SENATORS Nein, Austria

To amend sections 1751.38, 3901.021, 3901.19,

1

3901.22, 3901.51, 3901.62, 3903.81, 3905.012,

2

3905.03, 3905.06, 3905.09, 3905.11, 3905.12,

3

3905.13, 3905.14, 3905.181, 3905.24, 3905.25,

4

3905.26, 3905.27, 3905.28, 3905.29, 3905.30,

5

3905.31, 3905.34, 3905.36, 3905.41, 3905.47,

6

3905.482, 3905.483, 3905.484, 3905.486, 3905.49,

7

3905.491, 3905.492, 3905.50, 3905.52, 3905.72,

8

3905.85, 3905.861, 3905.89, 3905.94, 3905.99,

9

3907.19, 3909.06, 3911.011, 3923.121, 3929.30,

10

3931.101, 3931.11, 3933.04, 3953.21, 3953.23,

11

3957.14, 3960.03, and 3960.11; to amend, for the

12

purpose of adopting new section numbers as

13

indicated in parentheses, sections 3905.012

14

(3905.16), 3905.03 (3905.10), 3905.06 (3905.29),

15

3905.09 (3901.78), 3905.11 (3901.781), 3905.12

16

(3901.782), 3905.13 (3901.783), 3905.14 (3901.784),

17

3905.181 (3905.182), 3905.24 (3901.74), 3905.25

18

(3901.75), 3905.26 (3905.40), 3905.27 (3905.41),

19

3905.28 (3901.76), 3905.29 (3901.77), 3905.41

20

(3901.86), 3905.47 (3905.49), 3905.49 (3905.14),

21

3905.491 (3905.15), 3905.492 (3905.24), and 3905.52

22

(3905.401); to enact new sections 3905.01, 3905.02,

23

3905.03, 3905.04, 3905.06, 3905.07, 3905.08,

24

3905.09, 3905.11, 3905.12, 3905.18, 3905.181,

25

3905.20, 3905.21, 3905.22, 3905.26, and 3905.28 and

26

sections 3901.211, 3905.041, 3905.05, 3905.061,

27

3905.071, 3905.072, 3905.081, 3905.201, 3905.211,

28

and 3905.212; and to repeal sections 3905.01,

29

3905.011, 3905.013, 3905.02, 3905.04, 3905.07,

30

3905.08, 3905.15, 3905.16, 3905.17, 3905.18,

31

3905.19, 3905.20, 3905.21, 3905.22, 3905.23,

32

3905.40, 3905.48, 3905.51, and 3905.54 of the

33

Revised Code to adopt the Insurance Producer's

34

Licensing Act and to prohibit certain unfair trade

35

practices by persons that lend money or extend

36

credit.

37

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That sections 1751.38, 3901.021, 3901.19, 3901.22,	38
3901.51, 3901.62, 3903.81, 3905.012, 3905.03, 3905.06, 3905.09,	39
3905.11, 3905.12, 3905.13, 3905.14, 3905.181, 3905.24, 3905.25,	40
3905.26, 3905.27, 3905.28, 3905.29, 3905.30, 3905.31, 3905.34,	41
3905.36, 3905.41, 3905.47, 3905.482, 3905.483, 3905.484, 3905.486,	42
3905.49, 3905.491, 3905.492, 3905.50, 3905.52, 3905.72, 3905.85,	43
3905.861, 3905.89, 3905.94, 3905.99, 3907.19, 3909.06, 3911.011,	44
3923.121, 3929.30, 3931.101, 3931.11, 3933.04, 3953.21, 3953.23,	45
3957.14, 3960.03, and 3960.11 be amended; sections 3905.012	46
(3905.16), 3905.03 (3905.10), 3905.06 (3905.29), 3905.09	47
(3901.78), 3905.11 (3901.781), 3905.12 (3901.782), 3905.13	48
(3901.783), 3905.14 (3901.784), 3905.181 (3905.182), 3905.24	49
(3901.74), 3905.25 (3901.75), 3905.26 (3905.40), 3905.27	50
(3905.41), 3905.28 (3901.76), 3905.29 (3901.77), 3905.41	51
(3901.86), 3905.47 (3905.49), 3905.49 (3905.14), 3905.491	52
(3905.15), 3905.492 (3905.24), and 3905.52 (3905.401) be amended	53
for the purpose of adopting new section numbers as indicated in	54
parentheses; and new sections 3905.01, 3905.02, 3905.03, 3905.04,	55
3905.06, 3905.07, 3905.08, 3905.09, 3905.11, 3905.12, 3905.18,	56
3905.181, 3905.20, 3905.21, 3905.22, 3905.26, and 3905.28 and	57
sections 3901.211, 3905.041, 3905.05, 3905.061, 3905.071,	58
3905.072, 3905.081, 3905.201, 3905.211, and 3905.212 of the	59
Revised Code be enacted to read as follows:	60

Sec. 1751.38.  (A) As used in this section, "agent" means a	61
person appointed by a health insuring corporation to engage in the	62
solicitation or enrollment of subscribers or enrollees.	63

(B) Agents of health insuring corporations shall be licensed	64
pursuant to section 3905.02 or 3905.18as insurance agents in	65
accordance with Chapter 3905. of the Revised Code.	66

(C) Sections 3905.02, 3905.16 to 3905.18, 3905.181, 3905.19,	67
3905.23, 3905.40, 3905.41, 3905.42, 3905.46 to 3905.48, 3905.481,	68
3905.482, 3905.486, 3905.49, 3905.491, 3905.492, 3905.50, 3905.71	69
to 3905.79, and 3905.99Chapter 3905. of the Revised Code shall	70
apply to health insuring corporations and the agents of health	71
insuring corporations in the same manner in which these sections	72
apply to insurers and agents of insurers.	73

Sec. 3901.021.  Three-fourths of all appointment and other	74
fees collected under sections 3905.02, 3905.03, 3905.07, and	75
3905.18,section 3905.10, division (B) of section 3905.20, and	76
division (A)(6) of section 3905.263905.40 of the Revised Code	77
shall be paid into the state treasury to the credit of the	78
department of insurance operating fund, which is hereby created.	79
The remaining one-fourth shall be credited to the general revenue	80
fund. All operating expenses of the department of insurance	81
except those expenses defined under section 3901.07 of the Revised	82
Code shall be paid from the department of insurance operating	83
fund.	84

Sec. 3901.19.  As used in sections 3901.19 to 3901.26 of the	85
Revised Code:	86

(A) "Person" means any individual, corporation, association,	87
partnership, reciprocal exchange, inter-insurer, fraternal benefit	88
society, title guarantee and trust company, health insuring	89
corporation, and any other legal entity.	90

(B) "Residents" includes any individual, partnership, or	91
corporation.	92

(C) "Maternity benefits" means those benefits calculated to	93
indemnify the insured for hospital and medical expenses fairly and	94
reasonably associated with a pregnancy and childbirth.	95

(D) "Insurance" includes, but is not limited to, any policy	96
or contract offered, issued, sold, or marketed by an insurer,	97
corporation, association, organization, or entity regulated by the	98
superintendent of insurance or doing business in this state.	99
Nothing in any other section of the Revised Code shall be	100
construed to exclude single premium deferred annuities from the	101
regulation of the superintendent under sections 3901.19 to 3901.26	102
of the Revised Code.	103

(E) "Affiliate" means any entity that controls, is	104
controlled by, or is under common control with, another entity.	105

(F) "Customer" means an individual who purchases, applies to	106
purchase, or is solicited to obtain insurance products primarily	107
for personal, family, or household purposes.	108

(G) "Depository institution" means any bank, savings bank,	109
savings and loan association, or credit union that is subject to	110
regulation or supervision by the United States or any state.	111
"Depository institution" does not include an insurer.	112

Sec. 3901.211. (A) No person that lends money or extends	113
credit shall do any of the following:	114

(1) Unreasonably reject an insurance policy required in	115
connection with a loan or extension of credit. For purposes of	116
division (A)(1) of this section, a rejection shall be considered	117
unreasonable if either of the following applies:	118

(a) The rejection is based solely on the fact that the	119
policy was issued or underwritten by a person not associated with	120
the person making the loan or extending the credit or an affiliate	121
of that person.	122

(b) The rejection is not based on reasonable and uniformly	123
applied standards relating to the extent of coverage required and	124
the financial soundness and services of an insurer, which	125
standards do not discriminate against any particular type of	126
insurer or require the disapproval of a policy because it contains	127
coverage in addition to that required in connection with the	128
credit transaction.	129

(2) Require a debtor, insurer, insurance agent, or surplus	130
line broker to pay a separate charge in connection with the	131
handling of insurance required in connection with a loan,	132
extension of credit, or other banking product, unless the charge	133
is also required when the person lending the money or extending	134
the credit, or an affiliate of that person, is the licensed	135
insurance agent or surplus line broker. Division (A)(2) of this	136
section does not apply to the interest that may be charged on	137
policy loans or advancements in accordance with the terms of the	138
insurance policy.	139

(3) Use any advertisement or other insurance promotional	140
material that would cause a reasonable person to mistakenly	141
believe either of the following:	142

(a) That the federal or state government is responsible	143
for the insurance sales activities of, or stands behind the credit	144
of, the person making the loan or extending the credit or that	145
person's affiliate;	146

(b) That the federal or state government guarantees any	147
returns on insurance products or is a source of payment on any	148
insurance obligation of, or sold by, the person making the loan or	149
extending the credit or that person's affiliate.	150

(4) Pay or receive commissions or other valuable	151
consideration except in accordance with Chapter 3905. of the	152
Revised Code. However, nothing in division (A)(4) of this section	153
prohibits the payment of compensation to a person not licensed	154
under that chapter for the referral of a customer, if all of the	155
following apply:	156

(a) The compensation is not based on the purchase of	157
insurance by the customer.	158

(b) The compensation is a one-time, nominal fee of a fixed	159
dollar amount for each referral.	160

(c) The referral does not include a discussion of specific	161
insurance policy terms and conditions.	162

(5) As a condition of lending money, extending	163
credit, offering any product or service equivalent to an extension	164
of credit, leasing or selling property of any kind, or furnishing	165
any service in connection with or fixing or varying the	166
consideration for any such activity, require that the customer	167
obtain insurance from a particular company, insurance agent,	168
depository institution, solicitor, broker, or any other person.	169
However, nothing in division (A)(5) of this section prohibits the	170
person or the person's affiliate from doing either of the	171
following:	172

(a) Informing a customer that insurance is required in	173
order to obtain a loan or credit approval, that the loan or credit	174
approval is contingent upon the procurement by the customer of	175
acceptable insurance, or that insurance is available from a	176
particular company, insurance agent, depository institution,	177
solicitor, broker, or other person;	178

(b) If the person is a depository institution or an	179
affiliate of a depository institution, engaging in any activity	180
that does not violate section 106 of the "Bank Holding Company Act	181
Amendments of 1970," 84 Stat. 1760, 12 U.S.C.A. 1971 to 1978, as	182
interpreted by the board of governors of the federal reserve	183
system.	184

(6)(a) If an application for a loan or extension of credit	185
is pending, offer, sell, or require insurance in connection with	186
the loan or extension of credit, unless both of the following	187
occur:	188

(i) A written disclosure is given to the customer	189
indicating that the customer's choice of an insurer or agent will	190
not affect the credit decision or credit terms in any way, except	191
that reasonable standards concerning the creditworthiness of the	192
insurer and the scope of coverage chosen may apply.	193

(ii) A written acknowledgment of the disclosure described	194
in division (A)(6)(a)(i) of this section is obtained from the	195
customer at or prior to the time of the initial purchase of the	196
insurance policy.	197

(b) Division (A)(6)(a) of this section does not apply to the	198
offering or sale of limited line credit insurance as defined in	199
section 3905.01 of the Revised Code.	200

(7) If the person is a depository institution, sell an	201
insurance policy in connection with a loan or extension of credit,	202
unless both of the following occur:	203

(a) A clear and conspicuous disclosure is given in	204
writing, where practicable, to the customer prior to the sale,	205
which disclosure states that the policy is not a deposit, that it	206
is not insured by the federal deposit insurance corporation or any	207
other federal government agency, that it is not guaranteed by the	208
depository institution or, if appropriate, by its affiliate or any	209
person soliciting or selling insurance on its premises, and, if	210
appropriate, that it involves investment risk, including the	211
potential loss of principal.	212

(b) A written acknowledgment of the disclosure described in	213
division (A)(7)(a) of this section is obtained from the customer	214
at or prior to the time of the initial purchase of the insurance	215
policy.	216

(8) Fail to complete credit and insurance transactions	217
through separate documents when the customer purchases insurance	218
from the person making the loan or extending the credit, from an	219
affiliate of that person, or from any person soliciting the	220
purchase of or selling insurance on the premises of the person	221
making the loan or extending the credit. Division (A)(8) of this	222
section does not apply to the purchase or sale of credit or flood	223
insurance.	224

(9) Include the expense of insurance premiums, other than	225
credit insurance premiums, title insurance premiums, or flood	226
insurance premiums, in the primary credit transaction without the	227
express written consent of the customer;	228

(10) If the person is a depository institution, solicit or	229
sell insurance unless the person's insurance sales activities are,	230
to the extent practicable, physically segregated from areas in	231
which retail deposits are routinely accepted.	232

(B)(1) The written disclosures and acknowledgements	233
required under division (A) of this section may, upon consent of	234
the customer, be provided electronically. If provided	235
electronically, the disclosures shall be made in a format that	236
enables the customer to retain and reproduce the disclosure.	237

(2) If a purchase of insurance is made by telephone, the	238
disclosures and acknowledgements required under division (A) of	239
this section may be given orally, if all of the following	240
requirements are met:	241

(a) The disclosures are mailed, or provided in electronic	242
form, to the customer within three business days after the sale of	243
the insurance policy.	244

(b) Sufficient documentation showing that oral	245
acknowledgement was given by the customer is maintained.	246

(c) A reasonable effort is made to obtain written	247
acknowledgment from the customer.	248

(C) Except as specifically provided under division (A) of	249
this section, nothing in this section prevents or restricts a	250
depository institution or its affiliate from engaging directly or	251
indirectly, either by itself or in conjunction with an affiliate	252
or any other person, in any activity authorized under state or	253
federal law.	254

(D)(1) A violation of division (A) of this section is an	255
unfair and deceptive act or practice in the business of insurance	256
under sections 3901.19 to 3901.26 of the Revised Code.	257

(2) Any person subject to this section shall, upon	258
reasonable notice, make available to the superintendent all books	259
and records relating to insurance transactions.	260

Sec. 3901.22.  (A) The superintendent of insurance may	261
conduct hearings to determine whether violations of section	262
3901.20 of the Revised Code have occurred. Any person aggrieved	263
with respect to any act that the person believes to be an unfair	264
or deceptive act or practice in the business of insurance, as	265
defined in section 3901.21 or 3901.211 of the Revised Code or in	266
any rule of the superintendent of insurance, may make written	267
application to the superintendent for a hearing to determine if	268
there has been a violation of section 3901.20 of the Revised Code.	269
The application shall specify the grounds to be relied upon by the	270
applicant. If the superintendent finds that the application is	271
made in good faith, that the applicant would be so aggrieved if	272
histhe applicant's grounds are established, and that such grounds	273
otherwise justify holding such a hearing, hethe superintendent	274
shall hold a hearing to determine whether the act specified in the	275
application is a violation of section 3901.20 of the Revised Code.	276
Notice of any hearing held under the authority of this section,	277
the conduct of the hearing, the orders issued pursuant to it, the	278
review of the orders and all other matters relating to the holding	279
of the hearing shall be governed by Chapter 119. of the Revised	280
Code.	281

(B) Upon good cause shown, the superintendent shall permit	282
any person to intervene, appear, and be heard at the hearing,	283
either in person or by counsel.	284

(C) The superintendent shall send a copy of the order to	285
those persons intervening in the hearing.	286

(D) If the superintendent,by written order, finds in his	287
written order that any person has violated section 3901.20 of the	288
Revised Code, hethe superintendent shall issue an order requiring	289
that person to cease and desist from engaging in the violation. In	290
addition, the superintendent may impose any or all of the	291
following administrative remedies upon the person:	292

(1) HeThe superintendent may suspend or revoke histhe	293
person's license to engage in the business of insurance;	294

(2) HeThe superintendent may order that an insurance company	295
or insurance agency not employ the person or permit the person to	296
serve as a director, consultant, or in any other capacity for such	297
time as the superintendent determines would serve the public	298
interest. No application for termination of such an order for an	299
indefinite time shall be filed within two years of its effective	300
date;.	301

(3) HeThe superintendent may order suchthe person to return	302
any payments received by suchthe person as a result of the	303
violation;	304

(4) If the superintendent issues an order pursuant to	305
division (D)(3) of this section, hethe superintendent shall order	306
suchthe person to pay statutory interest on such payments.	307

If the superintendent does not issue orders pursuant to	308
divisions (D)(3) and (4) of this section, hethe superintendent	309
shall expressly state in the cease-and-desist order histhe	310
reasons for not issuing such orders.	311

(5) HeThe superintendent may order suchthe person to pay to	312
the state treasury for credit to the department's operating fund	313
an amount, not in excess of one hundred thousand dollars, equal to	314
one-half of the expenses reasonably incurred by the superintendent	315
to retain attorneys, actuaries, accountants, and other experts not	316
otherwise a part of the superintendent's staff to assist directly	317
in the conduct of any investigations and hearings conducted with	318
respect to violations committed by suchthe person.	319

(E) If the superintendent has reasonable cause to believe	320
that an order issued pursuant to division (D) of this section has	321
been violated in whole or in part, hethe superintendent may,	322
unless such order is stayed by a court of competent jurisdiction,	323
request the attorney general to commence and prosecute any	324
appropriate action or proceeding in the name of the state against	325
suchthe person.	326

Such action may include, but need not be limited to, the	327
commencement of a class action under Civil Rule 23 on behalf of	328
policyholders, subscribers, applicants for policies or contracts,	329
or other insurance consumers for damages caused by or unjust	330
enrichment received as a result of the violation.	331

(F) In addition to any penalties imposed pursuant to this	332
chapter, the court may, in an action brought pursuant to division	333
(E) of this section, impose any of the following:	334

(1) For each act or practice found to be in violation of	335
section 3901.20 of the Revised Code, a civil penalty of not more	336
than three thousand five hundred dollars for each violation but	337
not to exceed an aggregate penalty of thirty-five thousand dollars	338
in any six-month period, provided that a series of similar acts or	339
practices prohibited by section 3901.20 of the Revised Code and	340
committed by the same person but not in separate insurance sales	341
transactions shall be considered a single violation;	342

(2) For each violation of a cease and desist order issued by	343
the superintendent pursuant to this section, a civil penalty of	344
not more than ten thousand dollars;	345

(3) In addition to any other appropriate relief, the court	346
may order any or all of the remedies specified in division (D) of	347
this section.	348

(G) The superintendent, under a settlement agreement to	349
which a person has consented in writing for the purpose of	350
assuring the person's correction of a series of offenses and	351
future compliance with the laws of this state relating to the	352
business of insurance, may impose a single penalty in whatever	353
amount the parties determine to be justified under the	354
circumstances.	355

(H) A court of common pleas, in a civil action commenced by	356
the attorney general on behalf of the superintendent under Civil	357
Rule 65, may grant a temporary restraining order, preliminary	358
injunction, or permanent injunction to restrain or prevent a	359
violation or threatened violation of any provision of section	360
3901.20 of the Revised Code, if the court finds that the defendant	361
has violated, is violating, or is threatening to violate such	362
provision, that immediate and irreparable injury, loss, or damage	363
will result if such relief is not granted, and that no adequate	364
remedy at law exists to prevent such irreparable injury, loss, or	365
damage.	366

(I) If the superintendent's position in initiating a matter	367
in controversy pursuant to this section and section 3901.221 of	368
the Revised Code was not substantially justified, upon motion of	369
the person who prevailed in the hearing or in the appropriate	370
court, if an adjudication order was appealed or a civil action was	371
commenced, the superintendent or the court shall order the	372
department of insurance to pay such person an amount, not in	373
excess of one hundred thousand dollars, equal to one-half of the	374
expenses reasonably incurred by suchthe person in connection with	375
the related proceedings. An award pursuant to this division may	376
be reduced or denied if special circumstances make an award unjust	377
or if suchthe person engaged in conduct that unduly and	378
unreasonably protracted the final resolution of the matter in	379
controversy. If the department does not pay such award or no such	380
funds are available, the award shall be treated as if it were a	381
judgment under Chapter 2743. of the Revised Code and be payable in	382
accordance with the procedures specified in section 2743.19 of the	383
Revised Code, except that interest shall not be paid in relation	384
to the award.	385

Sec. 3901.51.  As used in sections 3901.51 to 3901.55 of the	386
Revised Code:	387

(A) "Clearing corporation" has the same meaning as in	388
section 1308.01 of the Revised Code, except that with respect to	389
securities issued by institutions organized or existing under the	390
laws of any foreign country or securities used to meet the deposit	391
requirements pursuant to the laws of a foreign country as a	392
condition of doing business in that country, "clearing	393
corporation" includes a corporation that is organized or existing	394
under the laws of any foreign country and is legally qualified	395
under those laws to effect transactions in securities by	396
computerized book-entry.	397

(B) "Direct participant" means a bank, trust company, or	398
other entity that maintains an account in its name in a clearing	399
corporation and through which an insurance company participates in	400
a clearing corporation.	401

