR IN TRUST FOR THE SURETY 1,319
BAIL BOND AGENT BY THE INSURER OR MANAGING GENERAL AGENT. THE 1,321
ACCOUNT SHALL BE OPEN TO INSPECTION AND EXAMINATION BY THE
DEPARTMENT OF INSURANCE AT ALL TIMES. THE INSURER OR MANAGING 1,322
GENERAL AGENT SHALL MAINTAIN AN ACCOUNTING OF ALL OF THOSE FUNDS, 1,323
WHICH ACCOUNTING DESIGNATES THE AMOUNTS COLLECTED ON EACH BOND 1,324
WRITTEN.
(B) BUILD-UP FUNDS SHALL NOT EXCEED FORTY PER CENT OF THE 1,326
PREMIUM AS ESTABLISHED BY THE SURETY BAIL BOND AGENT'S CONTRACT 1,327
AGREEMENT WITH THE INSURER OR MANAGING GENERAL AGENT. BUILD-UP 1,329
FUNDS RECEIVED SHALL BE IMMEDIATELY DEPOSITED TO THE BUILD-UP 1,330
TRUST ACCOUNT. INTEREST EARNED ON BUILD-UP TRUST ACCOUNTS SHALL 1,331
ACCRUE TO THE SURETY BAIL BOND AGENT.
(C) BUILD-UP FUNDS ARE DUE UPON TERMINATION OF THE SURETY 1,333
BAIL BOND AGENT'S CONTRACT AND DISCHARGE OF LIABILITIES ON THE 1,335
BONDS FOR WHICH THE BUILD-UP FUNDS WERE POSTED. THE INSURER OR 1,336
MANAGING GENERAL AGENT SHALL PAY THE FUNDS TO THE SURETY BAIL 1,337
BOND AGENT NOT LATER THAN SIX MONTHS AFTER THE FUNDS ARE DUE. 1,338
29
Sec. 3905.92. (A) A SURETY BAIL BOND AGENT THAT ACCEPTS 1,340
COLLATERAL SECURITY OR OTHER INDEMNITY SHALL COMPLY WITH ALL OF 1,341
THE FOLLOWING REQUIREMENTS: 1,342
(1) THE COLLATERAL SECURITY OR OTHER INDEMNITY SHALL BE 1,344
REASONABLE IN RELATION TO THE AMOUNT OF THE BOND. 1,345
(2) THE COLLATERAL SECURITY OR OTHER INDEMNITY SHALL NOT 1,347
BE USED BY THE SURETY BAIL BOND AGENT FOR PERSONAL BENEFIT OR 1,348
GAIN AND SHALL BE RETURNED IN THE SAME CONDITION AS RECEIVED. 1,349
(3) ACCEPTABLE FORMS OF COLLATERAL SECURITY OR INDEMNITY 1,351
INCLUDE CASH OR ITS EQUIVALENT, A PROMISSORY NOTE, AN INDEMNITY 1,352
AGREEMENT, A REAL PROPERTY MORTGAGE IN THE NAME OF THE SURETY, 1,353
AND ANY FILING UNDER CHAPTER 1309. OF THE REVISED CODE. IF THE 1,355
SURETY BAIL BOND AGENT ACCEPTS ON A BOND COLLATERAL SECURITY IN 1,356
EXCESS OF FIFTY THOUSAND DOLLARS IN CASH, THE CASH AMOUNT SHALL 1,357
BE MADE PAYABLE TO THE SURETY IN THE FORM OF A CASHIER'S CHECK, 1,358
UNITED STATES POSTAL MONEY ORDER, CERTIFICATE OF DEPOSIT, OR WIRE 1,360
TRANSFER.
