REPRESENTATIVES Stapleton, Salerno, G. Smith, Olman, Calvert, Flannery, Flowers, Krupinski, Britton, Evans, Cirelli, Jolivette, Schaffer, Wolpert, Sferra, Blasdel

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 company that controls, is	104
controlled by, or is under common control with, another company.	105

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

(G) "Depository institution" means a 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 insurance company.	112

(H) "Insurance agent" or "agent" has the same meaning as in	113
section 3905.01 of the Revised Code.	114

(I) "Insurer" has the same meaning as in section 3901.32 of	115
the Revised Code.	116

(J) "Policy" or "certificate" means a contract of	117
insurance, indemnity, medical, health or hospital service,	118
suretyship, or annuity issued, proposed for issuance, or intended	119
for issuance by any insurer.	120

Sec. 3901.211. (A)(1) No person may require as a condition	121
precedent to the lending of money or the extension of credit, or	122
any renewal thereof, that the person to whom such money or credit	123
is extended or whose obligation a creditor is to acquire or	124
finance, negotiate any policy or renewal thereof through a	125
particular insurer or group of insurers or agent or group of	126
agents.	127

(2) No person may reject an insurance policy solely because	128
the policy has been issued or underwritten by a person that is not	129
associated with the person, or an affiliate of the person,	130
rejecting the policy.	131

(B) No person that lends money or extends credit may do any	132
of the following:	133

(1) As a condition for extending credit or offering any	134
product or service that is equivalent to an extension of credit,	135
require that a customer obtain insurance from a depository	136
institution or an affiliate of a depository institution, or from a	137
particular insurer, agent, or other person. However, this	138
provision does not prohibit a person from informing a customer or	139
prospective customer that insurance is required in order to obtain	140
a loan or credit, that loan or credit approval is contingent upon	141
the procurement by the customer of acceptable insurance, or that	142
insurance is available from the person or an affiliate of that	143
person.	144

(2) Unreasonably reject a policy furnished by the customer	145
or borrower for the protection of the property securing the credit	146
or lien. A rejection shall not be deemed unreasonable if it is	147
based on reasonable standards, uniformly applied. Such standards	148
may include, but are not limited to, standards relating to the	149
extent of coverage required and the financial soundness and	150
services of an insurer. Such standards shall not discriminate	151
against any particular type of insurer, nor shall such standards	152
call for the rejection of a policy because it contains coverage in	153
addition to that required in the credit transaction.	154

(3) Require that any customer, borrower, mortgagor,	155
purchaser, insurer, broker, or agent pay a separate charge in	156
connection with the handling of any policy required as security	157
for a loan on real estate or pay a separate charge to substitute	158
the policy of one insurer for that of another. Division (B)(3) of	159
this section does not apply to the interest that may be charged on	160
premium loans or premium advancements in accordance with the terms	161
of the loan or credit document. Division (B)(3) of this section	162
does not apply to required charges when the person or an affiliate	163
of that person is the licensed agent providing the insurance.	164

(4) Require any procedures or conditions of duly licensed	165
agents or insurers not customarily required of the agents or	166
insurers affiliated, or in any way connected, with the person that	167
lends money or extends credit;	168

(5) Use an advertisement or other insurance promotional	169
material that would cause a reasonable person to mistakenly	170
believe that the federal government or the state is responsible	171
for the insurance sales activity of, or stands behind the credit	172
of, the person, depository institution, or an affiliate of the	173
person or depository institution;	174

(6) Use an advertisement or other insurance promotional	175
material that would cause a reasonable person to mistakenly	176
believe that the federal government or the state guarantees any	177
return on insurance products or is a source of payment on any	178
insurance obligation of or sold by the person or an affiliate of	179
the person;	180

(7) Pay or receive any commission, brokerage fee, or other	181
compensation as an agent, unless the person holds a valid agent's	182
license for the applicable class of insurance. However, an	183
unlicensed person may make a referral to a licensed agent,	184
provided that the person does not discuss specific insurance	185
policy terms and conditions. The unlicensed person may be	186
compensated for the referral; however, in the case of a referral	187
of a customer, the unlicensed person may be compensated only if	188
the compensation is a fixed dollar amount for each referral that	189
does not depend on whether the customer purchases the insurance	190
product from the licensed agent. Further, any person that accepts	191
deposits from the public in an area where such transactions are	192
routinely conducted in the depository institution may receive for	193
each customer referral no more than a one-time, nominal fee of a	194
fixed dollar amount that does not depend on whether the referral	195
results in a transaction.	196

(8) Solicit or sell insurance, other than credit insurance	197
or flood insurance, unless the solicitation or sale is completed	198
through documents separate from any credit transactions;	199

(9) Include the expense of insurance premiums, other than	200
credit insurance premiums or flood insurance premiums, in the	201
primary credit transaction without the express written consent of	202
the customer.	203

(C)(1) If an application for a loan or extension of credit	204
is pending before a person that lends money or extends credit and	205
that also solicits insurance primarily for personal, family, or	206
household purposes in connection with that loan or extension of	207
credit, that person shall disclose to the customer, in writing,	208
that the insurance related to the credit extension may be	209
purchased from an insurer or agent of the customer's choice,	210
subject only to the lender's right to reject a given insurer or	211
agent as provided in division (B)(2) of this section. Further,	212
the disclosure shall inform the customer that the customer's	213
choice of an insurer or agent will not affect the credit decision	214
or credit terms in any way, except that the person lending money	215
or extending credit may impose reasonable requirements as provided	216
in division (B)(2) of this section.	217

(2) If an application for a loan or extension of credit is	218
pending before a person that lends money or extends credit and	219
that also solicits insurance primarily for personal, family, or	220
household purposes in connection with that loan or extension of	221
credit, that person shall obtain a written acknowledgement of the	222
receipt of the disclosure at the time the customer receives the	223
disclosure or at the time of the initial purchase of the insurance	224
policy. If the solicitation is conducted by telephone, the person	225
shall obtain an oral acknowledgement of receipt of the disclosure,	226
maintain sufficient documentation to show that the acknowledgement	227
was given by the customer, and make reasonable efforts to obtain a	228
written acknowledgement from the customer. If a customer	229
affirmatively consents to receiving the disclosures electronically	230
and the disclosures are provided in a format that the customer may	231
retain or obtain later, the person may provide the disclosure and	232
obtain acknowledgement of the receipt of the disclosure from the	233
customer using electronic media.	234

(3) This division does not apply to the offering or sale of	235
limited line credit insurance as defined in section 3905.01 of the	236
Revised Code.	237

(D)(1) A depository institution that solicits, sells,	238
advertises, or offers insurance, and any person that solicits,	239
sells, advertises, or offers insurance on behalf of a depository	240
institution or on the premises of a depository institution, shall	241
disclose to the customer in writing, where practicable and in a	242
clear and conspicuous manner, prior to a sale, that the insurance:	243

(a) Is not a deposit;

244

(b) Is not insured by the federal deposit insurance	245
corporation or any other federal government agency;	246

(c) Is not guaranteed by the depository institution, and,	247
when applicable, that the insurance is not guaranteed by an	248
affiliate of the depository institution or by any person that is	249
soliciting, selling, advertising, or offering insurance;	250

(d) Involves investment risk including the possible loss of	251
value, where this disclosure is appropriate.	252

(2) A depository institution that solicits, sells,	253
advertises, or offers insurance, and any person that solicits,	254
sells, advertises, or offers insurance on behalf of a depository	255
institution or on the premises of a depository institution, shall	256
obtain written acknowledgement of the receipt of the disclosure	257
from the customer at the time the customer receives the disclosure	258
or at the time of the initial purchase of the insurance policy. If	259
the solicitation is conducted by telephone, the person or	260
depository institution shall obtain an oral acknowledgement of	261
receipt of the disclosure, maintain sufficient documentation to	262
show that the acknowledgement was given by the customer, and make	263
reasonable efforts to obtain a written acknowledgement from the	264
customer. If a customer affirmatively consents to receiving the	265
disclosures electronically and the disclosures are provided in a	266
format that the customer may retain or obtain later, the person or	267
depository institution may provide the disclosure and obtain	268
acknowledgement of the receipt of the disclosure from the customer	269
using electronic media.	270

(3) For purposes of divisions (D)(1) and (2) of this	271
section, an affiliate of a depository institution is subject to	272
these requirements only to the extent that it sells, solicits,	273
advertises, or offers insurance products or annuities at an office	274
of a depository institution or on behalf of a depository	275
institution. These requirements apply only when an individual	276
purchases, applies to purchase, or is solicited to purchase	277
insurance products or annuities primarily for personal, family, or	278
household purposes and only to the extent that a disclosure would	279
be accurate.	280

(4) For purposes of division (D)(1) of this section, a	281
person is selling, soliciting, advertising, or offering insurance	282
on behalf of a depository institution, whether at an office of the	283
depository institution or another location, if at least one of the	284
following applies:	285

(a) The person represents to the customer that the sale,	286
solicitation, advertisement, or offer of insurance is by or on	287
behalf of the depository institution;	288

(b) The depository institution refers a customer to the	289
person that sells insurance and the depository institution has a	290
contractual arrangement to receive commissions or fees derived	291
from the sale of insurance resulting from the referral;	292

(c) Documents evidencing the sale, solicitation,	293
advertisement, or offer of insurance identify or refer to the	294
depository institution.	295

(E) Nothing in this section shall prevent a person that	296
lends money or extends credit from placing insurance on real or	297
personal property in the event the mortgagor, borrower, or	298
purchaser has failed to provide required insurance in accordance	299
with the terms of the loan or credit document.	300

(F)(1) A violation of this section is an unfair and	301
deceptive act or practice in the business of insurance under	302
sections 3901.19 to 3901.26 of the Revised Code.	303

(2) Any person subject to this section shall, upon	304
reasonable notice, make available to the superintendent of	305
insurance all books and records relating to insurance	306
transactions.	307

Sec. 3901.22.  (A) The superintendent of insurance may	308
conduct hearings to determine whether violations of section	309
3901.20 of the Revised Code have occurred. Any person aggrieved	310
with respect to any act that the person believes to be an unfair	311
or deceptive act or practice in the business of insurance, as	312
defined in section 3901.21 or 3901.211 of the Revised Code or in	313
any rule of the superintendent of insurance, may make written	314
application to the superintendent for a hearing to determine if	315
there has been a violation of section 3901.20 of the Revised Code.	316
The application shall specify the grounds to be relied upon by the	317
applicant. If the superintendent finds that the application is	318
made in good faith, that the applicant would be so aggrieved if	319
histhe applicant's grounds are established, and that such grounds	320
otherwise justify holding such a hearing, hethe superintendent	321
shall hold a hearing to determine whether the act specified in the	322
application is a violation of section 3901.20 of the Revised Code.	323
Notice of any hearing held under the authority of this section,	324
the conduct of the hearing, the orders issued pursuant to it, the	325
review of the orders and all other matters relating to the holding	326
of the hearing shall be governed by Chapter 119. of the Revised	327
Code.	328

(B) Upon good cause shown, the superintendent shall permit	329
any person to intervene, appear, and be heard at the hearing,	330
either in person or by counsel.	331

(C) The superintendent shall send a copy of the order to	332
those persons intervening in the hearing.	333

(D) If the superintendent,by written order, finds in his	334
written order that any person has violated section 3901.20 of the	335
Revised Code, hethe superintendent shall issue an order requiring	336
that person to cease and desist from engaging in the violation. In	337
addition, the superintendent may impose any or all of the	338
following administrative remedies upon the person:	339

(1) HeThe superintendent may suspend or revoke histhe	340
person's license to engage in the business of insurance;	341

(2) HeThe superintendent may order that an insurance company	342
or insurance agency not employ the person or permit the person to	343
serve as a director, consultant, or in any other capacity for such	344
time as the superintendent determines would serve the public	345
interest. No application for termination of such an order for an	346
indefinite time shall be filed within two years of its effective	347
date;.	348

(3) HeThe superintendent may order suchthe person to return	349
any payments received by suchthe person as a result of the	350
violation;	351

(4) If the superintendent issues an order pursuant to	352
division (D)(3) of this section, hethe superintendent shall order	353
suchthe person to pay statutory interest on such payments.	354

If the superintendent does not issue orders pursuant to	355
divisions (D)(3) and (4) of this section, hethe superintendent	356
shall expressly state in the cease-and-desist order histhe	357
reasons for not issuing such orders.	358

(5) HeThe superintendent may order suchthe person to pay to	359
the state treasury for credit to the department's operating fund	360
an amount, not in excess of one hundred thousand dollars, equal to	361
one-half of the expenses reasonably incurred by the superintendent	362
to retain attorneys, actuaries, accountants, and other experts not	363
otherwise a part of the superintendent's staff to assist directly	364
in the conduct of any investigations and hearings conducted with	365
respect to violations committed by suchthe person.	366

(E) If the superintendent has reasonable cause to believe	367
that an order issued pursuant to division (D) of this section has	368
been violated in whole or in part, hethe superintendent may,	369
unless such order is stayed by a court of competent jurisdiction,	370
request the attorney general to commence and prosecute any	371
appropriate action or proceeding in the name of the state against	372
suchthe person.	373

Such action may include, but need not be limited to, the	374
commencement of a class action under Civil Rule 23 on behalf of	375
policyholders, subscribers, applicants for policies or contracts,	376
or other insurance consumers for damages caused by or unjust	377
enrichment received as a result of the violation.	378

(F) In addition to any penalties imposed pursuant to this	379
chapter, the court may, in an action brought pursuant to division	380
(E) of this section, impose any of the following:	381

(1) For each act or practice found to be in violation of	382
section 3901.20 of the Revised Code, a civil penalty of not more	383
than three thousand five hundred dollars for each violation but	384
not to exceed an aggregate penalty of thirty-five thousand dollars	385
in any six-month period, provided that a series of similar acts or	386
practices prohibited by section 3901.20 of the Revised Code and	387
committed by the same person but not in separate insurance sales	388
transactions shall be considered a single violation;	389

(2) For each violation of a cease and desist order issued by	390
the superintendent pursuant to this section, a civil penalty of	391
not more than ten thousand dollars;	392

(3) In addition to any other appropriate relief, the court	393
may order any or all of the remedies specified in division (D) of	394
this section.	395

(G) The superintendent, under a settlement agreement to	396
which a person has consented in writing for the purpose of	397
assuring the person's correction of a series of offenses and	398
future compliance with the laws of this state relating to the	399
business of insurance, may impose a single penalty in whatever	400
amount the parties determine to be justified under the	401
circumstances.	402

(H) A court of common pleas, in a civil action commenced by	403
the attorney general on behalf of the superintendent under Civil	404
Rule 65, may grant a temporary restraining order, preliminary	405
injunction, or permanent injunction to restrain or prevent a	406
violation or threatened violation of any provision of section	407
3901.20 of the Revised Code, if the court finds that the defendant	408
has violated, is violating, or is threatening to violate such	409
provision, that immediate and irreparable injury, loss, or damage	410
will result if such relief is not granted, and that no adequate	411
remedy at law exists to prevent such irreparable injury, loss, or	412
damage.	413

(I) If the superintendent's position in initiating a matter	414
in controversy pursuant to this section and section 3901.221 of	415
the Revised Code was not substantially justified, upon motion of	416
the person who prevailed in the hearing or in the appropriate	417
court, if an adjudication order was appealed or a civil action was	418
commenced, the superintendent or the court shall order the	419
department of insurance to pay such person an amount, not in	420
excess of one hundred thousand dollars, equal to one-half of the	421
expenses reasonably incurred by suchthe person in connection with	422
the related proceedings. An award pursuant to this division may	423
be reduced or denied if special circumstances make an award unjust	424
or if suchthe person engaged in conduct that unduly and	425
unreasonably protracted the final resolution of the matter in	426
controversy. If the department does not pay such award or no such	427
funds are available, the award shall be treated as if it were a	428
judgment under Chapter 2743. of the Revised Code and be payable in	429
accordance with the procedures specified in section 2743.19 of the	430
Revised Code, except that interest shall not be paid in relation	431
to the award.	432

Sec. 3901.51.  As used in sections 3901.51 to 3901.55 of the	433
Revised Code:	434

(A) "Clearing corporation" has the same meaning as in	435
section 1308.01 of the Revised Code, except that with respect to	436
securities issued by institutions organized or existing under the	437
laws of any foreign country or securities used to meet the deposit	438
requirements pursuant to the laws of a foreign country as a	439
condition of doing business in that country, "clearing	440
corporation" includes a corporation that is organized or existing	441
under the laws of any foreign country and is legally qualified	442
under those laws to effect transactions in securities by	443
computerized book-entry.	444

(B) "Direct participant" means a bank, trust company, or	445
other entity that maintains an account in its name in a clearing	446
corporation and through which an insurance company participates in	447
a clearing corporation.	448

(C) "Federal reserve book-entry system" means the	449
computerized systems sponsored by the United States department of	450
the treasury and agencies and instrumentalities of the United	451
States for holding and transferring securities of the United	452
States government and agencies and instrumentalities in federal	453
reserve banks through banks that are members of the federal	454
reserve system or that otherwise have access to these computerized	455
systems.	456

(D) "Member bank" means a national or state bank or a trust	457
company that is a member of the federal reserve system and through	458
which an insurance company participates in the federal reserve	459
book-entry system.	460

(E) "Provisions of the insurance laws of this state" means	461
provisions of Title XXXIX of the Revised Code related to the	462
deposit of securities for the benefit and security of	463
policyholders, and includes, but is not limited to, sections	464
3901.18, 3901.74, 3901.75, 3901.86, 3903.73, 3905.24, 3905.25,	465
3905.41, 3907.07, 3909.03, 3909.09, 3909.17, 3913.01, 3913.04,	466
3919.13, 3919.36, 3919.37, 3919.41, 3925.07, 3927.02, 3927.06,	467
3929.01, 3929.07, 3929.08, 3929.09, 3929.10, 3929.11, 3941.30,	468
3941.31, 3941.32, 3941.33, 3941.34, 3941.42, 3953.06, 3953.11, and	469
3957.03 of the Revised Code.	470

(F) "Securities" has the same meaning as in section 1308.01	471
of the Revised Code.	472

Sec. 3901.62.  (A) Except as provided in sections 3901.63	473
and 3901.64 of the Revised Code, a domestic ceding insurer that is	474
authorized to do any insurance business in this state may take	475
credit for any reinsurance ceded as either an asset or a reduction	476
of liability only if one of the following applies:	477

(1) The reinsurance is ceded to an assuming insurer that is	478
authorized to do any insurance or reinsurance business in this	479
state.	480

(2) The reinsurance is ceded to an assuming insurer that is	481
not authorized to do any insurance or reinsurance business in this	482
state, provided the reinsurance is ceded to a reinsurance pool or	483
other risk-sharing entity in which participation is required by	484
law, rule, or regulation of the jurisdiction in which the pool or	485
entity is located.	486

(3) The reinsurance is ceded to an assuming insurer that	487
maintains a trust fund in a qualified United States financial	488
institution, as defined in division (B)(2) of section 3901.63 of	489
the Revised Code, for the payment of the valid claims of its	490
United States policyholders and ceding insurers, and their assigns	491
and successors in interest.	492

(B) A trust maintained by an assuming insurer under division	493
(A)(3) of this section shall meet the following requirements:	494

(1) In the case of a single assuming insurer, the trust	495
shall consist of a trusteed account representing the assuming	496
insurer's liabilities attributable to business underwritten in the	497
United States. A trusteed surplus of not less than twenty million	498
dollars shall be maintained by the assuming insurer.	499

(2) In the case of a group of assuming insurers, including	500
incorporated and individual unincorporated underwriters, the trust	501
shall consist of a trusteed account representing the group's	502
liabilities attributable to business written in the United States.	503
A trusteed surplus shall be maintained by the group, of which	504
surplus one hundred million dollars shall be held jointly for the	505
benefit of the United States ceding insurers of any member of the	506
group. The following requirements apply to the group of assuming	507
insurers:	508

(a) The incorporated members of the group shall not engage	509
in any business other than underwriting as a member of the group,	510
and shall be subject to the same level of solvency regulation and	511
control by the group's domiciliary regulator as are the	512
unincorporated members.	513

(b) The group shall make available to the superintendent of	514
insurance an annual certification of the solvency of each	515
underwriter in the group. The certification shall be provided by	516
the group's domiciliary regulator and its independent public	517
accountants.	518

(3) In the case of a group of incorporated insurers under	519
common administration with aggregate policyholders' surplus of ten	520
billion dollars that has continuously transacted an insurance	521
business outside the United States for at least three years	522
immediately prior to assuming reinsurance, the trust shall be in	523
an amount equal to the group's several liabilities attributable to	524
business ceded by United States ceding insurers to any member of	525
the group pursuant to reinsurance contracts issued in the name of	526
the group. A joint trusteed surplus shall be maintained by the	527
group, of which surplus one hundred million dollars shall be held	528
jointly for the benefit of United States ceding insurers of any	529
member of the group as additional security for any such	530
liabilities. The following requirements apply to the group of	531
incorporated insurers:	532