(C) "Federal reserve book-entry system" means the	402
computerized systems sponsored by the United States department of	403
the treasury and agencies and instrumentalities of the United	404
States for holding and transferring securities of the United	405
States government and agencies and instrumentalities in federal	406
reserve banks through banks that are members of the federal	407
reserve system or that otherwise have access to these computerized	408
systems.	409

(D) "Member bank" means a national or state bank or a trust	410
company that is a member of the federal reserve system and through	411
which an insurance company participates in the federal reserve	412
book-entry system.	413

(E) "Provisions of the insurance laws of this state" means	414
provisions of Title XXXIX of the Revised Code related to the	415
deposit of securities for the benefit and security of	416
policyholders, and includes, but is not limited to, sections	417
3901.18, 3901.74, 3901.75, 3901.86, 3903.73, 3905.24, 3905.25,	418
3905.41, 3907.07, 3909.03, 3909.09, 3909.17, 3913.01, 3913.04,	419
3919.13, 3919.36, 3919.37, 3919.41, 3925.07, 3927.02, 3927.06,	420
3929.01, 3929.07, 3929.08, 3929.09, 3929.10, 3929.11, 3941.30,	421
3941.31, 3941.32, 3941.33, 3941.34, 3941.42, 3953.06, 3953.11, and	422
3957.03 of the Revised Code.	423

(F) "Securities" has the same meaning as in section 1308.01	424
of the Revised Code.	425

Sec. 3901.62.  (A) Except as provided in sections 3901.63	426
and 3901.64 of the Revised Code, a domestic ceding insurer that is	427
authorized to do any insurance business in this state may take	428
credit for any reinsurance ceded as either an asset or a reduction	429
of liability only if one of the following applies:	430

(1) The reinsurance is ceded to an assuming insurer that is	431
authorized to do any insurance or reinsurance business in this	432
state.	433

(2) The reinsurance is ceded to an assuming insurer that is	434
not authorized to do any insurance or reinsurance business in this	435
state, provided the reinsurance is ceded to a reinsurance pool or	436
other risk-sharing entity in which participation is required by	437
law, rule, or regulation of the jurisdiction in which the pool or	438
entity is located.	439

(3) The reinsurance is ceded to an assuming insurer that	440
maintains a trust fund in a qualified United States financial	441
institution, as defined in division (B)(2) of section 3901.63 of	442
the Revised Code, for the payment of the valid claims of its	443
United States policyholders and ceding insurers, and their assigns	444
and successors in interest.	445

(B) A trust maintained by an assuming insurer under division	446
(A)(3) of this section shall meet the following requirements:	447

(1) In the case of a single assuming insurer, the trust	448
shall consist of a trusteed account representing the assuming	449
insurer's liabilities attributable to business underwritten in the	450
United States. A trusteed surplus of not less than twenty million	451
dollars shall be maintained by the assuming insurer.	452

(2) In the case of a group of assuming insurers, including	453
incorporated and individual unincorporated underwriters, the trust	454
shall consist of a trusteed account representing the group's	455
liabilities attributable to business written in the United States.	456
A trusteed surplus shall be maintained by the group, of which	457
surplus one hundred million dollars shall be held jointly for the	458
benefit of the United States ceding insurers of any member of the	459
group. The following requirements apply to the group of assuming	460
insurers:	461

(a) The incorporated members of the group shall not engage	462
in any business other than underwriting as a member of the group,	463
and shall be subject to the same level of solvency regulation and	464
control by the group's domiciliary regulator as are the	465
unincorporated members.	466

(b) The group shall make available to the superintendent of	467
insurance an annual certification of the solvency of each	468
underwriter in the group. The certification shall be provided by	469
the group's domiciliary regulator and its independent public	470
accountants.	471

(3) In the case of a group of incorporated insurers under	472
common administration with aggregate policyholders' surplus of ten	473
billion dollars that has continuously transacted an insurance	474
business outside the United States for at least three years	475
immediately prior to assuming reinsurance, the trust shall be in	476
an amount equal to the group's several liabilities attributable to	477
business ceded by United States ceding insurers to any member of	478
the group pursuant to reinsurance contracts issued in the name of	479
the group. A joint trusteed surplus shall be maintained by the	480
group, of which surplus one hundred million dollars shall be held	481
jointly for the benefit of United States ceding insurers of any	482
member of the group as additional security for any such	483
liabilities. The following requirements apply to the group of	484
incorporated insurers:	485

(a) The group shall comply with all filing requirements	486
contained in this section.	487

(b) The books and records of the group shall be subject to	488
examination by the superintendent in the same manner as the books	489
and records of insurers are subject to examination by the	490
superintendent in accordance with section 3901.07 of the Revised	491
Code. The group shall bear the expenses of these examinations in	492
the manner provided by that section.	493

(c) Each member of the group shall make available to the	494
superintendent an annual certification of the member's solvency by	495
the member's domiciliary regulator and an independent public	496
accountant.	497

(C) A trust maintained by an assuming insurer under division	498
(A)(3) of this section shall remain in effect for as long as the	499
assuming insurer has outstanding obligations due under the	500
reinsurance agreements subject to the trust. The trust shall be	501
in a form approved by the superintendent and shall include the	502
following:	503

(1) The trust instrument shall provide that contested claims	504
are valid and enforceable upon the final order of any court of	505
competent jurisdiction in the United States.	506

(2) The trust shall vest legal title to its assets in the	507
trustees of the trust for its United States policyholders and	508
ceding insurers, and their assigns and successors in interest.	509

(3) The trust, and the assuming insurer maintaining the	510
trust, shall allow the superintendent to conduct examinations in	511
the same manner as the superintendent conducts examinations of	512
insurers under section 3901.07 of the Revised Code.	513

(D) No later than the last day of February of each year, the	514
trustees of a trust maintained by an assuming insurer under	515
division (A)(3) of this section shall provide the superintendent	516
with a written report setting forth the balance of the trust and	517
listing the trust's investments as of the preceding thirty-first	518
day of December. The trustees shall certify the date of the	519
termination of the trust, if termination of the trust is planned,	520
or shall certify that the trust does not expire prior to the	521
following thirty-first day of December.	522

(E) To enable the superintendent to determine the	523
sufficiency of a trust maintained by an assuming insurer under	524
division (A)(3) of this section, the assuming insurer shall	525
annually report information on the trust to the superintendent	526
that is substantially the same as that information licensed	527
insurers are required to report under sections 3907.19, 3909.06,	528
and 3929.30 of the Revised Code on forms adopted under section	529
3905.293901.77 of the Revised Code.	530

(F) An assuming insurer shall file a written instrument	531
appointing an attorney as its agent in this state upon whom all	532
service of process may be served. Service of process upon this	533
agent shall bring the assuming insurer within the jurisdiction of	534
the courts of this state as if served upon an agent pursuant to	535
section 3927.03 of the Revised Code.	536

Sec. 3905.24.        Sec. 3901.74.  When a life insurance company doing	537
business in this state decides to discontinue its business, the	538
superintendent of insurance upon the application of suchthe	539
company or association shall give notice, at its expense, of such	540
intention at least once a week for six weeks in a newspaper	541
published and of general circulation in the county in which such	542
the company or its general agency is located. After such	543
publication, the superintendent shall deliver to suchthe company	544
or association its securities held by himthe superintendent, if	545
hethe superintendent is satisfied on an exhibition of its books	546
and papers, and on an examination made by himselfthe	547
superintendent or by some competent, disinterested person	548
appointed by himthe superintendent, and upon the oath of the	549
president or principal officer and the secretary or actuary of	550
suchthe company, that all debts and liabilities due or to become	551
due upon any contract or agreement made with any citizen or	552
resident of the United States are paid and extinguished. The	553
superintendent may deliver to suchthe company or association or	554
its assigns any portion of suchthe securities on being satisfied	555
that an equal proportion of the debts and liabilities due or to	556
become due upon any such contract or agreement have been	557
satisfied, if the amount of securities retained by himthe	558
superintendent is not less than twice the amount of the remaining	559
liabilities.	560

Sec. 3905.25.        Sec. 3901.75.  When any insurance company or	561
corporation other than life, which company or corporation has made	562
a deposit with the superintendent of insurance, intends to	563
discontinue its business in this state, the superintendent, upon	564
the application of suchthe company or corporation, shall give	565
notice at its expense of such intention at least once a week for	566
six weeks in three newspapers of general circulation in the state.	567

After such publication, the superintendent shall deliver to	568
suchthe company or association its securities held by himthe	569
superintendent, if hethe superintendent is satisfied by the	570
affidavits of the principal officers of the company, and on an	571
examination made by himthe superintendent or by some competent,	572
disinterested person appointed by himthe superintendent if hethe	573
superintendent deems it necessary, that all liabilities and	574
obligations which saidthe deposit has been made to secure have	575
been paid and extinguished. The superintendent may deliver to	576
suchthe company or its assigns, under like condition, any portion	577
of suchthe securities on being satisfied that an equal proportion	578
of saidthe liabilities and obligations have been satisfied, if	579
the amount of securities retained by himthe superintendent is not	580
less than twice the amount of the remaining liabilities and	581
obligations.	582

Sec. 3905.28.        Sec.  3901.76.  As used in this section, "securities"	583
means the stocks, bonds, debentures, and other assets subject from	584
time to time to valuation by the committee on valuation of	585
securities of the national association of insurance commissioners.	586

For the purpose of enabling the superintendent of insurance	587
to secure the analyses, reports, and information developed by the	588
committee on valuation of securities of the national association	589
of insurance commissioners and to pay for such information by	590
cooperating with other states in defraying the expenses of such	591
the committee in the investigation, analysis, and valuation of	592
securities and the determination of amortizability of bonds owned	593
by life insurance companies for the purpose of furnishing to the	594
several states on a uniform basis the information needed in the	595
supervision of insurance companies licensed to transact business	596
in the several states, there is hereby created in the state	597
treasury the security valuation expense fund.	598

The superintendent may collect and disburse, in cooperation	599
with supervisory officials of other states, the moneys obtained	600
through assessments as provided in this section. All moneys which	601
are paid into the fund shall be used only for the purpose of this	602
section.	603

The superintendent may contract with the committee to make	604
available to the department of insurance the analyses, reports,	605
and information developed by the committee and, after taking into	606
consideration similar payments whichthat may be made by other	607
states, may make payment to suchthe committee to the extent	608
authorized by this section, on account of the expenses of the	609
committee, from the fund.	610

The superintendent shall periodically obtain from the	611
committee a verified budget estimate of the receipts and of the	612
expenses to be incurred by the committee for a stated period, not	613
exceeding one year, with appropriate explanations of the estimates	614
therein contained.	615

If the superintendent is satisfied as to the reasonableness	616
of suchthe budget estimate, hethe superintendent shall determine	617
the portion of the moneys required by suchthe budget estimate, to	618
be assessed as provided in this section, by deducting from such	619
the budget estimate or from the sum of two hundred fifty thousand	620
dollars, whichever is less, any amounts received or receivable by	621
the committee from states with laws that do not substantially	622
conform to the method of assessment provided in this section and	623
applying to the remainder the proportion whichthat the total	624
investments in securities of domestic life insurers bear to the	625
total investments in securities of life insurers domiciled in this	626
and other states with laws that authorize and require assessments	627
on substantially the same basis as provided in this section. The	628
superintendent shall thereafter, as soon as convenient, by notice	629
stating the method of computation thereof, assess the amount to be	630
paid on account of such expenses, pro rata upon all domestic life	631
insurers in the proportion whichthat the total investments in	632
securities of each domestic life insurer bear to the total	633
investments in securities of all domestic life insurers. The	634
total investments in securities of any life insurer for purposes	635
of this section shall be the total admitted value of the	636
securities reported as such in its annual statement last filed	637
prior to such assessment with the department or with the	638
supervisory officials of its state of domicile. Upon receipt of	639
suchthe notice each domestic life insurance company shall within	640
thirty days thereafter pay the amount of the assessment to the	641
superintendent, who shall deposit the amount in the state treasury	642
to the credit of the fund. The superintendent shall make such	643
disbursements from the fund in amounts and at the times determined	644
by the superintendent under histhe superintendent's contract with	645
the committee.	646

The superintendent shall require annually, and at such other	647
times as hethe superintendent considers it necessary or	648
advisable, a duly certified audit of receipts and disbursements	649
and statement of assets and liabilities, showing the details of	650
the financial operations of the committee.	651

Sec. 3905.29.        Sec. 3901.77.  (A) The superintendent of insurance	652
shall adopt the forms, instructions, and manuals prescribed by the	653
national association of insurance commissioners, for the	654
preparation and filing of statutory financial statements and other	655
financial information. However, the superintendent may by rule	656
adopt modifications to suchthe prescribed forms, instructions,	657
and manuals as hethe superintendent considers necessary.	658

(B) For circumstances not addressed by the forms,	659
instructions, and manuals prescribed by the national association	660
of insurance commissioners, the superintendent may determine	661
accounting practices and methods for purposes of preparing	662
statutory financial statements and other financial information.	663

(C) The superintendent shall furnish each domestic insurance	664
company a printed copy of the forms for the filing of statutory	665
financial statements and other financial information required to	666
be made by it.	667

Sec. 3905.09.        Sec. 3901.78.  Upon the filing of each of its annual	668
statements, or as soon thereafter as practicable, the	669
superintendent of insurance shall issue to each insurance company	670
or association authorized to do business in this state a	671
certificate that it has complied with the laws of this state. Such	672
certificate of compliance shall also contain a statement of the	673
amounts of the paid-up capital stock, assets, liabilities, income,	674
and expenditures of the company or association for the preceding	675
year, as shown by its annual statement for that year. The	676
superintendent shall issue to each newly-applying company or	677
association which hethat the superintendent finds should be	678
authorized to do business in this state, a certificate that it has	679
complied with the laws of this state, which certificate shall	680
contain a statement of the amounts of its paid-up capital stock,	681
assets, liabilities, income, and expenditures as shown by a	682
financial statement submitted by it, under the oath of its	683
officers.	684

Sec. 3905.11.        Sec. 3901.781.  Annually, and before the time of	685
making its report to the superintendent of insurance as required	686
by section 3905.123901.782 of the Revised Code, each insurance	687
company and association not incorporated under the laws of this	688
state shall publish its certificate of compliance in every county	689
where it has an agency, in a newspaper published and of general	690
circulation in such county.	691

No newspaper shall be deemed a newspaper of general	692
circulation unless it has been established for at least one year,	693
is printed in the English language, and has a circulation in the	694
county in which it is published as follows:	695

(A) In a county having at the last preceding federal census	696
a population of not more than thirty thousand, a circulation of	697
six hundred;	698

(B) In a county having a population of over thirty thousand	699
and not more than fifty thousand, a circulation of eight hundred;	700

(C) In a county having a population of over fifty thousand	701
and not more than one hundred thousand, a circulation of twelve	702
hundred;	703

(D) In a county having a population of over one hundred	704
thousand and not more than one hundred fifty thousand, a	705
circulation of two thousand;	706

(E) In counties having a population of more than one hundred	707
fifty thousand, a circulation of three thousand.	708

Before publication of any certificate of compliance, the	709
manager, editor, or proprietor of a newspaper shall certify under	710
oath on a prepared blank, furnished himthe manager, editor, or	711
proprietor on application by the superintendent of insurance, the	712
information prescribed in this section for determining whether it	713
is a newspaper of general circulation, and if such affidavit shows	714
that the newspaper is one of general circulation, the	715
superintendent shall deliver to himthe manager, editor, or	716
proprietor a certificate that such newspaper is one of general	717
circulation.	718

Sec. 3905.12.        Sec. 3901.782.  On or before the first day of October	719
of each year, each insurance company and association doing	720
business in this state, which company or association is not	721
incorporated under the laws thereof, shall file with the	722
superintendent of insurance, upon blanks prepared and upon	723
application furnished by himthe superintendent, a report in	724
writing under oath of its president and secretary showing the	725
counties in which publication of its certificate of authority to	726
do business was made, the counties in which it had agencies at the	727
time of such publication, and the names of the newspapers in which	728
the publication was made, with a copy of the certificate so	729
published attached thereto.	730

Sec. 3905.13.        Sec. 3901.783.  If any insurance company or	731
association mentioned in section 3905.123901.782 of the Revised	732
Code fails to comply with the laws relating to the publication of	733
the certificate mentioned in suchthat section, the superintendent	734
of insurance shall suspend its authority to do business in any	735
county where suchin which the publication has not been made,	736
until suchthe publication is made, but if it appears that such	737
the publication has not been made in any county through mistake or	738
oversight, such authority shall not be suspended in the county if	739
suchthe publication is made within a time designated by the	740
superintendent.	741

Sec. 3905.14.        Sec. 3901.784.  Publication of a certificate of	742
compliance in a newspaper shall not be approved by the	743
superintendent of insurance unless prior to suchthe publication	744
hethe superintendent has certified that suchthe newspaper is one	745
published and of general circulation in the county, but if	746
publication has been made in any such newspaper without suchthe	747
certification and a report filed as required by section 3905.12	748
3901.782 of the Revised Code, and suchthe certificate of the	749
superintendent is procured within the time hethe superintendent	750
designates, publication in suchthe newspaper shall be approved.	751
The superintendent shall keep a book in which shall be recorded	752
the names of the newspapers so certified as newspapers of general	753
circulation, which book shall be open to inspection, and every	754
such certificate of circulation shall remain in force until	755
revoked, provided that the superintendent may demand further	756
certificates as to the circulation of any such newspaper.	757

Sec. 3905.41.        Sec. 3901.86.  (A) When the laws of any other state,	758
district, territory, or nation impose any taxes, fines, penalties,	759
license fees, deposits of money, securities, or other obligations	760
or prohibitions on insurance companies of this state doing	761
business in suchthat state, district, territory, or nation, or	762
upon their agents therein, the same obligations and prohibitions	763
shall be imposed upon insurance companies of suchthe other state,	764
district, or nation doing business in this state and upon their	765
agents.	766

When the laws of any other state, district, territory, or	767
nation impose a requirement for countersignature and payment of a	768
fee or commission upon agents of this state for placing any	769
coverage in that state, district, territory, or nation, then the	770
same requirements of countersignature and fee or commission shall	771
be imposed upon agents of that state, district, territory, or	772
nation for placing any coverage in this state.	773

(B) Beginning on the effective date of this amendmentJuly	774
1, 1993, twenty per cent of the amount that is collected under	775
division (A) of this section from foreign insurance companies that	776
sell fire insurance to residents of this state shall be paid into	777
the state fire marshal's fund created under section 3737.71 of the	778
Revised Code. The director of commerce, with the approval of the	779
director of budget and management, may increase the percentage	780
described in this division so that it will yield an amount that	781
the director of commerce determines necessary to assist in the	782
maintenance and administration of the office of the fire marshal	783
and in defraying the costs of operating the Ohio fire academy	784
established by section 3737.33 of the Revised Code.	785

Sec. 3903.81.  As used in sections 3903.81 to 3903.93 of the	786
Revised Code:	787

(A) "Adjusted RBC report" means an RBC report that has been	788
adjusted by the superintendent of insurance in accordance with	789
division (C) of section 3903.82 of the Revised Code.	790

(B) "Authorized control level RBC" means the number	791
determined under the risk-based capital formula in accordance with	792
the RBC instructions.	793

(C) "Company action level RBC" means the product of 2.0 and	794
an insurer's authorized control level RBC.	795

(D) "Corrective order" means an order issued by the	796
superintendent of insurance in accordance with division (B)(3) of	797
section 3903.84 of the Revised Code specifying corrective actions	798
that the superintendent has determined are required.	799

(E) "Domestic insurer" means any insurance company organized	800
under Chapter 3907. or 3925. of the Revised Code.	801

(F) "Foreign insurer" means any insurance company licensed	802
under section 3909.01 or 3927.01 of the Revised Code.	803

(G) "Life or health insurer" means any insurance company	804
licensed under section 3907.08 or 3909.01 of the Revised Code, or	805
a company possessing a certificate of authority pursuant to	806
section 3929.01 of the Revised Code that writes only accident and	807
health insurance.	808

(H) "Mandatory control level RBC" means the product of .70	809
and an insurer's authorized control level RBC.	810

(I) "NAIC" means the national association of insurance	811
commissioners.	812

(J) "Negative trend" means a negative trend over a period of	813
time for a life or health insurer as determined in accordance with	814
the trend test calculation included in the RBC instructions.	815

(K) "Property and casualty insurer" means any insurance	816
company that has a certificate of authority pursuant to section	817
3929.01 of the Revised Code. "Property and casualty insurer" does	818
not include monoline mortgage guarantee insurers, financial	819
guarantee insurers, or title insurers.	820

(L) "RBC" means risk based capital.