(4) THE SURETY BAIL BOND AGENT SHALL PROVIDE TO THE PERSON 1,362
GIVING THE COLLATERAL SECURITY OR OTHER INDEMNITY, A WRITTEN, 1,363
NUMBERED RECEIPT THAT DESCRIBES IN A DETAILED MANNER THE 1,364
COLLATERAL SECURITY OR OTHER INDEMNITY RECEIVED, ALONG WITH 1,365
COPIES OF ANY DOCUMENTS RENDERED. 1,366
(5) THE COLLATERAL SECURITY OR OTHER INDEMNITY SHALL BE 1,368
RECEIVED AND HELD IN THE SURETY'S NAME BY THE SURETY BAIL BOND 1,369
AGENT IN A FIDUCIARY CAPACITY AND, PRIOR TO ANY FORFEITURE OF 1,370
BAIL, SHALL BE KEPT SEPARATE AND APART FROM ANY OTHER FUNDS OR 1,371
ASSETS OF THE SURETY BAIL BOND AGENT. HOWEVER, WHEN COLLATERAL 1,372
SECURITY IN EXCESS OF FIFTY THOUSAND DOLLARS IN CASH OR ITS 1,373
EQUIVALENT IS RECEIVED ON A BOND, THE SURETY BAIL BOND AGENT 1,374
PROMPTLY SHALL FORWARD THE ENTIRE AMOUNT TO THE SURETY OR 1,375
MANAGING GENERAL AGENT.
(B) COLLATERAL SECURITY MAY BE PLACED IN AN 1,377
INTEREST-BEARING ACCOUNT IN A FEDERALLY INSURED BANK OR SAVINGS 1,378
AND LOAN ASSOCIATION IN THIS STATE, TO ACCRUE TO THE BENEFIT OF 1,379
30
THE PERSON GIVING THE COLLATERAL SECURITY. THE SURETY BAIL BOND 1,380
AGENT, SURETY, OR MANAGING GENERAL AGENT SHALL NOT MAKE ANY 1,381
PECUNIARY GAIN ON THE COLLATERAL SECURITY DEPOSITED. 1,382
(C)(1) THE SURETY IS LIABLE FOR ALL COLLATERAL SECURITY OR 1,384
OTHER INDEMNITY ACCEPTED BY A SURETY BAIL BOND AGENT. IF, UPON 1,385
FINAL TERMINATION OF LIABILITY ON A BOND, THE SURETY BAIL BOND 1,386
AGENT OR MANAGING GENERAL AGENT FAILS TO RETURN THE COLLATERAL 1,387
SECURITY TO THE PERSON THAT GAVE IT, THE SURETY SHALL RETURN THE 1,388
ACTUAL COLLATERAL TO THAT PERSON OR, IN THE EVENT THAT THE SURETY 1,389
CANNOT LOCATE THE COLLATERAL, SHALL PAY THE PERSON IN ACCORDANCE 1,390
WITH THIS SECTION. 1,391
(2) A SURETY'S LIABILITY AS DESCRIBED IN DIVISION (C)(1) 1,393
OF THIS SECTION SURVIVES THE TERMINATION OF THE SURETY BAIL BOND 1,394
AGENT'S APPOINTMENT, WITH RESPECT TO THOSE BONDS THAT WERE 1,395
EXECUTED BY THE SURETY BAIL BOND AGENT PRIOR TO THE TERMINATION 1,396
OF THE APPOINTMENT.
(D) IF A FORFEITURE OCCURS, THE SURETY BAIL BOND AGENT OR 1,398
SURETY SHALL GIVE THE PRINCIPAL AND THE PERSON THAT GAVE THE 1,399
COLLATERAL SECURITY TEN DAYS' WRITTEN NOTICE OF INTENT TO CONVERT 1,400
THE COLLATERAL DEPOSIT INTO CASH TO SATISFY THE FORFEITURE. THE 1,401
NOTICE SHALL BE SENT BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED, 1,402
TO THE LAST KNOWN ADDRESS OF THE PRINCIPAL AND THE PERSON THAT 1,403
GAVE THE COLLATERAL. 1,404
THE SURETY BAIL BOND AGENT OR SURETY SHALL CONVERT THE 1,406
COLLATERAL DEPOSIT INTO CASH WITHIN A REASONABLE PERIOD OF TIME 1,407
AND RETURN THAT WHICH IS IN EXCESS OF THE FACE VALUE OF THE BOND 1,408
MINUS THE ACTUAL AND REASONABLE EXPENSES OF CONVERTING THE 1,410
COLLATERAL INTO CASH. IN NO EVENT SHALL THESE EXPENSES EXCEED
TEN PER CENT OF THE FACE VALUE OF THE BOND. HOWEVER, UPON MOTION 1,411
AND PROOF THAT THE ACTUAL AND REASONABLE EXPENSES EXCEED TEN PER 1,412
CENT, THE COURT MAY ALLOW RECOVERY OF THE FULL AMOUNT OF THE 1,413
ACTUAL AND REASONABLE EXPENSES. IF THERE IS A REMISSION OF 1,414
FORFEITURE THAT REQUIRED THE SURETY TO PAY THE BOND TO THE COURT, 1,415
THE SURETY SHALL PAY TO THE PERSON THAT GAVE THE COLLATERAL THE 1,417
31
VALUE OF ANY COLLATERAL RECEIVED FOR THE BOND MINUS THE ACTUAL 1,418
AND REASONABLE EXPENSES PERMITTED TO BE RECOVERED UNDER THIS 1,419
DIVISION.