(a) The group shall comply with all filing requirements	533
contained in this section.	534

(b) The books and records of the group shall be subject to	535
examination by the superintendent in the same manner as the books	536
and records of insurers are subject to examination by the	537
superintendent in accordance with section 3901.07 of the Revised	538
Code. The group shall bear the expenses of these examinations in	539
the manner provided by that section.	540

(c) Each member of the group shall make available to the	541
superintendent an annual certification of the member's solvency by	542
the member's domiciliary regulator and an independent public	543
accountant.	544

(C) A trust maintained by an assuming insurer under division	545
(A)(3) of this section shall remain in effect for as long as the	546
assuming insurer has outstanding obligations due under the	547
reinsurance agreements subject to the trust. The trust shall be	548
in a form approved by the superintendent and shall include the	549
following:	550

(1) The trust instrument shall provide that contested claims	551
are valid and enforceable upon the final order of any court of	552
competent jurisdiction in the United States.	553

(2) The trust shall vest legal title to its assets in the	554
trustees of the trust for its United States policyholders and	555
ceding insurers, and their assigns and successors in interest.	556

(3) The trust, and the assuming insurer maintaining the	557
trust, shall allow the superintendent to conduct examinations in	558
the same manner as the superintendent conducts examinations of	559
insurers under section 3901.07 of the Revised Code.	560

(D) No later than the last day of February of each year, the	561
trustees of a trust maintained by an assuming insurer under	562
division (A)(3) of this section shall provide the superintendent	563
with a written report setting forth the balance of the trust and	564
listing the trust's investments as of the preceding thirty-first	565
day of December. The trustees shall certify the date of the	566
termination of the trust, if termination of the trust is planned,	567
or shall certify that the trust does not expire prior to the	568
following thirty-first day of December.	569

(E) To enable the superintendent to determine the	570
sufficiency of a trust maintained by an assuming insurer under	571
division (A)(3) of this section, the assuming insurer shall	572
annually report information on the trust to the superintendent	573
that is substantially the same as that information licensed	574
insurers are required to report under sections 3907.19, 3909.06,	575
and 3929.30 of the Revised Code on forms adopted under section	576
3905.293901.77 of the Revised Code.	577

(F) An assuming insurer shall file a written instrument	578
appointing an attorney as its agent in this state upon whom all	579
service of process may be served. Service of process upon this	580
agent shall bring the assuming insurer within the jurisdiction of	581
the courts of this state as if served upon an agent pursuant to	582
section 3927.03 of the Revised Code.	583

Sec. 3905.24.        Sec. 3901.74.  When a life insurance company doing	584
business in this state decides to discontinue its business, the	585
superintendent of insurance upon the application of suchthe	586
company or association shall give notice, at its expense, of such	587
intention at least once a week for six weeks in a newspaper	588
published and of general circulation in the county in which such	589
the company or its general agency is located. After such	590
publication, the superintendent shall deliver to suchthe company	591
or association its securities held by himthe superintendent, if	592
hethe superintendent is satisfied on an exhibition of its books	593
and papers, and on an examination made by himselfthe	594
superintendent or by some competent, disinterested person	595
appointed by himthe superintendent, and upon the oath of the	596
president or principal officer and the secretary or actuary of	597
suchthe company, that all debts and liabilities due or to become	598
due upon any contract or agreement made with any citizen or	599
resident of the United States are paid and extinguished. The	600
superintendent may deliver to suchthe company or association or	601
its assigns any portion of suchthe securities on being satisfied	602
that an equal proportion of the debts and liabilities due or to	603
become due upon any such contract or agreement have been	604
satisfied, if the amount of securities retained by himthe	605
superintendent is not less than twice the amount of the remaining	606
liabilities.	607

Sec. 3905.25.        Sec. 3901.75.  When any insurance company or	608
corporation other than life, which company or corporation has made	609
a deposit with the superintendent of insurance, intends to	610
discontinue its business in this state, the superintendent, upon	611
the application of suchthe company or corporation, shall give	612
notice at its expense of such intention at least once a week for	613
six weeks in three newspapers of general circulation in the state.	614

After such publication, the superintendent shall deliver to	615
suchthe company or association its securities held by himthe	616
superintendent, if hethe superintendent is satisfied by the	617
affidavits of the principal officers of the company, and on an	618
examination made by himthe superintendent or by some competent,	619
disinterested person appointed by himthe superintendent if hethe	620
superintendent deems it necessary, that all liabilities and	621
obligations which saidthe deposit has been made to secure have	622
been paid and extinguished. The superintendent may deliver to	623
suchthe company or its assigns, under like condition, any portion	624
of suchthe securities on being satisfied that an equal proportion	625
of saidthe liabilities and obligations have been satisfied, if	626
the amount of securities retained by himthe superintendent is not	627
less than twice the amount of the remaining liabilities and	628
obligations.	629

Sec. 3905.28.        Sec. 3901.76.  As used in this section, "securities"	630
means the stocks, bonds, debentures, and other assets subject from	631
time to time to valuation by the committee on valuation of	632
securities of the national association of insurance commissioners.	633

For the purpose of enabling the superintendent of insurance	634
to secure the analyses, reports, and information developed by the	635
committee on valuation of securities of the national association	636
of insurance commissioners and to pay for such information by	637
cooperating with other states in defraying the expenses of such	638
the committee in the investigation, analysis, and valuation of	639
securities and the determination of amortizability of bonds owned	640
by life insurance companies for the purpose of furnishing to the	641
several states on a uniform basis the information needed in the	642
supervision of insurance companies licensed to transact business	643
in the several states, there is hereby created in the state	644
treasury the security valuation expense fund.	645

The superintendent may collect and disburse, in cooperation	646
with supervisory officials of other states, the moneys obtained	647
through assessments as provided in this section. All moneys which	648
are paid into the fund shall be used only for the purpose of this	649
section.	650

The superintendent may contract with the committee to make	651
available to the department of insurance the analyses, reports,	652
and information developed by the committee and, after taking into	653
consideration similar payments whichthat may be made by other	654
states, may make payment to suchthe committee to the extent	655
authorized by this section, on account of the expenses of the	656
committee, from the fund.	657

The superintendent shall periodically obtain from the	658
committee a verified budget estimate of the receipts and of the	659
expenses to be incurred by the committee for a stated period, not	660
exceeding one year, with appropriate explanations of the estimates	661
therein contained.	662

If the superintendent is satisfied as to the reasonableness	663
of suchthe budget estimate, hethe superintendent shall determine	664
the portion of the moneys required by suchthe budget estimate, to	665
be assessed as provided in this section, by deducting from such	666
the budget estimate or from the sum of two hundred fifty thousand	667
dollars, whichever is less, any amounts received or receivable by	668
the committee from states with laws that do not substantially	669
conform to the method of assessment provided in this section and	670
applying to the remainder the proportion whichthat the total	671
investments in securities of domestic life insurers bear to the	672
total investments in securities of life insurers domiciled in this	673
and other states with laws that authorize and require assessments	674
on substantially the same basis as provided in this section. The	675
superintendent shall thereafter, as soon as convenient, by notice	676
stating the method of computation thereof, assess the amount to be	677
paid on account of such expenses, pro rata upon all domestic life	678
insurers in the proportion whichthat the total investments in	679
securities of each domestic life insurer bear to the total	680
investments in securities of all domestic life insurers. The	681
total investments in securities of any life insurer for purposes	682
of this section shall be the total admitted value of the	683
securities reported as such in its annual statement last filed	684
prior to such assessment with the department or with the	685
supervisory officials of its state of domicile. Upon receipt of	686
suchthe notice each domestic life insurance company shall within	687
thirty days thereafter pay the amount of the assessment to the	688
superintendent, who shall deposit the amount in the state treasury	689
to the credit of the fund. The superintendent shall make such	690
disbursements from the fund in amounts and at the times determined	691
by the superintendent under histhe superintendent's contract with	692
the committee.	693

The superintendent shall require annually, and at such other	694
times as hethe superintendent considers it necessary or	695
advisable, a duly certified audit of receipts and disbursements	696
and statement of assets and liabilities, showing the details of	697
the financial operations of the committee.	698

Sec. 3905.29.        Sec. 3901.77.  (A) The superintendent of insurance	699
shall adopt the forms, instructions, and manuals prescribed by the	700
national association of insurance commissioners, for the	701
preparation and filing of statutory financial statements and other	702
financial information. However, the superintendent may by rule	703
adopt modifications to suchthe prescribed forms, instructions,	704
and manuals as hethe superintendent considers necessary.	705

(B) For circumstances not addressed by the forms,	706
instructions, and manuals prescribed by the national association	707
of insurance commissioners, the superintendent may determine	708
accounting practices and methods for purposes of preparing	709
statutory financial statements and other financial information.	710

(C) The superintendent shall furnish each domestic insurance	711
company a printed copy of the forms for the filing of statutory	712
financial statements and other financial information required to	713
be made by it.	714

Sec. 3905.09.        Sec. 3901.78.  Upon the filing of each of its annual	715
statements, or as soon thereafter as practicable, the	716
superintendent of insurance shall issue to each insurance company	717
or association authorized to do business in this state a	718
certificate that it has complied with the laws of this state. Such	719
certificate of compliance shall also contain a statement of the	720
amounts of the paid-up capital stock, assets, liabilities, income,	721
and expenditures of the company or association for the preceding	722
year, as shown by its annual statement for that year. The	723
superintendent shall issue to each newly-applying company or	724
association which hethat the superintendent finds should be	725
authorized to do business in this state, a certificate that it has	726
complied with the laws of this state, which certificate shall	727
contain a statement of the amounts of its paid-up capital stock,	728
assets, liabilities, income, and expenditures as shown by a	729
financial statement submitted by it, under the oath of its	730
officers.	731

Sec. 3905.11.        Sec. 3901.781.  Annually, and before the time of	732
making its report to the superintendent of insurance as required	733
by section 3905.123901.782 of the Revised Code, each insurance	734
company and association not incorporated under the laws of this	735
state shall publish its certificate of compliance in every county	736
where it has an agency, in a newspaper published and of general	737
circulation in such county.	738

No newspaper shall be deemed a newspaper of general	739
circulation unless it has been established for at least one year,	740
is printed in the English language, and has a circulation in the	741
county in which it is published as follows:	742

(A) In a county having at the last preceding federal census	743
a population of not more than thirty thousand, a circulation of	744
six hundred;	745

(B) In a county having a population of over thirty thousand	746
and not more than fifty thousand, a circulation of eight hundred;	747

(C) In a county having a population of over fifty thousand	748
and not more than one hundred thousand, a circulation of twelve	749
hundred;	750

(D) In a county having a population of over one hundred	751
thousand and not more than one hundred fifty thousand, a	752
circulation of two thousand;	753

(E) In counties having a population of more than one hundred	754
fifty thousand, a circulation of three thousand.	755

Before publication of any certificate of compliance, the	756
manager, editor, or proprietor of a newspaper shall certify under	757
oath on a prepared blank, furnished himthe manager, editor, or	758
proprietor on application by the superintendent of insurance, the	759
information prescribed in this section for determining whether it	760
is a newspaper of general circulation, and if such affidavit shows	761
that the newspaper is one of general circulation, the	762
superintendent shall deliver to himthe manager, editor, or	763
proprietor a certificate that such newspaper is one of general	764
circulation.	765

Sec. 3905.12.        Sec. 3901.782.  On or before the first day of October	766
of each year, each insurance company and association doing	767
business in this state, which company or association is not	768
incorporated under the laws thereof, shall file with the	769
superintendent of insurance, upon blanks prepared and upon	770
application furnished by himthe superintendent, a report in	771
writing under oath of its president and secretary showing the	772
counties in which publication of its certificate of authority to	773
do business was made, the counties in which it had agencies at the	774
time of such publication, and the names of the newspapers in which	775
the publication was made, with a copy of the certificate so	776
published attached thereto.	777

Sec. 3905.13.        Sec. 3901.783.  If any insurance company or	778
association mentioned in section 3905.123901.782 of the Revised	779
Code fails to comply with the laws relating to the publication of	780
the certificate mentioned in suchthat section, the superintendent	781
of insurance shall suspend its authority to do business in any	782
county where suchin which the publication has not been made,	783
until suchthe publication is made, but if it appears that such	784
the publication has not been made in any county through mistake or	785
oversight, such authority shall not be suspended in the county if	786
suchthe publication is made within a time designated by the	787
superintendent.	788

Sec. 3905.14.        Sec. 3901.784.  Publication of a certificate of	789
compliance in a newspaper shall not be approved by the	790
superintendent of insurance unless prior to suchthe publication	791
hethe superintendent has certified that suchthe newspaper is one	792
published and of general circulation in the county, but if	793
publication has been made in any such newspaper without suchthe	794
certification and a report filed as required by section 3905.12	795
3901.782 of the Revised Code, and suchthe certificate of the	796
superintendent is procured within the time hethe superintendent	797
designates, publication in suchthe newspaper shall be approved.	798
The superintendent shall keep a book in which shall be recorded	799
the names of the newspapers so certified as newspapers of general	800
circulation, which book shall be open to inspection, and every	801
such certificate of circulation shall remain in force until	802
revoked, provided that the superintendent may demand further	803
certificates as to the circulation of any such newspaper.	804

Sec. 3905.41.        Sec. 3901.86.  (A) When the laws of any other state,	805
district, territory, or nation impose any taxes, fines, penalties,	806
license fees, deposits of money, securities, or other obligations	807
or prohibitions on insurance companies of this state doing	808
business in suchthat state, district, territory, or nation, or	809
upon their agents therein, the same obligations and prohibitions	810
shall be imposed upon insurance companies of suchthe other state,	811
district, or nation doing business in this state and upon their	812
agents.	813

When the laws of any other state, district, territory, or	814
nation impose a requirement for countersignature and payment of a	815
fee or commission upon agents of this state for placing any	816
coverage in that state, district, territory, or nation, then the	817
same requirements of countersignature and fee or commission shall	818
be imposed upon agents of that state, district, territory, or	819
nation for placing any coverage in this state.	820

(B) Beginning on the effective date of this amendmentJuly	821
1, 1993, twenty per cent of the amount that is collected under	822
division (A) of this section from foreign insurance companies that	823
sell fire insurance to residents of this state shall be paid into	824
the state fire marshal's fund created under section 3737.71 of the	825
Revised Code. The director of commerce, with the approval of the	826
director of budget and management, may increase the percentage	827
described in this division so that it will yield an amount that	828
the director of commerce determines necessary to assist in the	829
maintenance and administration of the office of the fire marshal	830
and in defraying the costs of operating the Ohio fire academy	831
established by section 3737.33 of the Revised Code.	832

Sec. 3903.81.  As used in sections 3903.81 to 3903.93 of the	833
Revised Code:	834

(A) "Adjusted RBC report" means an RBC report that has been	835
adjusted by the superintendent of insurance in accordance with	836
division (C) of section 3903.82 of the Revised Code.	837

(B) "Authorized control level RBC" means the number	838
determined under the risk-based capital formula in accordance with	839
the RBC instructions.	840

(C) "Company action level RBC" means the product of 2.0 and	841
an insurer's authorized control level RBC.	842

(D) "Corrective order" means an order issued by the	843
superintendent of insurance in accordance with division (B)(3) of	844
section 3903.84 of the Revised Code specifying corrective actions	845
that the superintendent has determined are required.	846

(E) "Domestic insurer" means any insurance company organized	847
under Chapter 3907. or 3925. of the Revised Code.	848

(F) "Foreign insurer" means any insurance company licensed	849
under section 3909.01 or 3927.01 of the Revised Code.	850

(G) "Life or health insurer" means any insurance company	851
licensed under section 3907.08 or 3909.01 of the Revised Code, or	852
a company possessing a certificate of authority pursuant to	853
section 3929.01 of the Revised Code that writes only accident and	854
health insurance.	855

(H) "Mandatory control level RBC" means the product of .70	856
and an insurer's authorized control level RBC.	857

(I) "NAIC" means the national association of insurance	858
commissioners.	859

(J) "Negative trend" means a negative trend over a period of	860
time for a life or health insurer as determined in accordance with	861
the trend test calculation included in the RBC instructions.	862

(K) "Property and casualty insurer" means any insurance	863
company that has a certificate of authority pursuant to section	864
3929.01 of the Revised Code. "Property and casualty insurer" does	865
not include monoline mortgage guarantee insurers, financial	866
guarantee insurers, or title insurers.	867

(L) "RBC" means risk based capital.

868

(M) "RBC" instructions" means the RBC report, including	869
risk-based capital instructions, as adopted by the NAIC and as	870
amended by the NAIC from time to time in accordance with the	871
procedures adopted by the NAIC. However, no NAIC amendment to the	872
RBC instructions shall become effective until the superintendent	873
has adopted by rule the RBC instructions as so amended. "RBC	874
instructions" shall also include any modifications adopted by the	875
superintendent, as the superintendent considers to be necessary.	876

(N) "RBC level" means an insurer's company action level RBC,	877
regulatory action level RBC, authorized control level RBC, or	878
mandatory control level RBC.	879

(O) "RBC plan" means a comprehensive financial plan	880
containing the elements specified in division (B) of section	881
3903.83 of the Revised Code.	882

(P) "Revised RBC plan" means an RBC plan rejected by the	883
superintendent of insurance and then revised by an insurer with or	884
without incorporating the superintendent of insurance's	885
recommendation.	886

(Q) "RBC report" means the report required by section	887
3903.82 of the Revised Code.	888

(R) "Regulatory action level RBC" means the product of 1.5	889
and an insurer's authorized control level RBC.	890

(S) "Total adjusted capital" means the sum of both of the	891
following:	892

(1) An insurer's statutory capital and surplus as determined	893
in accordance with the statutory accounting applicable to the	894
annual statements prepared on a form adopted under section 3905.29	895
3901.77 of the Revised Code, as required to be filed by sections	896
3907.19, 3909.06, and 3929.30 of the Revised Code;	897

(2) Such other items, if any, as the RBC instructions may	898
provide.	899

Sec. 3905.01.  As used in this chapter:

900

(A) "Business entity" means a corporation, association,	901
partnership, limited liability company, limited liability	902
partnership, or other legal entity.	903

(B) "Home state" means the state or territory of the United	904
States, including the District of Columbia, in which an insurance	905
agent maintains the insurance agent's principal place of residence	906
or principal place of business and is licensed to act as an	907
insurance agent.	908

(C) "Insurance" means any of the lines of authority set	909
forth in Chapter 1739., 1751., or 1761. or Title XXXIX of the	910
Revised Code, or as additionally determined by the superintendent	911
of insurance.	912

(D) "Insurance agent" or "agent" means any person that, in	913
order to sell, solicit, or negotiate insurance, is required to be	914
licensed under the laws of this state, including limited lines	915
insurance agents and surplus line brokers.	916

(E) "Insurer" has the same meaning as in section 3901.32 of	917
the Revised Code.	918

(F) "License" means the authority issued by the	919
superintendent to a person to act as an insurance agent for the	920
lines of authority specified, but that does not create any actual,	921
apparent, or inherent authority in the person to represent or	922
commit an insurer.	923

(G) "Limited line credit insurance" means credit life,	924
credit disability, credit property, credit unemployment,	925
involuntary unemployment, mortgage life, mortgage guaranty,	926
mortgage disability, guaranteed automobile protection insurance,	927
or any other form of insurance offered in connection with an	928
extension of credit that is limited to partially or wholly	929
extinguishing that credit obligation and that is designated by the	930
superintendent as limited line credit insurance.	931

(H) "Limited line credit insurance agent" means a person	932
that sells, solicits, or negotiates one or more forms of limited	933
line credit insurance to individuals through a master, corporate,	934
group, or individual policy.	935

(I) "Limited lines insurance" means those lines of	936
authority set forth in divisions (B)(7) to (10) of section 3905.06	937
of the Revised Code or in rules adopted by the superintendent, or	938
any lines of authority the superintendent considers necessary to	939
recognize for purposes of complying with section 3905.072 of the	940
Revised Code.	941

(J) "Limited lines insurance agent" means a person	942
authorized by the superintendent to sell, solicit, or negotiate	943
limited lines insurance.	944

(K) "NAIC" means the national association of insurance	945
commissioners.	946

(L) "Negotiate" means to confer directly with, or offer	947
advice directly to, a purchaser or prospective purchaser of a	948
particular contract of insurance with respect to the substantive	949
benefits, terms, or conditions of the contract, provided the	950
person that is conferring or offering advice either sells	951
insurance or obtains insurance from insurers for purchasers.	952