821

(M) "RBC" instructions" means the RBC report, including	822
risk-based capital instructions, as adopted by the NAIC and as	823
amended by the NAIC from time to time in accordance with the	824
procedures adopted by the NAIC. However, no NAIC amendment to the	825
RBC instructions shall become effective until the superintendent	826
has adopted by rule the RBC instructions as so amended. "RBC	827
instructions" shall also include any modifications adopted by the	828
superintendent, as the superintendent considers to be necessary.	829

(N) "RBC level" means an insurer's company action level RBC,	830
regulatory action level RBC, authorized control level RBC, or	831
mandatory control level RBC.	832

(O) "RBC plan" means a comprehensive financial plan	833
containing the elements specified in division (B) of section	834
3903.83 of the Revised Code.	835

(P) "Revised RBC plan" means an RBC plan rejected by the	836
superintendent of insurance and then revised by an insurer with or	837
without incorporating the superintendent of insurance's	838
recommendation.	839

(Q) "RBC report" means the report required by section	840
3903.82 of the Revised Code.	841

(R) "Regulatory action level RBC" means the product of 1.5	842
and an insurer's authorized control level RBC.	843

(S) "Total adjusted capital" means the sum of both of the	844
following:	845

(1) An insurer's statutory capital and surplus as determined	846
in accordance with the statutory accounting applicable to the	847
annual statements prepared on a form adopted under section 3905.29	848
3901.77 of the Revised Code, as required to be filed by sections	849
3907.19, 3909.06, and 3929.30 of the Revised Code;	850

(2) Such other items, if any, as the RBC instructions may	851
provide.	852

Sec. 3905.01.  As used in this chapter:

853

(A) "Business entity" means a corporation, association,	854
partnership, limited liability company, limited liability	855
partnership, or other legal entity.	856

(B) "Home state" means the state or territory of the United	857
States, including the District of Columbia, in which an insurance	858
agent maintains the insurance agent's principal place of residence	859
or principal place of business and is licensed to act as an	860
insurance agent.	861

(C) "Insurance" means any of the lines of authority set	862
forth in Chapter 1739., 1751., or 1761. or Title XXXIX of the	863
Revised Code, or as additionally determined by the superintendent	864
of insurance.	865

(D) "Insurance agent" or "agent" means any person that, in	866
order to sell, solicit, or negotiate insurance, is required to be	867
licensed under the laws of this state, including limited lines	868
insurance agents and surplus line brokers.	869

(E) "Insurer" has the same meaning as in section 3901.32 of	870
the Revised Code.	871

(F) "License" means the authority issued by the	872
superintendent to a person to act as an insurance agent for the	873
lines of authority specified, but that does not create any actual,	874
apparent, or inherent authority in the person to represent or	875
commit an insurer.	876

(G) "Limited line credit insurance" means credit life,	877
credit disability, credit property, credit unemployment,	878
involuntary unemployment, mortgage life, mortgage guaranty,	879
mortgage disability, guaranteed automobile protection insurance,	880
or any other form of insurance offered in connection with an	881
extension of credit that is limited to partially or wholly	882
extinguishing that credit obligation and that is designated by the	883
superintendent as limited line credit insurance.	884

(H) "Limited line credit insurance agent" means a person	885
that sells, solicits, or negotiates one or more forms of limited	886
line credit insurance to individuals through a master, corporate,	887
group, or individual policy.	888

(I) "Limited lines insurance" means those lines of	889
authority set forth in division (B)(7) to (10) of section 3905.06	890
of the Revised Code or in rules adopted by the superintendent, or	891
any lines of authority the superintendent considers necessary to	892
recognize for purposes of complying with division (B) of section	893
3905.072 of the Revised Code.	894

(J) "Limited lines insurance agent" means a person	895
authorized by the superintendent to sell, solicit, or negotiate	896
limited lines insurance.	897

(K) "NAIC" means the national association of insurance	898
commissioners.	899

(L) "Negotiate" means to confer directly with, or offer	900
advice directly to, a purchaser or prospective purchaser of a	901
particular contract of insurance with respect to the substantive	902
benefits, terms, or conditions of the contract, provided the	903
person that is conferring or offering advice either sells	904
insurance or obtains insurance from insurers for purchasers.	905

(M) "Person" means an individual or a business entity.

906

(N) "Sell" means to exchange a contract of insurance by any	907
means, for money or its equivalent, on behalf of an insurer.	908

(O) "Solicit" means to attempt to sell insurance, or to ask	909
or urge a person to apply for a particular kind of insurance from	910
a particular insurer.	911

(P) "Superintendent" or "superintendent of insurance" means	912
the superintendent of insurance of this state.	913

(Q) "Terminate" means to cancel the relationship between an	914
insurance agent and the insurer or to terminate an insurance	915
agent's authority to transact insurance.	916

(R) "Uniform application" means the NAIC uniform application	917
for resident and nonresident agent licensing, as amended by the	918
NAIC from time to time.	919

(S) "Uniform business entity application" means the NAIC	920
uniform business entity application for resident and nonresident	921
business entities, as amended by the NAIC from time to time.	922

Sec. 3905.02. No person shall sell, solicit, or negotiate	923
insurance in this state unless the person is licensed for that	924
line of authority in accordance with this chapter.	925

Sec. 3905.03. (A) Section 3905.02 of the Revised Code does	926
not apply to any of the following:	927

(1) Any insurer. For purposes of this division, "insurer"	928
does not include an insurer's officers, directors, employees,	929
subsidiaries, or affiliates.	930

(2) Any officer, director, or employee of an insurer or of	931
an insurance agent, provided the officer, director, or employee	932
does not receive any commission on policies written or sold to	933
insure risks residing, located, or to be performed in this state	934
and any of the following applies:	935

(a) The activities of the officer, director, or employee	936
are executive, administrative, managerial, clerical, or any	937
combination thereof, and are only indirectly related to the sale,	938
solicitation, or negotiation of insurance.	939

(b) The function of the officer, director, or employee	940
relates to underwriting, loss control, inspection, or the	941
processing, adjusting, investigation, or settling of a claim on a	942
contract of insurance.	943

(c) The officer, director, or employee is acting in the	944
capacity of a special agent or agency supervisor, provided the	945
activities of the officer, director, or employee are limited to	946
providing technical advice and assistance to licensed insurance	947
agents and do not include the sale, solicitation, or negotiation	948
of insurance.	949

(3) Any person who secures and furnishes information for	950
purposes of group life insurance, group property and casualty	951
insurance, group annuities, or group or blanket accident and	952
health insurance, or for purposes of enrolling individuals under	953
plans, issuing certificates under plans, or otherwise assisting in	954
administering plans, or who performs administrative services	955
related to mass marketed property and casualty insurance, provided	956
that no commission is paid to the person for any of the services	957
described in this division;	958

(4) Any employer or association, any officer, director, or	959
employee of an employer or association, or any trustee of an	960
employee trust plan, to the extent that any such person is engaged	961
in the administration or operation of an employee benefits program	962
for the employer's or association's own employees or for the	963
employees of its subsidiaries or affiliates, if both of the	964
following apply:	965

(a) The employee benefits program involves the use of	966
insurance contracts issued by an insurer.	967

(b) The employer, association, officer, director, employee,	968
or trustee is not in any manner compensated, either directly or	969
indirectly, by the insurer issuing the insurance contracts.	970

(5) Any employee of an insurer or of an organization	971
employed by an insurer, if the employee is engaged in the	972
inspection, rating, or classification of risks or in the	973
supervision of the training of insurance agents, and is not	974
individually engaged in the sale, solicitation, or negotiation of	975
insurance;	976

(6) Any person whose activities in this state are limited	977
to advertising through communications in printed publications or	978
in the electronic mass media, the distribution of which is not	979
limited to residents of this state, if the person does not sell,	980
solicit, or negotiate insurance covering risks residing, located,	981
or to be performed in this state;	982

(7) Any person who is not a resident of this state and	983
who sells, solicits, or negotiates a contract of insurance	984
covering commercial property and casualty risks located in more	985
than one state, if the person is licensed as an insurance agent to	986
sell, solicit, or negotiate that insurance contract in the state	987
where the insured maintains its principal place of business and	988
the contract insures risks located in that state;	989

(8) Any salaried full-time employee who counsels or advises	990
the employee's employer with respect to the insurance interests of	991
the employer or of the employer's subsidiaries or business	992
affiliates, if the employee does not sell or solicit insurance or	993
receive a commission;	994

(9) Any employee of an insurer or of an insurance agent who,	995
at the direction of the insurer or agent, performs any of the	996
following activities:	997

(a) The acceptance of premiums other than the initial	998
premium;	999

(b) The gathering of information, such as names,	1000
addresses, expiration dates of current insurance, and names of	1001
current insurers;	1002

(c) The setting of appointments for insurance agents,	1003
provided that the individual setting the appointment does not	1004
communicate any information about insurance;	1005

(d) The servicing of existing insurance policies issued by	1006
or through the employee's employer, provided the servicing is not	1007
part of a solicitation;	1008

(e) The performance of clerical or ministerial duties.

1009

(10) Any employee of a creditor with respect to limited line	1010
credit insurance products, as long as the employee of the creditor	1011
is not paid by, and does not receive a fee, commission, or any	1012
other form of compensation from, an insurance agent or insurance	1013
company.	1014

(B) The superintendent of insurance may adopt rules in	1015
accordance with Chapter 119. of the Revised Code to set forth the	1016
specific acts the performance of which either require or do not	1017
require licensure as an insurance agent.	1018

Sec. 3905.04.  (A) Except as otherwise provided in section	1019
3905.041 of the Revised Code, a resident individual applying for	1020
an insurance agent license for any of the lines of authority	1021
described in division (B) of this section shall take a written	1022
examination. The examination shall test the knowledge of the	1023
individual with respect to the lines of authority for which	1024
application is made, the duties and responsibilities of an	1025
insurance agent, and the insurance laws of this state. Before	1026
admission to the examination, each individual shall pay the	1027
nonrefundable fee required under division (D) of section 3905.40	1028
of the Revised Code.	1029

(B) The examination described in division (A) of this	1030
section shall be required for the following lines of authority:	1031

(1) Any of the lines of authority set forth in divisions	1032
(B)(1) to (6) of section 3905.06 of the Revised Code;	1033

(2) Title insurance;

1034

(3) Surety bail bonds as provided in sections 3905.83 to	1035
3905.95 of the Revised Code;	1036

(4) Any other line of authority designated by the	1037
superintendent of insurance.	1038

(C) An individual shall not be permitted to take the	1039
examination described in division (A) of this section unless one	1040
or both of the following apply:	1041

(1) The individual has earned a bachelor's or associate's	1042
degree in insurance from an accredited institution.	1043

(2) The individual has completed, for each line of	1044
authority for which the individual has applied, twenty hours of	1045
study in a program of insurance education approved by the	1046
superintendent, in consultation with the insurance agent education	1047
advisory council, under criteria established by the	1048
superintendent. Division (C)(2) of this section does not apply	1049
with respect to title insurance or any other line of authority	1050
designated by the superintendent.	1051

(D) An individual who fails to appear for an examination as	1052
scheduled, or fails to pass an examination, may reapply for the	1053
examination if the individual pays the required fee and submits	1054
any necessary forms prior to being rescheduled for the	1055
examination.	1056

(E)(1) The superintendent may, in accordance with Chapter	1057
119. of the Revised Code, adopt any rule necessary for the	1058
implementation of this section.	1059

(2) The superintendent may make any necessary arrangements,	1060
including contracting with an outside testing service, for the	1061
administration of the examinations and the collection of the fees	1062
required by this section.	1063

Sec. 3905.041.  (A)(1) An individual who applies for a	1064
resident insurance agent license in this state within ninety days	1065
after establishing a principal place of residence or principal	1066
place of business in this state shall not be required under	1067
section 3905.04 of the Revised Code to complete a program of	1068
insurance education or to pass a written examination if either of	1069
the following applies:	1070

(a) The individual is currently licensed in another state	1071
and is in good standing for the line or lines of authority	1072
requested.	1073

(b) The individual was previously licensed in another state,	1074
the individual's application for a resident insurance agent	1075
license in this state is received within ninety days after the	1076
cancellation of the individual's previous license, and, at the	1077
time of license cancellation, the individual was in good standing	1078
for the line or lines of authority requested.	1079

(2) To determine an applicant's licensure and standing	1080
status in another state, the superintendent of insurance may	1081
utilize the producer database maintained by the NAIC or its	1082
affiliates or subsidiaries. If that information is not available	1083
on the producer database, the superintendent may require a	1084
certification letter from the prior home state.	1085

(B) An individual who applies for a temporary insurance agent	1086
license in this state shall not be required under section 3905.04	1087
of the Revised Code to complete any prelicensing education or to	1088
pass a written examination.	1089

(C) The superintendent may exempt any limited lines	1090
insurance from the examination requirement of section 3905.04 of	1091
the Revised Code.	1092

Sec. 3905.05.  (A) A natural person shall apply for a	1093
resident insurance agent license by submitting to the	1094
superintendent of insurance the uniform application or any other	1095
application prescribed by the superintendent, any additional	1096
information required by the superintendent, and a declaration made	1097
under penalty of refusal, suspension, or revocation of the	1098
license, that the statements made in the application are true,	1099
correct, and complete to the best of the applicant's knowledge and	1100
belief.	1101

The applicant shall also request a criminal records check	1102
conducted by the superintendent of the bureau of criminal	1103
identification and investigation in accordance with section	1104
109.572 of the Revised Code, and direct that the bureau's written	1105
response to that request be transmitted to the superintendent of	1106
insurance, or to the superintendent's designee, as specified on	1107
the form prescribed pursuant to that section. The superintendent	1108
of insurance, in the superintendent's discretion, may designate	1109
other governmental agencies or other sources to conduct the	1110
criminal records check. If the superintendent of insurance or the	1111
superintendent's designee fails to receive a response to a	1112
requested criminal records check, or if the applicant fails to	1113
request the criminal records check, the superintendent may refuse	1114
to issue a license under this section. The applicant shall pay	1115
any fee required for conducting the criminal records check.	1116

(B) A business entity acting as an insurance agent shall	1117
apply for a resident insurance agent license by submitting to the	1118
superintendent of insurance the uniform business entity	1119
application or any other application prescribed by the	1120
superintendent.	1121

(C) The superintendent may require an applicant to submit	1122
any document reasonably necessary to verify the information	1123
contained in an application.	1124

Sec. 3905.06. (A)(1) The superintendent of insurance shall	1125
issue a resident insurance agent license to an individual	1126
applicant whose home state is Ohio, if the superintendent finds	1127
all of the following:	1128

(a) The applicant is at least eighteen years of age.

1129

(b) The applicant has not committed any act that is a	1130
ground for the denial, suspension, or revocation of a license	1131
under section 3905.14 of the Revised Code.	1132

(c) If required under section 3905.04 of the Revised Code,	1133
the applicant has completed a program of insurance education for	1134
each line of authority for which the applicant has applied.	1135

(d) If required under section 3905.04 of the Revised Code,	1136
the applicant has passed an examination for each line of authority	1137
for which the applicant has applied.	1138

(e) The applicant is of good reputation and character, is	1139
honest and trustworthy, and is otherwise suitable to be licensed.	1140

(2) The superintendent shall issue a resident insurance	1141
agent license to a business entity applicant if the superintendent	1142
finds all of the following:	1143

(a) The applicant either is domiciled in Ohio or maintains	1144
its principal place of business in Ohio.	1145

(b) The applicant has designated a licensed insurance agent	1146
who will be responsible for the applicant's compliance with the	1147
insurance laws of this state.	1148

(c) The applicant has not committed any act that is a	1149
ground for the denial, suspension, or revocation of a license	1150
under section 3905.14 of the Revised Code.	1151

(B) An insurance agent license issued pursuant to division	1152
(A) of this section shall state the licensee's name, the license	1153
number, the date of issuance, the date the license expires, the	1154
line or lines of authority for which the licensee is qualified,	1155
and any other information the superintendent deems necessary.	1156

A licensee may be qualified for any of the following lines	1157
of authority:	1158

(1) Life, which is insurance coverage on human lives,	1159
including benefits of endowment and annuities, and may include	1160
benefits in the event of death or dismemberment by accident and	1161
benefits for disability income;	1162

(2) Accident and health, which is insurance coverage for	1163
sickness, bodily injury, or accidental death, and may include	1164
benefits for disability income;	1165

(3) Property, which is insurance coverage for the direct or	1166
consequential loss or damage to property of any kind;	1167

(4) Casualty, which is insurance coverage against legal	1168
liability, including coverage for death, injury, or disability or	1169
damage to real or personal property;	1170

(5) Variable life and variable annuity products, which is	1171
insurance coverage provided under variable life insurance	1172
contracts and variable annuities;	1173

(6) Personal lines, which is property and casualty	1174
insurance coverage sold to individuals and families for	1175
noncommercial purposes;	1176

(7) Credit, which is limited line credit insurance;

1177

(8) Title, which is insurance coverage against loss or	1178
damage suffered by reason of liens against, encumbrances upon,	1179
defects in, or the unmarketability of, real property;	1180

(9) Surety bail bond, which is the authority set forth in	1181
sections 3905.83 to 3905.95 of the Revised Code;	1182

(10) Any other line of authority designated by the	1183
superintendent.	1184

(C) A resident insurance agent license shall be perpetual	1185
unless surrendered by the licensee or suspended or revoked by the	1186
superintendent.	1187

Sec. 3905.061.  (A) If a person licensed as an insurance	1188
agent under section 3905.06 of the Revised Code changes the	1189
person's address within the state, the person shall, within thirty	1190
days after making that change, file a change of address with the	1191
superintendent of insurance.	1192

(B)(1) If a person licensed as an insurance agent under	1193
section 3905.06 of the Revised Code changes the person's state of	1194
residence, the person shall, within thirty days after making that	1195
change, file a change of address with the superintendent and	1196
provide the superintendent with certification from the new state	1197
of residence.	1198

(2) If an insurance agent complies with division (B)(1) of	1199
this section, the agent's license shall be changed to that of a	1200
nonresident license and no fee or license application shall be	1201
required.	1202

Sec. 3905.07. (A) The superintendent of insurance shall	1203
issue a nonresident insurance agent license to an applicant that	1204
is a nonresident person if the superintendent finds all of the	1205
following:	1206

(1) The applicant is currently licensed as a resident and	1207
is in good standing in the applicant's home state.	1208

(2) The applicant has submitted the request for licensure	1209
prescribed by the superintendent.	1210

(3) The applicant has submitted or has had transmitted to	1211
the superintendent the application for licensure that the	1212
applicant submitted to the applicant's home state or a completed	1213
uniform application or uniform business entity application, as	1214
applicable.	1215

(4) The applicant has not committed any act that is a ground	1216
for the denial, suspension, or revocation of a license under	1217
section 3905.14 of the Revised Code.	1218

(5) The applicant is of good reputation and character, is	1219
honest and trustworthy, and is otherwise suitable to be licensed.	1220

(6) The applicant's home state issues nonresident insurance	1221
agent licenses to residents of this state on the same basis as set	1222
forth in division (A) of this section.	1223

(B) To determine an applicant's licensure and standing status	1224
in another state, the superintendent may utilize the producer	1225
database maintained by the NAIC or its affiliates or subsidiaries.	1226
If that information is not available on the producer database, the	1227
superintendent may require a certification letter from the prior	1228
home state.	1229

(C) A nonresident insurance agent license shall be perpetual	1230
unless surrendered by the licensee or suspended or revoked by the	1231
superintendent.	1232

Sec. 3905.071. (A)(1) If a nonresident person licensed as a	1233
nonresident insurance agent under section 3905.07 of the Revised	1234
Code changes the person's address within the person's state of	1235
residence, the person shall, within thirty days after making that	1236
change, file a change of address with the superintendent of	1237
insurance.	1238

(2) If a nonresident person licensed as a nonresident	1239
insurance agent under section 3905.07 of the Revised Code changes	1240
the person's state of residence or the state in which the person's	1241
principal place of business is located, the person shall, within	1242
thirty days after making that change, file a change of address	1243
with the superintendent and provide the superintendent with	1244
certification from the new state of residence or the new state in	1245
which the principal place of business is located.	1246

(B) If a nonresident insurance agent complies with division	1247
(A) of this section, no fee or license application shall be	1248
required.	1249

Sec. 3905.072. Notwithstanding any other provision of this	1250
chapter, the superintendent of insurance shall issue to a	1251
nonresident person licensed as a limited line credit insurance	1252
agent or other type of limited lines insurance agent in the	1253
person's home state a nonresident limited lines insurance agent	1254
license in accordance with division (A) of section 3905.07 of the	1255
Revised Code, with the same scope of authority as the person has	1256
under the license issued by the person's home state. However, the	1257
recognition of a limited lines authority under this section shall	1258
not create any new line of authority.	1259

For purposes of this section, "limited lines insurance"	1260
means any authority granted by the home state that is less than	1261
the total authority provided in the associated major lines set	1262
forth in divisions (B)(1) to (6) of section 3905.06 of the Revised	1263
Code.	1264

Sec. 3905.08. (A) The superintendent of insurance shall	1265
waive all requirements under this chapter for a nonresident	1266
insurance agent license, except the requirements set forth in	1267
sections 3905.07 to 3905.072 of the Revised Code, for every	1268
applicant that is currently licensed as a resident agent and is in	1269
good standing in the applicant's home state, if the applicant's	1270
home state awards nonresident agent licenses to residents of this	1271
state on the same basis.	1272

(B) A nonresident insurance agent's satisfaction of the	1273
continuing education requirements for insurance agents of the	1274
agent's home state shall constitute satisfaction of the continuing	1275
education requirements for insurance agents of this state as set	1276
forth in section 3905.481 of the Revised Code.	1277

Sec. 3905.081. Notwithstanding any other provision of this	1278
chapter, the superintendent of insurance may waive any licensing	1279
requirement for nonresident persons that the superintendent	1280
determines is in violation of the reciprocity requirements set	1281
forth in section 321 of the "Financial Services Modernization Act	1282
of 1999," 113 Stat. 1338, 15 U.S.C.A. 6751.	1283

Sec. 3905.09.  (A) The superintendent of insurance may	1284
issue a temporary insurance agent license to any of the following	1285
persons, if the superintendent determines that the license is	1286
necessary for the servicing of insurance business:	1287

(1) The surviving spouse or court-appointed personal	1288
representative of a licensed insurance agent who dies or becomes	1289
mentally or physically disabled, to allow adequate time for the	1290
sale of the insurance business owned by the agent or for the	1291
recovery or return of the agent to the business, or to provide	1292
for the training and licensing of new personnel to operate the	1293
agent's business;	1294

(2) A member or employee of a business entity licensed as	1295
an insurance agent, upon the death or disability of the sole or	1296
remaining licensed insurance agent;	1297

(3) The designee of a licensed insurance agent entering	1298
active service in the United States armed forces;	1299

(4) Any other person if the superintendent determines that	1300
the public interest will best be served by the issuance of the	1301
license.	1302

(B) A temporary license issued under division (A) of this	1303
section shall remain in force for a period not to exceed one	1304
hundred eighty days. However, a temporary license may not	1305
continue in force under any of the circumstances described in	1306
division (A) of this section after the owner of the business or	1307
the owner's personal representative disposes of the business.	1308

(C) The superintendent may, by order, limit the authority of	1309
any temporary license in any way deemed necessary to protect	1310
insureds and the public. The superintendent may also, by order,	1311
rescind a temporary license if the interests of insureds or the	1312
public are endangered.	1313

(D) A temporary licensee shall be sponsored by a licensed	1314
insurance agent or insurer, which sponsor shall be responsible for	1315
all acts of the licensee. The superintendent may impose any other	1316
requirement on temporary licensees that the superintendent	1317
considers necessary to protect insureds and the public.	1318

(E) Chapter 119. of the Revised Code shall not apply to the	1319
issuance, restriction, or rescission of a temporary license under	1320
this section.	1321

Sec. 3905.03.        Sec. 3905.10.  (A) Any property, casualty, personal,	1322
or title agent authorizedqualified and licensed as provided in	1323
section 3905.02 of the Revised Codethis chapter, and appointed to	1324
represent one or more insurance corporations within this state,	1325
may appoint as many solicitors as the agent desires to represent	1326
the agent and the agent's agency, but the solicitors shall not	1327
represent themselves, by advertisement or otherwise, as agents of	1328
insurance companies for which their employer may be the authorized	1329
agent, and the solicitors shall in all instances represent	1330
themselves only as solicitors for the agent.	1331

Each agent that employs a person asTo be eligible for	1332
appointment, a solicitor shall certify to the superintendent of	1333
insurance that the person is competent, financially responsible,	1334
and suitable to represent the agent. Upon written notice by any	1335
such agent that the agent has employed a person as a solicitor,	1336
the superintendent shall issue to the solicitor an appointment in	1337
the form prepared by the superintendent, if the superintendent is	1338
satisfied that:	1339

(1) The solicitor is a suitable person and intends to hold	1340
self out in good faith as a solicitor.	1341

(2) The solicitor is honest and trustworthy.