(E) A SURETY BAIL BOND AGENT OR SURETY SHALL NOT SOLICIT 1,421
OR ACCEPT A WAIVER OF ANY OF THE PROVISIONS OF THIS SECTION, OR 1,422
ENTER INTO ANY AGREEMENT AS TO THE VALUE OF THE COLLATERAL. 1,423
(F) NO PERSON SHALL FAIL TO COMPLY WITH THIS SECTION. 1,425
Sec. 3905.921. (A) IF COLLATERAL SECURITY OR OTHER 1,427
INDEMNITY IS ACCEPTED ON A BOND, THE SURETY BAIL BOND AGENT, 1,428
MANAGING GENERAL AGENT, OR SURETY SHALL MAKE, UPON DEMAND, A 1,429
WRITTEN REQUEST TO THE COURT FOR A DISCHARGE OF THE BOND TO BE 1,430
DELIVERED TO THE SURETY OR THE SURETY'S AGENT. 1,431
IF THE OBLIGATION OF THE SURETY ON THE BOND IS RELEASED IN 1,433
WRITING BY THE COURT AND A DISCHARGE IS PROVIDED TO THE SURETY OR 1,434
THE SURETY'S AGENT, THE COLLATERAL SECURITY OR OTHER INDEMNITY, 1,435
EXCEPT A PROMISSORY NOTE OR AN INDEMNITY AGREEMENT, SHALL BE 1,436
RETURNED, WITHIN TWENTY-ONE DAYS AFTER THE DISCHARGE IS PROVIDED, 1,437
TO THE PERSON THAT GAVE THE COLLATERAL SECURITY OR OTHER 1,438
INDEMNITY, UNLESS ANOTHER DISPOSITION IS PROVIDED FOR BY LEGAL 1,439
ASSIGNMENT OF THE RIGHT TO RECEIVE THE COLLATERAL TO ANOTHER 1,440
PERSON. IF, DESPITE DILIGENT INQUIRY BY THE SURETY OR THE 1,441
SURETY'S AGENT TO DETERMINE THAT THE BOND HAS BEEN DISCHARGED, 1,442
THE COURT FAILS TO PROVIDE A WRITTEN DISCHARGE WITHIN THIRTY DAYS 1,443
AFTER THE WRITTEN REQUEST WAS MADE TO THE COURT, THE BOND SHALL 1,444
BE CONSIDERED CANCELED BY OPERATION OF LAW, AND THE COLLATERAL 1,445
SECURITY OR OTHER INDEMNITY, EXCEPT A PROMISSORY NOTE OR AN 1,446
INDEMNITY AGREEMENT, SHALL BE RETURNED, WITHIN TWENTY-ONE DAYS 1,447
AFTER THE WRITTEN REQUEST FOR DISCHARGE WAS MADE TO THE COURT, TO 1,448
THE PERSON THAT GAVE THE COLLATERAL SECURITY OR OTHER INDEMNITY. 1,449
(B) NO FEE OR OTHER CHARGE, OTHER THAN THOSE AUTHORIZED BY 1,451
SECTIONS 3905.83 TO 3905.95 OF THE REVISED CODE OR BY RULE OF THE 1,452
SUPERINTENDENT OF INSURANCE, SHALL BE DEDUCTED FROM THE 1,454
COLLATERAL DUE. HOWEVER, ALLOWABLE EXPENSES INCURRED IN THE
APPREHENSION OF A DEFENDANT BECAUSE OF A FORFEITURE OF BOND OR 1,455
32
JUDGMENT MAY BE DEDUCTED IF THOSE EXPENSES ARE ACCOUNTED FOR. 1,457
(C)(1) NO PERSON SHALL FAIL TO RETURN COLLATERAL SECURITY 1,459
IN ACCORDANCE WITH THIS SECTION. 1,460
(2) A VIOLATION OF DIVISION (C)(1) OF THIS SECTION SHALL 1,462
BE PUNISHABLE AS FOLLOWS: 1,463
(a) IF THE COLLATERAL IS OF A VALUE OF LESS THAN FIVE 1,466
HUNDRED DOLLARS, A VIOLATION IS A MISDEMEANOR OF THE FIRST