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

953

(N) "Sell" means to exchange a contract of insurance by any	954
means, for money or its equivalent, on behalf of an insurer.	955

(O) "Solicit" means to attempt to sell insurance, or to ask	956
or urge a person to apply for a particular kind of insurance from	957
a particular insurer.	958

(P) "Superintendent" or "superintendent of insurance" means	959
the superintendent of insurance of this state.	960

(Q) "Terminate" means to cancel the relationship between an	961
insurance agent and the insurer or to terminate an insurance	962
agent's authority to transact insurance.	963

(R) "Uniform application" means the NAIC uniform application	964
for resident and nonresident agent licensing, as amended by the	965
NAIC from time to time.	966

(S) "Uniform business entity application" means the NAIC	967
uniform business entity application for resident and nonresident	968
business entities, as amended by the NAIC from time to time.	969

Sec. 3905.02. No person shall sell, solicit, or negotiate	970
insurance in this state unless the person is licensed for that	971
line of authority in accordance with this chapter.	972

Sec. 3905.03. (A) Section 3905.02 of the Revised Code does	973
not apply to any of the following:	974

(1) Any insurer. For purposes of this division, "insurer"	975
does not include an insurer's officers, directors, employees,	976
subsidiaries, or affiliates.	977

(2) Any officer, director, or employee of an insurer or of	978
an insurance agent, provided the officer, director, or employee	979
does not receive any commission on policies written or sold to	980
insure risks residing, located, or to be performed in this state	981
and any of the following applies:	982

(a) The activities of the officer, director, or employee	983
are executive, administrative, managerial, clerical, or any	984
combination thereof, and are only indirectly related to the sale,	985
solicitation, or negotiation of insurance.	986

(b) The function of the officer, director, or employee	987
relates to underwriting, loss control, inspection, or the	988
processing, adjusting, investigation, or settling of a claim on a	989
contract of insurance.	990

(c) The officer, director, or employee is acting in the	991
capacity of a special agent or agency supervisor, provided the	992
activities of the officer, director, or employee are limited to	993
providing technical advice and assistance to licensed insurance	994
agents and do not include the sale, solicitation, or negotiation	995
of insurance.	996

(3) Any person who secures and furnishes information for	997
purposes of group life insurance, group property and casualty	998
insurance, group annuities, or group or blanket accident and	999
health insurance, or for purposes of enrolling individuals under	1000
plans, issuing certificates under plans, or otherwise assisting in	1001
administering plans, or who performs administrative services	1002
related to mass marketed property and casualty insurance, provided	1003
that no commission is paid to the person for any of the services	1004
described in this division;	1005

(4) Any employer or association, any officer, director, or	1006
employee of an employer or association, or any trustee of an	1007
employee trust plan, to the extent that any such person is engaged	1008
in the administration or operation of an employee benefits program	1009
for the employer's or association's own employees or for the	1010
employees of its subsidiaries or affiliates, if both of the	1011
following apply:	1012

(a) The employee benefits program involves the use of	1013
insurance contracts issued by an insurer.	1014

(b) The employer, association, officer, director, employee,	1015
or trustee is not in any manner compensated, either directly or	1016
indirectly, by the insurer issuing the insurance contracts.	1017

(5) Any employee of an insurer or of an organization	1018
employed by an insurer, if the employee is engaged in the	1019
inspection, rating, or classification of risks or in the	1020
supervision of the training of insurance agents, and is not	1021
individually engaged in the sale, solicitation, or negotiation of	1022
insurance;	1023

(6) Any person whose activities in this state are limited	1024
to advertising through communications in printed publications or	1025
in the electronic mass media, the distribution of which is not	1026
limited to residents of this state, if the person does not sell,	1027
solicit, or negotiate insurance covering risks residing, located,	1028
or to be performed in this state;	1029

(7) Any person who is not a resident of this state and	1030
who sells, solicits, or negotiates a contract of insurance	1031
covering commercial property and casualty risks located in more	1032
than one state, if the person is licensed as an insurance agent to	1033
sell, solicit, or negotiate that insurance contract in the state	1034
where the insured maintains its principal place of business and	1035
the contract insures risks located in that state;	1036

(8) Any salaried full-time employee who counsels or advises	1037
the employee's employer with respect to the insurance interests of	1038
the employer or of the employer's subsidiaries or business	1039
affiliates, if the employee does not sell or solicit insurance or	1040
receive a commission;	1041

(9) Any employee of an insurer or of an insurance agent who,	1042
at the direction of the insurer or agent, performs any of the	1043
following activities:	1044

(a) The acceptance of premiums other than the initial	1045
premium;	1046

(b) The gathering of information, such as names,	1047
addresses, expiration dates of current insurance, and names of	1048
current insurers;	1049

(c) The setting of appointments for insurance agents,	1050
provided that the individual setting the appointment does not	1051
communicate any information about insurance;	1052

(d) The servicing of existing insurance policies issued by	1053
or through the employee's employer, provided the servicing is not	1054
part of a solicitation;	1055

(e) The performance of clerical or ministerial duties.

1056

(10) Any employee of a creditor with respect to limited line	1057
credit insurance products, as long as the employee of the creditor	1058
is not paid by, and does not receive a fee, commission, or any	1059
other form of compensation from, an insurance agent or insurance	1060
company.	1061

(B) The superintendent of insurance may adopt rules in	1062
accordance with Chapter 119. of the Revised Code to set forth the	1063
specific acts the performance of which either require or do not	1064
require licensure as an insurance agent.	1065

Sec. 3905.04.  (A) Except as otherwise provided in section	1066
3905.041 of the Revised Code, a resident individual applying for	1067
an insurance agent license for any of the lines of authority	1068
described in division (B) of this section shall take a written	1069
examination. The examination shall test the knowledge of the	1070
individual with respect to the lines of authority for which	1071
application is made, the duties and responsibilities of an	1072
insurance agent, and the insurance laws of this state. Before	1073
admission to the examination, each individual shall pay the	1074
nonrefundable fee required under division (D) of section 3905.40	1075
of the Revised Code.	1076

(B) The examination described in division (A) of this	1077
section shall be required for the following lines of authority:	1078

(1) Any of the lines of authority set forth in divisions	1079
(B)(1) to (6) of section 3905.06 of the Revised Code;	1080

(2) Title insurance;

1081

(3) Surety bail bonds as provided in sections 3905.83 to	1082
3905.95 of the Revised Code;	1083

(4) Any other line of authority designated by the	1084
superintendent of insurance.	1085

(C) An individual shall not be permitted to take the	1086
examination described in division (A) of this section unless one	1087
or both of the following apply:	1088

(1) The individual has earned a bachelor's or associate's	1089
degree in insurance from an accredited institution.	1090

(2) The individual has completed, for each line of	1091
authority for which the individual has applied, twenty hours of	1092
study in a program of insurance education approved by the	1093
superintendent, in consultation with the insurance agent education	1094
advisory council, under criteria established by the	1095
superintendent. Division (C) of this section does not apply with	1096
respect to title insurance or any other line of authority	1097
designated by the superintendent.	1098

(D) An individual who fails to appear for an examination as	1099
scheduled, or fails to pass an examination, may reapply for the	1100
examination if the individual pays the required fee and submits	1101
any necessary forms prior to being rescheduled for the	1102
examination.	1103

(E)(1) The superintendent may, in accordance with Chapter	1104
119. of the Revised Code, adopt any rule necessary for the	1105
implementation of this section.	1106

(2) The superintendent may make any necessary arrangements,	1107
including contracting with an outside testing service, for the	1108
administration of the examinations and the collection of the fees	1109
required by this section.	1110

Sec. 3905.041.  (A)(1) An individual who applies for a	1111
resident insurance agent license in this state within ninety days	1112
after establishing a principal place of residence or principal	1113
place of business in this state shall not be required under	1114
section 3905.04 of the Revised Code to complete a program of	1115
insurance education or to pass a written examination if either of	1116
the following applies:	1117

(a) The individual is currently licensed in another state	1118
and is in good standing for the line or lines of authority	1119
requested.	1120

(b) The individual was previously licensed in another state,	1121
the individual's application for a resident insurance agent	1122
license in this state is received within ninety days after the	1123
cancellation of the individual's previous license, and, at the	1124
time of license cancellation, the individual was in good standing	1125
for the line or lines of authority requested.	1126

(2) To determine an applicant's licensure and standing	1127
status in another state, the superintendent of insurance may	1128
utilize the producer database maintained by the NAIC or its	1129
affiliates or subsidiaries. If that information is not available	1130
on the producer database, the superintendent may require a	1131
certification letter from the prior home state.	1132

(B) An individual who applies for a temporary insurance agent	1133
license in this state shall not be required under section 3905.04	1134
of the Revised Code to complete any prelicensing education or to	1135
pass a written examination.	1136

(C) The superintendent may exempt any limited lines	1137
insurance from the examination requirement of section 3905.04 of	1138
the Revised Code.	1139

Sec. 3905.05.  (A) A natural person shall apply for a	1140
resident insurance agent license by submitting to the	1141
superintendent of insurance the uniform application or any other	1142
application prescribed by the superintendent, any additional	1143
information required by the superintendent, and a declaration made	1144
under penalty of refusal, suspension, or revocation of the	1145
license, that the statements made in the application are true,	1146
correct, and complete to the best of the applicant's knowledge and	1147
belief.	1148

The applicant shall also request a criminal records check	1149
conducted by the superintendent of the bureau of criminal	1150
identification and investigation in accordance with section	1151
109.572 of the Revised Code, or other governmental agencies, or	1152
other sources, as required and designated by the superintendent of	1153
insurance, and direct that the responses to that request be	1154
transmitted to the superintendent of insurance, or to the	1155
superintendent's designee. If the superintendent of insurance or	1156
the superintendent's designee fails to receive a response to a	1157
requested criminal records check, or if the applicant fails to	1158
request the criminal records check, the superintendent may refuse	1159
to issue a license under this section. The applicant shall pay	1160
any fee required for conducting the criminal records check.	1161

(B) A business entity acting as an insurance agent shall	1162
apply for a resident insurance agent license by submitting to the	1163
superintendent of insurance the uniform business entity	1164
application or any other application prescribed by the	1165
superintendent.	1166

(C) The superintendent may require an applicant to submit	1167
any document reasonably necessary to verify the information	1168
contained in an application.	1169

Sec. 3905.06. (A)(1) The superintendent of insurance shall	1170
issue a resident insurance agent license to an individual	1171
applicant whose home state is Ohio, if the superintendent finds	1172
all of the following:	1173

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

1174

(b) The applicant has not committed any act that is a	1175
ground for the denial, suspension, or revocation of a license	1176
under section 3905.14 of the Revised Code.	1177

(c) If required under section 3905.04 of the Revised Code,	1178
the applicant has completed a program of insurance education for	1179
each line of authority for which the applicant has applied.	1180

(d) If required under section 3905.04 of the Revised Code,	1181
the applicant has passed an examination for each line of authority	1182
for which the applicant has applied.	1183

(e) The applicant is of good reputation and character, is	1184
honest and trustworthy, and is otherwise suitable to be licensed.	1185

(2) The superintendent shall issue a resident insurance	1186
agent license to a business entity applicant if the superintendent	1187
finds all of the following:	1188

(a) The applicant either is domiciled in Ohio or maintains	1189
its principal place of business in Ohio.	1190

(b) The applicant has designated a licensed insurance agent	1191
who will be responsible for the applicant's compliance with the	1192
insurance laws of this state.	1193

(c) The applicant has not committed any act that is a	1194
ground for the denial, suspension, or revocation of a license	1195
under section 3905.14 of the Revised Code.	1196

(B) An insurance agent license issued pursuant to division	1197
(A) of this section shall state the licensee's name, the license	1198
number, the date of issuance, the date the license expires, the	1199
line or lines of authority for which the licensee is qualified,	1200
and any other information the superintendent deems necessary.	1201

A licensee may be qualified for any of the following lines	1202
of authority:	1203

(1) Life, which is insurance coverage on human lives,	1204
including benefits of endowment and annuities, and may include	1205
benefits in the event of death or dismemberment by accident and	1206
benefits for disability income;	1207

(2) Accident and health, which is insurance coverage for	1208
sickness, bodily injury, or accidental death, and may include	1209
benefits for disability income;	1210

(3) Property, which is insurance coverage for the direct or	1211
consequential loss or damage to property of any kind;	1212

(4) Casualty, which is insurance coverage against legal	1213
liability, including coverage for death, injury, or disability or	1214
damage to real or personal property;	1215

(5) Variable life and variable annuity products, which is	1216
insurance coverage provided under variable life insurance	1217
contracts and variable annuities;	1218

(6) Personal lines, which is property and casualty	1219
insurance coverage sold to individuals and families for	1220
noncommercial purposes;	1221

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

1222

(8) Title, which is insurance coverage against loss or	1223
damage suffered by reason of liens against, encumbrances upon,	1224
defects in, or the unmarketability of, real property;	1225

(9) Surety bail bond, which is the authority set forth in	1226
sections 3905.83 to 3905.95 of the Revised Code;	1227

(10) Any other line of authority designated by the	1228
superintendent.	1229

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

Sec. 3905.061.  (A) If a person licensed as an insurance	1233
agent under section 3905.06 of the Revised Code changes the	1234
person's address within the state, the person shall, within thirty	1235
days after making that change, file a change of address with the	1236
superintendent of insurance.	1237

(B)(1) If a person licensed as an insurance agent under	1238
section 3905.06 of the Revised Code changes the person's state of	1239
residence, the person shall, within thirty days after making that	1240
change, file a change of address with the superintendent and	1241
provide the superintendent with certification from the new state	1242
of residence.	1243

(2) If an insurance agent complies with division (B)(1) of	1244
this section, the agent's license shall be changed to that of a	1245
nonresident license and no fee or license application shall be	1246
required.	1247

Sec. 3905.07. (A) The superintendent of insurance shall	1248
issue a nonresident insurance agent license to an applicant that	1249
is a nonresident person if the superintendent finds all of the	1250
following:	1251

(1) The applicant is currently licensed as a resident and	1252
is in good standing in the applicant's home state.	1253

(2) The applicant has submitted the request for licensure	1254
prescribed by the superintendent.	1255

(3) The applicant has submitted or has had transmitted to	1256
the superintendent the application for licensure that the	1257
applicant submitted to the applicant's home state or a completed	1258
uniform application or uniform business entity application, as	1259
applicable.	1260

(4) The applicant has not committed any act that is a ground	1261
for the denial, suspension, or revocation of a license under	1262
section 3905.14 of the Revised Code.	1263

(5) The applicant is of good reputation and character, is	1264
honest and trustworthy, and is otherwise suitable to be licensed.	1265

(6) The applicant's home state issues nonresident insurance	1266
agent licenses to residents of this state on the same basis as set	1267
forth in division (A) of this section.	1268

(B) To determine an applicant's licensure and standing status	1269
in another state, the superintendent may utilize the producer	1270
database maintained by the NAIC or its affiliates or subsidiaries.	1271
If that information is not available on the producer database, the	1272
superintendent may require a certification letter from the	1273
applicant's home state.	1274

(C) A nonresident insurance agent license shall be perpetual	1275
unless surrendered by the licensee or suspended or revoked by the	1276
superintendent.	1277

(D) Notwithstanding any other provision of this chapter, a	1278
nonresident person licensed as a surplus lines producer in the	1279
applicant's home state shall receive a nonresident surplus lines	1280
broker license pursuant to division (A) of this section. Nothing	1281
in this section otherwise affects or supersedes any provision of	1282
sections 3905.30 to 3905.37 of the Revised Code.	1283

Sec. 3905.071. (A)(1) If a nonresident person licensed as a	1284
nonresident insurance agent under section 3905.07 of the Revised	1285
Code changes the person's address within the person's state of	1286
residence, the person shall, within thirty days after making that	1287
change, file a change of address with the superintendent of	1288
insurance.	1289

(2) If a nonresident person licensed as a nonresident	1290
insurance agent under section 3905.07 of the Revised Code changes	1291
the person's state of residence or the state in which the person's	1292
principal place of business is located, the person shall, within	1293
thirty days after making that change, file a change of address	1294
with the superintendent and provide the superintendent with	1295
certification from the new state of residence or the new state in	1296
which the principal place of business is located.	1297

(B) If a nonresident insurance agent complies with division	1298
(A) of this section, no fee or license application shall be	1299
required.	1300

Sec. 3905.072. Notwithstanding any other provision of this	1301
chapter, the superintendent of insurance shall issue to a	1302
nonresident person licensed as a limited line credit insurance	1303
agent or other type of limited lines insurance agent in the	1304
person's home state a nonresident limited lines insurance agent	1305
license in accordance with division (A) of section 3905.07 of the	1306
Revised Code, with the same scope of authority as the person has	1307
under the license issued by the person's home state. However, the	1308
recognition of a limited lines authority under this section shall	1309
not create any new line of authority.	1310

For purposes of this section, "limited lines insurance"	1311
means any authority granted by the home state that is less than	1312
the total authority provided in the associated major lines set	1313
forth in divisions (B)(1) to (6) of section 3905.06 of the Revised	1314
Code.	1315

Sec. 3905.08. (A) The superintendent of insurance shall	1316
waive all requirements under this chapter for a nonresident	1317
applicant with a valid license from the applicant's home state,	1318
except the requirements set forth in sections 3905.07 to 3905.072	1319
of the Revised Code, if the applicant's home state awards	1320
nonresident agent licenses to residents of this state on the same	1321
basis.	1322

(B) A nonresident insurance agent's satisfaction of the	1323
continuing education requirements for insurance agents of the	1324
agent's home state shall constitute satisfaction of the continuing	1325
education requirements for insurance agents of this state as set	1326
forth in section 3905.481 of the Revised Code.	1327

Sec. 3905.081. Notwithstanding any other provision of this	1328
chapter, the superintendent of insurance may waive any licensing	1329
requirement for nonresident persons that the superintendent	1330
determines is in violation of the reciprocity requirements set	1331
forth in section 321 of the "Financial Services Modernization Act	1332
of 1999," 113 Stat. 1338, 15 U.S.C.A. 6751.	1333

Sec. 3905.09.  (A) The superintendent of insurance may	1334
issue a temporary insurance agent license to any of the following	1335
persons if the superintendent determines that the license is	1336
necessary for the servicing of insurance business:	1337

(1) The surviving spouse or court-appointed personal	1338
representative of a licensed insurance agent who dies or becomes	1339
mentally or physically disabled, to allow adequate time for the	1340
sale of the insurance business owned by the agent or for the	1341
recovery or return of the agent to the business, or to provide	1342
for the training and licensing of new personnel to operate the	1343
agent's business;	1344

(2) A member or employee of a business entity licensed as	1345
an insurance agent, upon the death or disability of the sole or	1346
remaining licensed insurance agent;	1347

(3) The designee of a licensed insurance agent entering	1348
active service in the United States armed forces;	1349

(4) Any other person if the superintendent determines that	1350
the public interest will best be served by the issuance of the	1351
license.	1352

(B) A temporary license issued under division (A) of this	1353
section shall remain in force for a period not to exceed one	1354
hundred eighty days. However, a temporary license may not	1355
continue in force under any of the circumstances described in	1356
division (A) of this section after the owner of the business or	1357
the owner's personal representative disposes of the business.	1358

(C) The superintendent may, by order, limit the authority of	1359
any temporary license in any way deemed necessary to protect	1360
insureds and the public. The superintendent may also, by order,	1361
rescind a temporary license if the interests of insureds or the	1362
public are endangered.	1363

(D) A temporary licensee shall be sponsored by a licensed	1364
insurance agent or insurer, which sponsor shall be responsible for	1365
all acts of the licensee. The superintendent may impose any other	1366
requirement on temporary licensees that the superintendent	1367
considers necessary to protect insureds and the public.	1368

(E) Chapter 119. of the Revised Code shall not apply to the	1369
issuance, restriction, or rescission of a temporary license under	1370
this section.	1371

Sec. 3905.03.        Sec. 3905.10.  (A) Any property, casualty, personal,	1372
or title agent authorizedqualified and licensed as provided in	1373
section 3905.02 of the Revised Codethis chapter, and appointed to	1374
represent one or more insurance corporations within this state,	1375
may appoint as many solicitors as the agent desires to represent	1376
the agent and the agent's agency, but the solicitors shall not	1377
represent themselves, by advertisement or otherwise, as agents of	1378
insurance companies for which their employer may be the authorized	1379
agent, and the solicitors shall in all instances represent	1380
themselves only as solicitors for the agent.	1381

Each agent that employs a person as(1) To be eligible for	1382
appointment, a solicitor shall certify to the superintendent of	1383
insurance that the person is competent, financially responsible,	1384
and suitable to represent the agent. Upon written notice by any	1385
such agent that the agent has employed a person as a solicitor,	1386
the superintendent shall issue to the solicitor an appointment in	1387
the form prepared by the superintendent, if the superintendent is	1388
satisfied that:	1389

(1) The solicitor is a suitable person and intends to hold	1390
self out in good faith as a solicitor.	1391

(2) The solicitor is honest and trustworthy.