1342

(3) The solicitor has training or instruction in the	1343
business and understands the duties and obligations of a	1344
solicitor.	1345

(4) The solicitor ismust be qualified and licensed as a	1346
property, casualty, personal, or title agent under section 3905.02	1347
of the Revised Code, is familiar with the insurance laws,this	1348
chapter and isbe familiar with the provisions of the policies and	1349
contracts of insurance the solicitor proposes to solicit.	1350

(5) It is not the solicitor's purpose or intention	1351
principally to solicit or place insurance on the solicitor's own	1352
property or that of relatives, employers, or employees or that for	1353
which they or the solicitor is agent, custodian, vendor, bailee,	1354
trustee, or payee.	1355

(6) On and after July 1, 1987, the solicitor has completed	1356
the prelicensing educational requirements set forth in section	1357
3905.48 of the Revised Code.	1358

Notice shall be upon a form furnished by the superintendent	1359
and shall be accompanied by a statement under oath by the	1360
solicitor which gives the solicitor's name, age, residence,	1361
present occupation, the solicitor's occupation for the five years	1362
next preceding the date of the notice, the kinds of insurance the	1363
solicitor wishes to solicit, and such other information as the	1364
superintendent requires, upon a blank furnished by the	1365
superintendent.	1366

(B) If the solicitor within the preceding two years has not	1367
been licensed in this state as an insurance agent for other than	1368
life insurance under section 3905.02 of the Revised Code, the	1369
solicitor shall submit to an examination as to the qualifications	1370
set forth in divisions (A)(1) to (5) of this section.	1371

(C) A solicitor who did not hold a license as solicitor	1372
prior to January 1, 1967, may be appointed only if the solicitor	1373
is qualified for the same class or classes of insurance for which	1374
the agent employing the solicitor is licensed. A solicitor may	1375
solicit only those lines of insurance for which both the solicitor	1376
and the appointing agent are licensed. No solicitor shall be	1377
appointed by more than one agent.	1378

Unless the solicitor's license is revoked or suspended by the	1379
superintendent of insurance, such appointment may, in the	1380
discretion of the superintendent, and at the request of the agent	1381
who employs the solicitor and the payment of the required fee, be	1382
continued past the thirtieth day of June next after its issue and	1383
after the thirtieth day of June each succeeding year. Each agent	1384
shall certify to the superintendent, before the thirtieth day of	1385
June each year, the names and addresses of the solicitors the	1386
agent has employed during the preceding year, indicating those for	1387
whom the agent wishes appointments to be continued.	1388

The agent giving written notice shall pay to the	1389
superintendent a fee of twenty dollars for every such appointment	1390
and for each continuance thereof. The issuance of a solicitor's	1391
appointment shall be limited to a natural person.	1392

Sec. 3905.11.  An insurance agent that intends to do	1393
business in this state under any name other than the agent's legal	1394
name shall notify the superintendent of insurance prior to using	1395
the assumed name.	1396

Sec. 3905.12.  (A) The superintendent of insurance may	1397
adopt rules in accordance with Chapter 119. of the Revised Code to	1398
do the following:	1399

(1) Establish procedures for the issuance and renewal of	1400
insurance agent licenses;	1401

(2) Provide for the issuance of limited authority licenses,	1402
and establish any prelicensing education, examination, or	1403
continuing education requirements the superintendent considers	1404
appropriate for such a license.	1405

(B) To assist the superintendent in carrying out the	1406
superintendent's duties under this chapter, the superintendent may	1407
contract with any nongovernmental entity, including the NAIC and	1408
its affiliates or subsidiaries, to perform any ministerial	1409
function related to insurance agent licensing, including the	1410
collection of fees, that the superintendent and the entity	1411
consider appropriate.	1412

Sec. 3905.49.        Sec. 3905.14.  (A) As used in this sectionsections	1413
3905.14 to 3905.16 of the Revised Code:	1414

(1) "Insurer" has the same meaning as in section 3901.32 of	1415
the Revised CodeInsurance agent" includes a limited lines	1416
insurance agent, surety bail bond agent, and surplus line broker.	1417

(2) "Refusal to issue or renew" means the decision of the	1418
superintendent of insurance not to process either the initial	1419
application for a license as an agent or the renewal of such a	1420
license.	1421

(3) "Revocation" means the permanent termination of all	1422
authority to hold any license as an agent in this state.	1423

(4) "Surrender for cause" means the voluntary termination of	1424
all authority to hold any license as an agent in this state, in	1425
lieu of a revocation or suspension order.	1426

(5) "Suspension" means the termination of all authority to	1427
hold any license as an agent in this state, for either a specified	1428
period of time or an indefinite period of time and under any terms	1429
or conditions determined by the superintendent.	1430

(B) The superintendent may suspend, revoke, or refuse to	1431
issue or renew any license asof an insurance agent, surety bail	1432
bond agent, surplus line broker, or limited insurance	1433
representativeassess a civil penalty, or impose any other	1434
sanction or sanctions authorized under this chapter, for one or	1435
more of the following reasons:	1436

(1) Obtaining or attempting to obtain any license or	1437
appointment through misrepresentationProviding incorrect,	1438
misleading, incomplete, or fraud, including making any materially	1439
untrue statementinformation in an application for a license or	1440
appointment application;	1441

(2) Violating or failing to comply with any insurance law,	1442
rule, subpoena, consent agreement, or order of the superintendent	1443
or of the insurance authority of another state;	1444

(3) MisappropriatingObtaining or attempting to obtain a	1445
license through misrepresentation or fraud;	1446

(4) Improperly withholding, misappropriating, or	1447
converting to the person's own use any moneys belonging to	1448
policyholders, prospective policyholders, beneficiaries, insurance	1449
companies, sureties, principals,money or othersproperty received	1450
in the course of the person'sdoing insurance business;	1451

(4) Failing to timely submit an application for insurance.	1452
For purposes of division (B)(4) of this section, a submission is	1453
considered timely if it occurs within the time period expressly	1454
provided for by the insurer, or within seven days after the agent	1455
accepts a premium or an order to bind from a policyholder or	1456
applicant, whichever is later.	1457

(5) KnowinglyIntentionally misrepresenting the terms,	1458
benefits, value, cost, or effective dates of any actual or	1459
proposed insurance policy, contract, or bondapplication for	1460
insurance;	1461

(6) BeingHaving been convicted of a felony;

1462

(7) BeingHaving been convicted of a misdemeanor that	1463
involves the misuse or theft of money or property belonging to	1464
another, fraud, forgery, dishonest acts, or breach of a fiduciary	1465
duty, or that is based on any act or omission relating to the	1466
business of insurance, securities, or financial services, or that	1467
involves moral turpitude;	1468

(8) Committing anHaving admitted to committing, or having	1469
been found to have committed, any insurance unfair trade act or	1470
practice under any section of Title XXXIX of the Revised Code or	1471
any rule adopted thereunderinsurance fraud;	1472

(9) Using fraudulent, coercive, or dishonest practices, or	1473
demonstrating incompetence, untrustworthiness, or financial	1474
irresponsibility, in the conduct of business in this state or	1475
elsewhere;	1476

(10) Having an insurance agent license, or its equivalent,	1477
denied, suspended, or revoked in any other state, province,	1478
district, or territory;	1479

(10)(11) Forging or causing the forgery of another's name to	1480
an application for insurance or any document related to or used in	1481
an insurance transaction;	1482

(11) Possessing or(12) Improperly using notes or any	1483
unauthorized materials during a licensing or continuing education	1484
examination or cheating on a licensing or continuing education	1485
other reference material to complete an examination for an	1486
insurance agent license;	1487

(12)(13) Knowingly accepting insurance business from an	1488
individual who is not licensed;	1489

(14) Failing to comply with an administrative or court	1490
order imposing a child support obligation;	1491

(15) Failing to comply with any administrative or court	1492
order directing payment of state income tax;	1493

(16) Failing to timely submit an application for	1494
insurance. For purposes of division (B)(16) of this section, a	1495
submission is considered timely if it occurs within the time	1496
period expressly provided for by the insurer, or within seven days	1497
after the insurance agent accepts a premium or an order to bind	1498
coverage from a policyholder or applicant for insurance, whichever	1499
is later.	1500

(17) Failing to disclose to an applicant for insurance or	1501
policyholder upon accepting a premium or an order to bind coverage	1502
from the applicant or policyholder, that the person has not been	1503
appointed as agent by the insurer and is not an appointed	1504
solicitor of an appointed agent;	1505

(13)(18) Having any professional license suspended or	1506
revoked as a result of a mishandling of funds or breach of	1507
fiduciary responsibilities or having been subject to a cease and	1508
desist order or permanent injunction for unlicensed activities;	1509

(14)(19) Causing or permitting a policyholder or applicant	1510
for insurance to designate the personinsurance agent or the	1511
person'sinsurance agent's spouse, parent, child, or sibling as	1512
the beneficiary of a policy or annuity sold by the person	1513
insurance agent, unless the personinsurance agent or a relative	1514
of the personinsurance agent is the insured or applicant;	1515

(15)(20) Failing to provide a written response to the	1516
department of insurance within thirtytwenty-one calendar days	1517
after receipt of any written inquiry from the department, unless a	1518
reasonable extension of time has been requested of, and granted	1519
by, the superintendent;	1520

(16) Failing to notify the superintendent of any change in	1521
the person's address, within thirty days after the change occurs,	1522
as required by section 3905.54 of the Revised Code;	1523

(17)(21) Transferring or placing insurance with an insurer	1524
other than the insurer expressly chosen by the applicant for	1525
insurance or policyholder without the consent of the applicant or	1526
policyholder or absent extenuating circumstances;	1527

(18) Engaging in any fraudulent, dishonest, or coercive	1528
practice in connection with the business of insurance;	1529

(19)(22) Failing to inform a policyholder or applicant for	1530
insurance of the identity of the insurer or insurers, or the	1531
identity of any other insurance agent, general agent, surplus line	1532
broker, or licensee known to be involved in procuring, placing, or	1533
continuing the insurance for the policyholder or applicant, upon	1534
the binding of the coverage;	1535

(20)(23) In the case of an agent that is a corporation,	1536
limited liability company, or partnershipbusiness entity, failing	1537
to report an individual licensee's violation to the department	1538
when the violation was known or should have been known by one or	1539
more of the partners, officers, managers, or members of the	1540
corporation, limited liability company, or partnershipbusiness	1541
entity;	1542

(21)(24) Submitting or using a document in the conduct of	1543
the business of insurance when the person knew or should have	1544
known that the document contained the forged signature of another	1545
person;	1546

(22)(25) Misrepresenting the person's qualifications or	1547
using in any way a professional designation that has not been	1548
conferred upon the person by the appropriate accrediting	1549
organization;	1550

(23)(26) Obtaining a premium loan or causing a premium loan	1551
to be made to or in the name of an insured without that person's	1552
knowledge and written authorization;	1553

(24) Failing to notify the superintendent of any	1554
disciplinary action taken by the insurance authority of another	1555
state, within sixty days after the action was taken, as required	1556
by section 3905.54 of the Revised Code;	1557

(25) Failing to file any of the reports or notices required	1558
under this chapter;	1559

(26) Submitting an application for insurance, or causing the	1560
issuance of an insurance policy or contract, on behalf of an	1561
applicant who did not request or authorize the insurance. Division	1562
(B)(26) of this section does not apply to any policy issued by an	1563
other than life insurance company.	1564

(27) Using paper, software, or any other materials of or	1565
provided by an insurer after the insurer has terminated the	1566
authority of the licensee, if the use of such materials would	1567
cause a reasonable person to believe that the licensee was acting	1568
on behalf of or otherwise representing the insurer;	1569

(28) Providing misleading, deceptive, or untrue information	1570
to an applicant for insurance or a policyholder regarding a	1571
particular insurance agent, company, or product;	1572

(29) Soliciting, procuring an application for, or placing,	1573
either directly or indirectly, any insurance policy when the	1574
person is not authorized under this chapter to engage in such	1575
activity;	1576

(30)(29) Soliciting, marketing, or selling any product or	1577
service that offers benefits similar to insurance but is not	1578
regulated by the superintendent, without fully disclosing to the	1579
prospective purchaser that the product or service is not insurance	1580
and is not regulated by the superintendent;	1581

(31)(30) Failing to fulfill a refund obligation in a timely	1582
manner. For purposes of division (B)(31)(30) of this section, a	1583
rebuttable presumption exists that a refund obligation is not	1584
fulfilled in a timely manner unless it is fulfilled within one of	1585
the following time periods:	1586

(a) Thirty days after the date the policyholder, applicant,	1587
or insurer takes or requests action resulting in a refund;	1588

(b) Thirty days after the date of the insurer's refund	1589
check, if the agent is expected to issue a portion of the total	1590
refund;	1591

(c) Forty-five days after the date of the agent's statement	1592
of account on which the refund first appears.	1593

(32) The presumption may be rebutted by proof that the	1594
policyholder or applicant consented to the delay or agreed to	1595
permit the agent to apply the refund to amounts due for other	1596
coverages.	1597

(31) With respect to a surety bail bond agent license,	1598
rebating or offering to rebate, or unlawfully dividing or offering	1599
to divide, any commission;	1600

(32) Using a license for the principal purpose of	1601
procuring, receiving, or forwarding applications for insurance of	1602
any kind, other than life, or soliciting, placing, or effecting	1603
such insurance directly or indirectly upon or in connection with	1604
the property of the licensee or that of relatives, employers,	1605
employees, or that for which they or the licensee is an agent,	1606
custodian, vendor, bailee, trustee, or payee;	1607

(33) In the case of an insurance agent that is a business	1608
entity, using a life license for the principal purpose of	1609
soliciting or placing insurance on the lives of the business	1610
entity's officers, employees, or shareholders, or on the lives of	1611
relatives of such officers, employees, or shareholders, or on the	1612
lives of persons for whom they, their relatives, or the business	1613
entity is agent, custodian, vendor, bailee, trustee, or payee;	1614

(34) Offering within this state, in person or by	1615
advertisement, poster, letter, circular, or otherwise, to sell,	1616
procure, or obtain policies, contracts, agreements, or	1617
applications for life insurance or annuities providing fixed,	1618
variable, or fixed and variable benefits, or contractual payments,	1619
or any form of sickness and accident insurance, for or on behalf	1620
of any life insurance corporation, association, or organization,	1621
or mutual protective or mutual benefit association or	1622
organization, not authorized to transact business in this state,	1623
or for or on behalf of any spurious, fictitious, nonexistent,	1624
dissolved, inactive, liquidated or liquidating, or bankrupt life	1625
insurance corporation, association, or organization, or mutual	1626
protective or mutual benefit association or organization.	1627

(C) Before denying, revoking, suspending, or refusing to	1628
issue any license or imposing any penalty under this section or	1629
section 3905.482 of the Revised Code, the superintendent shall	1630
provide the licensee or applicant with notice and an opportunity	1631
for hearing as provided in Chapter 119. of the Revised Code,	1632
except as follows:	1633

(1)(a) Any notice of opportunity for hearing, the hearing	1634
officer's findings and recommendations, or the superintendent's	1635
order shall be served by certified mail at the last known address	1636
of the licensee or applicant. Service shall be evidenced by	1637
return receipt signed by any person.	1638

For purposes of this section, the "last known address" is the	1639
residential address that appears in the licensing records of the	1640
department of insurance.	1641

(b) If the certified mail envelope is returned with an	1642
endorsement showing that service was refused, or that the envelope	1643
was unclaimed, the notice and all subsequent notices required by	1644
Chapter 119. of the Revised Code may be served by ordinary mail to	1645
the last known address of the licensee or applicant. The mailing	1646
shall be evidenced by a certificate of mailing. Service is deemed	1647
complete as of the date of such certificate provided that the	1648
ordinary mail envelope is not returned by the postal authorities	1649
with an endorsement showing failure of delivery. The time period	1650
in which to request a hearing, as provided in Chapter 119. of the	1651
Revised Code, begins to run on the date of mailing.	1652

(c) If service by ordinary mail fails, the superintendent	1653
may cause a summary of the substantive provisions of the notice to	1654
be published once a week for three consecutive weeks in a	1655
newspaper of general circulation in the county where the last	1656
known place of residence or business of the party is located. The	1657
notice is considered served on the date of the third publication.	1658

(d) Any notice required to be served under Chapter 119. of	1659
the Revised Code shall also be served upon the party's attorney by	1660
ordinary mail if the attorney has entered an appearance in the	1661
matter.	1662

(e) The superintendent may, at any time, perfect service on	1663
a party by personal delivery of the notice by an employee of the	1664
department.	1665

(f) Notices regarding the scheduling of hearings and all	1666
other matters not described in division (C)(1)(a) of this section	1667
shall be sent by ordinary mail to the party and to the party's	1668
attorney.	1669

(2) Any subpoena for the appearance of a witness or the	1670
production of documents or other evidence at a hearing, or for the	1671
purpose of taking testimony for use at a hearing, shall be served	1672
by certified mail, return receipt requested, by an attorney or by	1673
an employee of the department designated by the superintendent.	1674
Such subpoenas shall be enforced in the manner provided in section	1675
119.09 of the Revised Code. Nothing in this section shall be	1676
construed as limiting the superintendent's other statutory powers	1677
to issue subpoenas.	1678

(D) If the superintendent determines that a violation	1679
described in this section has occurred, the superintendent may do	1680
anytake one or more of the following actions:	1681

(1) Assess a civil forfeiturepenalty in an amount not	1682
exceeding twenty-five thousand dollars per violation;	1683

(2) Assess administrative costs to cover the expenses	1684
incurred by the department in the administrative action, including	1685
costs incurred in the investigation and hearing processes. Any	1686
costs collected shall be paid into the state treasury to the	1687
credit of the department of insurance operating fund created in	1688
section 3901.021 of the Revised Code.	1689

(3) Suspend all of the person's licenses for all lines of	1690
insurance for either a specified period of time or an indefinite	1691
period of time and under such terms and conditions as the	1692
superintendent may determine;	1693

(4) Permanently revoke all of the person's licenses for all	1694
lines of insurance;	1695

(5) Refuse to issue a license;

1696

(6) Refuse to renew a license;

1697

(7) Prohibit the person from being employed in any capacity	1698
in the business of insurance and from having any financial	1699
interest in any insurance agency, company, surety bail bond	1700
business, or third-party administrator in this state. The	1701
superintendent may, in the superintendent's discretion, determine	1702
the nature, conditions, and duration of such restrictions.	1703

(8) Order corrective actions in lieu of or in addition to	1704
the other penalties listed in division (D) of this section. Such	1705
an order may provide for the suspension of civil forfeitures	1706
penalties, license revocation, license suspension, or refusal to	1707
issue or renew a license if the licensee complies with the terms	1708
and conditions of the corrective action order.	1709

(9) Accept a surrender for cause offered by the licensee,	1710
which shall be for at least five years and shall prohibit the	1711
licensee from seeking any license authorized under this chapter	1712
during that time period. A surrender for cause shall be in lieu	1713
of revocation or suspension and may also include a corrective	1714
action order as provided in division (D)(8) of this section.	1715