DEGREE;
(b) IF THE COLLATERAL IS OF A VALUE OF AT LEAST FIVE 1,468
HUNDRED DOLLARS BUT LESS THAN FIVE THOUSAND DOLLARS, A VIOLATION 1,470
IS A FELONY OF THE FIFTH DEGREE;
(c) IF THE COLLATERAL IS OF A VALUE OF AT LEAST FIVE 1,472
THOUSAND DOLLARS BUT LESS THAN TEN THOUSAND DOLLARS, A VIOLATION 1,473
IS A FELONY OF THE FOURTH DEGREE; 1,474
(d) IF THE COLLATERAL IS OF A VALUE OF TEN THOUSAND 1,476
DOLLARS OR MORE, A VIOLATION IS A FELONY OF THE THIRD DEGREE. 1,478
Sec. 3905.93. A SURETY BAIL BOND AGENT SHALL NOT EXECUTE A 1,480
BAIL BOND WITHOUT DOING BOTH OF THE FOLLOWING: 1,482
(A) CHARGING THE PREMIUM RATE FILED WITH AND APPROVED BY 1,484
THE SUPERINTENDENT OF INSURANCE; 1,485
(B) DISCLOSING THE EXPENSE FEE THAT WILL BE CHARGED TO 1,488
COVER THE COSTS INCURRED BY THE AGENT IN EXECUTING THE BOND. 1,489
Sec. 3905.931. (A) NO INSURER, MANAGING GENERAL AGENT, OR 1,491
SURETY BAIL BOND AGENT SHALL FURNISH TO ANY PERSON ANY BLANK 1,492
FORM, APPLICATION, STATIONERY, BUSINESS CARD, OR OTHER SUPPLIES 1,494
TO BE USED IN SOLICITING, NEGOTIATING, OR EFFECTING BAIL BONDS 1,495
UNLESS THE PERSON IS LICENSED TO ACT AS A SURETY BAIL BOND AGENT 1,497
AND IS APPOINTED BY AN INSURER. THIS DIVISION DOES NOT PROHIBIT
AN UNLICENSED EMPLOYEE, UNDER THE DIRECT SUPERVISION AND CONTROL 1,498
OF A LICENSED AND APPOINTED SURETY BAIL BOND AGENT, FROM 1,499
POSSESSING OR EXECUTING IN THE SURETY BOND OFFICE, ANY FORM, 1,501
OTHER THAN A POWER OF ATTORNEY, BOND FORM, OR COLLATERAL RECEIPT, 1,502
WHILE ACTING WITHIN THE SCOPE OF THE EMPLOYEE'S EMPLOYMENT. 1,503
(B) AN INSURER THAT FURNISHES ANY OF THE SUPPLIES 1,506
33
MENTIONED IN DIVISION (A) OF THIS SECTION TO ANY SURETY BAIL BOND 1,507
AGENT OR OTHER PERSON NOT APPOINTED BY AN INSURER AND THAT 1,509
ACCEPTS ANY BAIL BOND BUSINESS FROM OR WRITES ANY BAIL BOND
BUSINESS FOR THAT SURETY BAIL BOND AGENT OR OTHER PERSON IS 1,511
LIABLE ON THE BOND TO THE SAME EXTENT AND IN THE SAME MANNER AS 1,513
IF THE SURETY BAIL BOND AGENT OR OTHER PERSON HAD BEEN APPOINTED
OR AUTHORIZED BY AN INSURER TO ACT IN ITS BEHALF. 1,516
Sec. 3905.932. A SURETY BAIL BOND AGENT OR INSURER SHALL 1,518
NOT DO ANY OF THE FOLLOWING: 1,519
(A) SUGGEST OR ADVISE THE EMPLOYMENT OF, OR NAME FOR 1,521
EMPLOYMENT, ANY PARTICULAR ATTORNEY TO REPRESENT ITS PRINCIPAL; 1,522
(B) DIRECTLY OR INDIRECTLY SOLICIT BUSINESS IN, OR ON THE 1,524
PROPERTY OR GROUNDS OF, A DETENTION FACILITY, AS DEFINED IN 1,526