1392

(3) The solicitor has training or instruction in the	1393
business and understands the duties and obligations of a	1394
solicitor.	1395

(4) The solicitor isshall be qualified and licensed as a	1396
property, casualty, personal, or title agent under section 3905.02	1397
of the Revised Code, is familiar with the insurance laws,this	1398
chapter and isbe familiar with the provisions of the policies and	1399
contracts of insurance the solicitor proposes to solicit.	1400

(5) It is not the solicitor's purpose or intention	1401
principally to solicit or place insurance on the solicitor's own	1402
property or that of relatives, employers, or employees or that for	1403
which they or the solicitor is agent, custodian, vendor, bailee,	1404
trustee, or payee.	1405

(6) On and after July 1, 1987, the solicitor has completed	1406
the prelicensing educational requirements set forth in section	1407
3905.48 of the Revised Code.	1408

Notice shall be upon a form furnished by the superintendent	1409
and shall be accompanied by a statement under oath by the	1410
solicitor which gives the solicitor's name, age, residence,	1411
present occupation, the solicitor's occupation for the five years	1412
next preceding the date of the notice, the kinds of insurance the	1413
solicitor wishes to solicit, and such other information as the	1414
superintendent requires, upon a blank furnished by the	1415
superintendent.	1416

(2) An agent qualified and licensed to sell accident and	1417
health insurance may appoint a solicitor to solicit accident and	1418
health insurance only if both of the following apply:	1419

(a) The solicitor is qualified and licensed as an accident	1420
and health insurance agent.	1421

(b) The solicitor solicits only accident and health	1422
insurance products that are issued and underwritten by an insurer	1423
that is authorized to write accident and health insurance and that	1424
holds a certificate of authority granted under section 3929.01 of	1425
the Revised Code.	1426

(B) If the solicitor within the preceding two years has not	1427
been licensed in this state as an insurance agent for other than	1428
life insurance under section 3905.02 of the Revised Code, the	1429
solicitor shall submit to an examination as to the qualifications	1430
set forth in divisions (A)(1) to (5) of this section.	1431

(C) A solicitor who did not hold a license as solicitor	1432
prior to January 1, 1967, may be appointed only if the solicitor	1433
is qualified for the same class or classes of insurance for which	1434
the agent employing the solicitor is licensed. A solicitor may	1435
solicit only those lines of insurance for which both the solicitor	1436
and the appointing agent are licensed. No solicitor shall be	1437
appointed by more than one agent.	1438

Unless the solicitor's license is revoked or suspended by the	1439
superintendent of insurance, such appointment may, in the	1440
discretion of the superintendent, and at the request of the agent	1441
who employs the solicitor and the payment of the required fee, be	1442
continued past the thirtieth day of June next after its issue and	1443
after the thirtieth day of June each succeeding year. Each agent	1444
shall certify to the superintendent, before the thirtieth day of	1445
June each year, the names and addresses of the solicitors the	1446
agent has employed during the preceding year, indicating those for	1447
whom the agent wishes appointments to be continued.	1448

The agent giving written notice shall pay to the	1449
superintendent a fee of twenty dollars for every such appointment	1450
and for each continuance thereof. The issuance of a solicitor's	1451
appointment shall be limited to a natural person.	1452

Sec. 3905.11.  An insurance agent that intends to do	1453
business in this state under any name other than the agent's legal	1454
name shall notify the superintendent of insurance prior to using	1455
the assumed name.	1456

Sec. 3905.12.  (A) The superintendent of insurance may	1457
adopt rules in accordance with Chapter 119. of the Revised Code to	1458
do the following:	1459

(1) Establish procedures for the issuance and renewal of	1460
insurance agent licenses;	1461

(2) Provide for the issuance of limited authority licenses,	1462
and establish any prelicensing education, examination, or	1463
continuing education requirements the superintendent considers	1464
appropriate for such a license.	1465

(B) To assist the superintendent in carrying out the	1466
superintendent's duties under this chapter, the superintendent may	1467
contract with any nongovernmental entity, including the NAIC and	1468
its affiliates or subsidiaries, to perform any ministerial	1469
function related to insurance agent licensing, including the	1470
collection of fees, that the superintendent considers to be	1471
appropriate.	1472

Sec. 3905.49.        Sec. 3905.14.  (A) As used in this sectionsections	1473
3905.14 to 3905.16 of the Revised Code:	1474

(1) "Insurer" has the same meaning as in section 3901.32 of	1475
the Revised CodeInsurance agent" includes a limited lines	1476
insurance agent, surety bail bond agent, and surplus line broker.	1477

(2) "Refusal to issue or renew" means the decision of the	1478
superintendent of insurance not to process either the initial	1479
application for a license as an agent or the renewal of such a	1480
license.	1481

(3) "Revocation" means the permanent termination of all	1482
authority to hold any license as an agent in this state.	1483

(4) "Surrender for cause" means the voluntary termination of	1484
all authority to hold any license as an agent in this state, in	1485
lieu of a revocation or suspension order.	1486

(5) "Suspension" means the termination of all authority to	1487
hold any license as an agent in this state, for either a specified	1488
period of time or an indefinite period of time and under any terms	1489
or conditions determined by the superintendent.	1490

(B) The superintendent may suspend, revoke, or refuse to	1491
issue or renew any license asof an insurance agent, surety bail	1492
bond agent, surplus line broker, or limited insurance	1493
representativeassess a civil penalty, or impose any other	1494
sanction or sanctions authorized under this chapter, for one or	1495
more of the following reasons:	1496

(1) Obtaining or attempting to obtain any license or	1497
appointment through misrepresentationProviding incorrect,	1498
misleading, incomplete, or fraud, including making any materially	1499
untrue statementinformation in an application for a license or	1500
appointment application;	1501

(2) Violating or failing to comply with any insurance law,	1502
rule, subpoena, consent agreement, or order of the superintendent	1503
or of the insurance authority of another state;	1504

(3) MisappropriatingObtaining or attempting to obtain a	1505
license through misrepresentation or fraud;	1506

(4) Improperly withholding, misappropriating, or	1507
converting to the person's own use any moneys belonging to	1508
policyholders, prospective policyholders, beneficiaries, insurance	1509
companies, sureties, principals,money or othersproperty received	1510
in the course of the person'sdoing insurance business;	1511

(4) Failing to timely submit an application for insurance.	1512
For purposes of division (B)(4) of this section, a submission is	1513
considered timely if it occurs within the time period expressly	1514
provided for by the insurer, or within seven days after the agent	1515
accepts a premium or an order to bind from a policyholder or	1516
applicant, whichever is later.	1517

(5) KnowinglyIntentionally misrepresenting the terms,	1518
benefits, value, cost, or effective dates of any actual or	1519
proposed insurance policy, contract, or bondapplication for	1520
insurance;	1521

(6) BeingHaving been convicted of a felony;

1522

(7) BeingHaving been convicted of a misdemeanor that	1523
involves the misuse or theft of money or property belonging to	1524
another, fraud, forgery, dishonest acts, or breach of a fiduciary	1525
duty, or that is based on any act or omission relating to the	1526
business of insurance, securities, or financial services, or that	1527
involves moral turpitude;	1528

(8) Committing anHaving admitted to committing, or having	1529
been found to have committed, any insurance unfair trade act or	1530
practice under any section of Title XXXIX of the Revised Code or	1531
any rule adopted thereunderinsurance fraud;	1532

(9) Using fraudulent, coercive, or dishonest practices, or	1533
demonstrating incompetence, untrustworthiness, or financial	1534
irresponsibility, in the conduct of business in this state or	1535
elsewhere;	1536

(10) Having an insurance agent license, or its equivalent,	1537
denied, suspended, or revoked in any other state, province,	1538
district, or territory;	1539

(10)(11) Forging or causing the forgery of another's name to	1540
an application for insurance or any document related to or used in	1541
an insurance transaction;	1542

(11) Possessing or(12) Improperly using notes or any	1543
unauthorized materials during a licensing or continuing education	1544
examination or cheating on a licensing or continuing education	1545
other reference material to complete an examination for an	1546
insurance agent license;	1547

(12)(13) Knowingly accepting insurance business from an	1548
individual who is not licensed;	1549

(14) Failing to comply with any administrative or court	1550
order directing payment of state income tax;	1551

(15) Failing to timely submit an application for	1552
insurance. For purposes of division (B)(15) of this section, a	1553
submission is considered timely if it occurs within the time	1554
period expressly provided for by the insurer, or within seven days	1555
after the insurance agent accepts a premium or an order to bind	1556
coverage from a policyholder or applicant for insurance, whichever	1557
is later.	1558

(16) Failing to disclose to an applicant for insurance or	1559
policyholder upon accepting a premium or an order to bind coverage	1560
from the applicant or policyholder, that the person has not been	1561
appointed as agent by the insurer and is not an appointed	1562
solicitor of an appointed agent;	1563

(13)(17) Having any professional license suspended or	1564
revoked as a result of a mishandling of funds or breach of	1565
fiduciary responsibilities or having been subject to a cease and	1566
desist order or permanent injunction for unlicensed activities;	1567

(14)(18) Causing or permitting a policyholder or applicant	1568
for insurance to designate the personinsurance agent or the	1569
person'sinsurance agent's spouse, parent, child, or sibling as	1570
the beneficiary of a policy or annuity sold by the person	1571
insurance agent, unless the personinsurance agent or a relative	1572
of the personinsurance agent is the insured or applicant;	1573

(15)(19) Failing to provide a written response to the	1574
department of insurance within thirtytwenty-one calendar days	1575
after receipt of any written inquiry from the department, unless a	1576
reasonable extension of time has been requested of, and granted	1577
by, the superintendent;	1578

(16) Failing to notify the superintendent of any change in	1579
the person's address, within thirty days after the change occurs,	1580
as required by section 3905.54 of the Revised Code;	1581

(17)(20) Transferring or placing insurance with an insurer	1582
other than the insurer expressly chosen by the applicant for	1583
insurance or policyholder without the consent of the applicant or	1584
policyholder or absent extenuating circumstances;	1585

(18) Engaging in any fraudulent, dishonest, or coercive	1586
practice in connection with the business of insurance;	1587

(19)(21) Failing to inform a policyholder or applicant for	1588
insurance of the identity of the insurer or insurers, or the	1589
identity of any other insurance agent, general agent, surplus line	1590
broker, or licensee known to be involved in procuring, placing, or	1591
continuing the insurance for the policyholder or applicant, upon	1592
the binding of the coverage;	1593

(20)(22) In the case of an agent that is a corporation,	1594
limited liability company, or partnershipbusiness entity, failing	1595
to report an individual licensee's violation to the department	1596
when the violation was known or should have been known by one or	1597
more of the partners, officers, managers, or members of the	1598
corporation, limited liability company, or partnershipbusiness	1599
entity;	1600

(21)(23) Submitting or using a document in the conduct of	1601
the business of insurance when the person knew or should have	1602
known that the document contained the forged signature of another	1603
person;	1604

(22)(24) Misrepresenting the person's qualifications or	1605
using in any way a professional designation that has not been	1606
conferred upon the person by the appropriate accrediting	1607
organization;	1608

(23)(25) Obtaining a premium loan or causing a premium loan	1609
to be made to or in the name of an insured without that person's	1610
knowledge and written authorization;	1611

(24) Failing to notify the superintendent of any	1612
disciplinary action taken by the insurance authority of another	1613
state, within sixty days after the action was taken, as required	1614
by section 3905.54 of the Revised Code;	1615

(25) Failing to file any of the reports or notices required	1616
under this chapter;	1617

(26) Submitting an application for insurance, or causing the	1618
issuance of an insurance policy or contract, on behalf of an	1619
applicant who did not request or authorize the insurance. Division	1620
(B)(26) of this section does not apply to any policy issued by an	1621
other than life insurance company.	1622

(27)(26) Using paper, software, or any other materials of or	1623
provided by an insurer after the insurer has terminated the	1624
authority of the licensee, if the use of such materials would	1625
cause a reasonable person to believe that the licensee was acting	1626
on behalf of or otherwise representing the insurer;	1627

(28) Providing misleading, deceptive, or untrue information	1628
to an applicant for insurance or a policyholder regarding a	1629
particular insurance agent, company, or product;	1630

(29)(27) Soliciting, procuring an application for, or	1631
placing, either directly or indirectly, any insurance policy when	1632
the person is not authorized under this chapter to engage in such	1633
activity;	1634

(30)(28) Soliciting, marketing, or selling any product or	1635
service that offers benefits similar to insurance but is not	1636
regulated by the superintendent, without fully disclosing to the	1637
prospective purchaser that the product or service is not insurance	1638
and is not regulated by the superintendent;	1639

(31)(29) Failing to fulfill a refund obligation to a	1640
policyholder or applicant in a timely manner. For purposes of	1641
division (B)(31)(29) of this section, a rebuttable presumption	1642
exists that a refund obligation is not fulfilled in a timely	1643
manner unless it is fulfilled within one of the following time	1644
periods:	1645

(a) Thirty days after the date the policyholder, applicant,	1646
or insurer takes or requests action resulting in a refund;	1647

(b) Thirty days after the date of the insurer's refund	1648
check, if the agent is expected to issue a portion of the total	1649
refund;	1650

(c) Forty-five days after the date of the agent's statement	1651
of account on which the refund first appears.	1652

(32) The presumption may be rebutted by proof that the	1653
policyholder or applicant consented to the delay or agreed to	1654
permit the agent to apply the refund to amounts due for other	1655
coverages.	1656

(30) With respect to a surety bail bond agent license,	1657
rebating or offering to rebate, or unlawfully dividing or offering	1658
to divide, any commission;	1659

(31) Using a license for the principal purpose of	1660
procuring, receiving, or forwarding applications for insurance of	1661
any kind, other than life, or soliciting, placing, or effecting	1662
such insurance directly or indirectly upon or in connection with	1663
the property of the licensee or that of relatives, employers,	1664
employees, or that for which they or the licensee is an agent,	1665
custodian, vendor, bailee, trustee, or payee;	1666

(32) In the case of an insurance agent that is a business	1667
entity, using a life license for the principal purpose of	1668
soliciting or placing insurance on the lives of the business	1669
entity's officers, employees, or shareholders, or on the lives of	1670
relatives of such officers, employees, or shareholders, or on the	1671
lives of persons for whom they, their relatives, or the business	1672
entity is agent, custodian, vendor, bailee, trustee, or payee;	1673

(33) Offering within this state, in person or by	1674
advertisement, poster, letter, circular, or otherwise, to sell,	1675
procure, or obtain policies, contracts, agreements, or	1676
applications for life insurance or annuities providing fixed,	1677
variable, or fixed and variable benefits, or contractual payments,	1678
or any form of sickness and accident insurance, for or on behalf	1679
of any life insurance corporation, association, or organization,	1680
or mutual protective or mutual benefit association or	1681
organization, not authorized to transact business in this state,	1682
or for or on behalf of any spurious, fictitious, nonexistent,	1683
dissolved, inactive, liquidated or liquidating, or bankrupt life	1684
insurance corporation, association, or organization, or mutual	1685
protective or mutual benefit association or organization.	1686

(C) Before denying, revoking, suspending, or refusing to	1687
issue any license or imposing any penalty under this section or	1688
section 3905.482 of the Revised Code, the superintendent shall	1689
provide the licensee or applicant with notice and an opportunity	1690
for hearing as provided in Chapter 119. of the Revised Code,	1691
except as follows:	1692

(1)(a) Any notice of opportunity for hearing, the hearing	1693
officer's findings and recommendations, or the superintendent's	1694
order shall be served by certified mail at the last known address	1695
of the licensee or applicant. Service shall be evidenced by	1696
return receipt signed by any person.	1697

For purposes of this section, the "last known address" is the	1698
residential address of a licensee or applicant, or the	1699
principal-place-of-business address of a business entity, that	1700
appearsis contained in the licensing records of the department of	1701
insurance.	1702

(b) If the certified mail envelope is returned with an	1703
endorsement showing that service was refused, or that the envelope	1704
was unclaimed, the notice and all subsequent notices required by	1705
Chapter 119. of the Revised Code may be served by ordinary mail to	1706
the last known address of the licensee or applicant. The mailing	1707
shall be evidenced by a certificate of mailing. Service is deemed	1708
complete as of the date of such certificate provided that the	1709
ordinary mail envelope is not returned by the postal authorities	1710
with an endorsement showing failure of delivery. The time period	1711
in which to request a hearing, as provided in Chapter 119. of the	1712
Revised Code, begins to run on the date of mailing.	1713

(c) If service by ordinary mail fails, the superintendent	1714
may cause a summary of the substantive provisions of the notice to	1715
be published once a week for three consecutive weeks in a	1716
newspaper of general circulation in the county where the last	1717
known place of residence or business of the party is located. The	1718
notice is considered served on the date of the third publication.	1719

(d) Any notice required to be served under Chapter 119. of	1720
the Revised Code shall also be served upon the party's attorney by	1721
ordinary mail if the attorney has entered an appearance in the	1722
matter.	1723

(e) The superintendent may, at any time, perfect service on	1724
a party by personal delivery of the notice by an employee of the	1725
department.	1726

(f) Notices regarding the scheduling of hearings and all	1727
other matters not described in division (C)(1)(a) of this section	1728
shall be sent by ordinary mail to the party and to the party's	1729
attorney.	1730

(2) Any subpoena for the appearance of a witness or the	1731
production of documents or other evidence at a hearing, or for the	1732
purpose of taking testimony for use at a hearing, shall be served	1733
by certified mail, return receipt requested, by an attorney or by	1734
an employee of the department designated by the superintendent.	1735
Such subpoenas shall be enforced in the manner provided in section	1736
119.09 of the Revised Code. Nothing in this section shall be	1737
construed as limiting the superintendent's other statutory powers	1738
to issue subpoenas.	1739

(D) If the superintendent determines that a violation	1740
described in this section has occurred, the superintendent may do	1741
anytake one or more of the following actions:	1742

(1) Assess a civil forfeiturepenalty in an amount not	1743
exceeding twenty-five thousand dollars per violation;	1744

(2) Assess administrative costs to cover the expenses	1745
incurred by the department in the administrative action, including	1746
costs incurred in the investigation and hearing processes. Any	1747
costs collected shall be paid into the state treasury to the	1748
credit of the department of insurance operating fund created in	1749
section 3901.021 of the Revised Code.	1750

(3) Suspend all of the person's licenses for all lines of	1751
insurance for either a specified period of time or an indefinite	1752
period of time and under such terms and conditions as the	1753
superintendent may determine;	1754

(4) Permanently revoke all of the person's licenses for all	1755
lines of insurance;	1756

(5) Refuse to issue a license;

1757

(6) Refuse to renew a license;

1758

(7) Prohibit the person from being employed in any capacity	1759
in the business of insurance and from having any financial	1760
interest in any insurance agency, company, surety bail bond	1761
business, or third-party administrator in this state. The	1762
superintendent may, in the superintendent's discretion, determine	1763
the nature, conditions, and duration of such restrictions.	1764

(8) Order corrective actions in lieu of or in addition to	1765
the other penalties listed in division (D) of this section. Such	1766
an order may provide for the suspension of civil forfeitures	1767
penalties, license revocation, license suspension, or refusal to	1768
issue or renew a license if the licensee complies with the terms	1769
and conditions of the corrective action order.	1770

(9) Accept a surrender for cause offered by the licensee,	1771
which shall be for at least five years and shall prohibit the	1772
licensee from seeking any license authorized under this chapter	1773
during that time period. A surrender for cause shall be in lieu	1774
of revocation or suspension and may also include a corrective	1775
action order as provided in division (D)(8) of this section.	1776

(E) The superintendent may consider the following factors in	1777
denying a license, imposing suspensions, revocations, fines, or	1778
other penalties, and issuing orders under this section:	1779

(1) Whether the person acted in good faith;

1780

(2) Whether the person made restitution for any pecuniary	1781
losses suffered by other persons as a result of the person's	1782
actions;	1783

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

1784

(4) The degree of trust placed in the person by, and the	1785
vulnerability of, persons who were or could have been adversely	1786
affected by the person's actions;	1787

(5) Whether the person was the subject of any previous	1788
administrative actions by the superintendent;	1789

(6) The number of individuals adversely affected by the	1790
person's acts or omissions;	1791