(E) The superintendent may consider the following factors in	1716
denying a license, imposing suspensions, revocations, fines, or	1717
other penalties, and issuing orders under this section:	1718

(1) Whether the person acted in good faith;

1719

(2) Whether the person made restitution for any pecuniary	1720
losses suffered by other persons as a result of the person's	1721
actions;	1722

(3) The actual harm or potential for harm to others;

1723

(4) The degree of trust placed in the person by, and the	1724
vulnerability of, persons who were or could have been adversely	1725
affected by the person's actions;	1726

(5) Whether the person was the subject of any previous	1727
administrative actions by the superintendent;	1728

(6) The number of individuals adversely affected by the	1729
person's acts or omissions;	1730

(7) Whether the person voluntarily reported the violation,	1731
and the extent of the person's cooperation and acceptance of	1732
responsibility;	1733

(8) Whether the person obstructed or impeded, or attempted	1734
to obstruct or impede, the superintendent's investigation;	1735

(9) The person's efforts to conceal the misconduct;

1736

(10) Remedial efforts to prevent future violations;

1737

(11) If the person was convicted of a criminal offense, the	1738
nature of the offense, whether the conviction was based on acts or	1739
omissions taken under any professional license, whether the	1740
offense involved the breach of a fiduciary duty, the amount of	1741
time that has passed, and the person's activities subsequent to	1742
the conviction;	1743

(12) Such other factors as the superintendent determines to	1744
be appropriate under the circumstances.	1745

(F)(1) A violation described in division (B)(1), (2), (3),	1746
(4), (5), (6), (7), (8), (9), (10), (11), (12), (13), (14), (15),	1747
(17), (18), (19), (20), (21), (22), (23), (24), (25), (26), (27),	1748
(28), (29), (30), (31), or (32), (33), or (34) of this section is	1749
a class A offense for which the superintendent may impose any	1750
penalty set forth in division (D) of this section.	1751

(2) A violation described in division (B)(4), (15), (16), or	1752
(24)(20) of this section, or a failure to comply with section	1753
3905.061, 3905.071, or 3905.22 of the Revised Code, is a class B	1754
offense for which the superintendent may impose any penalty set	1755
forth in division (D)(1), (2), (8), or (9) of this section.	1756

(G) If a violation described in this section has caused, is	1757
causing, or is about to cause substantial and material harm, the	1758
superintendent may issue an order requiring that person to cease	1759
and desist from engaging in the violation. Notice of the order	1760
shall be mailed by certified mail, return receipt requested, or	1761
served in any other manner provided for in this section,	1762
immediately after its issuance to the person subject to the order	1763
and to all persons known to be involved in the violation. The	1764
superintendent may thereafter publicize or otherwise make known to	1765
all interested parties that the order has been issued.	1766

The notice shall specify the particular act, omission,	1767
practice, or transaction that is subject to the cease-and-desist	1768
order and shall set a date, not more than fifteen days after the	1769
date of the order, for a hearing on the continuation or revocation	1770
of the order. The person shall comply with the order immediately	1771
upon receipt of notice of the order.	1772

The superintendent may, upon the application of a party and	1773
for good cause shown, continue the hearing. Chapter 119. of the	1774
Revised Code applies to such hearings to the extent that that	1775
chapter does not conflict with the procedures set forth in this	1776
section. The superintendent shall, within fifteen days after	1777
objections are submitted to the hearing officer's report and	1778
recommendation, issue a final order either confirming or revoking	1779
the cease-and-desist order. The final order may be appealed as	1780
provided under section 119.12 of the Revised Code.	1781

The remedy under this division is cumulative and concurrent	1782
with the other remedies available under this section.	1783

(H) If the superintendent has reasonable cause to believe	1784
that an order issued under this section has been violated in whole	1785
or in part, the superintendent may request the attorney general to	1786
commence and prosecute any appropriate action or proceeding in the	1787
name of the state against such person.	1788

The court may, in an action brought pursuant to this	1789
division, impose any of the following:	1790

(1) For each violation, a civil penalty of not more than	1791
twenty-five thousand dollars;	1792

(2) Injunctive relief;

1793

(3) Restitution;

1794

(4) Any other appropriate relief.

1795

(I) With respect to a surety bail bond agent license:

1796

(1) Upon the suspension or revocation of a license, or the	1797
eligibility of a surety bail bond agent to hold a license, the	1798
superintendent likewise may suspend or revoke the license or	1799
eligibility of any surety bail bond agent who is employed by or	1800
associated with that agent and who knowingly was a party to the	1801
act that resulted in the suspension or revocation.	1802

(2) The superintendent may revoke a license as a surety bail	1803
bond agent if the licensee is adjudged bankrupt.	1804

(J) This section applies to both resident and nonresident	1805
agents who are licensed under this chapter.	1806

(K) Nothing in this section shall be construed to create or	1807
imply a private cause of action against an agent, solicitor, or	1808
insurer.	1809

Sec. 3905.491.        Sec. 3905.15.  (A) Upon written application of a	1810
person whose license was denied, suspended, revoked, or	1811
surrendered for cause under section 3905.493905.14 of the Revised	1812
Code, the superintendent of insurance shall hold a hearing to	1813
determine whether the administrative action imposing suchthe	1814
denial, suspension, revocation, or surrender should be modified,	1815
provided that all of the following conditions are met:	1816

(1) At least five years have elapsed since the date of the	1817
administrative action sought to be modified;	1818

(2) At least two years have elapsed since any previous	1819
request for a modification was made under this section;	1820

(3) The burden of proof is on the person requesting the	1821
modification.	1822

(B) The modification of an order issued or consent agreement	1823
entered into under section 3905.493905.14 of the Revised Code is	1824
at the discretion of the superintendent. The superintendent may	1825
modify such an order or agreement if the superintendent finds all	1826
of the following:	1827

(1) At least five years have elapsed since the date of the	1828
administrative action;	1829

(2) The person is of good business repute and is suitable to	1830
be an insurance agent;	1831

(3) The person has made restitution for all pecuniary losses	1832
suffered by any person as a result of the conduct that gave rise	1833
to the administrative action;	1834

(4) The person has not been convicted of any felony or of	1835
any misdemeanor described in division (B)(7) of section 3905.49	1836
3905.14 of the Revised Code unless the conviction was the subject	1837
of a previous administrative action by the superintendent;	1838

(5) The circumstances surrounding the previous violation are	1839
such that it is unlikely the person would commit such offenses in	1840
the future;	1841

(6) The person's character has been rehabilitated.

1842

(C) The issuance of any license pursuant to a modification	1843
under this section shall be conditioned upon the successful	1844
completion of all prelicensing education and examination	1845
requirements.	1846

Sec. 3905.012.        Sec. 3905.16.  (A)(1) Except as provided in	1847
division (A)(2) of this section, any person licensed as an agent	1848
under section 3905.02 or 3905.18 of the Revised Code, or appointed	1849
as a solicitor under section 3905.03 of the Revised Code,this	1850
chapter may at any time surrender any or all licenses held by the	1851
person.	1852

(2) No agent shall surrender the agent's licenses if the	1853
superintendent of insurance is investigating any allegation of	1854
wrongdoing by the agent or has initiated proceedings under Chapter	1855
119. of the Revised Code and notice of an opportunity for a	1856
hearing has been issued to the agent, and any attempt to so	1857
surrender is invalid.	1858

(B)(1) If an insurer or agent cancels the appointment of an	1859
agent or solicitor due to suspected fraud, misrepresentation,	1860
theft, conversion, or any other culpable misappropriation, the	1861
insurer or agent shall promptly notify the superintendent. The	1862
notice shall include a complete statement of the facts and the	1863
reasons for the cancellation.	1864

(2) In the absence of fraud or actual malice, an insurer or	1865
agent is immune from any civil liability that otherwise might be	1866
incurred or imposed as a result of any action taken by the insurer	1867
or agent to comply with division (B)(1) of this section.	1868

(C) If an agent's license is surrendered, revoked, or	1869
suspended, all appointments held by the agent are void. If a new	1870
license is issued to that person or if that person's previous	1871
license is reinstated, any appointment of the person to represent	1872
an insurer or agent must be made in accordance with the	1873
requirements of this chapter.	1874

(D)(C)(1) Any agent, other than a corporation, partnership,	1875
or limited liability companybusiness entity, who is no longer	1876
engaged in the business of insurance in any capacity for which an	1877
agent's license is required may apply to the superintendent for	1878
inactive status. The superintendent may grant such status only if	1879
the superintendent is satisfied that the person is not engaged in	1880
and does not intend to engage in any of the activities set forth	1881
in section 3905.013905.02 of the Revised Code that requires an	1882
agent's license.	1883

(2) A person who has been granted inactive status is exempt	1884
from any continuing education requirements imposed under this	1885
chapter.	1886

(3) The superintendent may adopt rules in accordance with	1887
Chapter 119. of the Revised Code to establish procedures for	1888
applying for inactive status, criteria used to determine	1889
eligibility for such status, and standards and procedures for	1890
transferring from inactive to active status.	1891

(E)(D) The superintendent may suspend or revoke a license,	1892
or take any other disciplinary action authorized by this chapter,	1893
regardless of whether the person is appointed or otherwise	1894
authorized to represent an insurer or agent.	1895

Sec. 3905.18.  (A) Neither an insurer nor an insurance	1896
agent shall pay a commission, service fee, brokerage fee, or other	1897
type of consideration to a person for selling, soliciting, or	1898
negotiating insurance in this state, if the person is required to	1899
be licensed by the superintendent of insurance under this chapter	1900
but is not so licensed. However, renewal or other deferred	1901
commissions may be paid to such a person for selling, soliciting,	1902
or negotiating insurance in this state if the person was required	1903
to be licensed under this chapter at the time of the sale,	1904
solicitation, or negotiation and was so licensed at that time.	1905

(B) An insurer shall not pay a commission, service fee,	1906
brokerage fee, or other type of consideration to an insurance	1907
agent for selling, soliciting, or negotiating insurance in this	1908
state, if the insurance agent is required to be appointed by the	1909
insurer but is not so appointed.	1910

(C) An insurer or insurance agent may pay or assign a	1911
commission, service fee, brokerage fee, or other type of	1912
consideration to an insurance agency or to any person who does not	1913
sell, solicit, or negotiate insurance in this state, unless the	1914
payment or assignment is prohibited by section 3911.20, 3933.01,	1915
or 3999.22 of the Revised Code.	1916

Sec. 3905.181.  A person shall not accept a commission,	1917
service fee, brokerage fee, or other type of consideration for	1918
selling, soliciting, or negotiating insurance in this state if	1919
that person is required to be licensed under this chapter and is	1920
not so licensed.	1921

Sec. 3905.181.        Sec. 3905.182.  No person licensed to sell life	1922
insurance under section 3905.18 of the Revised Codethis chapter,	1923
although also licensed to sell securities under section 1707.32 of	1924
the Revised Code, shall sell, or receive any compensation in	1925
regard to the sale of, any shares of capital stock of any life	1926
insurance company or agency for which hethe person is licensed	1927
appointed to sell life insurance, or of any issuer whichthat owns	1928
or controls more than one fourth of the shares of any of such	1929
companies, or any rights or options to acquire any of such shares.	1930
This section does not prohibit the sale of shares of any	1931
investment company registered under the "Investment Company Act of	1932
1940," 54 Stat. 789, 15 U.S.C.A. 80a-l, as amended, or any	1933
policies, annuities, or other contracts described in section	1934
3907.15 of the Revised Code.	1935

Sec. 3905.20.  (A) An insurance agent shall not act as an	1936
agent of an insurer unless the insurance agent is appointed as an	1937
agent of the insurer. An insurance agent who does not act as an	1938
agent of an insurer shall not be required to be appointed as an	1939
agent of the insurer.	1940

For purposes of this division, an insurance agent acts as an	1941
agent of an insurer when the insurance agent sells, solicits, or	1942
negotiates any product of the insurer and is compensated directly	1943
by the insurer.	1944

(B)(1) To appoint an insurance agent as its agent, an	1945
insurer shall file a notice of appointment with the superintendent	1946
of insurance no later than thirty days after the date the agency	1947
contract is executed or the first insurance application is	1948
submitted, whichever is earlier. The notice of appointment shall	1949
be provided in the manner prescribed by the superintendent.	1950

Each insurer shall pay to the superintendent a fee of	1951
twenty dollars for every such appointment when issued and for each	1952
continuance thereafter. Such an appointment, unless canceled by	1953
the insurer, may be continued in force past the thirtieth day of	1954
June next after its issue and after the thirtieth day of June of	1955
each succeeding year, unless a different date is determined by the	1956
superintendent.	1957

(2) By appointing an insurance agent, an insurer certifies	1958
to the superintendent that the person is competent, financially	1959
responsible, and suitable to represent the insurer.	1960

(3) While an appointment remains in force, an insurer shall	1961
be bound by the acts of the person named in the appointment within	1962
that person's actual and apparent authority as its agent.	1963

(C) The superintendent may, in accordance with Chapter 119.	1964
of the Revised Code, adopt rules to establish appointment	1965
procedures, including cancellations and renewals, to clarify the	1966
circumstances that require an appointment, and to provide for the	1967
appointment of insurance agents to some or all of the insurers	1968
within an insurer's holding company system or group.	1969

Sec. 3905.201. (A) Each insurer that sells, solicits, or	1970
negotiates any form of limited line credit insurance shall provide	1971
a program of instruction to each insurance agent whose duties will	1972
include selling, soliciting, or negotiating limited line credit	1973
insurance. The program of instruction shall be provided to the	1974
insurance agent prior to the agent's appointment by the insurer.	1975

(B) The superintendent may require prior review and approval	1976
of any program of instruction provided under division (A) of this	1977
section.	1978

Sec. 3905.21.  (A) An insurer or authorized representative	1979
of an insurer that terminates the appointment, employment,	1980
contract, or other insurance business relationship with an	1981
insurance agent shall notify the superintendent of insurance, in	1982
the manner prescribed by the superintendent, within thirty days	1983
after the effective date of the termination. The insurer shall	1984
provide any additional information, documents, records, or other	1985
data relating to the termination or activity of the insurance	1986
agent that the superintendent requests in writing.	1987

(B) If the termination of an insurance agent is for any of	1988
the reasons set forth in division (B) of section 3905.14 of the	1989
Revised Code, the insurer or authorized representative of the	1990
insurer shall promptly notify the superintendent, in the manner	1991
prescribed by the superintendent, of any additional information	1992
the insurer discovers upon further review or investigation, which	1993
information would have been provided to the superintendent in	1994
accordance with division (A) of this section had the insurer known	1995
of its existence.	1996

(C)(1) An insurer, within fifteen days after notifying the	1997
superintendent in accordance with division (A) or (B) of this	1998
section, shall mail a copy of the notification to the insurance	1999
agent at the agent's last known address. If the insurance agent	2000
was terminated for any of the reasons set forth in division (B) of	2001
section 3905.14 of the Revised Code, the notification shall be	2002
sent by certified mail, return receipt requested, postage prepaid,	2003
or by overnight delivery using a nationally recognized carrier.	2004

(2) An insurance agent, within thirty days after receiving	2005
a copy of a notification pursuant to division (C)(1) of this	2006
section, may file written comments concerning the substance of the	2007
notification with the superintendent. If an insurance agent files	2008
such comments with the superintendent, the agent shall, at the	2009
same time, provide a copy of the comments to the insurer. Comments	2010
filed with the superintendent shall become part of the	2011
superintendent's file on the insurance agent and shall accompany	2012
every copy of any report distributed or disclosed for any reason	2013
about the agent.	2014

Sec. 3905.211.  (A) In the absence of actual malice, an	2015
insurer, the authorized representative of an insurer, an insurance	2016
agent, the superintendent of insurance, or any organization of	2017
which the superintendent is a member, which organization compiles	2018
the information provided pursuant to section 3905.21 of the	2019
Revised Code and makes it available to other insurance	2020
commissioners or to regulatory or law enforcement agencies, is	2021
immune from any civil liability that otherwise might be incurred	2022
or imposed as a result of either of the following:	2023

(1) Any statement required by section 3905.21 of the	2024
Revised Code or any information relating to any such statement,	2025
which information may be requested in writing by the	2026
superintendent;	2027

(2) Any statement of an insurer that has terminated an	2028
insurance agent to an insurer or agent, or any statement of an	2029
insurance agent to an insurer or agent, which statement is limited	2030
solely to whether a termination for any of the reasons set forth	2031
in division (B) of section 3905.14 of the Revised Code was	2032
reported to the superintendent, provided the propriety of any such	2033
termination is certified in writing by an officer or authorized	2034
representative of the insurer or agent terminating the	2035
relationship.	2036

(B) In any action brought against a person that may have	2037
immunity under division (A) of this section for making any	2038
statement required by section 3905.21 of the Revised Code or	2039
providing any information relating to any such statement, which	2040
information may have been requested in writing by the	2041
superintendent, the party bringing the action shall plead	2042
specifically in any allegation that division (A) of this section	2043
does not apply because the person making the statement or	2044
providing the information did so with malice.	2045

(C) Nothing in this section shall abrogate or modify any	2046
statutory or common law privilege or immunity that otherwise	2047
applies.	2048

Sec. 3905.212.  The superintendent of insurance may, in	2049
accordance with Chapter 119. of the Revised Code, suspend or	2050
revoke the certificate of authority or license of any person that	2051
fails to comply with section 3905.21 of the Revised Code or that	2052
has been found by a court of competent jurisdiction to have made	2053
the statements or provided the information required under that	2054
section with actual malice. Any such person is also subject to	2055
the civil penalty authorized under section 3905.14 of the Revised	2056
Code.	2057

Sec. 3905.22.  (A) An insurance agent shall provide notice	2058
to the superintendent of insurance of any administrative action	2059
taken against the agent in another jurisdiction or by another	2060
governmental agency having professional, occupational, or	2061
financial licensing authority within thirty days after the final	2062
disposition of the matter. The notice shall include a copy of the	2063
order, consent to order, or any other relevant legal document.	2064

(B) An insurance agent shall provide notice to the	2065
superintendent of any criminal prosecution of the agent by any	2066
jurisdiction, other than misdemeanor traffic citations, within	2067
thirty days after the initial pretrial hearing date. The notice	2068
shall include a copy of the initial complaint that was filed, the	2069
order that resulted from the hearing, and any other relevant legal	2070
documents.	2071

Sec. 3905.492.        Sec. 3905.24.  (A)(1) All records and other	2072
information obtained by the superintendent of insurance or the	2073
superintendent's deputies, examiners, assistants, or other	2074
employees, or agents relating to an investigation of an applicant	2075
for licensure under this chapter, or of an agent, solicitor,	2076
broker, or other person licensed or appointed under this chapter	2077
or Chapter 3951., 3957., or 3959. of the Revised Code, are	2078
confidential and are not public records as defined in section	2079
149.43 of the Revised Code until the applicant or, licensee, or	2080
appointee is provided notice and opportunity for hearing pursuant	2081
to Chapter 119. of the Revised Code with respect to such records	2082
or information. If no administrative action is initiated with	2083
respect to a particular matter about which the superintendent	2084
obtained records or other information as part of an investigation,	2085
all such records and information relating to that matter shall	2086
remain confidential for three years after the file on the matter	2087
is closed.	2088

(2) Division (A)(1) of this section applies only to	2089
investigations that could result in administrative action under	2090
Title XVII or XXXIX or Chapter 119. of the Revised Code.	2091

(B) The records and other information described in division	2092
(A) of this section shall remain confidential for all purposes	2093
except when it is appropriate for the superintendent and the	2094
superintendent's deputies, examiners, assistants, or other	2095
employees, or agents to take official action regarding the affairs	2096
of the applicant or, licensee, or appointee or in connection with	2097
actual or potential criminal proceedings.	2098

(C) Employees or agents of the department of insurance shall	2099
not be required by any court in this state to testify in a civil	2100
action, if such testimony concerns any matter related to records	2101
or any other information considered confidential under this	2102
section of which they have knowledge.	2103

(D) This section does not apply to any complaint or action	2104
underrelating to a violation described in division (B)(32) or	2105
(33) of section 3905.043905.14 of the Revised Code.	2106

Sec. 3905.26. (A) The superintendent of insurance may	2107
participate, in whole or in part, with the NAIC or any of its	2108
affiliates or subsidiaries, in a centralized agent license	2109
registry in which insurance agent licenses and appointments are	2110
centrally or simultaneously effected for all states that require	2111
an insurance agent license and that participate in the registry.	2112

(B) The superintendent may adopt rules in accordance with	2113
Chapter 119. of the Revised Code to adopt any uniform standard or	2114
procedure necessary for participation in the centralized agent	2115
license registry. Such rules may provide for the central	2116
collection of all fees for licenses or appointments processed	2117
through the registry.	2118

Sec. 3905.28.  The superintendent of insurance may adopt	2119
rules in accordance with Chapter 119. of the Revised Code to carry	2120
out the purposes of sections 3905.01 to 3905.28 of the Revised	2121
Code.	2122

Sec. 3905.06.        Sec. 3905.29.  Sections 3905.01 to 3905.063905.28 of	2123
the Revised Code do not apply to associations organized and	2124
operating under sections 3939.01 to 3939.09 of the Revised Code.	2125