SECTION 2921.01 OF THE REVISED CODE, OR IN, OR ON THE PROPERTY OR 1,527
GROUNDS OF, ANY COURT. FOR PURPOSES OF THIS DIVISION, "SOLICIT" 1,528
INCLUDES THE DISTRIBUTION OF BUSINESS CARDS, PRINT ADVERTISING, 1,529
OR ANY OTHER WRITTEN INFORMATION DIRECTED TO PRISONERS OR 1,530
POTENTIAL INDEMNITORS, UNLESS A REQUEST IS INITIATED BY THE
PRISONER OR POTENTIAL INDEMNITOR. PERMISSIBLE PRINT ADVERTISING 1,531
IN A DETENTION FACILITY IS STRICTLY LIMITED TO A LISTING IN A 1,532
TELEPHONE DIRECTORY AND THE POSTING OF THE SURETY BAIL BOND 1,533
AGENT'S NAME, ADDRESS, AND TELEPHONE NUMBER IN A DESIGNATED 1,534
LOCATION WITHIN THE DETENTION FACILITY.
(C) WEAR OR OTHERWISE DISPLAY ANY IDENTIFICATION, OTHER 1,536
THAN WALLET IDENTIFICATION CARD REQUIRED UNDER DIVISION (G) OF 1,537
SECTION 3905.85 OF THE REVISED CODE, IN OR ON THE PROPERTY OR 1,539
GROUNDS OF A DETENTION FACILITY, AS DEFINED IN SECTION 2921.01 OF 1,540
THE REVISED CODE, OR IN OR ON THE PROPERTY OR GROUNDS OF ANY 1,541
COURT;
(D) PAY A FEE OR REBATE OR GIVE OR PROMISE ANYTHING OF 1,543
VALUE TO A JAILER, LAW ENFORCEMENT OFFICER, COMMITTING 1,544
MAGISTRATE, OR OTHER PERSON WHO HAS POWER TO ARREST OR TO HOLD IN 1,545
CUSTODY, OR TO ANY PUBLIC OFFICIAL OR PUBLIC EMPLOYEE, IN ORDER 1,546
TO SECURE A SETTLEMENT, COMPROMISE, REMISSION, OR REDUCTION OF 1,547
34
THE AMOUNT OF ANY BAIL BOND OR ESTREATMENT OF BAIL;
(E) PAY A FEE OR REBATE OR GIVE OR PROMISE ANYTHING OF 1,549
VALUE TO AN ATTORNEY IN A BAIL BOND MATTER, EXCEPT IN DEFENSE OF 1,550
ANY ACTION ON A BOND;
(F) PAY A FEE OR REBATE OR GIVE OR PROMISE ANYTHING OF 1,552
VALUE TO THE PRINCIPAL OR TO ANYONE IN THE PRINCIPAL'S BEHALF; 1,553
(G) PARTICIPATE IN THE CAPACITY OF AN ATTORNEY AT A TRIAL 1,555
OR HEARING OF A PRINCIPAL; 1,556
(H) ACCEPT ANYTHING OF VALUE FROM A PRINCIPAL FOR 1,558
PROVIDING A BAIL BOND, OTHER THAN THE PREMIUM FILED WITH AND 1,559
APPROVED BY THE SUPERINTENDENT OF INSURANCE AND AN EXPENSE FEE, 1,560
EXCEPT THAT THE SURETY BAIL BOND AGENT MAY, IN ACCORDANCE WITH 1,561
SECTION 3905.92 OF THE REVISED CODE, ACCEPT COLLATERAL SECURITY 1,562
OR OTHER INDEMNITY FROM A PRINCIPAL OR OTHER PERSON TOGETHER WITH 1,563
DOCUMENTARY STAMP TAXES IF APPLICABLE. NO FEES, EXPENSES, OR 1,564
CHARGES OF ANY KIND SHALL BE DEDUCTED FROM THE COLLATERAL HELD OR 1,565
ANY RETURN PREMIUM DUE, EXCEPT AS AUTHORIZED BY SECTIONS 3905.83 1,566
TO 3905.95 OF THE REVISED CODE OR BY RULE OF THE SUPERINTENDENT.