(7) Whether the person voluntarily reported the violation,	1792
and the extent of the person's cooperation and acceptance of	1793
responsibility;	1794

(8) Whether the person obstructed or impeded, or attempted	1795
to obstruct or impede, the superintendent's investigation;	1796

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

1797

(10) Remedial efforts to prevent future violations;

1798

(11) If the person was convicted of a criminal offense, the	1799
nature of the offense, whether the conviction was based on acts or	1800
omissions taken under any professional license, whether the	1801
offense involved the breach of a fiduciary duty, the amount of	1802
time that has passed, and the person's activities subsequent to	1803
the conviction;	1804

(12) Such other factors as the superintendent determines to	1805
be appropriate under the circumstances.	1806

(F)(1) A violation described in division (B)(1), (2), (3),	1807
(4), (5), (6), (7), (8), (9), (10), (11), (12), (13), (14), (16),	1808
(17), (18), (19), (20), (21), (22), (23), (24), (25), (26), (27),	1809
(28), (29), (30), (31), or (32), or (33) of this section is a	1810
class A offense for which the superintendent may impose any	1811
penalty set forth in division (D) of this section.	1812

(2) A violation described in division (B)(4), (15), (16), or	1813
(24)(19) of this section, or a failure to comply with section	1814
3905.061, 3905.071, or 3905.22 of the Revised Code, is a class B	1815
offense for which the superintendent may impose any penalty set	1816
forth in division (D)(1), (2), (8), or (9) of this section.	1817

(G) If a violation described in this section has caused, is	1818
causing, or is about to cause substantial and material harm, the	1819
superintendent may issue an order requiring that person to cease	1820
and desist from engaging in the violation. Notice of the order	1821
shall be mailed by certified mail, return receipt requested, or	1822
served in any other manner provided for in this section,	1823
immediately after its issuance to the person subject to the order	1824
and to all persons known to be involved in the violation. The	1825
superintendent may thereafter publicize or otherwise make known to	1826
all interested parties that the order has been issued.	1827

The notice shall specify the particular act, omission,	1828
practice, or transaction that is subject to the cease-and-desist	1829
order and shall set a date, not more than fifteen days after the	1830
date of the order, for a hearing on the continuation or revocation	1831
of the order. The person shall comply with the order immediately	1832
upon receipt of notice of the order.	1833

The superintendent may, upon the application of a party and	1834
for good cause shown, continue the hearing. Chapter 119. of the	1835
Revised Code applies to such hearings to the extent that that	1836
chapter does not conflict with the procedures set forth in this	1837
section. The superintendent shall, within fifteen days after	1838
objections are submitted to the hearing officer's report and	1839
recommendation, issue a final order either confirming or revoking	1840
the cease-and-desist order. The final order may be appealed as	1841
provided under section 119.12 of the Revised Code.	1842

The remedy under this division is cumulative and concurrent	1843
with the other remedies available under this section.	1844

(H) If the superintendent has reasonable cause to believe	1845
that an order issued under this section has been violated in whole	1846
or in part, the superintendent may request the attorney general to	1847
commence and prosecute any appropriate action or proceeding in the	1848
name of the state against such person.	1849

The court may, in an action brought pursuant to this	1850
division, impose any of the following:	1851

(1) For each violation, a civil penalty of not more than	1852
twenty-five thousand dollars;	1853

(2) Injunctive relief;

1854

(3) Restitution;

1855

(4) Any other appropriate relief.

1856

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

1857

(1) Upon the suspension or revocation of a license, or the	1858
eligibility of a surety bail bond agent to hold a license, the	1859
superintendent likewise may suspend or revoke the license or	1860
eligibility of any surety bail bond agent who is employed by or	1861
associated with that agent and who knowingly was a party to the	1862
act that resulted in the suspension or revocation.	1863

(2) The superintendent may revoke a license as a surety bail	1864
bond agent if the licensee is adjudged bankrupt.	1865

(J) This section applies to both resident and nonresident	1866
agents who are licensed under this chapter.	1867

(K) Nothing in this section shall be construed to create or	1868
imply a private cause of action against an agent, solicitor, or	1869
insurer.	1870

Sec. 3905.491.        Sec. 3905.15.  (A) Upon written application of a	1871
person whose license was denied, suspended, revoked, or	1872
surrendered for cause under section 3905.493905.14 of the Revised	1873
Code, the superintendent of insurance shall hold a hearing to	1874
determine whether the administrative action imposing suchthe	1875
denial, suspension, revocation, or surrender should be modified,	1876
provided that all of the following conditions are met:	1877

(1) At least five years have elapsed since the date of the	1878
administrative action sought to be modified;	1879

(2) At least two years have elapsed since any previous	1880
request for a modification was made under this section;	1881

(3) The burden of proof is on the person requesting the	1882
modification.	1883

(B) The modification of an order issued or consent agreement	1884
entered into under section 3905.493905.14 of the Revised Code is	1885
at the discretion of the superintendent. The superintendent may	1886
modify such an order or agreement if the superintendent finds all	1887
of the following:	1888

(1) At least five years have elapsed since the date of the	1889
administrative action;	1890

(2) The person is of good business repute and is suitable to	1891
be an insurance agent;	1892

(3) The person has made restitution for all pecuniary losses	1893
suffered by any person as a result of the conduct that gave rise	1894
to the administrative action;	1895

(4) The person has not been convicted of any felony or of	1896
any misdemeanor described in division (B)(7) of section 3905.49	1897
3905.14 of the Revised Code unless the conviction was the subject	1898
of a previous administrative action by the superintendent;	1899

(5) The circumstances surrounding the previous violation are	1900
such that it is unlikely the person would commit such offenses in	1901
the future;	1902

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

1903

(C) The issuance of any license pursuant to a modification	1904
under this section shall be conditioned upon the successful	1905
completion of all prelicensing education and examination	1906
requirements.	1907

Sec. 3905.012.        Sec. 3905.16.  (A)(1) Except as provided in	1908
division (A)(2) of this section, any person licensed as an agent	1909
under section 3905.02 or 3905.18 of the Revised Code, or appointed	1910
as a solicitor under section 3905.03 of the Revised Code,this	1911
chapter may at any time surrender any or all licenses held by the	1912
person.	1913

(2) No agent shall surrender the agent's licenses if the	1914
superintendent of insurance is investigating any allegation of	1915
wrongdoing by the agent or has initiated proceedings under Chapter	1916
119. of the Revised Code and notice of an opportunity for a	1917
hearing has been issued to the agent, and any attempt to so	1918
surrender is invalid.	1919

(B)(1) If an insurer or agent cancels the appointment of an	1920
agent or solicitor due to suspected fraud, misrepresentation,	1921
theft, conversion, or any other culpable misappropriation, the	1922
insurer or agent shall promptly notify the superintendent. The	1923
notice shall include a complete statement of the facts and the	1924
reasons for the cancellation.	1925

(2) In the absence of fraud or actual malice, an insurer or	1926
agent is immune from any civil liability that otherwise might be	1927
incurred or imposed as a result of any action taken by the insurer	1928
or agent to comply with division (B)(1) of this section.	1929

(C) If an agent's license is surrendered, revoked, or	1930
suspended, all appointments held by the agent are void. If a new	1931
license is issued to that person or if that person's previous	1932
license is reinstated, any appointment of the person to represent	1933
an insurer or agent must be made in accordance with the	1934
requirements of this chapter.	1935

(D)(C)(1) Any agent, other than a corporation, partnership,	1936
or limited liability companybusiness entity, who is no longer	1937
engaged in the business of insurance in any capacity for which an	1938
agent's license is required may apply to the superintendent for	1939
inactive status. The superintendent may grant such status only if	1940
the superintendent is satisfied that the person is not engaged in	1941
and does not intend to engage in any of the activities set forth	1942
in section 3905.013905.02 of the Revised Code that requires an	1943
agent's license.	1944

(2) A person who has been granted inactive status is exempt	1945
from any continuing education requirements imposed under this	1946
chapter.	1947

(3) The superintendent may adopt rules in accordance with	1948
Chapter 119. of the Revised Code to establish procedures for	1949
applying for inactive status, criteria used to determine	1950
eligibility for such status, and standards and procedures for	1951
transferring from inactive to active status.	1952

(E)(D) The superintendent may suspend or revoke a license,	1953
or take any other disciplinary action authorized by this chapter,	1954
regardless of whether the person is appointed or otherwise	1955
authorized to represent an insurer or agent.	1956

Sec. 3905.18.  (A) Neither an insurer nor an insurance	1957
agent shall pay a commission, service fee, brokerage fee, or other	1958
type of consideration to a person for selling, soliciting, or	1959
negotiating insurance in this state, if the person is required to	1960
be licensed by the superintendent of insurance under this chapter	1961
but is not so licensed. However, renewal or other deferred	1962
commissions may be paid to such a person for selling, soliciting,	1963
or negotiating insurance in this state if the person was required	1964
to be licensed under this chapter at the time of the sale,	1965
solicitation, or negotiation and was so licensed at that time.	1966

(B) An insurer shall not pay a commission, service fee,	1967
brokerage fee, or other type of consideration to an insurance	1968
agent for selling, soliciting, or negotiating insurance in this	1969
state, if the insurance agent is required to be appointed by the	1970
insurer but is not so appointed.	1971

(C) An insurer or insurance agent may pay or assign a	1972
commission, service fee, brokerage fee, or other type of	1973
consideration to an insurance agency or to any person who does not	1974
sell, solicit, or negotiate insurance in this state, unless the	1975
payment or assignment is prohibited by division (B)(7) of section	1976
3901.211 or by section 3911.20, 3933.01, or 3999.22 of the Revised	1977
Code.	1978

(D) No insurer or insurance agent shall pay a commission,	1979
referral fee, or other compensation to an unlicensed person for	1980
any referral unless the compensation is a fixed dollar amount for	1981
each referral and does not depend on whether the person referred	1982
purchases an insurance product.	1983

Sec. 3905.181.  A person shall not accept a commission,	1984
service fee, brokerage fee, or other type of consideration for	1985
selling, soliciting, or negotiating insurance in this state if	1986
that person is required to be licensed under this chapter and is	1987
not so licensed.	1988

Sec. 3905.181.        Sec. 3905.182.  No person licensed to sell life	1989
insurance under section 3905.18 of the Revised Codethis chapter,	1990
although also licensed to sell securities under section 1707.32 of	1991
the Revised Code, shall sell, or receive any compensation in	1992
regard to the sale of, any shares of capital stock of any life	1993
insurance company or agency for which hethe person is licensed	1994
appointed to sell life insurance, or of any issuer whichthat owns	1995
or controls more than one fourth of the shares of any of such	1996
companies, or any rights or options to acquire any of such shares.	1997
This section does not prohibit the sale of shares of any	1998
investment company registered under the "Investment Company Act of	1999
1940," 54 Stat. 789, 15 U.S.C.A. 80a-l, as amended, or any	2000
policies, annuities, or other contracts described in section	2001
3907.15 of the Revised Code.	2002

Sec. 3905.20.  (A) An insurance agent shall not act as an	2003
agent of an insurer unless the insurance agent is appointed as an	2004
agent of the insurer. An insurance agent who does not act as an	2005
agent of an insurer shall not be required to be appointed as an	2006
agent of the insurer.	2007

For purposes of this division, an insurance agent acts as an	2008
agent of an insurer when the insurance agent sells, solicits, or	2009
negotiates any product of the insurer and is compensated directly	2010
by the insurer.	2011

(B)(1) To appoint an insurance agent as its agent, an	2012
insurer shall file a notice of appointment with the superintendent	2013
of insurance not later than thirty days after the date the agency	2014
contract is executed or the first insurance application is	2015
submitted, whichever is earlier. The notice of appointment shall	2016
be provided in the manner prescribed by the superintendent.	2017

Each insurer shall pay to the superintendent a fee of	2018
twenty dollars for every such appointment when issued and for each	2019
continuance thereafter. Such an appointment, unless canceled by	2020
the insurer, may be continued in force past the thirtieth day of	2021
June next after its issue and after the thirtieth day of June of	2022
each succeeding year, unless a different date is determined by the	2023
superintendent.	2024

A separate appointment and fee are required for a variable	2025
life and variable annuity products line of authority.	2026

(2) By appointing an insurance agent, an insurer certifies	2027
to the superintendent that the person is competent, financially	2028
responsible, and suitable to represent the insurer.	2029

(3) While an appointment remains in force, an insurer shall	2030
be bound by the acts of the person named in the appointment within	2031
that person's actual and apparent authority as its agent.	2032

(C) The superintendent may, in accordance with Chapter 119.	2033
of the Revised Code, adopt rules to establish appointment	2034
procedures, including cancellations and renewals, to clarify the	2035
circumstances that require an appointment, and to provide for the	2036
appointment of insurance agents to some or all of the insurers	2037
within an insurer's holding company system or group.	2038

Sec. 3905.201. (A) Each insurer that sells, solicits, or	2039
negotiates any form of limited line credit insurance shall provide	2040
a program of instruction to each insurance agent whose duties will	2041
include selling, soliciting, or negotiating limited line credit	2042
insurance. The program of instruction shall be provided to the	2043
insurance agent prior to the agent's appointment by the insurer.	2044

(B) The superintendent may require prior review and approval	2045
of any program of instruction provided under division (A) of this	2046
section.	2047

Sec. 3905.21.  (A) An insurer or authorized representative	2048
of an insurer that terminates the appointment, employment,	2049
contract, or other insurance business relationship with an	2050
insurance agent shall notify the superintendent of insurance, in	2051
the manner prescribed by the superintendent, within thirty days	2052
after the effective date of the termination. The insurer shall	2053
provide any additional information, documents, records, or other	2054
data relating to the termination or activity of the insurance	2055
agent that the superintendent requests in writing.	2056

(B) If the termination of an insurance agent is for any of	2057
the reasons set forth in division (B) of section 3905.14 of the	2058
Revised Code, the insurer or authorized representative of the	2059
insurer shall promptly notify the superintendent, in the manner	2060
prescribed by the superintendent, of any additional information	2061
the insurer discovers upon further review or investigation, which	2062
information would have been provided to the superintendent in	2063
accordance with division (A) of this section had the insurer known	2064
of its existence.	2065

(C)(1) An insurer, within fifteen days after notifying the	2066
superintendent in accordance with division (A) or (B) of this	2067
section, shall mail a copy of the notification to the insurance	2068
agent at the agent's last known address. If the insurance agent	2069
was terminated for any of the reasons set forth in division (B) of	2070
section 3905.14 of the Revised Code, the notification shall be	2071
sent by certified mail, return receipt requested, postage prepaid,	2072
or by overnight delivery using a nationally recognized carrier.	2073

(2) An insurance agent, within thirty days after receiving	2074
a copy of a notification pursuant to division (C)(1) of this	2075
section, may file written comments concerning the substance of the	2076
notification with the superintendent. If an insurance agent files	2077
such comments with the superintendent, the agent shall, at the	2078
same time, provide a copy of the comments to the insurer. Comments	2079
filed with the superintendent shall become part of the	2080
superintendent's file on the insurance agent and shall accompany	2081
every copy of any report distributed or disclosed for any reason	2082
about the agent.	2083

Sec. 3905.211.  (A) In the absence of actual malice, an	2084
insurer, the authorized representative of an insurer, an insurance	2085
agent, the superintendent of insurance, or any organization of	2086
which the superintendent is a member, which organization compiles	2087
the information provided pursuant to section 3905.21 of the	2088
Revised Code and makes it available to other insurance	2089
commissioners or to regulatory or law enforcement agencies, is	2090
immune from any civil liability that otherwise might be incurred	2091
or imposed as a result of either of the following:	2092

(1) Any statement required by section 3905.21 of the	2093
Revised Code or any information relating to any such statement,	2094
which information may be requested in writing by the	2095
superintendent;	2096

(2) Any statement of an insurer that has terminated an	2097
insurance agent to an insurer or agent, or any statement of an	2098
insurance agent to an insurer or agent, which statement is limited	2099
solely to whether a termination for any of the reasons set forth	2100
in division (B) of section 3905.14 of the Revised Code was	2101
reported to the superintendent, provided the propriety of any such	2102
termination is certified in writing by an officer or authorized	2103
representative of the insurer or agent terminating the	2104
relationship.	2105

(B) In any action brought against a person that may have	2106
immunity under division (A) of this section for making any	2107
statement required by section 3905.21 of the Revised Code or	2108
providing any information relating to any such statement, which	2109
information may have been requested in writing by the	2110
superintendent, the party bringing the action shall plead	2111
specifically in any allegation that division (A) of this section	2112
does not apply because the person making the statement or	2113
providing the information did so with malice.	2114

(C) Nothing in this section shall abrogate or modify any	2115
statutory or common law privilege or immunity that otherwise	2116
applies.	2117

Sec. 3905.212.  The superintendent of insurance may, in	2118
accordance with Chapter 119. of the Revised Code, suspend or	2119
revoke the certificate of authority or license of any person that	2120
fails to comply with section 3905.21 of the Revised Code or that	2121
has been found by a court of competent jurisdiction to have made	2122
the statements or provided the information required under that	2123
section with actual malice. Any such person is also subject to	2124
the civil penalty authorized under section 3905.14 of the Revised	2125
Code.	2126

Sec. 3905.22.  (A) An insurance agent shall provide notice	2127
to the superintendent of insurance of any administrative action	2128
taken against the agent in another jurisdiction or by another	2129
governmental agency having professional, occupational, or	2130
financial licensing authority within thirty days after the final	2131
disposition of the matter. The notice shall include a copy of the	2132
order, consent to order, or any other relevant legal document.	2133

(B) An insurance agent shall provide notice to the	2134
superintendent of any criminal prosecution of the agent by any	2135
jurisdiction, other than misdemeanor traffic, within thirty days	2136
after the agent's initial appearance before a judge or magistrate.	2137
The notice shall include a certified copy of the charging	2138
document. Within thirty days after the disposition of the	2139
criminal prosecution, the agent shall provide to the	2140
superintendent a certified copy of the court's entry or order that	2141
reflects the final disposition of the prosecution, and any other	2142
relevant legal documents.	2143

Sec. 3905.492.        Sec. 3905.24.  (A)(1) All records and other	2144
information obtained by the superintendent of insurance or the	2145
superintendent's deputies, examiners, assistants, or other	2146
employees, or agents relating to an investigation of an applicant	2147
for licensure under this chapter, or of an agent, solicitor,	2148
broker, or other person licensed or appointed under this chapter	2149
or Chapter 3951., 3957., or 3959. of the Revised Code, are	2150
confidential and are not public records as defined in section	2151
149.43 of the Revised Code until the applicant or, licensee, or	2152
appointee is provided notice and opportunity for hearing pursuant	2153
to Chapter 119. of the Revised Code with respect to such records	2154
or information. If no administrative action is initiated with	2155
respect to a particular matter about which the superintendent	2156
obtained records or other information as part of an investigation,	2157
all such records and information relating to that matter shall	2158
remain confidential for three years after the file on the matter	2159
is closed.	2160

(2) Division (A)(1) of this section applies only to	2161
investigations that could result in administrative action under	2162
Title XVII or XXXIX or Chapter 119. of the Revised Code.	2163

(B) The records and other information described in division	2164
(A) of this section shall remain confidential for all purposes	2165
except when it is appropriate for the superintendent and the	2166
superintendent's deputies, examiners, assistants, or other	2167
employees, or agents to take official action regarding the affairs	2168
of the applicant or, licensee, or appointee or in connection with	2169
actual or potential criminal proceedings.	2170

(C) Employees or agents of the department of insurance shall	2171
not be required by any court in this state to testify in a civil	2172
action, if such testimony concerns any matter related to records	2173
or any other information considered confidential under this	2174
section of which they have knowledge.	2175

(D) This section does not apply to any complaint or action	2176
underrelating to a violation described in division (B)(31) or	2177
(32) of section 3905.043905.14 of the Revised Code.	2178

Sec. 3905.26. (A) The superintendent of insurance may	2179
participate, in whole or in part, with the NAIC or any of its	2180
affiliates or subsidiaries, in a centralized agent license	2181
registry in which insurance agent licenses and appointments are	2182
centrally or simultaneously effected for all states that require	2183
an insurance agent license and that participate in the registry.	2184

(B) The superintendent may adopt rules in accordance with	2185
Chapter 119. of the Revised Code to adopt any uniform standard or	2186
procedure necessary for participation in the centralized agent	2187
license registry. Such rules may provide for the central	2188
collection of all fees for licenses or appointments processed	2189
through the registry.	2190

Sec. 3905.28.  The superintendent of insurance may adopt	2191
rules in accordance with Chapter 119. of the Revised Code to carry	2192
out the purposes of sections 3905.01 to 3905.28 of the Revised	2193
Code.	2194