Sec. 3905.30.  The superintendent of insurance may issue a	2126
surplus line broker's license to any natural person who is a	2127
resident of this or any other state or a province of Canada, or to	2128
any corporation, partnership, or limited liability companya	2129
business entity that is organized under the laws of this or any	2130
other state or a province of Canada. The applicant must have been	2131
licensed as a multiple line agentTo be eligible for at least two	2132
years prior to making application for thea surplus line broker's	2133
license, a person must have both a property license and a casualty	2134
license. A surplus line broker's license permits the person named	2135
in the license to negotiate for and obtain insurance, other than	2136
life insurance, on property or persons in this state in insurers	2137
not authorized to transact business in this state. Each such	2138
license expires on the thirty-first day of January next after the	2139
year in which it is issued, and may be then renewed.	2140

Sec. 3905.31.  No person not licensed under section 3905.30	2141
of the Revised Code shall take or receive any application for such	2142
insurance upon property or persons in this state, or receive or	2143
collect a premium or any part thereof for any unauthorized	2144
insurance company, or attempt or assist in any such act, or	2145
perform any act in this state concerning any policy or contract of	2146
insurance of any unauthorized insurance company provided that any	2147
duly licensed full multiple lineproperty and casualty agent may	2148
place business with an agent licensed under section 3905.30 of the	2149
Revised Code and may accept compensation therefor, if such	2150
insurance is written in conformity with the insurance laws of this	2151
state. This section does not apply to those engaged in the act of	2152
adjusting claims or losses in connection with any policy of	2153
insurance written under the provisions of sections 3905.30 to	2154
3905.35, inclusive, of the Revised Code.	2155

Sec. 3905.34.  Each person licensed under section 3905.30 of	2156
the Revised Code shall keep a separate account of the business	2157
done under the person's license. Within thirty days afterOn or	2158
before the endthirty-first day of each quarterJanuary, each	2159
surplus line broker shall file that account with the	2160
superintendent of insurance the portion of that account that	2161
details business done during the preceding calendar year. The	2162
account must show the amount of such insurance, the name of the	2163
insured, a brief description of the type of insurance, the	2164
location of the property, the gross premium charged, the name of	2165
the insurer, the date of the policy and term thereof, and a report	2166
in the same detail of all such policies canceled and the gross	2167
return premiums thereon.	2168

Sec. 3905.36.  Every insured association, company,	2169
corporation, or other person that enters, directly or indirectly,	2170
into any agreements with any insurance company, association,	2171
individual, firm, underwriter, or Lloyd, not authorized to do	2172
business in this state, whereby the insured shall procure,	2173
continue, or renew contracts of insurance covering subjects of	2174
insurance resident, located, or to be performed within this state,	2175
with such unauthorized insurance company, association, individual,	2176
firm, underwriter, or Lloyd, for which insurance there is a gross	2177
premium, membership fee, assessment, dues, or other consideration	2178
charged or collected, shall annually, on or before the first	2179
thirty-first day of JulyJanuary, return to the superintendent of	2180
insurance a statement under oath showing the name and address of	2181
the insured, name and address of the insurer, subject of the	2182
insurance, general description of the coverage, and amount of	2183
gross premium, fee, assessment, dues, or other consideration for	2184
such insurance for the preceding twelve-month period and shall at	2185
the same time pay to the treasurer of state a tax of five per cent	2186
of such gross premium, fee, assessment, dues, or other	2187
consideration, after a deduction for return premium, if any, as	2188
calculated on a form prescribed by the treasurer of state. All	2189
taxes collected under this section by the treasurer of state shall	2190
be paid into the general revenue fund. If the tax is not paid	2191
when due, the tax shall be increased by a penalty of twenty-five	2192
per cent. An interest charge computed as set forth in section	2193
5725.221 of the Revised Code shall be made on the entire sum of	2194
the tax plus penalty, which interest shall be computed from the	2195
date the tax is due until it is paid. For purposes of this	2196
section, payment is considered made when it is received by the	2197
treasurer of state, irrespective of any United States postal	2198
service marking or other stamp or mark indicating the date on	2199
which the payment may have been mailed. This section does not	2200
apply to:	2201

(A) Insurance obtained pursuant to sections 3905.30 to	2202
3905.35 of the Revised Code;	2203

(B) Transactions in this state involving a policy solicited,	2204
written, and delivered outside this state covering only subjects	2205
of insurance not resident, located, or to be performed in this	2206
state at the time of issuance, provided such transactions are	2207
subsequent to the issuance of the policy;	2208

(C) Attorneys-at-law acting on behalf of their clients in	2209
the adjustment of claims or losses;	2210

(D) Any insurance company underwriter issuing contracts of	2211
insurance to employer insureds or contracts of insurance issued to	2212
an employer insured. For purposes of this section an "employer	2213
insured" is an insured:	2214

(1) Who procures the insurance of any risk or risks by use	2215
of the services of a full-time employee acting as an insurance	2216
manager or buyer or the services of a regularly and continuously	2217
qualified insurance consultant. As used in division (D)(1) of	2218
this section, a "regularly and continuously qualified insurance	2219
consultant" does not include any person licensed under Chapter	2220
3905. of the Revised Code.	2221

(2) Whose aggregate annual premiums for insurance on all	2222
risks total at least twenty-five thousand dollars; and	2223

(3) Who has at least twenty-five full-time employees.

2224

Each person licensed under section 3905.30 of the Revised	2225
Code shall pay to the treasurer of state, on or before the	2226
thirty-first day of January of each year, five per cent of the	2227
balance of the gross premiums charged for insurance placed or	2228
procured under the license after a deduction for return premiums,	2229
as reported on a form prescribed by the treasurer of state. The	2230
tax shall be collected from the insured by the surplus line broker	2231
who placed or procured the policy of insurance at the time the	2232
policy is delivered to the insured. No license issued under	2233
section 3905.30 of the Revised Code shall be renewed until payment	2234
is made. If the tax is not paid when due, the tax shall be	2235
increased by a penalty of twenty-five per cent. An interest	2236
charge computed as set forth in section 5725.221 of the Revised	2237
Code shall be made on the entire sum of the tax plus penalty,	2238
which interest shall be computed from the date the tax is due	2239
until it is paid. For purposes of this section, payment is	2240
considered made when it is received by the treasurer of state,	2241
irrespective of any United States postal service marking or other	2242
stamp or mark indicating the date on which the payment may have	2243
been mailed.	2244

Sec. 3905.26.        Sec. 3905.40.  There shall be paid to the	2245
superintendent of insurance the following fees:	2246

(A) Each insurance company doing business in this state	2247
shall pay:	2248

(1) For filing a copy of its charter or deed of settlement,	2249
two hundred fifty dollars;	2250

(2) For filing each statement, twenty-five dollars;

2251

(3) For each certificate of authority or license, and	2252
certified copy thereof, five dollars;	2253

(4) For each copy of a paper filed in histhe	2254
superintendent's office, twenty cents per page;	2255

(5) For issuing certificates of deposits or certified copies	2256
thereof, five dollars for the first certificate or copy and one	2257
dollar for each additional certificate or copy;	2258

(6) For issuing certificates of compliance or certified	2259
copies thereof, twenty dollars;	2260

(7) For affixing the seal of office and certifying	2261
documents, other than those enumerated herein, two dollars.	2262

(B) Each life insurance company doing business in this state	2263
shall pay for annual valuation of its policies, one cent on every	2264
one thousand dollars of insurance.	2265

(C) Each foreign insurance company doing business in this	2266
state shall pay for making and forwarding annually, semiannually,	2267
and quarterly the interest checks and coupons accruing upon bonds	2268
and securities deposited, fifty dollars each year on each one	2269
hundred thousand dollars deposited.	2270

(D) Each appointee or applicant for licensure as an	2271
insurance agent, solicitor, or life insurance agent shall pay ten	2272
dollars before admission to any examination required by the	2273
superintendent of insurance. Such fee shall not be paid by the	2274
appointing insurance company or agent.	2275

(E) Each domestic mutual life insurance company shall pay	2276
for verifying that any amendment to its articles of incorporation	2277
was regularly adopted, two hundred fifty dollars with each	2278
application for verification. Any such amendment shall be	2279
considered to have been regularly adopted when approved by the	2280
affirmative vote of two-thirds of the policyholders present in	2281
person or by proxy at any annual meeting of policyholders or at a	2282
special meeting of policyholders called for that purpose.	2283

Sec. 3905.52.        Sec. 3905.401.  The valuation fee specified in	2284
division (B) of section 3905.263905.40 of the Revised Code does	2285
not apply to reinsurance ceded to affiliated companies.	2286

Sec. 3905.27.        Sec. 3905.41.  The superintendent of insurance may	2287
open an account in the name of each insurance company authorized	2288
to do business in this state and in the name of any authorized	2289
insurance agent, and charge the accounts with all fees incurred by	2290
such companies or agents in accordance with sections 3905.02,	2291
3905.03, 3905.07, 3905.263905.10, 3905.20, 3905.40, 3919.26, and	2292
3931.03 of the Revised Code, and other statutes imposing fees. The	2293
statutory fee for each service requested shall be charged against	2294
the proper account forthwithimmediately upon the rendition of the	2295
service.	2296

Not later than the tenth day of each calendar month the	2297
superintendent shall render an itemized statement to each company	2298
or agent whose account has been charged during the month next	2299
preceding, showing the amount of all fees charged during that	2300
month and demanding that payment thereof be made not later than	2301
the first day of the month next following.	2302

The failure of any insurance company within that time to pay	2303
the amount of such fees in accordance with the monthly statement,	2304
or, if the statement or account is found to be incorrect, in	2305
accordance with a corrected monthly statement rendered by the	2306
superintendent, is grounds for the revocation of its certificate	2307
of authority to do business in this state. In the event of such	2308
an order of revocation, the superintendent shall forthwith	2309
immediately cause a notice thereof to be published once in at	2310
least one newspaper at the seat of the government and also, if a	2311
domestic company, once in at least one newspaper published in the	2312
county where its home office is located, or, if a foreign or alien	2313
company, once in at least one newspaper published in a county of	2314
this state where an agency of the company is located. After the	2315
publication of the notice, no agent of the company shall procure	2316
applications for insurance or issue policies.	2317

In the event of the failure of any agent within the time	2318
fixed to pay the amount of fees charged against the agent's	2319
account in accordance with the monthly statement rendered by the	2320
superintendent, the agent's license may be revoked in the manner	2321
provided by sections 3905.02 and 3905.18section 3905.14 of the	2322
Revised Code.	2323

Sec. 3905.482.  (A) The superintendent of insurance shall	2324
suspend the agent's license of any person who fails to meet the	2325
requirements of section 3905.481 of the Revised Code and has not	2326
been granted under division (B) of this section an extension of	2327
time within which to complete the requirements. The suspension	2328
shall become effective upon sixty days' written notice to the	2329
person. The notice shall be sent by ordinary mail to the person's	2330
residential address on the licensing records of the department of	2331
insurance. During this sixty-day period, the person may provide	2332
proof of compliance with the requirements of section 3905.481 of	2333
the Revised Code. If the person fails to demonstrate such	2334
compliance in a manner and form acceptable to the superintendent,	2335
the superintendent shall suspend the person's license. The	2336
suspension shall continue until the person demonstrates to the	2337
satisfaction of the superintendent that the person has complied	2338
with the requirements of section 3905.481 of the Revised Code and	2339
all other provisions of this chapter. However, the superintendent	2340
shallmay revoke the license if the person fails to demonstrate	2341
such compliance within six monthsone year after the conclusion of	2342
the immediately preceding twenty-four-month compliance period and	2343
has not been granted under division (B) of this section an	2344
extension of time within which to complete the requirements. Any	2345
person whose license has been revoked under this division and who	2346
desires to hold a license as an agent under this chapter shall	2347
apply for a new agent's license in accordance with the	2348
requirements of this chapter.	2349

(B) If a person cannot meet the requirements of section	2350
3905.481 of the Revised Code due to a disability or inactivity due	2351
to special circumstances, the superintendent may grant the person	2352
a reasonable extension of time to enable the person to comply with	2353
the requirements of section 3905.481 of the Revised Code for the	2354
period of the disability or inactivity. The superintendent may	2355
revoke the license if the person fails to demonstrate such	2356
compliance within that time period.	2357

(C) Before revoking or suspending any agent's license under	2358
this section, the superintendent shall provide the licensee notice	2359
and an opportunity for a hearing in accordance with Chapter 119.	2360
of the Revised Code. Any person whose license has been revoked	2361
under this section and who desires to hold a license as an	2362
insurance agent under this chapter shall apply for a new insurance	2363
agent's license in accordance with the requirements of this	2364
chapter.	2365

(D) The superintendent may adopt rules in accordance with	2366
Chapter 119. of the Revised Code relative to the manner and form	2367
of demonstrating compliance with the requirements of section	2368
3905.481 of the Revised Code that is acceptable to the	2369
superintendent for purposes of this section.	2370

Sec. 3905.483.  (A) There is hereby created the insurance	2371
agent education advisory council to advise the superintendent of	2372
insurance in carrying out the duties imposed under sections	2373
3905.483905.04 and 3905.481 to 3905.486 of the Revised Code.	2374

(B) The council shall be composed of the superintendent, or	2375
the superintendent's designee, and eleven members appointed by the	2376
superintendent, as follows:	2377

(1) One representative of the association of Ohio life	2378
insurance companies;	2379

(2) One representative of the independent insurance agents	2380
of Ohio;	2381

(3) One representative of the Ohio association of health	2382
underwriters;	2383

(4) One representative of the Ohio association of life	2384
underwriters;	2385

(5) One representative of the Ohio insurance institute;

2386

(6) One representative of the professional insurance agents	2387
association of Ohio;	2388

(7) Two insurance agents each of whom has been licensed	2389
continuously during the five-year period immediately preceding the	2390
agent's appointment;	2391

(8) One representative of an insurance company admitted to	2392
transact business in this state;	2393

(9) Two representatives of consumers, one of whom shall be	2394
at least sixty years of age.	2395

(C) Of the initial appointments made by the superintendent,	2396
three shall be for terms ending December 31, 1994, four shall be	2397
for terms ending December 31, 1995, and four shall be for terms	2398
ending December 31, 1996. Thereafter, terms of office shall be	2399
for three years, each term ending on the thirty-first day of	2400
December of the third year.	2401

(D) Each member shall hold office from the date of	2402
appointment until the end of the term for which the member was	2403
appointed. Any member appointed to fill a vacancy occurring prior	2404
to the expiration of the term for which the member's predecessor	2405
was appointed shall hold office for the remainder of such term.	2406
Any member shall continue in office subsequent to the expiration	2407
date of the member's term until the member's successor takes	2408
office, or until a period of sixty days has elapsed, whichever	2409
occurs first. A vacancy shall be filled in the same manner as the	2410
original appointment.	2411

(E) Initial appointments to the council shall be made no	2412
later than thirty days after April 16, 1993.	2413

(F) Any member is eligible for reappointment. The	2414
superintendent, after notice and opportunity for a hearing, may	2415
remove for cause any member the superintendent appoints.	2416

(G) The superintendent or the superintendent's designee	2417
shall serve as chairperson of the council. Meetings shall be held	2418
upon the call of the chairperson and as may be provided by	2419
procedures adopted by the superintendent. Seven members of the	2420
council constitute a quorum.	2421

(H) Each member shall receive mileage and necessary and	2422
actual expenses while engaged in the business of the council.	2423

Sec. 3905.484.  (A) The superintendent of insurance, in	2424
consultation with the insurance agent education advisory council,	2425
shall establish criteria for any course or program of study that	2426
is offered in this state under section 3905.04 or sections 3905.48	2427
3905.481 to 3905.486 of the Revised Code.	2428

(B) No course or program of study shall be offered in this	2429
state under section 3905.04 or sections 3905.483905.481 to	2430
3905.486 of the Revised Code unless it is approved by the	2431
superintendent in consultation with the council.	2432

(C) A course or program of study offered in this state under	2433
section 3905.04 or sections 3905.483905.481 to 3905.486 of the	2434
Revised Code shall be developed or sponsored only by one of the	2435
following:	2436

(1) An insurance company admitted to transact business in	2437
this state;	2438

(2) An accredited college or university;

2439

(3) An insurance trade association;

2440

(4) An independent program of instruction that is approved	2441
by the superintendent in consultation with the council;	2442

(5) Any institution as defined in section 1713.01 of the	2443
Revised Code that holds a certificate of authorization issued by	2444
the Ohio board of regents under Chapter 1713. of the Revised Code	2445
or is exempt under that chapter from the requirements for a	2446
certificate of authorization.	2447

(D) Any person who teaches any approved course or program of	2448
study qualifies for the same number of classroom hours as would be	2449
granted to any person who takes and successfully completes that	2450
course or program.	2451

Sec. 3905.486.  The superintendent of insurance shall adopt	2452
rules in accordance with Chapter 119. of the Revised Code to carry	2453
out the purposes of sections 3905.483905.04 and 3905.481 to	2454
3905.486 of the Revised Code. In adopting any rules, the	2455
superintendent shall consider any recommendations made by the	2456
insurance agent education advisory council.	2457

Sec. 3905.47.        Sec. 3905.49.  (A) As used in this section and	2458
section 3905.50 of the Revised Code, "independent insurance agent"	2459
means an insurance agent who is neither employed nor controlled	2460
solely by an insurer, whose agency contract with an insurer	2461
provides that upon termination of the contract, the ownership of	2462
the property rights of all expiration information vests in the	2463
agent or histhe agent's heirs or assigns, and whose agency	2464
contract with an insurer permits the agent to represent	2465
concurrently other insurers of histhe agent's choice.	2466

(B) No agent other than an independent insurance agent shall	2467
represent oneselfself, or shall be represented, to the public as	2468
an independent insurance agent or agency.	2469

Sec. 3905.50.  (A)(1) Except as provided in division (A)(2)	2470
or (3) of this section, this section applies to every contract of	2471
agency between a property and casualty insurance company and an	2472
independent insurance agent, as defined in division (A) of section	2473
3905.473905.49 of the Revised Code, which has been in effect for	2474
not less than two years.	2475

(2) This section does not apply to a contract of exclusive	2476
employment by, or an exclusive agency contract with, a single	2477
insurer or group of insurers under common ownership or control.	2478

(3) This section does not apply to an agent whose license	2479
has been suspended or revoked by the superintendent of insurance,	2480
an agent who has demonstrated gross incompetence, or an agent	2481
whose contract has been terminated for insolvency, abandonment,	2482
gross or willful misconduct, or failure to pay to the insurer, in	2483
accordance with the agency contract, moneys due to the insurer	2484
upon written demand of the insurer.	2485

(B) No insurer shall terminate an independent insurance	2486
agent contract of agency except by mutual agreement of the parties	2487
or upon one hundred eighty days' written notice to the independent	2488
insurance agent.	2489

(1) Such notice shall include specific reasons for the	2490
termination of the agent.	2491

(2) Such notice shall be sent by certified mail, return	2492
receipt requested, to the last known address of the agency.	2493

(C) During the one hundred eighty day notice period, an	2494
independent insurance agent shall not write or bind any new	2495
policies on behalf of an insurer without written approval from the	2496
insurer. However, during such period, an independent insurance	2497
agent, subject to the current underwriting rules, guidelines,	2498
commission rates, and practices of the insurer, may renew or	2499
effect any necessary changes or endorsements of outstanding	2500
policies of insurance that are in force prior to the date of	2501
receipt of the notice of termination.	2502

(D) None of the following constitutes an acceptable reason	2503
for the termination of a contract of agency:	2504

(1) Claims experience of the agent in a single year;

2505

(2) Claims experience due to catastrophiescatastrophes of	2506
nature covered by a policy;	2507

(3) Claims experience under uninsured and underinsured	2508
motorist coverages.	2509

(E) An agent aggrieved by the conduct of an insurer in its	2510
breach or termination of a contract of agency may file with the	2511
superintendent a request that the superintendent review the action	2512
to determine whether it is in accord with this section and the	2513
lawful provisions of the contract of agency and send a copy of the	2514
request to the insurer at the address of the office issuing the	2515
notice of termination. Upon receipt of such a request, an insurer	2516
shall promptly provide the independent insurance agent and	2517
superintendent with documentation in support of the insurer's	2518
stated reason for termination.	2519

(F) The superintendent shall promptly investigate the	2520
allegation. If the superintendent has reasonable cause to believe	2521
that this section or the lawful provisions of the contract of	2522
agency have been violated, hethe superintendent shall, within	2523
thirty days of receipt of a request for review, conduct an	2524
adjudication hearing subject to Chapter 119. of the Revised Code,	2525
held upon not less than ten days' written notice to the agent and	2526
the insurer. Pending a final order in the adjudication hearing,	2527
the superintendent may take such interim action as necessary to	2528
protect the parties or the public. During the pendency of the	2529
proceeding before the superintendent, the contract of agency	2530
subject to the proceeding continues in force and divisondivision	2531
(C) of this section applies. The superintendent shall, within	2532
thirty days following such hearing, issue an order approving or	2533
disapproving the action of the insurer. All final orders and	2534
decisions of the superintendent are subject to judicial review as	2535
provided in Chapter 119. of the Revised Code.	2536

(G) An insurer shall not cancel or nonrenew any policy of	2537
insurance written through an agent upon the sole ground of the	2538
termination of the agency until the expiration of the policy term	2539
or the twelve-month period following the effective date of the	2540
termination of the contract of agency, whichever is earlier.	2541
However, during such period, an independent insurance agent may,	2542
subject to the current underwriting rules, guidelines, commission	2543
rates, and practices of the insurer, effect any necessary changes	2544
or endorsements to outstanding policies of insurance that are in	2545
force prior to the date of termination.	2546

This section does not abridge, restrict, or supersede the	2547
rights of an agent to the ownership of expirations provided for in	2548
any contract with an insurer.	2549

(H) Any information or documentation provided to an agent or	2550
the superintendent by an insurer under this section is	2551
confidential and shall be used by the superintendent only in the	2552
exercise of the proper functions authorized by this section. No	2553
insurer is liable for furnishing information or documentation in	2554
compliance with this section if the insurer acts without malice	2555
and in the reasonable belief that such information or	2556
documentation is warranted by this section.	2557

Sec. 3905.72.  (A)(1) No person shall act as a managing	2558
general agent representing an insurer licensed in this state with	2559
respect to risks located in this state unless the person is	2560
licensed as a managing general agent pursuant to division (C) or	2561
(D) of this section.	2562

(2) No person shall act as a managing general agent	2563
representing an insurer organized under the laws of this state	2564
with respect to risks located outside this state unless the person	2565
is licensed as a managing general agent pursuant to division (C)	2566
of this section.	2567

(B) Every person that seeks to act as a managing general	2568
agent as described in division (A) of this section shall apply to	2569
the superintendent of insurance for a license. TheExcept as	2570
otherwise provided in division (D) of this section, the	2571
application shall be in writing on a form provided by the	2572
superintendent and shall be sworn or affirmed before a notary	2573
public or other person empowered to administer oaths. The	2574
application shall be kept on file by the superintendent and shall	2575
include all of the following:	2576

(1) The name and principal business address of the	2577
applicant;	2578

(2) If the applicant is an individual, histhe applicant's	2579
current occupation;	2580

(3) If the applicant is an individual, histhe applicant's	2581
occupation or occupations during the five-year period prior to	2582
applying for the license to act as a managing general agent;	2583

(4) A copy of the contract between the applicant and the	2584
insurer as required by, and in compliance with, section 3905.73 of	2585
the Revised Code;	2586

(5) A copy of a certified resolution of the board of	2587
directors of the insurer on whose behalf the applicant will act,	2588
appointing the applicant as a managing general agent and agent of	2589
the insurer, specifying the duties the applicant is expected to	2590
perform on behalf of the insurer and the lines of insurance the	2591
applicant will manage, and authorizing the insurer to enter into a	2592
contract with the applicant as required by section 3905.73 of the	2593
Revised Code;	2594

(6) A statement that the applicant submits to the	2595
jurisdiction of the superintendent and the courts of this state;	2596

(7) Any other information required by the superintendent.