A SURETY BAIL BOND AGENT, UPON WRITTEN AGREEMENT WITH ANOTHER 1,568
PARTY, MAY RECEIVE A FEE OR OTHER COMPENSATION FOR RETURNING TO 1,570
CUSTODY AN INDIVIDUAL WHO HAS FLED THE JURISDICTION OF THE COURT 1,571
OR CAUSED THE FORFEITURE OF A BOND.
(I) EXECUTE A BOND IN THIS STATE ON THE PERSON'S OWN 1,573
BEHALF;
(J) EXECUTE A BOND IN THIS STATE IF A JUDGMENT HAS BEEN 1,575
ENTERED ON A BOND EXECUTED BY THE SURETY BAIL BOND AGENT, WHICH 1,576
JUDGMENT HAS REMAINED UNPAID FOR AT LEAST SIXTY DAYS AFTER ALL 1,577
APPEALS HAVE BEEN EXHAUSTED, UNLESS THE FULL AMOUNT OF THE 1,578
JUDGMENT IS DEPOSITED WITH THE CLERK OF THE COURT. 1,579
Sec. 3905.933. (A) A SURETY BAIL BOND AGENT SHALL NOT 1,581
SIGN OR COUNTERSIGN IN BLANK ANY BOND, OR GIVE A POWER OF 1,583
ATTORNEY TO, OR OTHERWISE AUTHORIZE, ANYONE TO COUNTERSIGN THE 1,584
SURETY BAIL BOND AGENT'S NAME TO A BOND UNLESS THE PERSON SO 1,586
AUTHORIZED IS A LICENSED AND APPOINTED SURETY BAIL BOND AGENT
35
DIRECTLY EMPLOYED BY THE SURETY BAIL BOND AGENT GIVING THAT 1,588
AUTHORITY.
(B) A SURETY BAIL BOND AGENT SHALL NOT DIVIDE WITH ANY 1,590
OTHER PERSON, OR SHARE IN, ANY COMMISSIONS PAYABLE ON ACCOUNT OF 1,592
A BAIL BOND, EXCEPT AS BETWEEN OTHER SURETY BAIL BOND AGENTS THAT 1,593
ARE LICENSED OR OTHERWISE QUALIFIED TO ENGAGE IN THE BAIL BOND 1,594
BUSINESS IN THEIR STATE OF DOMICILE.