Sec. 3905.06.        Sec. 3905.29.  Sections 3905.01 to 3905.063905.28 of	2195
the Revised Code do not apply to associations organized and	2196
operating under sections 3939.01 to 3939.09 of the Revised Code.	2197

Sec. 3905.30.  The superintendent of insurance may issue a	2198
surplus line broker's license to any natural person who is a	2199
resident of this or any other state or a province of Canada, or to	2200
any corporation, partnership, or limited liability companya	2201
business entity that is organized under the laws of this or any	2202
other state or a province of Canada. The applicant must have been	2203
licensed as a multiple line agentTo be eligible for at least two	2204
years prior to making application for thea surplus line broker's	2205
license, a person must have both a property license and a casualty	2206
license. A surplus line broker's license permits the person named	2207
in the license to negotiate for and obtain insurance, other than	2208
life insurance, on property or persons in this state infrom	2209
insurers not authorized to transact business in this state. Each	2210
such license expires on the thirty-first day of January next after	2211
the year in which it is issued, and may be then renewed.	2212

Sec. 3905.31.  No person not licensed under section 3905.30	2213
of the Revised Code shall take or receive any application for such	2214
insurance upon property or persons in this state, or receive or	2215
collect a premium or any part thereof for any unauthorized	2216
insurance company, or attempt or assist in any such act, or	2217
perform any act in this state concerning any policy or contract of	2218
insurance of any unauthorized insurance company provided that any	2219
duly licensed full multiple lineproperty and casualty agent may	2220
place business with an agent licensed under section 3905.30 of the	2221
Revised Code and may accept compensation therefor, if such	2222
insurance is written in conformity with the insurance laws of this	2223
state. This section does not apply to those engaged in the act of	2224
adjusting claims or losses in connection with any policy of	2225
insurance written under the provisions of sections 3905.30 to	2226
3905.35, inclusive, of the Revised Code.	2227

Sec. 3905.34.  Each person licensed under section 3905.30 of	2228
the Revised Code shall keep a separate account of the business	2229
done under the person's license. Within thirty days afterOn or	2230
before the endthirty-first day of each quarterJanuary, each	2231
surplus line broker shall file that account with the	2232
superintendent of insurance the portion of that account that	2233
details business done during the preceding calendar year. The	2234
account must show the amount of such insurance, the name of the	2235
insured, a brief description of the type of insurance, the	2236
location of the property, the gross premium charged, the name of	2237
the insurer, the date of the policy and term thereof, and a report	2238
in the same detail of all such policies canceled and the gross	2239
return premiums thereon.	2240

Sec. 3905.36.  Every insured association, company,	2241
corporation, or other person that enters, directly or indirectly,	2242
into any agreements with any insurance company, association,	2243
individual, firm, underwriter, or Lloyd, not authorized to do	2244
business in this state, whereby the insured shall procure,	2245
continue, or renew contracts of insurance covering subjects of	2246
insurance resident, located, or to be performed within this state,	2247
with such unauthorized insurance company, association, individual,	2248
firm, underwriter, or Lloyd, for which insurance there is a gross	2249
premium, membership fee, assessment, dues, or other consideration	2250
charged or collected, shall annually, on or before the first	2251
thirty-first day of JulyJanuary, return to the superintendent of	2252
insurance a statement under oath showing the name and address of	2253
the insured, name and address of the insurer, subject of the	2254
insurance, general description of the coverage, and amount of	2255
gross premium, fee, assessment, dues, or other consideration for	2256
such insurance for the preceding twelve-month period and shall at	2257
the same time pay to the treasurer of state a tax of five per cent	2258
of such gross premium, fee, assessment, dues, or other	2259
consideration, after a deduction for return premium, if any, as	2260
calculated on a form prescribed by the treasurer of state. All	2261
taxes collected under this section by the treasurer of state shall	2262
be paid into the general revenue fund. If the tax is not paid	2263
when due, the tax shall be increased by a penalty of twenty-five	2264
per cent. An interest charge computed as set forth in section	2265
5725.221 of the Revised Code shall be made on the entire sum of	2266
the tax plus penalty, which interest shall be computed from the	2267
date the tax is due until it is paid. For purposes of this	2268
section, payment is considered made when it is received by the	2269
treasurer of state, irrespective of any United States postal	2270
service marking or other stamp or mark indicating the date on	2271
which the payment may have been mailed. This section does not	2272
apply to:	2273

(A) Insurance obtained pursuant to sections 3905.30 to	2274
3905.35 of the Revised Code;	2275

(B) Transactions in this state involving a policy solicited,	2276
written, and delivered outside this state covering only subjects	2277
of insurance not resident, located, or to be performed in this	2278
state at the time of issuance, provided such transactions are	2279
subsequent to the issuance of the policy;	2280

(C) Attorneys-at-law acting on behalf of their clients in	2281
the adjustment of claims or losses;	2282

(D) Any insurance company underwriter issuing contracts of	2283
insurance to employer insureds or contracts of insurance issued to	2284
an employer insured. For purposes of this section an "employer	2285
insured" is an insured:	2286

(1) Who procures the insurance of any risk or risks by use	2287
of the services of a full-time employee acting as an insurance	2288
manager or buyer or the services of a regularly and continuously	2289
qualified insurance consultant. As used in division (D)(1) of	2290
this section, a "regularly and continuously qualified insurance	2291
consultant" does not include any person licensed under Chapter	2292
3905. of the Revised Code.	2293

(2) Whose aggregate annual premiums for insurance on all	2294
risks total at least twenty-five thousand dollars; and	2295

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

2296

Each person licensed under section 3905.30 of the Revised	2297
Code shall pay to the treasurer of state, on or before the	2298
thirty-first day of January of each year, five per cent of the	2299
balance of the gross premiums charged for insurance placed or	2300
procured under the license after a deduction for return premiums,	2301
as reported on a form prescribed by the treasurer of state. The	2302
tax shall be collected from the insured by the surplus line broker	2303
who placed or procured the policy of insurance at the time the	2304
policy is delivered to the insured. No license issued under	2305
section 3905.30 of the Revised Code shall be renewed until payment	2306
is made. If the tax is not paid when due, the tax shall be	2307
increased by a penalty of twenty-five per cent. An interest	2308
charge computed as set forth in section 5725.221 of the Revised	2309
Code shall be made on the entire sum of the tax plus penalty,	2310
which interest shall be computed from the date the tax is due	2311
until it is paid. For purposes of this section, payment is	2312
considered made when it is received by the treasurer of state,	2313
irrespective of any United States postal service marking or other	2314
stamp or mark indicating the date on which the payment may have	2315
been mailed.	2316

Sec. 3905.26.        Sec. 3905.40.  There shall be paid to the	2317
superintendent of insurance the following fees:	2318

(A) Each insurance company doing business in this state	2319
shall pay:	2320

(1) For filing a copy of its charter or deed of settlement,	2321
two hundred fifty dollars;	2322

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

2323

(3) For each certificate of authority or license, and	2324
certified copy thereof, five dollars;	2325

(4) For each copy of a paper filed in histhe	2326
superintendent's office, twenty cents per page;	2327

(5) For issuing certificates of deposits or certified copies	2328
thereof, five dollars for the first certificate or copy and one	2329
dollar for each additional certificate or copy;	2330

(6) For issuing certificates of compliance or certified	2331
copies thereof, twenty dollars;	2332

(7) For affixing the seal of office and certifying	2333
documents, other than those enumerated herein, two dollars.	2334

(B) Each life insurance company doing business in this state	2335
shall pay for annual valuation of its policies, one cent on every	2336
one thousand dollars of insurance.	2337

(C) Each foreign insurance company doing business in this	2338
state shall pay for making and forwarding annually, semiannually,	2339
and quarterly the interest checks and coupons accruing upon bonds	2340
and securities deposited, fifty dollars each year on each one	2341
hundred thousand dollars deposited.	2342

(D) Each appointee or applicant for licensure as an	2343
insurance agent, solicitor, or life insurance agent shall pay ten	2344
dollars before admission to any examination required by the	2345
superintendent of insurance. Such fee shall not be paid by the	2346
appointing insurance company or agent.	2347

(E) Each domestic mutual life insurance company shall pay	2348
for verifying that any amendment to its articles of incorporation	2349
was regularly adopted, two hundred fifty dollars with each	2350
application for verification. Any such amendment shall be	2351
considered to have been regularly adopted when approved by the	2352
affirmative vote of two-thirds of the policyholders present in	2353
person or by proxy at any annual meeting of policyholders or at a	2354
special meeting of policyholders called for that purpose.	2355

Sec. 3905.52.        Sec. 3905.401.  The valuation fee specified in	2356
division (B) of section 3905.263905.40 of the Revised Code does	2357
not apply to reinsurance ceded to affiliated companies.	2358

Sec. 3905.27.        Sec. 3905.41.  The superintendent of insurance may	2359
open an account in the name of each insurance company authorized	2360
to do business in this state and in the name of any authorized	2361
insurance agent, and charge the accounts with all fees incurred by	2362
such companies or agents in accordance with sections 3905.02,	2363
3905.03, 3905.07, 3905.263905.10, 3905.20, 3905.40, 3919.26, and	2364
3931.03 of the Revised Code, and other statutes imposing fees. The	2365
statutory fee for each service requested shall be charged against	2366
the proper account forthwithimmediately upon the rendition of the	2367
service.	2368

Not later than the tenth day of each calendar month the	2369
superintendent shall render an itemized statement to each company	2370
or agent whose account has been charged during the month next	2371
preceding, showing the amount of all fees charged during that	2372
month and demanding that payment thereof be made not later than	2373
the first day of the month next following.	2374

The failure of any insurance company within that time to pay	2375
the amount of such fees in accordance with the monthly statement,	2376
or, if the statement or account is found to be incorrect, in	2377
accordance with a corrected monthly statement rendered by the	2378
superintendent, is grounds for the revocation of its certificate	2379
of authority to do business in this state. In the event of such	2380
an order of revocation, the superintendent shall forthwith	2381
immediately cause a notice thereof to be published once in at	2382
least one newspaper at the seat of the government and also, if a	2383
domestic company, once in at least one newspaper published in the	2384
county where its home office is located, or, if a foreign or alien	2385
company, once in at least one newspaper published in a county of	2386
this state where an agency of the company is located. After the	2387
publication of the notice, no agent of the company shall procure	2388
applications for insurance or issue policies.	2389

In the event of the failure of any agent within the time	2390
fixed to pay the amount of fees charged against the agent's	2391
account in accordance with the monthly statement rendered by the	2392
superintendent, the agent's license may be revoked in the manner	2393
provided by sections 3905.02 and 3905.18section 3905.14 of the	2394
Revised Code.	2395

Sec. 3905.482.  (A) The superintendent of insurance shall	2396
suspend the agent's license of any person who fails to meet the	2397
requirements of section 3905.481 of the Revised Code and has not	2398
been granted under division (B) of this section an extension of	2399
time within which to complete the requirements. The suspension	2400
shall become effective upon sixty days' written notice to the	2401
person. The notice shall be sent by ordinary mail to the person's	2402
residential address on the licensing records of the department of	2403
insurance. During this sixty-day period, the person may provide	2404
proof of compliance with the requirements of section 3905.481 of	2405
the Revised Code. If the person fails to demonstrate such	2406
compliance in a manner and form acceptable to the superintendent,	2407
the superintendent shall suspend the person's license. The	2408
suspension shall continue until the person demonstrates to the	2409
satisfaction of the superintendent that the person has complied	2410
with the requirements of section 3905.481 of the Revised Code and	2411
all other provisions of this chapter. However, the superintendent	2412
shallmay revoke the license if the person fails to demonstrate	2413
such compliance within six monthsone year after the conclusion of	2414
the immediately preceding twenty-four-month compliance period and	2415
has not been granted under division (B) of this section an	2416
extension of time within which to complete the requirements. Any	2417
person whose license has been revoked under this division and who	2418
desires to hold a license as an agent under this chapter shall	2419
apply for a new agent's license in accordance with the	2420
requirements of this chapter.	2421

(B) If a person cannot meet the requirements of section	2422
3905.481 of the Revised Code due to a disability or inactivity due	2423
to special circumstances, the superintendent may grant the person	2424
a reasonable extension of time to enable the person to comply with	2425
the requirements of section 3905.481 of the Revised Code for the	2426
period of the disability or inactivity. The superintendent may	2427
revoke the license if the person fails to demonstrate such	2428
compliance within that time period.	2429

(C) Before revoking or suspending any agent's license under	2430
this section, the superintendent shall provide the licensee notice	2431
and an opportunity for a hearing in accordance with Chapter 119.	2432
of the Revised Code. Any person whose license has been revoked	2433
under this section and who desires to hold a license as an	2434
insurance agent under this chapter shall apply for a new insurance	2435
agent's license in accordance with the requirements of this	2436
chapter.	2437

(D) The superintendent may adopt rules in accordance with	2438
Chapter 119. of the Revised Code relative to the manner and form	2439
of demonstrating compliance with the requirements of section	2440
3905.481 of the Revised Code that are acceptable to the	2441
superintendent for purposes of this section.	2442

Sec. 3905.483.  (A) There is hereby created the insurance	2443
agent education advisory council to advise the superintendent of	2444
insurance in carrying out the duties imposed under sections	2445
3905.483905.04 and 3905.481 to 3905.486 of the Revised Code.	2446

(B) The council shall be composed of the superintendent, or	2447
the superintendent's designee, and eleventwelve members appointed	2448
by the superintendent, as follows:	2449

(1) One representative of the association of Ohio life	2450
insurance companies;	2451

(2) One representative of the independent insurance agents	2452
of Ohio;	2453

(3) One representative of the Ohio association of health	2454
underwriters;	2455

(4) One representative of the Ohio association of life	2456
underwriters;	2457

(5) One representative of the Ohio insurance institute;

2458

(6) One representative of the professional insurance agents	2459
association of Ohio;	2460

(7) One representative of the Ohio land title association;

2461

(8) Two insurance agents each of whom has been licensed	2462
continuously during the five-year period immediately preceding the	2463
agent's appointment;	2464

(8)(9) One representative of an insurance company admitted	2465
to transact business in this state;	2466

(9)(10) Two representatives of consumers, one of whom shall	2467
be at least sixty years of age.	2468

(C)(1) Of the initial eleven appointments made by the	2469
superintendent, three shall be for terms ending December 31, 1994,	2470
four shall be for terms ending December 31, 1995, and four shall	2471
be for terms ending December 31, 1996. Thereafter, terms of	2472
office shall be for three years, each term ending on the	2473
thirty-first day of December of the third year.	2474

(2) The initial appointment of the twelfth member made by	2475
the superintendent under division (B)(7) of this section, pursuant	2476
to Sub. S.B. 129 of the 124th general assembly, shall be for a	2477
term ending December 31, 2003. Thereafter, the term of office	2478
shall be for three years, ending on the thirty-first day of	2479
December of the third year.	2480

(D) Each member shall hold office from the date of	2481
appointment until the end of the term for which the member was	2482
appointed. Any member appointed to fill a vacancy occurring prior	2483
to the expiration of the term for which the member's predecessor	2484
was appointed shall hold office for the remainder of such term.	2485
Any member shall continue in office subsequent to the expiration	2486
date of the member's term until the member's successor takes	2487
office, or until a period of sixty days has elapsed, whichever	2488
occurs first. A vacancy shall be filled in the same manner as the	2489
original appointment.	2490

(E) Initial appointments to the council shall be made no	2491
later than thirty days after April 16, 1993. The initial	2492
appointment of the twelfth member to the council under division	2493
(B)(7) of this section, pursuant to Sub. S.B. 129 of the 124th	2494
general assembly, shall be made no later than December 31, 2002.	2495

(F) Any member is eligible for reappointment. The	2496
superintendent, after notice and opportunity for a hearing, may	2497
remove for cause any member the superintendent appoints.	2498

(G) The superintendent or the superintendent's designee	2499
shall serve as chairperson of the council. Meetings shall be held	2500
upon the call of the chairperson and as may be provided by	2501
procedures adopted by the superintendent. Seven members of the	2502
council constitute a quorum.	2503

(H) Each member shall receive mileage and necessary and	2504
actual expenses while engaged in the business of the council.	2505

Sec. 3905.484.  (A) The superintendent of insurance, in	2506
consultation with the insurance agent education advisory council,	2507
shall establish criteria for any course or program of study that	2508
is offered in this state under section 3905.04 or sections 3905.48	2509
3905.481 to 3905.486 of the Revised Code.	2510

(B) No course or program of study shall be offered in this	2511
state under section 3905.04 or sections 3905.483905.481 to	2512
3905.486 of the Revised Code unless it is approved by the	2513
superintendent in consultation with the council.	2514

(C) A course or program of study offered in this state under	2515
section 3905.04 or sections 3905.483905.481 to 3905.486 of the	2516
Revised Code shall be developed or sponsored only by one of the	2517
following:	2518

(1) An insurance company admitted to transact business in	2519
this state;	2520

(2) An accredited college or university;

2521

(3) An insurance trade association;

2522

(4) An independent program of instruction that is approved	2523
by the superintendent in consultation with the council;	2524

(5) Any institution as defined in section 1713.01 of the	2525
Revised Code that holds a certificate of authorization issued by	2526
the Ohio board of regents under Chapter 1713. of the Revised Code	2527
or is exempt under that chapter from the requirements for a	2528
certificate of authorization.	2529

(D) Any person who teaches any approved course or program of	2530
study qualifies for the same number of classroom hours as would be	2531
granted to any person who takes and successfully completes that	2532
course or program.	2533

Sec. 3905.486.  The superintendent of insurance shall adopt	2534
rules in accordance with Chapter 119. of the Revised Code to carry	2535
out the purposes of sections 3905.483905.04 and 3905.481 to	2536
3905.486 of the Revised Code. In adopting any rules, the	2537
superintendent shall consider any recommendations made by the	2538
insurance agent education advisory council.	2539

Sec. 3905.47.        Sec. 3905.49.  (A) As used in this section and	2540
section 3905.50 of the Revised Code, "independent insurance agent"	2541
means an insurance agent who is neither employed nor controlled	2542
solely by an insurer, whose agency contract with an insurer	2543
provides that upon termination of the contract, the ownership of	2544
the property rights of all expiration information vests in the	2545
agent or histhe agent's heirs or assigns, and whose agency	2546
contract with an insurer permits the agent to represent	2547
concurrently other insurers of histhe agent's choice.	2548

(B) No agent other than an independent insurance agent shall	2549
represent oneselfself, or shall be represented, to the public as	2550
an independent insurance agent or agency.	2551

Sec. 3905.50.  (A)(1) Except as provided in division (A)(2)	2552
or (3) of this section, this section applies to every contract of	2553
agency between a property and casualty insurance company and an	2554
independent insurance agent, as defined in division (A) of section	2555
3905.47 of the Revised Code, which has been in effect for not less	2556
than two years.	2557

(2) This section does not apply to a contract of exclusive	2558
employment by, or an exclusive agency contract with, a single	2559
insurer or group of insurers under common ownership or control.	2560

(3) This section does not apply to an agent whose license	2561
has been suspended or revoked by the superintendent of insurance,	2562
an agent who has demonstrated gross incompetence, or an agent	2563
whose contract has been terminated for insolvency, abandonment,	2564
gross or willful misconduct, or failure to pay to the insurer, in	2565
accordance with the agency contract, moneys due to the insurer	2566
upon written demand of the insurer.	2567

(B) No insurer shall terminate an independent insurance	2568
agent contract of agency except by mutual agreement of the parties	2569
or upon one hundred eighty days' written notice to the independent	2570
insurance agent.	2571

(1) Such notice shall include specific reasons for the	2572
termination of the agent.	2573

(2) Such notice shall be sent by certified mail, return	2574
receipt requested, to the last known address of the agency.	2575

(C) During the one hundred eighty day notice period, an	2576
independent insurance agent shall not write or bind any new	2577
policies on behalf of an insurer without written approval from the	2578
insurer. However, during such period, an independent insurance	2579
agent, subject to the current underwriting rules, guidelines,	2580
commission rates, and practices of the insurer, may renew or	2581
effect any necessary changes or endorsements of outstanding	2582
policies of insurance that are in force prior to the date of	2583
receipt of the notice of termination.	2584

(D) None of the following constitutes an acceptable reason	2585
for the termination of a contract of agency:	2586

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

2587

(2) Claims experience due to catastrophiescatastrophes of	2588
nature covered by a policy;	2589

(3) Claims experience under uninsured and underinsured	2590
motorist coverages.	2591