2597

(C) The superintendent shall issue to a resident of this	2598
state or renew a business entity organized under the laws of this	2599
state a license to act as a managing general agent representing an	2600
insurer licensed to do business in this state with respect to	2601
risks located in this state or a license to act as a managing	2602
general agent representing an insurer organized under the laws of	2603
this state with respect to risks located outside this state, and	2604
shall renew such a license, if the superintendent is satisfied	2605
that all of the following conditions are met:	2606

(1) The applicant is a suitable person and intends to hold	2607
himselfself out in good faith as a managing general agent.	2608

(2) The applicant is honest, trustworthy, and understands	2609
the duties and obligations of a managing general agent.	2610

(3) The applicant has filed a completed application that	2611
complies with division (B) of this section.	2612

(4) The applicant has paid a fee in the amount of twenty	2613
dollars.	2614

(5) The applicant maintains a bond in the amount of not less	2615
than fifty thousand dollars for the protection of the insurer.	2616

(6) The applicant maintains an errors and omissions policy	2617
of insurance.	2618

(7) The applicant is not, and has never been, under an order	2619
of suspension or revocation under section 3905.77 of the Revised	2620
Code or under any other law of this state, or any other state,	2621
relating to insurance, and is otherwise in compliance with	2622
sections 3905.71 to 3905.79 of the Revised Code and all other laws	2623
of this state relating to insurance.	2624

(D) If the applicant is a resident of another state or a	2625
business entity organized under the laws of another state, the	2626
applicant shall submit a request for licensure, along with a fee	2627
of twenty dollars, to the superintendent. The superintendent shall	2628
issue a license to act as a managing general agent if the request	2629
for licensure includes proof that the applicant is licensed and in	2630
good standing as a managing general agent in the applicant's home	2631
state and either a copy of the application for licensure the	2632
applicant submitted to the applicant's home state or the	2633
application described in division (B) of this section.	2634

If the applicant's home state does not license managing	2635
general agents under provisions similar to those in sections	2636
3905.71 to 3905.79 of the Revised Code, or if the applicant's home	2637
state does not grant licenses to residents of this state on the	2638
same reciprocal basis, the applicant shall comply with divisions	2639
(B) and (C) of this section.	2640

(E) Unless suspended or revoked by an order of the	2641
superintendent pursuant to section 3905.77 of the Revised Code and	2642
except as provided in division (E)(F) of this section, any license	2643
issued or renewed pursuant to division (C) or (D) of this section	2644
shall expire on the last day of February next after its issuance	2645
or renewal.	2646

(E)(F) If the appointment of a managing general agent is	2647
terminated by the insurer, the license of the managing general	2648
agent shall expire on the date of the termination.	2649

(F)(G) A license shall be renewed in accordance with the	2650
standard renewal procedure specified in Chapter 4745. of the	2651
Revised Code.	2652

(G)(H) All license fees collected pursuant to division	2653
(C)(4) of this section shall be paid into the state treasury to	2654
the credit of the department of insurance operating fund.	2655

Sec. 3905.85.  (A) An applicant for a license as a surety	2656
bail bond agent shall submit an application for the license in a	2657
manner prescribed by the superintendent of insurance. The	2658
application shall be accompanied by a one hundred fifty dollar fee	2659
and a statement that gives the applicant's name, age, residence,	2660
present occupation, occupation for the five years next preceding	2661
the date of the application, and such other information as the	2662
superintendent may require.	2663

The applicant shall also request a criminal records check	2664
conducted by the superintendent of the bureau of criminal	2665
identification and investigation in accordance with section	2666
109.572 of the Revised Code, and direct that the bureau's written	2667
response to that request be transmitted to the superintendent of	2668
insurance, or to the superintendent's designee, as specified on	2669
the form prescribed pursuant to that section. The superintendent	2670
of insurance, in the superintendent's discretion, may designate	2671
other governmental agencies or other sources to conduct the	2672
criminal records check. If the superintendent of insurance or the	2673
superintendent's designee fails to receive the bureau'sa response	2674
to the applicant's request for a requested criminal records check,	2675
or if the applicant fails to request the criminal records check,	2676
the superintendent may refuse to issue a license under this	2677
section. The applicant shall pay any fee required by the bureau	2678
for conducting the criminal records check.	2679

An applicant for a license shall submit to an examination as	2680
to the qualifications set forth in division (B) of this section.	2681

(B) The superintendent of insurance shall issue to an	2682
applicant a license that states in substance that the person is	2683
authorized to do the business of a surety bail bond agent, if the	2684
superintendent is satisfied that all of the following apply:	2685

(1) If the applicant is a natural person, the applicant is	2686
eighteen years of age or older.	2687

(2) The applicant is a person of high character and	2688
integrity.	2689

(3) The applicant has successfully completed the educational	2690
requirements set forth in section 3905.483905.04 of the Revised	2691
Code and passed the examination required by that section.	2692

(C) A surety bail bond agent license issued pursuant to this	2693
section authorizes the holder, when appointed by an insurer, to	2694
execute or countersign bail bonds in connection with judicial	2695
proceedings and to receive money or other things of value for	2696
those services. However, the holder shall not execute or deliver	2697
a bond during the first one hundred eighty days after the license	2698
is initially issued. This restriction does not apply with respect	2699
to license renewals.	2700

(D) The superintendent of insurance may suspend or revoke a	2701
surety bail bond agent's license as provided in section 3905.482	2702
of the Revised Code, and may suspend, revoke, or refuse to issue	2703
or renew such a license as provided in section 3905.493905.14 of	2704
the Revised Code.	2705

If the superintendent refuses to issue such a license based	2706
in whole or in part upon the bureau's written response to a	2707
criminal records check requested pursuant to division (A) of this	2708
section, the superintendent shall send a copy of the response that	2709
the bureauwas transmitted to the superintendent or to the	2710
superintendent's designee, to the applicant at the applicant's	2711
home address upon the applicant's submission of a written request	2712
to the superintendent.	2713

(E) Any person licensed as a surety bail bond agent may	2714
surrender the person's license in accordance with section 3905.012	2715
3905.16 of the Revised Code.	2716

(F) Unless revoked or suspended by the superintendent of	2717
insurance or surrendered by the surety bail bond agent, such a	2718
license may, in the discretion of the superintendent and the	2719
payment of a one hundred fifty dollar fee, be continued past	2720
reviewed effective the lastfirst day of FebruaryMarch next after	2721
its issue and after the lastfirst day of FebruaryMarch in each	2722
succeeding year.	2723

(G) The superintendent of insurance may prescribe the forms	2724
to be used as evidence of the issuance of a license under this	2725
section. The superintendent shall require each licensee to	2726
acquire, from a source designated by the superintendent, a wallet	2727
identification card that includes the licensee's photograph and	2728
any other information required by the superintendent. The	2729
licensee shall keep the wallet identification card on the	2730
licensee's person while engaging in the bail bond business.	2731

(H)(1) The superintendent of insurance shall not issue or	2732
renew the license of a corporation, partnership, or limited	2733
liability companybusiness entity organized under the laws of this	2734
or any other state unless the corporation, partnership, or limited	2735
liability companybusiness entity is qualified to do business in	2736
this state under the applicable provisions of Title XVII of the	2737
Revised Code.	2738

(2) The failure of a corporation, partnership, or limited	2739
liability companybusiness entity to be in good standing with the	2740
secretary of state or to maintain a valid appointment of statutory	2741
agent is grounds for suspending, revoking, or refusing to renew	2742
its license.	2743

(3) By applying for a surety bail bond agent license under	2744
this section, an individual, corporation, partnership, or limited	2745
liability companybusiness entity consents to the jurisdiction of	2746
the courts of this state.	2747

(I) A surety bail bond agent licensed pursuant to this	2748
section is an officer of the court.	2749

(J) Any fee collected under this section shall be paid into	2750
the state treasury to the credit of the department of insurance	2751
operating fund created by section 3901.021 of the Revised Code.	2752

Sec. 3905.861.  An insurer that appoints a surety bail bond	2753
agent who is a member of an agency, partnership, corporation, or	2754
limited liability companya business entity shall require that all	2755
other surety bail bond agents who are members of the same agency,	2756
partnership, corporation, or limited liability companybusiness	2757
entity be appointed to represent that insurer.	2758

Sec. 3905.89.  Each person licensed under sections 3905.83 to	2759
3905.95 of the Revised Code shall notify in writing the	2760
appropriate insurer or managing general agent, and the clerk of	2761
the court of common pleas of the county in which the licensee	2762
resides, within thirty days after a change in the licensee's	2763
principal business address or telephone number.	2764

This notification requirement is in addition to the	2765
notification requirements set forth in section 3905.54other	2766
provisions of the Revised Codethis chapter.	2767

Sec. 3905.94.  If the superintendent of insurance, in	2768
accordance with section 3905.493905.14 of the Revised Code,	2769
suspends or revokes a person's license as a surety bail bond	2770
agent, the person, during the period of suspension or revocation,	2771
shall not be employed by any surety bail bond agent, have any	2772
ownership interest in any business involving bail bonds, or have	2773
any financial interest of any type in any bail bond business.	2774

Sec. 3905.99.  (A) Whoever violates sections 3905.181,	2775
3905.21, or 3905.23section 3905.182 of the Revised Code shall be	2776
fined not less than twenty-five nor more than five hundred dollars	2777
or imprisoned not more than six months, or both.	2778

(B) Whoever violates section 3905.31 or 3905.33 of the	2779
Revised Code shall be fined not less than twenty-five nor more	2780
than five hundred dollars or imprisoned not more than one year, or	2781
both.	2782

(C) Whoever violates section 3905.37 or 3905.43 of the	2783
Revised Code shall be fined not less than one hundred nor more	2784
than five hundred dollars.	2785

(D) Whoever violates section 3905.013905.02, division (F)	2786
of section 3905.92, or division (A) of section 3905.931 of the	2787
Revised Code is guilty of a misdemeanor of the first degree.	2788

(E) Whoever violates section 3905.84 of the Revised Code is	2789
guilty of a misdemeanor of the first degree on a first or second	2790
offense and of a felony of the third degree on each subsequent	2791
offense.	2792

Sec. 3907.19.  The president or vice-president, and the	2793
secretary or actuary, or a majority of the directors of each	2794
insurance company organized under the laws of this state, annually	2795
on the first day of January, or within sixty days thereafter,	2796
shall prepare under oath and deposit in the office of the	2797
superintendent of insurance, a statement showing the condition of	2798
the company on the thirty-first day of the December next	2799
preceding. The statement shall be submitted on the forms adopted	2800
by the superintendent pursuant to section 3905.293901.77 of the	2801
Revised Code, and shall exhibit the following items:	2802

(A) The number of policies issued during the year;

2803

(B) The amount of insurance effected by such policies;

2804

(C) The amount of premiums received during the year;

2805

(D) The amount of interest and all other receipts,	2806
specifying the items;	2807

(E) The amount paid to policyholders of the company for	2808
losses during the year;	2809

(F) The amount of all other expenditures and disbursements	2810
of the company, specifying such items as the superintendent calls	2811
for;	2812

(G) The amount of losses unpaid;

2813

(H) The whole number of policies in force;

2814

(I) The amount insured by such policies;

2815

(J) The amount of reserve on all policies in force,	2816
calculated by the American Experience Table of Mortality, with	2817
interest at four per cent annually, or calculated by any other	2818
higher standard that the company has adopted, and the unearned	2819
premium on all personal accident and sickness insurance in force;	2820

(K) The amount of capital stock, specifying amount paid and	2821
unpaid;	2822

(L) The amount of dividends unpaid and the amount of all	2823
other liabilities;	2824

(M) A detailed statement of all the assets of the company,	2825
and the manner of their investment;	2826

(N) An exhibit of the policy obligations of the company,	2827
which shall include:	2828

(1) In the first annual statement, a schedule showing the	2829
number, date, age when insured, amount insured, term of policy,	2830
term of premium, and amount of premium, of all policies issued,	2831
schedules of all policies canceled, revived, changed, reduced, or	2832
increased and a schedule of reinsurances in other companies;	2833

(2) In every succeeding annual statement, a schedule of the	2834
items listed in division (N)(1) of this section as to all policies	2835
issued during the year, and similar schedules of policies	2836
canceled, revived, changed, reduced, or increased during the year,	2837
together with schedules of reinsurances in other companies and	2838
schedules of additions to policies, and a list of all other	2839
obligations of the company requiring valuation.	2840

An exhibit of the policy obligations of the company may be	2841
required more often than once a year.	2842

Sec. 3909.06.  Every life insurance company organized by act	2843
of congress or under the laws of another state of the United	2844
States doing business in this state, annually shall file a	2845
statement of its condition and affairs in the office of the	2846
superintendent of insurance, and such statement shall be filed on	2847
the forms adopted by the superintendent pursuant to section	2848
3905.293901.77 of the Revised Code.	2849

Sec. 3911.011.  (A) No policy, annuity, or other contract	2850
providing variable or fixed and variable benefits or contractual	2851
payments shall be delivered or issued for delivery in this state	2852
except by a life insurance company, organized under the laws of	2853
this state, or a company, partnership, or association, organized	2854
or incorporated, by an act of congress, or under the laws of this	2855
or any other state of the United States, or any foreign	2856
government, and transacting the business of life insurance in this	2857
state. No such company, partnership or association shall deliver	2858
or issue for delivery in this state any such policy, annuity, or	2859
contract until the superintendent of insurance has determined that	2860
its condition and methods of operation in connection with the	2861
issuance of suchthe policies, annuities, and contracts will not	2862
render its operation hazardous to the public or to the holders of	2863
its policies, annuities, and other contracts in this state. In	2864
making such determination, the superintendent shall consider the	2865
history, reputation, and financial condition of suchthe company,	2866
partnership, or association, and the character, responsibility,	2867
and general fitness of its officers, directors, partners, or	2868
associates. In making such determination with respect to a	2869
company, partnership, or association not organized under the laws	2870
of this state, the superintendent shall also consider whether the	2871
laws and regulations of its domicile provide a degree of	2872
protection to the public and the holders of its policies,	2873
annuities, and other contracts substantially equal to that	2874
provided by this section and any rules adopted by the	2875
superintendent pursuant to division (C) of this section. If any	2876
such company is a subsidiary of, or affiliated through management	2877
or ownership with, a life insurance company authorized to do	2878
business in this state, the superintendent may consider the	2879
requirements of this division to have been satisfied if either	2880
such company or its parent or affiliated company meets such	2881
requirements.	2882

(B) No policy, annuity, or other contract described in	2883
division (A) of this section and no certificate, application,	2884
endorsement, or rider to be used in connection with any such	2885
policy, annuity, or other contract shall be delivered, or issued	2886
for delivery, in this state until a copy thereof has been filed	2887
with the superintendent. The superintendent shall, within thirty	2888
days after the filing of any such form, disapprove the same if he	2889
findsupon finding that such form contains provisions whichthat	2890
are unjust, unfair, inequitable, misleading, or deceptive,	2891
encourage misrepresentation of the coverage, or are contrary to	2892
the insurance laws of this state or any rule adopted by himthe	2893
superintendent pursuant to division (C) of this section. When the	2894
superintendent notifies a company, partnership, or association	2895
that a form has been disapproved, it shall be unlawful thereafter	2896
for suchthe company, partnership, or association to issue or use	2897
suchthe form. In suchthe notice, the superintendent shall	2898
specify the reason for histhe disapproval and state that a	2899
hearing will be granted in twenty days after request in writing.	2900
No such policy, contract, certificate, application, endorsement,	2901
or rider shall be issued or used until the expiration of thirty	2902
days after it has been so filed, unless the superintendent gives	2903
written approval thereto. The superintendent may, at any time	2904
after a hearing held not less than twenty days after written	2905
notice to the insurer, withdraw histhe approval of any such form	2906
on any ground set forth in this division. The written notice of	2907
such hearing shall state the reason for the proposed withdrawal.	2908
The company, partnership, or association shall not issue suchthe	2909
form or use it after the effective date of suchthe withdrawal.	2910
Any order or formal determination of the superintendent under this	2911
division shall be subject to judicial review as provided in	2912
section 119.12 of the Revised Code.	2913

(C) The superintendent shall have the sole and exclusive	2914
power and authority to regulate the sale, delivery, and issuance	2915
for delivery in this state of policies, annuities, and other	2916
contracts described in division (A) of this section and, subject	2917
to sections 119.01 to 119.13, inclusive,Chapter 119. of the	2918
Revised Code, to adopt, amend, and rescind rules necessary to	2919
discharge histhe superintendent's duties and exercise histhe	2920
superintendent's power and authority under sections 3905.20 and	2921
section 3907.15 of the Revised Code and this section, including,	2922
but not limited to, the adoption of a definition of a subsidiary	2923
or affiliated corporation under section 3907.15 of the Revised	2924
Code.	2925

(D) Except for Chapter 3915. and except as otherwise	2926
provided in sections 3905.20, 3907.15, and 3911.011 of the Revised	2927
Code, all pertinent provisions of Title XXXIX of the Revised Code	2928
apply to all policies, annuities, and other contracts providing	2929
variable or fixed and variable benefits or contractual payments	2930
and all separate accounts established in connection therewith. The	2931
reserve liability for such policies, annuities, and contracts	2932
shall be established in accordance with actuarial procedures that	2933
recognize the variable nature of the benefits and guarantees	2934
provided.	2935

Chapter 1707. of the Revised Code does not apply to any	2936
policy, annuity, or other contract providing fixed, variable, or	2937
fixed and variable benefits or contractual payments, whichthat is	2938
issued by any company, partnership, or association authorized to	2939
transact the business of life insurance in this state.	2940

Sec. 3923.121.  (A) As used in this section:

2941

(1) "Association" means a voluntary unincorporated	2942
association of insurers formed for the sole purpose of enabling	2943
cooperative action to provide sickness and accident insurance in	2944
accordance with this section.	2945

(2) "Insurer" means any insurance company authorized to do	2946
the business of sickness and accident insurance in this state.	2947

(3) "Insured" means a person covered under a group policy	2948
issued pursuant to this section.	2949

(B) Any insurer may join with one or more other insurers, in	2950
an association, to offer, sell, and issue to a policyholder	2951
selected by the association a policy of group insurance against	2952
major financial loss from sickness and accident covering residents	2953
of this state who are sixty-five years of age or older and the	2954
spouses of such residents. The insurance shall be offered,	2955
issued, and administered in the name of the association.	2956
Membership in the association shall be open to any insurer and	2957
each insurer which participates shall be liable for a specified	2958
percentage of the risks. The policy may be executed on behalf of	2959
the association by a duly authorized person and need not be	2960
countersigned by an agent.	2961

(C) The persons eligible for coverage under the policy shall	2962
be all residents of this state who are sixty-five years of age or	2963
older and their spouses, subject to reasonable underwriting	2964
restrictions to be set forth in the plan of the association. The	2965
policy may provide basic hospital and surgical coverage, basic	2966
medical coverage, major medical coverage, and any combination of	2967
these; provided that it shall not be required as a condition for	2968
obtaining major medical coverage that any basic coverage be taken.	2969