Sec. 3905.934. (A) A SURETY BAIL BOND AGENT SHALL NOT 1,596
MAKE, PUBLISH, OR OTHERWISE DISSEMINATE, DIRECTLY OR INDIRECTLY, 1,597
ANY MISLEADING OR FALSE ADVERTISEMENT, OR ENGAGE IN ANY OTHER 1,598
DECEPTIVE TRADE PRACTICE. 1,599
(B) ALL ADVERTISING BY A SURETY BAIL BOND AGENT SHALL 1,601
INCLUDE THE ADDRESS OF RECORD OF THE AGENT ON FILE WITH THE 1,603
DEPARTMENT OF INSURANCE. 1,604
Sec. 3905.94. IF THE SUPERINTENDENT OF INSURANCE, IN 1,606
ACCORDANCE WITH SECTION 3905.49 OF THE REVISED CODE, SUSPENDS OR 1,607
REVOKES A PERSON'S LICENSE AS A SURETY BAIL BOND AGENT, THE 1,609
PERSON, DURING THE PERIOD OF SUSPENSION OR REVOCATION, SHALL NOT 1,610
BE EMPLOYED BY ANY SURETY BAIL BOND AGENT, HAVE ANY OWNERSHIP 1,611
INTEREST IN ANY BUSINESS INVOLVING BAIL BONDS, OR HAVE ANY 1,612
FINANCIAL INTEREST OF ANY TYPE IN ANY BAIL BOND BUSINESS. 1,613
Sec. 3905.941. UPON THE SURRENDER, SUSPENSION, OR 1,615
REVOCATION OF A SURETY BAIL BOND AGENT'S LICENSE, THE APPOINTING 1,616
INSURER OR MANAGING GENERAL AGENT IMMEDIATELY SHALL DESIGNATE A 1,618
LICENSED AND APPOINTED SURETY BAIL BOND AGENT TO ADMINISTER ALL 1,619
BAIL BONDS PREVIOUSLY WRITTEN BY THE LICENSEE.
Sec. 3905.95. THE SUPERINTENDENT OF INSURANCE SHALL ADOPT, 1,622
IN ACCORDANCE WITH CHAPTER 119. OF THE REVISED CODE, ANY RULES 1,625
NECESSARY TO IMPLEMENT SECTIONS 3905.83 TO 3905.95 OF THE REVISED 1,626
CODE.
Sec. 3905.99. (A) Whoever violates sections 3905.181, 1,635
3905.21, or 3905.23 of the Revised Code shall be fined not less 1,636
than twenty-five nor more than five hundred dollars or imprisoned 1,637
not more than six months, or both.
36
(B) Whoever violates section 3905.31 or 3905.33 of the 1,639
Revised Code shall be fined not less than twenty-five nor more 1,640
than five hundred dollars or imprisoned not more than one year, 1,641
or both.
(C) Whoever violates section 3905.37 or 3905.43 of the 1,643
Revised Code shall be fined not less than one hundred nor more 1,644
than five hundred dollars.
(D) Whoever violates section 3905.01, DIVISION (F) OF 1,646
SECTION 3905.92, OR DIVISION (A) OF SECTION 3905.931 of the 1,648
Revised Code is guilty of a misdemeanor of the first degree. 1,650
(E) WHOEVER VIOLATES SECTION 3905.84 OF THE REVISED CODE 1,653
IS GUILTY OF A MISDEMEANOR OF THE FIRST DEGREE ON A FIRST OR 1,654
SECOND OFFENSE AND OF A FELONY OF THE THIRD DEGREE ON EACH
SUBSEQUENT OFFENSE. 1,655
Section 2. That existing sections 3905.01, 3905.011, 1,657
3905.012, 3905.48, 3905.49, 3905.55, 3905.86, and 3905.99 of the 1,658
Revised Code are hereby repealed. 1,659
Section 3. Sections 1 and 2 of this act shall take effect 1,661
six months after the effective date of this act. 1,662
Section 4. Any person who, on the effective date of this 1,664
act, is licensed as a property/casualty insurance agent in this 1,665
state and is actively engaged in the business of posting bail 1,666
bonds, is not subject to section 3905.841 of the Revised Code, as 1,667
enacted by this act, and shall not be required to take an 1,668
examination for licensure as a surety bail bond agent, if the 1,669
person applies for the license during the six-month period 1,670
immediately following the effective date of this act. 1,671
Section 5. It is the intent of the General Assembly that 1,673
the Superintendent of Insurance take any action necessary to 1,674
provide for an orderly transition for those persons who, on the 1,675
effective date of this act, perform the functions, duties, or 1,677
powers prescribed for surety bail bond agents under this act. 1,678
Consequently, the Department of Insurance shall accept license 1,679
applications submitted by such persons beginning on the effective 1,680
37
date of this act and shall make every effort possible to act upon 1,681
such applications within the six-month period immediately 1,682
following that date.