(E) An agent aggrieved by the conduct of an insurer in its	2592
breach or termination of a contract of agency may file with the	2593
superintendent a request that the superintendent review the action	2594
to determine whether it is in accord with this section and the	2595
lawful provisions of the contract of agency and send a copy of the	2596
request to the insurer at the address of the office issuing the	2597
notice of termination. Upon receipt of such a request, an insurer	2598
shall promptly provide the independent insurance agent and	2599
superintendent with documentation in support of the insurer's	2600
stated reason for termination.	2601

(F) The superintendent shall promptly investigate the	2602
allegation. If the superintendent has reasonable cause to believe	2603
that this section or the lawful provisions of the contract of	2604
agency have been violated, hethe superintendent shall, within	2605
thirty days of receipt of a request for review, conduct an	2606
adjudication hearing subject to Chapter 119. of the Revised Code,	2607
held upon not less than ten days' written notice to the agent and	2608
the insurer. Pending a final order in the adjudication hearing,	2609
the superintendent may take such interim action as necessary to	2610
protect the parties or the public. During the pendency of the	2611
proceeding before the superintendent, the contract of agency	2612
subject to the proceeding continues in force and divisondivision	2613
(C) of this section applies. The superintendent shall, within	2614
thirty days following such hearing, issue an order approving or	2615
disapproving the action of the insurer. All final orders and	2616
decisions of the superintendent are subject to judicial review as	2617
provided in Chapter 119. of the Revised Code.	2618

(G) An insurer shall not cancel or nonrenew any policy of	2619
insurance written through an agent upon the sole ground of the	2620
termination of the agency until the expiration of the policy term	2621
or the twelve-month period following the effective date of the	2622
termination of the contract of agency, whichever is earlier.	2623
However, during such period, an independent insurance agent may,	2624
subject to the current underwriting rules, guidelines, commission	2625
rates, and practices of the insurer, effect any necessary changes	2626
or endorsements to outstanding policies of insurance that are in	2627
force prior to the date of termination.	2628

This section does not abridge, restrict, or supersede the	2629
rights of an agent to the ownership of expirations provided for in	2630
any contract with an insurer.	2631

(H) Any information or documentation provided to an agent or	2632
the superintendent by an insurer under this section is	2633
confidential and shall be used by the superintendent only in the	2634
exercise of the proper functions authorized by this section. No	2635
insurer is liable for furnishing information or documentation in	2636
compliance with this section if the insurer acts without malice	2637
and in the reasonable belief that such information or	2638
documentation is warranted by this section.	2639

Sec. 3905.72.  (A)(1) No person shall act as a managing	2640
general agent representing an insurer licensed in this state with	2641
respect to risks located in this state unless the person is	2642
licensed as a managing general agent pursuant to division (C) or	2643
(D) of this section.	2644

(2) No person shall act as a managing general agent	2645
representing an insurer organized under the laws of this state	2646
with respect to risks located outside this state unless the person	2647
is licensed as a managing general agent pursuant to division (C)	2648
of this section.	2649

(B) Every person that seeks to act as a managing general	2650
agent as described in division (A) of this section shall apply to	2651
the superintendent of insurance for a license. TheExcept as	2652
otherwise provided in division (D) of this section, the	2653
application shall be in writing on a form provided by the	2654
superintendent and shall be sworn or affirmed before a notary	2655
public or other person empowered to administer oaths. The	2656
application shall be kept on file by the superintendent and shall	2657
include all of the following:	2658

(1) The name and principal business address of the	2659
applicant;	2660

(2) If the applicant is an individual, histhe applicant's	2661
current occupation;	2662

(3) If the applicant is an individual, histhe applicant's	2663
occupation or occupations during the five-year period prior to	2664
applying for the license to act as a managing general agent;	2665

(4) A copy of the contract between the applicant and the	2666
insurer as required by, and in compliance with, section 3905.73 of	2667
the Revised Code;	2668

(5) A copy of a certified resolution of the board of	2669
directors of the insurer on whose behalf the applicant will act,	2670
appointing the applicant as a managing general agent and agent of	2671
the insurer, specifying the duties the applicant is expected to	2672
perform on behalf of the insurer and the lines of insurance the	2673
applicant will manage, and authorizing the insurer to enter into a	2674
contract with the applicant as required by section 3905.73 of the	2675
Revised Code;	2676

(6) A statement that the applicant submits to the	2677
jurisdiction of the superintendent and the courts of this state;	2678

(7) Any other information required by the superintendent.

2679

(C) The superintendent shall issue to a resident of this	2680
state or renew a business entity organized under the laws of this	2681
state a license to act as a managing general agent representing an	2682
insurer licensed to do business in this state with respect to	2683
risks located in this state or a license to act as a managing	2684
general agent representing an insurer organized under the laws of	2685
this state with respect to risks located outside this state, and	2686
shall renew such a license, if the superintendent is satisfied	2687
that all of the following conditions are met:	2688

(1) The applicant is a suitable person and intends to hold	2689
himselfself out in good faith as a managing general agent.	2690

(2) The applicant is honest, trustworthy, and understands	2691
the duties and obligations of a managing general agent.	2692

(3) The applicant has filed a completed application that	2693
complies with division (B) of this section.	2694

(4) The applicant has paid a fee in the amount of twenty	2695
dollars.	2696

(5) The applicant maintains a bond in the amount of not less	2697
than fifty thousand dollars for the protection of the insurer.	2698

(6) The applicant maintains an errors and omissions policy	2699
of insurance.	2700

(7) The applicant is not, and has never been, under an order	2701
of suspension or revocation under section 3905.77 of the Revised	2702
Code or under any other law of this state, or any other state,	2703
relating to insurance, and is otherwise in compliance with	2704
sections 3905.71 to 3905.79 of the Revised Code and all other laws	2705
of this state relating to insurance.	2706

(D) If the applicant is a resident of another state or a	2707
business entity organized under the laws of another state, the	2708
applicant shall submit a request for licensure, along with a fee	2709
of twenty dollars, to the superintendent. The superintendent shall	2710
issue a license to act as a managing general agent if the request	2711
for licensure includes proof that the applicant is licensed and in	2712
good standing as a managing general agent in the applicant's home	2713
state and either a copy of the application for licensure the	2714
applicant submitted to the applicant's home state or the	2715
application described in division (B) of this section.	2716

If the applicant's home state does not license managing	2717
general agents under provisions similar to those in sections	2718
3905.71 to 3905.79 of the Revised Code, or if the applicant's home	2719
state does not grant licenses to residents of this state on the	2720
same reciprocal basis, the applicant shall comply with divisions	2721
(B) and (C) of this section.	2722

(E) Unless suspended or revoked by an order of the	2723
superintendent pursuant to section 3905.77 of the Revised Code and	2724
except as provided in division (E)(F) of this section, any license	2725
issued or renewed pursuant to division (C) or (D) of this section	2726
shall expire on the last day of February next after its issuance	2727
or renewal.	2728

(E)(F) If the appointment of a managing general agent is	2729
terminated by the insurer, the license of the managing general	2730
agent shall expire on the date of the termination.	2731

(F)(G) A license shall be renewed in accordance with the	2732
standard renewal procedure specified in Chapter 4745. of the	2733
Revised Code.	2734

(G)(H) All license fees collected pursuant to division	2735
(C)(4) of this section shall be paid into the state treasury to	2736
the credit of the department of insurance operating fund.	2737

Sec. 3905.85.  (A) An applicant for a license as a surety	2738
bail bond agent shall submit an application for the license in a	2739
manner prescribed by the superintendent of insurance. The	2740
application shall be accompanied by a one hundred fifty dollar fee	2741
and a statement that gives the applicant's name, age, residence,	2742
present occupation, occupation for the five years next preceding	2743
the date of the application, and such other information as the	2744
superintendent may require.	2745

The applicant shall also request a criminal records check	2746
conducted by the superintendent of the bureau of criminal	2747
identification and investigation in accordance with section	2748
109.572 of the Revised Code, or other governmental agencies, or	2749
other sources, as required and designated by the superintendent of	2750
insurance, and direct that the bureau's written responseresponses	2751
to that request be transmitted to the superintendent of insurance,	2752
or to the superintendent's designee, as specified on the form	2753
prescribed pursuant to that section. If the superintendent of	2754
insurance or the superintendent's designee fails to receive the	2755
bureau'sa response to the applicant's request for a requested	2756
criminal records check, or if the applicant fails to request the	2757
criminal records check, the superintendent may refuse to issue a	2758
license under this section. The applicant shall pay any fee	2759
required by the bureau for conducting the criminal records check.	2760

An applicant for a license shall submit to an examination as	2761
to the qualifications set forth in division (B) of this section.	2762

(B) The superintendent of insurance shall issue to an	2763
applicant a license that states in substance that the person is	2764
authorized to do the business of a surety bail bond agent, if the	2765
superintendent is satisfied that all of the following apply:	2766

(1) If the applicant is a natural person, theThe applicant	2767
is eighteen years of age or older.	2768

(2) The applicant is a person of high character and	2769
integrity.	2770

(3) The applicant has successfully completed the educational	2771
requirements set forth in section 3905.483905.04 of the Revised	2772
Code and passed the examination required by that section.	2773

(C) A surety bail bond agent license issued pursuant to this	2774
section authorizes the holder, when appointed by an insurer, to	2775
execute or countersign bail bonds in connection with judicial	2776
proceedings and to receive money or other things of value for	2777
those services. However, the holder shall not execute or deliver	2778
a bond during the first one hundred eighty days after the license	2779
is initially issued. This restriction does not apply with respect	2780
to license renewals.	2781

(D) The superintendent of insurance may suspend or revoke a	2782
surety bail bond agent's license as provided in section 3905.482	2783
of the Revised Code, and may suspend, revoke, or refuse to issue	2784
or renew such a license as provided in section 3905.493905.14 of	2785
the Revised Code.	2786

If the superintendent refuses to issue such a license based	2787
in whole or in part upon the bureau's written response to a	2788
criminal records check requested pursuant to division (A) of this	2789
section, the superintendent shall send a copy of the response that	2790
the bureauwas transmitted to the superintendent or to the	2791
superintendent's designee, to the applicant at the applicant's	2792
home address upon the applicant's submission of a written request	2793
to the superintendent.	2794

(E) Any person licensed as a surety bail bond agent may	2795
surrender the person's license in accordance with section 3905.012	2796
3905.16 of the Revised Code.	2797

(F) Unless revoked or suspended by the superintendent of	2798
insurance or surrendered by the surety bail bond agent, such a	2799
license may, in the discretion of the superintendent and the	2800
payment of a one hundred fifty dollar fee, be continued past	2801
renewed effective the lastfirst day of FebruaryMarch next after	2802
its issue and after the lastfirst day of FebruaryMarch in each	2803
succeeding year.	2804

(G) The superintendent of insurance may prescribe the forms	2805
to be used as evidence of the issuance of a license under this	2806
section. The superintendent shall require each licensee to	2807
acquire, from a source designated by the superintendent, a wallet	2808
identification card that includes the licensee's photograph and	2809
any other information required by the superintendent. The	2810
licensee shall keep the wallet identification card on the	2811
licensee's person while engaging in the bail bond business.	2812

(H)(1) The superintendent of insurance shall not issue or	2813
renew the license of a corporation, partnership, or limited	2814
liability companybusiness entity organized under the laws of this	2815
or any other state unless the corporation, partnership, or limited	2816
liability companybusiness entity is qualified to do business in	2817
this state under the applicable provisions of Title XVII of the	2818
Revised Code.	2819

(2) The failure of a corporation, partnership, or limited	2820
liability companybusiness entity to be in good standing with the	2821
secretary of state or to maintain a valid appointment of statutory	2822
agent is grounds for suspending, revoking, or refusing to renew	2823
its license.	2824

(3) By applying for a surety bail bond agent license under	2825
this section, an individual, corporation, partnership, or limited	2826
liability companybusiness entity consents to the jurisdiction of	2827
the courts of this state.	2828

(I) A surety bail bond agent licensed pursuant to this	2829
section is an officer of the court.	2830

(J) Any fee collected under this section shall be paid into	2831
the state treasury to the credit of the department of insurance	2832
operating fund created by section 3901.021 of the Revised Code.	2833

Sec. 3905.861.  An insurer that appoints a surety bail bond	2834
agent who is a member of an agency, partnership, corporation, or	2835
limited liability companya business entity shall require that all	2836
other surety bail bond agents who are members of the same agency,	2837
partnership, corporation, or limited liability companybusiness	2838
entity be appointed to represent that insurer.	2839

Sec. 3905.89.  Each person licensed under sections 3905.83 to	2840
3905.95 of the Revised Code shall notify in writing the	2841
appropriate insurer or managing general agent, and the clerk of	2842
the court of common pleas of the county in which the licensee	2843
resides, within thirty days after a change in the licensee's	2844
principal business address or telephone number.	2845

This notification requirement is in addition to the	2846
notification requirements set forth in section 3905.54other	2847
provisions of the Revised Codethis chapter.	2848

Sec. 3905.94.  If the superintendent of insurance, in	2849
accordance with section 3905.493905.14 of the Revised Code,	2850
suspends or revokes a person's license as a surety bail bond	2851
agent, the person, during the period of suspension or revocation,	2852
shall not be employed by any surety bail bond agent, have any	2853
ownership interest in any business involving bail bonds, or have	2854
any financial interest of any type in any bail bond business.	2855

Sec. 3905.99.  (A) Whoever violates sections 3905.181,	2856
3905.21, or 3905.23section 3905.182 of the Revised Code shall be	2857
fined not less than twenty-five nor more than five hundred dollars	2858
or imprisoned not more than six months, or both.	2859

(B) Whoever violates section 3905.31 or 3905.33 of the	2860
Revised Code shall be fined not less than twenty-five nor more	2861
than five hundred dollars or imprisoned not more than one year, or	2862
both.	2863

(C) Whoever violates section 3905.37 or 3905.43 of the	2864
Revised Code shall be fined not less than one hundred nor more	2865
than five hundred dollars.	2866

(D) Whoever violates section 3905.013905.02, division (F)	2867
of section 3905.92, or division (A) of section 3905.931 of the	2868
Revised Code is guilty of a misdemeanor of the first degree.	2869

(E) Whoever violates section 3905.84 of the Revised Code is	2870
guilty of a misdemeanor of the first degree on a first or second	2871
offense and of a felony of the third degree on each subsequent	2872
offense.	2873

Sec. 3907.19.  The president or vice-president, and the	2874
secretary or actuary, or a majority of the directors of each	2875
insurance company organized under the laws of this state, annually	2876
on the first day of January, or within sixty days thereafter,	2877
shall prepare under oath and deposit in the office of the	2878
superintendent of insurance, a statement showing the condition of	2879
the company on the thirty-first day of the December next	2880
preceding. The statement shall be submitted on the forms adopted	2881
by the superintendent pursuant to section 3905.293901.77 of the	2882
Revised Code, and shall exhibit the following items:	2883

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

2884

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

2885

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

2886

(D) The amount of interest and all other receipts,	2887
specifying the items;	2888

(E) The amount paid to policyholders of the company for	2889
losses during the year;	2890

(F) The amount of all other expenditures and disbursements	2891
of the company, specifying such items as the superintendent calls	2892
for;	2893

(G) The amount of losses unpaid;

2894

(H) The whole number of policies in force;

2895

(I) The amount insured by such policies;

2896

(J) The amount of reserve on all policies in force,	2897
calculated by the American Experience Table of Mortality, with	2898
interest at four per cent annually, or calculated by any other	2899
higher standard that the company has adopted, and the unearned	2900
premium on all personal accident and sickness insurance in force;	2901

(K) The amount of capital stock, specifying amount paid and	2902
unpaid;	2903

(L) The amount of dividends unpaid and the amount of all	2904
other liabilities;	2905

(M) A detailed statement of all the assets of the company,	2906
and the manner of their investment;	2907

(N) An exhibit of the policy obligations of the company,	2908
which shall include:	2909

(1) In the first annual statement, a schedule showing the	2910
number, date, age when insured, amount insured, term of policy,	2911
term of premium, and amount of premium, of all policies issued,	2912
schedules of all policies canceled, revived, changed, reduced, or	2913
increased and a schedule of reinsurances in other companies;	2914

(2) In every succeeding annual statement, a schedule of the	2915
items listed in division (N)(1) of this section as to all policies	2916
issued during the year, and similar schedules of policies	2917
canceled, revived, changed, reduced, or increased during the year,	2918
together with schedules of reinsurances in other companies and	2919
schedules of additions to policies, and a list of all other	2920
obligations of the company requiring valuation.	2921

An exhibit of the policy obligations of the company may be	2922
required more often than once a year.	2923

Sec. 3909.06.  Every life insurance company organized by act	2924
of congress or under the laws of another state of the United	2925
States doing business in this state, annually shall file a	2926
statement of its condition and affairs in the office of the	2927
superintendent of insurance, and such statement shall be filed on	2928
the forms adopted by the superintendent pursuant to section	2929
3905.293901.77 of the Revised Code.	2930

Sec. 3911.011.  (A) No policy, annuity, or other contract	2931
providing variable or fixed and variable benefits or contractual	2932
payments shall be delivered or issued for delivery in this state	2933
except by a life insurance company, organized under the laws of	2934
this state, or a company, partnership, or association, organized	2935
or incorporated, by an act of congress, or under the laws of this	2936
or any other state of the United States, or any foreign	2937
government, and transacting the business of life insurance in this	2938
state. No such company, partnership or association shall deliver	2939
or issue for delivery in this state any such policy, annuity, or	2940
contract until the superintendent of insurance has determined that	2941
its condition and methods of operation in connection with the	2942
issuance of suchthe policies, annuities, and contracts will not	2943
render its operation hazardous to the public or to the holders of	2944
its policies, annuities, and other contracts in this state. In	2945
making such determination, the superintendent shall consider the	2946
history, reputation, and financial condition of suchthe company,	2947
partnership, or association, and the character, responsibility,	2948
and general fitness of its officers, directors, partners, or	2949
associates. In making such determination with respect to a	2950
company, partnership, or association not organized under the laws	2951
of this state, the superintendent shall also consider whether the	2952
laws and regulations of its domicile provide a degree of	2953
protection to the public and the holders of its policies,	2954
annuities, and other contracts substantially equal to that	2955
provided by this section and any rules adopted by the	2956
superintendent pursuant to division (C) of this section. If any	2957
such company is a subsidiary of, or affiliated through management	2958
or ownership with, a life insurance company authorized to do	2959
business in this state, the superintendent may consider the	2960
requirements of this division to have been satisfied if either	2961
such company or its parent or affiliated company meets such	2962
requirements.	2963

(B) No policy, annuity, or other contract described in	2964
division (A) of this section and no certificate, application,	2965
endorsement, or rider to be used in connection with any such	2966
policy, annuity, or other contract shall be delivered, or issued	2967
for delivery, in this state until a copy thereof has been filed	2968
with the superintendent. The superintendent shall, within thirty	2969
days after the filing of any such form, disapprove the same if he	2970
findsupon finding that such form contains provisions whichthat	2971
are unjust, unfair, inequitable, misleading, or deceptive,	2972
encourage misrepresentation of the coverage, or are contrary to	2973
the insurance laws of this state or any rule adopted by himthe	2974
superintendent pursuant to division (C) of this section. When the	2975
superintendent notifies a company, partnership, or association	2976
that a form has been disapproved, it shall be unlawful thereafter	2977
for suchthe company, partnership, or association to issue or use	2978
suchthe form. In suchthe notice, the superintendent shall	2979
specify the reason for histhe disapproval and state that a	2980
hearing will be granted in twenty days after request in writing.	2981
No such policy, contract, certificate, application, endorsement,	2982
or rider shall be issued or used until the expiration of thirty	2983
days after it has been so filed, unless the superintendent gives	2984
written approval thereto. The superintendent may, at any time	2985
after a hearing held not less than twenty days after written	2986
notice to the insurer, withdraw histhe approval of any such form	2987
on any ground set forth in this division. The written notice of	2988
such hearing shall state the reason for the proposed withdrawal.	2989
The company, partnership, or association shall not issue suchthe	2990
form or use it after the effective date of suchthe withdrawal.	2991
Any order or formal determination of the superintendent under this	2992
division shall be subject to judicial review as provided in	2993
section 119.12 of the Revised Code.	2994

(C) The superintendent shall have the sole and exclusive	2995
power and authority to regulate the sale, delivery, and issuance	2996
for delivery in this state of policies, annuities, and other	2997
contracts described in division (A) of this section and, subject	2998
to sections 119.01 to 119.13, inclusive,Chapter 119. of the	2999
Revised Code, to adopt, amend, and rescind rules necessary to	3000
discharge histhe superintendent's duties and exercise histhe	3001
superintendent's power and authority under sections 3905.20 and	3002
section 3907.15 of the Revised Code and this section, including,	3003
but not limited to, the adoption of a definition of a subsidiary	3004
or affiliated corporation under section 3907.15 of the Revised	3005
Code.	3006