(D) The association shall file with the superintendent of	2970
insurance any policy, contract, certificate, or other evidence of	2971
insurance, application, or other forms pertaining to such	2972
insurance together with the premium rates to be charged therefor.	2973
The superintendent may approve, disapprove, and withdraw approval	2974
of the forms in accordance with section 3923.02 of the Revised	2975
Code, or the premium rates if by reasonable assumptions such rates	2976
are excessive in relation to the benefits provided. In	2977
determining whether such rates by reasonable assumptions are	2978
excessive in relation to the benefits provided the superintendent	2979
shall give due consideration to past and prospective claim	2980
experience, within and outside this state, and to fluctuations in	2981
such claim experience, to a reasonable risk charge, to	2982
contribution to surplus and contingency funds, to past and	2983
prospective expenses, both within and outside this state, and to	2984
all other relevant factors within and outside this state,	2985
including any differing operating methods of the insurers joining	2986
in the issuance of the policy. In reviewing the forms the	2987
superintendent shall not be bound by the requirements of sections	2988
3923.04 to 3923.07 of the Revised Code with respect to standard	2989
provisions to be included in sickness and accident policies or	2990
forms.	2991

(E) The association may enroll eligible persons for coverage	2992
under the policy through any insurance agent licensed to sell	2993
sickness and accident insurance pursuant to Chapter 3905. of the	2994
Revised Code or section 3905.02, 3905.08, 3905.18, or 3941.02 of	2995
the Revised Code.	2996

(F) The association shall file annually with the	2997
superintendent on such date and in such form as the superintendent	2998
may prescribe, a financial summary of its operations.	2999

(G) The association may sue and be sued in its associate	3000
name and for such purposes only shall be treated as a domestic	3001
corporation. Service of process against the association made upon	3002
a managing agent, any member thereof, or any agent authorized by	3003
appointment to receive service of process, shall have the same	3004
force and effect as if the service had been made upon all members	3005
of the association.	3006

(H) Under any policy issued as provided in this section, the	3007
policyholder, or such person as the policyholder shall designate,	3008
shall alone be a member of each domestic mutual insurance company	3009
joining in the issue of the policy and shall be entitled to one	3010
vote by virtue of such policy at the meetings of each such mutual	3011
insurance company. Notice of the annual meetings of each such	3012
mutual insurance company may be given by written notice to the	3013
policyholder or as otherwise prescribed in the policy.	3014

Sec. 3929.30.  The president or the vice-president and the	3015
secretary of each insurance company organized under the laws of	3016
this or any other state and doing business in this state,	3017
annually, on the first day of January or within sixty days	3018
thereafter, shall prepare, under oath, and deposit in the office	3019
of the superintendent of insurance a statement of the condition of	3020
such company on the next preceding thirty-first day of December.	3021
The statement shall be submitted on the forms adopted by the	3022
superintendent pursuant to section 3905.293901.77 of the Revised	3023
Code, and shall exhibit the following facts and items:	3024

(A) The amount of the capital stock of the company,	3025
specifying the amount paid and unpaid;	3026

(B) A detailed statement of all the assets of the company	3027
and the manner of their investment.	3028

(C) The liabilities of the company, specifying:

3029

(1) The amount of losses due and unpaid;

3030

(2) The amount of claims for losses resisted by the company;

3031

(3) The amount of losses incurred during the year, including	3032
those claimed and not due, and those reported to the company upon	3033
which no action has been taken;	3034

(4) The amount of dividends declared, due, and unpaid;

3035

(5) The amount of dividends, either cash or scrip, declared	3036
but not due;	3037

(6) The amount of money borrowed and the security given for	3038
its payment;	3039

(7) The amount required for reinsurance, being a pro rata of	3040
all premiums, received and receivable, on unexpired risks and	3041
policies, provided that as to fire insurance business, a company	3042
may, at its option, maintain a sum equal to fifty per cent of the	3043
whole amount of premiums received and receivable on unexpired	3044
risks and policies running one year and less from the date of the	3045
policy. In the case of marine insurance, premiums on trip risks	3046
not terminated shall be deemed unearned, and the superintendent	3047
may require a reserve to be carried thereon equal to one hundred	3048
per cent of the premiums on trip risks written during the month	3049
ended as of the date of statement.	3050

(8) The amount of all other existing claims against the	3051
company;	3052

(9) A statement, approved by the superintendent, from a	3053
member of the American academy of actuaries certifying that the	3054
loss and loss adjustment reserves established for medical	3055
malpractice business, as reported in the statutory annual	3056
statement, are computed in accordance with accepted loss reserving	3057
standards and are fairly stated in accordance with sound loss	3058
reserving principles.	3059

(D) The income of the company during the preceding year,	3060
specifying:	3061

(1) The amount of cash premiums received;

3062

(2) The amount of notes or contingent assets received for	3063
premiums;	3064

(3) The amount of interest money received;

3065

(4) The amount of income received from other sources.

3066

(E) The expenditure during the preceding year, specifying:

3067

(1) The amount of losses paid during the year, stating how	3068
much of them accrued prior, and how much accrued subsequent, to	3069
the date of the preceding statement, and the amount at which	3070
losses were estimated in each preceding statement;	3071

(2) The amount of dividends paid during the year;

3072

(3) The amount of expenses paid during the year, including	3073
commissions and fees to agents and officers of the company;	3074

(4) The amount paid for taxes;

3075

(5) The amount of all payments and expenditures;

3076

(6) The amount of scrip dividend declared.

3077

Sec. 3931.101.  The provisions of sections 3905.01 to 3905.04	3078
Chapter 3905. of the Revised Code, relating to the appointment,	3079
licensing, qualification and regulation of insurance agents,	3080
brokers, and solicitors shall apply to all persons authorized to	3081
solicit powers of attorney or applications for contracts of	3082
indemnity for any reciprocal exchange, insurance exchange or	3083
attorney in fact as provided for in Chapter 3931. of the Revised	3084
Code, except a traveling full time salaried non-commission	3085
employee of an attorney whose duties as such employee are	3086
primarily the performance of inspection underwriting, loss	3087
prevention engineering and claim services shall be exempt from	3088
this section and shall be regulated solely by section 3931.11 of	3089
the Revised Code.	3090

Sec. 3931.11.  Every attorney shall certify to the	3091
superintendent of insurance the names and addresses of the	3092
attorney's traveling full time salaried non-commission employees,	3093
primarily engaged in performing underwriting, loss prevention	3094
engineering and claim services, authorized by the attorney to	3095
solicit powers of attorney or applications for contracts of	3096
indemnity specified in section 3931.01 of the Revised Code. The	3097
authority of such persons shall continue until the first day of	3098
the next April, unless it is cancelled by the attorney and the	3099
certificate of such cancellation is filed with the superintendent,	3100
or unless the license of the attorney or authority of such person	3101
is revoked or suspended by the superintendent. Expiring	3102
certificates of authority of such persons may be renewed in like	3103
manner to continue until the first day of the next April. The	3104
superintendent shall record the names and addresses of such	3105
persons so that their names may conveniently be inspected and	3106
shall thereupon certify and deliver to the attorney a list of the	3107
names of all persons so recorded.	3108

If the superintendent finds that any such person has	3109
willfully violated, or failed to comply with, sections 3931.01 to	3110
3931.12 of the Revised Code, or has been convicted of a felony in	3111
the United States, or in this or any state, or has been guilty of	3112
any act or acts whichthat if performed by an agent licensed under	3113
section 3905.02Chapter 3905. of the Revised Code would constitute	3114
statutory grounds for the revocation of suchthe agent's license,	3115
the superintendent may refuse or revoke the authority of the	3116
person and cancel the person's name on the superintendent's	3117
records, and the superintendent shall thereupon notify the person	3118
and the attorney of the revocation. Thereafter the person shall	3119
not act as representative of any attorney until a new certificate	3120
of authority by the attorney thereafter appointing the person is	3121
filed with and approved by the superintendent.	3122

No such person shall act for any attorney in placing	3123
insurance or making such contracts of indemnity, unless the	3124
attorney has the license required by section 3931.10 of the	3125
Revised Code, nor unless the unexpired, unrevoked, and unsuspended	3126
certificate of suchthe person's authority is filed with the	3127
superintendent. Any such person shall be individually liable on	3128
any contract of indemnity made, issued, or accepted through that	3129
person as representing any attorney who is not licensed by the	3130
superintendent to make such contracts of indemnity.	3131

Sec. 3933.04.  No person, firm, or corporation engaged in	3132
selling real or personal property, engaged in the business of	3133
financing the purchase of real or personal property, or engaged in	3134
the business of lending money on the security of real or personal	3135
property, and no trustee, director, officer, agent, or other	3136
employee of any such person, firm, or corporation, shall require,	3137
as a condition precedent to the sale or financing the purchase of	3138
such property, to lending money upon the security of a mortgage	3139
thereon, or as a condition prerequisite for the renewal or	3140
extension of any such loan or mortgage or for the performance of	3141
any other act in connection therewith, that the person, firm, or	3142
corporation purchasing suchthe property, for whom such purchase	3143
is to be financed, to whom the money is to be loaned, or for whom	3144
such extension, renewal, or other act is to be granted, or	3145
performed, negotiate any policy of insurance or renewal thereof	3146
covering suchthe property through a particular insurance company,	3147
agent, solicitor, or broker. This section does not prevent the	3148
exercise by any person, firm, or corporation of its right to	3149
designate minimum standards as to the company, the terms and	3150
provisions of the policy, and the adequacy of the coverage with	3151
respect to insurance on property pledged or mortgaged to suchthe	3152
person, firm, or corporation.	3153

The superintendent of insurance shall, in accordance with	3154
sections 119.01 to 119.13, inclusive,Chapter 119. of the Revised	3155
Code, revoke the insurance license of any person, appointee,	3156
agent, solicitor, or broker whothat violates this section.	3157

Sec. 3953.21.  (A) Every title insurance company authorized	3158
to transact business within this state shall certify annually to	3159
the superintendent of insurance the names of all title insurance	3160
agents representing it in this state in accordance with section	3161
3905.023905.20 of the Revised Code.	3162

(B) No bank, trust company, bank and trust company, or other	3163
lending institution, mortgage service, brokerage, mortgage	3164
guaranty company, escrow company, real estate company or any	3165
subsidiaries thereof or any individuals so engaged shall be	3166
permitted to act as an agent for a title insurance company.	3167

Sec. 3953.23.  (A) Every title insurance agent shall keep	3168
books of account and record and vouchers pertaining to the	3169
business of title insurance in such manner that the title	3170
insurance company may readily ascertain from time to time whether	3171
the agent has complied with this chapter.	3172

(B) A title insurance agent may engage in the business of	3173
handling escrows of real property transactions directly connected	3174
with the business of title insurance, provided that the agent	3175
shall maintain a separate record of all receipts and disbursements	3176
of escrow funds and shall not commingle any such funds with the	3177
agent's own funds or with funds held by the agent in any other	3178
capacity; and if at any time the superintendent of insurance	3179
determines that an agent has failed to comply with any of the	3180
provisions of this section, the superintendent may revoke the	3181
license of the agent pursuant to section 3905.023905.14 of the	3182
Revised Code, subject to review as provided for in Chapter 119. of	3183
the Revised Code. All agents shall be covered by a fidelity bond	3184
in an amount and with a company satisfactory to the principal.	3185

Sec. 3957.14.  (A) No person shall, except for the renewal	3186
of an existing home service contract, procure, receive, or forward	3187
applications for home service contracts unless the person is a	3188
resident of this state who is one of the following:	3189

(1) A real estate licensee as licensed by the real estate	3190
division of the department of commerce of this state;	3191

(2) An organization or franchisor or licensor of such a real	3192
estate licensee;	3193

(3) A licensed insurance agent for casualty, property, or	3194
personal lines;	3195

(4) Any other person to whom the superintendent of insurance	3196
has issued a license to perform such services. The superintendent	3197
shall not issue such a license unless the person has paid a fee of	3198
twenty dollars and has been determined by the superintendent to be	3199
qualified. The superintendent shall issue such a license only if	3200
the person successfully passes a written examination prescribed by	3201
the superintendent.	3202

(B) No home warranty company or person acting on behalf of	3203
such a company under division (A) of this section shall pay to any	3204
person who is acting as the agent, representative, attorney, or	3205
employee of the owner or prospective owner of residential property	3206
with respect to which a home service contract is to be issued, any	3207
commission or any other consideration, either directly or	3208
indirectly, as an inducement or compensation for the issuance,	3209
purchase, or acquisition of a home service contract. A home	3210
warranty company may reimburse such persons for expenses actually	3211
incurred in the issuance, sale, advertising, or processing of home	3212
service contracts or in performing an inspection of residential	3213
property with respect to which a home service contract is issued.	3214
No commission shall be paid to any person except a person	3215
authorized to receive such a commission under this section. In	3216
the event a commission is paid, no rebates shall be permitted and	3217
the prohibitions of section 3933.01 of the Revised Code apply.	3218

Sec. 3960.03.  All of the following apply to risk retention	3219
groups chartered and licensed in states other than this state,	3220
that seek to do business as a risk retention group in this state:	3221

(A) No risk retention group shall offer insurance in this	3222
state unless it has submitted to the superintendent of insurance,	3223
in a form satisfactory to the superintendent, all of the	3224
following:	3225

(1) A statement identifying the state or states in which it	3226
is chartered and licensed as a liability insurance company, the	3227
date of chartering, its principal place of business, and any other	3228
information, including but not limited to, information on its	3229
membership, that the superintendent may require to verify that it	3230
is qualified under division (J) of section 3960.01 of the Revised	3231
Code;	3232

(2) A copy of its plan of operation or a feasibility study	3233
and revisions of the plan or study submitted to the state in which	3234
the risk retention group is chartered and licensed. Division	3235
(A)(2) of this section does not apply to any line or	3236
classification of liability insurance that was defined in the	3237
federal "Product Liability Risk Retention Act of 1981," 95 Stat.	3238
949, 15 U.S.C.A. 3901, as amended, before October 27, 1986, and	3239
was offered before that date by any risk retention group that had	3240
been chartered and operating for not less than three years before	3241
that date. The risk retention group shall submit a copy of any	3242
revision to its plan of operation or feasibility study required by	3243
division (A)(2) of section 3960.02 of the Revised Code at the same	3244
time that the revision is submitted to the Commissioner	3245
commissioner of Insuranceinsurance of its chartering state.	3246

(3) A statement of registration, for which a filing fee	3247
shall be determined by the superintendent, that submits it to the	3248
jurisdiction of the superintendent and the courts of this state.	3249
The fee shall be paid into the state treasury to the credit of the	3250
department of insurance operating fund pursuant to section	3251
3901.021 of the Revised Code.	3252

(B) A risk retention group doing business in this state	3253
shall submit to the superintendent all of the following:	3254

(1) A copy of its financial statement submitted to the state	3255
in which the risk retention group is chartered and domiciled,	3256
which shall be certified by an independent public accountant and	3257
contain a statement of opinion on loss and loss adjustment expense	3258
reserves made by a member of the American academy of actuaries or	3259
a qualified loss reserve specialist under criteria established by	3260
the national association of insurance commissioners;	3261

(2) A copy of each examination of the group as certified by	3262
the commissioner or public official conducting the examination;	3263

(3) Upon request by the superintendent, a copy of any	3264
information or document pertaining to any outside audit performed	3265
with respect to the group;	3266

(4) Any information that may be required to verify, to the	3267
superintendent's satisfaction, its continuing qualification as a	3268
risk retention group under division (J) of section 3960.01 of the	3269
Revised Code.	3270

(C)(1) Agents or brokers for the risk retention group shall	3271
report to the superintendent the premiums for direct business for	3272
risks resident or located within this state that they have placed	3273
with or on behalf of a risk retention group not chartered in this	3274
state.	3275

(2) The agent or broker shall keep a complete and separate	3276
record of all policies procured from each risk retention group,	3277
which record shall be open to examination by the superintendent.	3278
These records shall, for each policy and each kind of insurance	3279
provided, include the following:	3280

(a) The limit of liability;

3281

(b) The time period covered;

3282

(c) The effective date;

3283

(d) The name of the risk retention group that issued the	3284
policy;	3285

(e) The gross premium charged;

3286

(f) The amount of return premiums.

3287

(D) Every risk retention group that is not chartered in this	3288
state shall do both of the following:	3289

(1) On or before the firstthirty-first day of JulyJanuary,	3290
pay to the treasurer of state five per cent of all premiums, fees,	3291
assessments, dues, or other consideration for the preceding	3292
one-year period for risks resident or located in this state, as	3293
calculated on a form prescribed by the treasurer of state. If	3294
such tax is not paid when due, the tax shall be increased by a	3295
penalty of twenty-five per cent. An interest charge computed as	3296
set forth in section 5725.221 of the Revised Code shall be made on	3297
the entire sum of the tax plus penalty, which interest shall be	3298
computed from the date the tax is due until it is paid. All taxes	3299
collected under this section shall be paid into the general	3300
revenue fund. For purposes of division (D)(1) of this section,	3301
payment is considered made when it is received by the treasurer of	3302
state, irrespective of any United States postal service marking or	3303
other stamp or mark indicating the date on which the payment may	3304
have been mailed.	3305

(2) Within thirty days afterOn or before the end	3306
thirty-first day of each quarterJanuary, file a statement with	3307
the superintendent, on a form prescribed by the superintendent,	3308
showing the name and address of the insured, name and address of	3309
the insurer, subject of the insurance, general description of the	3310
coverage, the amount of gross premium, fee, assessment, dues, or	3311
other consideration for the insurance, after a deduction for	3312
return premium, if any, and any other information the	3313
superintendent requires.	3314

(E) The superintendent may examine the financial condition	3315
of a risk retention group if the commissioner of insurance in the	3316
state in which it is chartered and licensed has not initiated an	3317
examination or does not initiate an examination within sixty days	3318
after the superintendent has requested an examination. The	3319
examination shall be conducted in an expeditious manner and in	3320
accordance with the national association of insurance	3321
commissioners' examiner handbook.	3322

(F) The superintendent may issue any order appropriate in	3323
voluntary dissolution proceedings or commence delinquency	3324
proceedings against a risk retention group not chartered in this	3325
state that does business in this state if the superintendent	3326
finds, after an examination of the group under division (E) of	3327
this section, that its financial condition is impaired. A risk	3328
retention group that violates any provision of this chapter is	3329
subject to fines and penalties, including revocation of its right	3330
to do business in this state, applicable to licensed insurers	3331
generally. In addition to complying with the requirements of this	3332
section, any risk retention group operating in this state prior to	3333
enactment of this section shall comply with division (A)(1) of	3334
this section within thirty days after October 26, 1989.	3335

Sec. 3960.11.  (A) No person shall act or aid in any manner	3336
in soliciting, negotiating, or procuring liability insurance in	3337
this state from a risk retention group unless the person is	3338
licensed as an insurance agent or broker in accordance with	3339
section 3905.02 or 3905.30Chapter 3905. of the Revised Code.	3340

(B) No person shall act or aid in any manner in soliciting,	3341
negotiating, or procuring liability insurance in this state for a	3342
purchasing group from an authorized insurer or a risk retention	3343
group chartered in a state unless the person is licensed as an	3344
insurance agent or broker in accordance with section 3905.02 or	3345
3905.30Chapter 3905. of the Revised Code.	3346

(C) No person shall act or aid in any manner in soliciting,	3347
negotiating, or procuring liability insurance coverage in this	3348
state for any member of a purchasing group under a purchasing	3349
group's policy unless the person is licensed as an insurance agent	3350
or broker in accordance with section 3905.02 or 3905.30Chapter	3351
3905. of the Revised Code.	3352

(D) No person shall act or aid in any manner in soliciting,	3353
negotiating, or procuring liability insurance from an insurer not	3354
authorized to do business in this state on behalf of a purchasing	3355
group located in this state unless the person is licensed as a	3356
surplus line broker in accordance with section 3905.30 of the	3357
Revised Code.	3358

Section 2. That existing sections 1751.38, 3901.021, 3901.19,	3359
3901.22, 3901.51, 3901.62, 3903.81, 3905.012, 3905.03, 3905.06,	3360
3905.09, 3905.11, 3905.12, 3905.13, 3905.14, 3905.181, 3905.24,	3361
3905.25, 3905.26, 3905.27, 3905.28, 3905.29, 3905.30, 3905.31,	3362
3905.34, 3905.36, 3905.41, 3905.47, 3905.482, 3905.483,	3363
3905.484, 3905.486, 3905.49, 3905.491, 3905.492, 3905.50, 3905.52,	3364
3905.72, 3905.85, 3905.861, 3905.89, 3905.94, 3905.99, 3907.19,	3365
3909.06, 3911.011, 3923.121, 3929.30, 3931.101, 3931.11, 3933.04,	3366
3953.21, 3953.23, 3957.14, 3960.03, and 3960.11 and sections	3367
3905.01, 3905.011, 3905.013, 3905.02, 3905.04, 3905.07, 3905.08,	3368
3905.15, 3905.16, 3905.17, 3905.18, 3905.19, 3905.20, 3905.21,	3369
3905.22, 3905.23, 3905.40, 3905.48, 3905.51, and 3905.54 of the	3370
Revised Code are hereby repealed.	3371

Section 3. Sections 1 and 2 of this act shall take effect six	3372
months after the effective date of this act.	3373

Section 4. Sections 3905.34, 3905.36, and 3960.03 of the	3374
Revised Code, as amended by this act, shall first apply to the	3375
filing or reporting period that begins January 1, 2003, and	3376
concludes December 31, 2003. For those persons that, on the	3377
effective date of this act, are subject to a quarterly filing	3378
requirement, the last quarterly filing period shall conclude	3379
December 31, 2002. For those persons that, on the effective date	3380
of this act, are subject to an annual reporting period that	3381
concludes July 1, 2002, that reporting period shall be extended	3382
for six months and shall conclude December 31, 2002.	3383