(D) Except for Chapter 3915. and except as otherwise	3007
provided in sections 3905.20, 3907.15, and 3911.011 of the Revised	3008
Code, all pertinent provisions of Title XXXIX of the Revised Code	3009
apply to all policies, annuities, and other contracts providing	3010
variable or fixed and variable benefits or contractual payments	3011
and all separate accounts established in connection therewith. The	3012
reserve liability for such policies, annuities, and contracts	3013
shall be established in accordance with actuarial procedures that	3014
recognize the variable nature of the benefits and guarantees	3015
provided.	3016

Chapter 1707. of the Revised Code does not apply to any	3017
policy, annuity, or other contract providing fixed, variable, or	3018
fixed and variable benefits or contractual payments, whichthat is	3019
issued by any company, partnership, or association authorized to	3020
transact the business of life insurance in this state.	3021

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

3022

(1) "Association" means a voluntary unincorporated	3023
association of insurers formed for the sole purpose of enabling	3024
cooperative action to provide sickness and accident insurance in	3025
accordance with this section.	3026

(2) "Insurer" means any insurance company authorized to do	3027
the business of sickness and accident insurance in this state.	3028

(3) "Insured" means a person covered under a group policy	3029
issued pursuant to this section.	3030

(B) Any insurer may join with one or more other insurers, in	3031
an association, to offer, sell, and issue to a policyholder	3032
selected by the association a policy of group insurance against	3033
major financial loss from sickness and accident covering residents	3034
of this state who are sixty-five years of age or older and the	3035
spouses of such residents. The insurance shall be offered,	3036
issued, and administered in the name of the association.	3037
Membership in the association shall be open to any insurer and	3038
each insurer which participates shall be liable for a specified	3039
percentage of the risks. The policy may be executed on behalf of	3040
the association by a duly authorized person and need not be	3041
countersigned by an agent.	3042

(C) The persons eligible for coverage under the policy shall	3043
be all residents of this state who are sixty-five years of age or	3044
older and their spouses, subject to reasonable underwriting	3045
restrictions to be set forth in the plan of the association. The	3046
policy may provide basic hospital and surgical coverage, basic	3047
medical coverage, major medical coverage, and any combination of	3048
these; provided that it shall not be required as a condition for	3049
obtaining major medical coverage that any basic coverage be taken.	3050

(D) The association shall file with the superintendent of	3051
insurance any policy, contract, certificate, or other evidence of	3052
insurance, application, or other forms pertaining to such	3053
insurance together with the premium rates to be charged therefor.	3054
The superintendent may approve, disapprove, and withdraw approval	3055
of the forms in accordance with section 3923.02 of the Revised	3056
Code, or the premium rates if by reasonable assumptions such rates	3057
are excessive in relation to the benefits provided. In	3058
determining whether such rates by reasonable assumptions are	3059
excessive in relation to the benefits provided the superintendent	3060
shall give due consideration to past and prospective claim	3061
experience, within and outside this state, and to fluctuations in	3062
such claim experience, to a reasonable risk charge, to	3063
contribution to surplus and contingency funds, to past and	3064
prospective expenses, both within and outside this state, and to	3065
all other relevant factors within and outside this state,	3066
including any differing operating methods of the insurers joining	3067
in the issuance of the policy. In reviewing the forms the	3068
superintendent shall not be bound by the requirements of sections	3069
3923.04 to 3923.07 of the Revised Code with respect to standard	3070
provisions to be included in sickness and accident policies or	3071
forms.	3072

(E) The association may enroll eligible persons for coverage	3073
under the policy through any insurance agent licensed to sell	3074
sickness and accident insurance pursuant to Chapter 3905. of the	3075
Revised Code or section 3905.02, 3905.08, 3905.18, or 3941.02 of	3076
the Revised Code.	3077

(F) The association shall file annually with the	3078
superintendent on such date and in such form as the superintendent	3079
may prescribe, a financial summary of its operations.	3080

(G) The association may sue and be sued in its associate	3081
name and for such purposes only shall be treated as a domestic	3082
corporation. Service of process against the association made upon	3083
a managing agent, any member thereof, or any agent authorized by	3084
appointment to receive service of process, shall have the same	3085
force and effect as if the service had been made upon all members	3086
of the association.	3087

(H) Under any policy issued as provided in this section, the	3088
policyholder, or such person as the policyholder shall designate,	3089
shall alone be a member of each domestic mutual insurance company	3090
joining in the issue of the policy and shall be entitled to one	3091
vote by virtue of such policy at the meetings of each such mutual	3092
insurance company. Notice of the annual meetings of each such	3093
mutual insurance company may be given by written notice to the	3094
policyholder or as otherwise prescribed in the policy.	3095

Sec. 3929.30.  The president or the vice-president and the	3096
secretary of each insurance company organized under the laws of	3097
this or any other state and doing business in this state,	3098
annually, on the first day of January or within sixty days	3099
thereafter, shall prepare, under oath, and deposit in the office	3100
of the superintendent of insurance a statement of the condition of	3101
such company on the next preceding thirty-first day of December.	3102
The statement shall be submitted on the forms adopted by the	3103
superintendent pursuant to section 3905.293901.77 of the Revised	3104
Code, and shall exhibit the following facts and items:	3105

(A) The amount of the capital stock of the company,	3106
specifying the amount paid and unpaid;	3107

(B) A detailed statement of all the assets of the company	3108
and the manner of their investment.	3109

(C) The liabilities of the company, specifying:

3110

(1) The amount of losses due and unpaid;

3111

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

3112

(3) The amount of losses incurred during the year, including	3113
those claimed and not due, and those reported to the company upon	3114
which no action has been taken;	3115

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

3116

(5) The amount of dividends, either cash or scrip, declared	3117
but not due;	3118

(6) The amount of money borrowed and the security given for	3119
its payment;	3120

(7) The amount required for reinsurance, being a pro rata of	3121
all premiums, received and receivable, on unexpired risks and	3122
policies, provided that as to fire insurance business, a company	3123
may, at its option, maintain a sum equal to fifty per cent of the	3124
whole amount of premiums received and receivable on unexpired	3125
risks and policies running one year and less from the date of the	3126
policy. In the case of marine insurance, premiums on trip risks	3127
not terminated shall be deemed unearned, and the superintendent	3128
may require a reserve to be carried thereon equal to one hundred	3129
per cent of the premiums on trip risks written during the month	3130
ended as of the date of statement.	3131

(8) The amount of all other existing claims against the	3132
company;	3133

(9) A statement, approved by the superintendent, from a	3134
member of the American academy of actuaries certifying that the	3135
loss and loss adjustment reserves established for medical	3136
malpractice business, as reported in the statutory annual	3137
statement, are computed in accordance with accepted loss reserving	3138
standards and are fairly stated in accordance with sound loss	3139
reserving principles.	3140

(D) The income of the company during the preceding year,	3141
specifying:	3142

(1) The amount of cash premiums received;

3143

(2) The amount of notes or contingent assets received for	3144
premiums;	3145

(3) The amount of interest money received;

3146

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

3147

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

3148

(1) The amount of losses paid during the year, stating how	3149
much of them accrued prior, and how much accrued subsequent, to	3150
the date of the preceding statement, and the amount at which	3151
losses were estimated in each preceding statement;	3152

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

3153

(3) The amount of expenses paid during the year, including	3154
commissions and fees to agents and officers of the company;	3155

(4) The amount paid for taxes;

3156

(5) The amount of all payments and expenditures;

3157

(6) The amount of scrip dividend declared.

3158

Sec. 3931.101.  The provisions of sections 3905.01 to 3905.04	3159
Chapter 3905. of the Revised Code, relating to the appointment,	3160
licensing, qualification and regulation of insurance agents,	3161
brokers, and solicitors shall apply to all persons authorized to	3162
solicit powers of attorney or applications for contracts of	3163
indemnity for any reciprocal exchange, insurance exchange or	3164
attorney in fact as provided for in Chapter 3931. of the Revised	3165
Code, except a traveling full time salaried non-commission	3166
employee of an attorney whose duties as such employee are	3167
primarily the performance of inspection underwriting, loss	3168
prevention engineering and claim services shall be exempt from	3169
this section and shall be regulated solely by section 3931.11 of	3170
the Revised Code.	3171

Sec. 3931.11.  Every attorney shall certify to the	3172
superintendent of insurance the names and addresses of the	3173
attorney's traveling full time salaried non-commission employees,	3174
primarily engaged in performing underwriting, loss prevention	3175
engineering and claim services, authorized by the attorney to	3176
solicit powers of attorney or applications for contracts of	3177
indemnity specified in section 3931.01 of the Revised Code. The	3178
authority of such persons shall continue until the first day of	3179
the next April, unless it is cancelled by the attorney and the	3180
certificate of such cancellation is filed with the superintendent,	3181
or unless the license of the attorney or authority of such person	3182
is revoked or suspended by the superintendent. Expiring	3183
certificates of authority of such persons may be renewed in like	3184
manner to continue until the first day of the next April. The	3185
superintendent shall record the names and addresses of such	3186
persons so that their names may conveniently be inspected and	3187
shall thereupon certify and deliver to the attorney a list of the	3188
names of all persons so recorded.	3189

If the superintendent finds that any such person has	3190
willfully violated, or failed to comply with, sections 3931.01 to	3191
3931.12 of the Revised Code, or has been convicted of a felony in	3192
the United States, or in this or any state, or has been guilty of	3193
any act or acts whichthat if performed by an agent licensed under	3194
section 3905.02Chapter 3905. of the Revised Code would constitute	3195
statutory grounds for the revocation of suchthe agent's license,	3196
the superintendent may refuse or revoke the authority of the	3197
person and cancel the person's name on the superintendent's	3198
records, and the superintendent shall thereupon notify the person	3199
and the attorney of the revocation. Thereafter the person shall	3200
not act as representative of any attorney until a new certificate	3201
of authority by the attorney thereafter appointing the person is	3202
filed with and approved by the superintendent.	3203

No such person shall act for any attorney in placing	3204
insurance or making such contracts of indemnity, unless the	3205
attorney has the license required by section 3931.10 of the	3206
Revised Code, nor unless the unexpired, unrevoked, and unsuspended	3207
certificate of suchthe person's authority is filed with the	3208
superintendent. Any such person shall be individually liable on	3209
any contract of indemnity made, issued, or accepted through that	3210
person as representing any attorney who is not licensed by the	3211
superintendent to make such contracts of indemnity.	3212

Sec. 3933.04.  No person, firm, or corporation engaged in	3213
selling real or personal property, engaged in the business of	3214
financing the purchase of real or personal property, or engaged in	3215
the business of lending money on the security of real or personal	3216
property, and no trustee, director, officer, agent, or other	3217
employee of any such person, firm, or corporation, shall require,	3218
as a condition precedent to the sale or financing the purchase of	3219
such property, to lending money upon the security of a mortgage	3220
thereon, or as a condition prerequisite for the renewal or	3221
extension of any such loan or mortgage or for the performance of	3222
any other act in connection therewith, that the person, firm, or	3223
corporation purchasing suchthe property, for whom such purchase	3224
is to be financed, to whom the money is to be loaned, or for whom	3225
such extension, renewal, or other act is to be granted, or	3226
performed, negotiate any policy of insurance or renewal thereof	3227
covering suchthe property through a particular insurance company,	3228
agent, solicitor, or broker. This section does not prevent the	3229
exercise by any person, firm, or corporation of its right to	3230
designate minimum standards as to the company, the terms and	3231
provisions of the policy, and the adequacy of the coverage with	3232
respect to insurance on property pledged or mortgaged to suchthe	3233
person, firm, or corporation.	3234

The superintendent of insurance shall, in accordance with	3235
sections 119.01 to 119.13, inclusive,Chapter 119. of the Revised	3236
Code, revoke the insurance license of any person, appointee,	3237
agent, solicitor, or broker whothat violates this section.	3238

Sec. 3953.21.  (A) Every title insurance company authorized	3239
to transact business within this state shall certify annually to	3240
the superintendent of insurance the names of all title insurance	3241
agents representing it in this state in accordance with section	3242
3905.023905.20 of the Revised Code.	3243

(B) No bank, trust company, bank and trust company, or other	3244
lending institution, mortgage service, brokerage, mortgage	3245
guaranty company, escrow company, real estate company or any	3246
subsidiaries thereof or any individuals so engaged shall be	3247
permitted to act as an agent for a title insurance company.	3248

Sec. 3953.23.  (A) Every title insurance agent shall keep	3249
books of account and record and vouchers pertaining to the	3250
business of title insurance in such manner that the title	3251
insurance company may readily ascertain from time to time whether	3252
the agent has complied with this chapter.	3253

(B) A title insurance agent may engage in the business of	3254
handling escrows of real property transactions directly connected	3255
with the business of title insurance, provided that the agent	3256
shall maintain a separate record of all receipts and disbursements	3257
of escrow funds and shall not commingle any such funds with the	3258
agent's own funds or with funds held by the agent in any other	3259
capacity; and if at any time the superintendent of insurance	3260
determines that an agent has failed to comply with any of the	3261
provisions of this section, the superintendent may revoke the	3262
license of the agent pursuant to section 3905.023905.14 of the	3263
Revised Code, subject to review as provided for in Chapter 119. of	3264
the Revised Code. All agents shall be covered by a fidelity bond	3265
in an amount and with a company satisfactory to the principal.	3266

Sec. 3957.14.  (A) No person shall, except for the renewal	3267
of an existing home service contract, procure, receive, or forward	3268
applications for home service contracts unless the person is a	3269
resident of this state who is one of the following:	3270

(1) A real estate licensee as licensed by the real estate	3271
division of the department of commerce of this state;	3272

(2) An organization or franchisor or licensor of such a real	3273
estate licensee;	3274

(3) A licensed insurance agent for casualty, property, or	3275
personal lines;	3276

(4) Any other person to whom the superintendent of insurance	3277
has issued a license to perform such services. The superintendent	3278
shall not issue such a license unless the person has paid a fee of	3279
twenty dollars and has been determined by the superintendent to be	3280
qualified. The superintendent shall issue such a license only if	3281
the person successfully passes a written examination prescribed by	3282
the superintendent.	3283

(B) No home warranty company or person acting on behalf of	3284
such a company under division (A) of this section shall pay to any	3285
person who is acting as the agent, representative, attorney, or	3286
employee of the owner or prospective owner of residential property	3287
with respect to which a home service contract is to be issued, any	3288
commission or any other consideration, either directly or	3289
indirectly, as an inducement or compensation for the issuance,	3290
purchase, or acquisition of a home service contract. A home	3291
warranty company may reimburse such persons for expenses actually	3292
incurred in the issuance, sale, advertising, or processing of home	3293
service contracts or in performing an inspection of residential	3294
property with respect to which a home service contract is issued.	3295
No commission shall be paid to any person except a person	3296
authorized to receive such a commission under this section. In	3297
the event a commission is paid, no rebates shall be permitted and	3298
the prohibitions of section 3933.01 of the Revised Code apply.	3299

Sec. 3960.03.  All of the following apply to risk retention	3300
groups chartered and licensed in states other than this state,	3301
that seek to do business as a risk retention group in this state:	3302

(A) No risk retention group shall offer insurance in this	3303
state unless it has submitted to the superintendent of insurance,	3304
in a form satisfactory to the superintendent, all of the	3305
following:	3306

(1) A statement identifying the state or states in which it	3307
is chartered and licensed as a liability insurance company, the	3308
date of chartering, its principal place of business, and any other	3309
information, including but not limited to, information on its	3310
membership, that the superintendent may require to verify that it	3311
is qualified under division (J) of section 3960.01 of the Revised	3312
Code;	3313

(2) A copy of its plan of operation or a feasibility study	3314
and revisions of the plan or study submitted to the state in which	3315
the risk retention group is chartered and licensed. Division	3316
(A)(2) of this section does not apply to any line or	3317
classification of liability insurance that was defined in the	3318
federal "Product Liability Risk Retention Act of 1981," 95 Stat.	3319
949, 15 U.S.C.A. 3901, as amended, before October 27, 1986, and	3320
was offered before that date by any risk retention group that had	3321
been chartered and operating for not less than three years before	3322
that date. The risk retention group shall submit a copy of any	3323
revision to its plan of operation or feasibility study required by	3324
division (A)(2) of section 3960.02 of the Revised Code at the same	3325
time that the revision is submitted to the Commissioner	3326
commissioner of Insuranceinsurance of its chartering state.	3327

(3) A statement of registration, for which a filing fee	3328
shall be determined by the superintendent, that submits it to the	3329
jurisdiction of the superintendent and the courts of this state.	3330
The fee shall be paid into the state treasury to the credit of the	3331
department of insurance operating fund pursuant to section	3332
3901.021 of the Revised Code.	3333

(B) A risk retention group doing business in this state	3334
shall submit to the superintendent all of the following:	3335

(1) A copy of its financial statement submitted to the state	3336
in which the risk retention group is chartered and domiciled,	3337
which shall be certified by an independent public accountant and	3338
contain a statement of opinion on loss and loss adjustment expense	3339
reserves made by a member of the American academy of actuaries or	3340
a qualified loss reserve specialist under criteria established by	3341
the national association of insurance commissioners;	3342

(2) A copy of each examination of the group as certified by	3343
the commissioner or public official conducting the examination;	3344

(3) Upon request by the superintendent, a copy of any	3345
information or document pertaining to any outside audit performed	3346
with respect to the group;	3347

(4) Any information that may be required to verify, to the	3348
superintendent's satisfaction, its continuing qualification as a	3349
risk retention group under division (J) of section 3960.01 of the	3350
Revised Code.	3351

(C)(1) Agents or brokers for the risk retention group shall	3352
report to the superintendent the premiums for direct business for	3353
risks resident or located within this state that they have placed	3354
with or on behalf of a risk retention group not chartered in this	3355
state.	3356

(2) The agent or broker shall keep a complete and separate	3357
record of all policies procured from each risk retention group,	3358
which record shall be open to examination by the superintendent.	3359
These records shall, for each policy and each kind of insurance	3360
provided, include the following:	3361

(a) The limit of liability;

3362

(b) The time period covered;

3363

(c) The effective date;

3364

(d) The name of the risk retention group that issued the	3365
policy;	3366

(e) The gross premium charged;

3367

(f) The amount of return premiums.

3368

(D) Every risk retention group that is not chartered in this	3369
state shall do both of the following:	3370

(1) On or before the firstthirty-first day of JulyJanuary,	3371
pay to the treasurer of state five per cent of all premiums, fees,	3372
assessments, dues, or other consideration for the preceding	3373
one-year period for risks resident or located in this state, as	3374
calculated on a form prescribed by the treasurer of state. If	3375
such tax is not paid when due, the tax shall be increased by a	3376
penalty of twenty-five per cent. An interest charge computed as	3377
set forth in section 5725.221 of the Revised Code shall be made on	3378
the entire sum of the tax plus penalty, which interest shall be	3379
computed from the date the tax is due until it is paid. All taxes	3380
collected under this section shall be paid into the general	3381
revenue fund. For purposes of division (D)(1) of this section,	3382
payment is considered made when it is received by the treasurer of	3383
state, irrespective of any United States postal service marking or	3384
other stamp or mark indicating the date on which the payment may	3385
have been mailed.	3386

(2) Within thirty days afterOn or before the end	3387
thirty-first day of each quarterJanuary, file a statement with	3388
the superintendent, on a form prescribed by the superintendent,	3389
showing the name and address of the insured, name and address of	3390
the insurer, subject of the insurance, general description of the	3391
coverage, the amount of gross premium, fee, assessment, dues, or	3392
other consideration for the insurance, after a deduction for	3393
return premium, if any, and any other information the	3394
superintendent requires.	3395

(E) The superintendent may examine the financial condition	3396
of a risk retention group if the commissioner of insurance in the	3397
state in which it is chartered and licensed has not initiated an	3398
examination or does not initiate an examination within sixty days	3399
after the superintendent has requested an examination. The	3400
examination shall be conducted in an expeditious manner and in	3401
accordance with the national association of insurance	3402
commissioners' examiner handbook.	3403

(F) The superintendent may issue any order appropriate in	3404
voluntary dissolution proceedings or commence delinquency	3405
proceedings against a risk retention group not chartered in this	3406
state that does business in this state if the superintendent	3407
finds, after an examination of the group under division (E) of	3408
this section, that its financial condition is impaired. A risk	3409
retention group that violates any provision of this chapter is	3410
subject to fines and penalties, including revocation of its right	3411
to do business in this state, applicable to licensed insurers	3412
generally. In addition to complying with the requirements of this	3413
section, any risk retention group operating in this state prior to	3414
enactment of this section shall comply with division (A)(1) of	3415
this section within thirty days after October 26, 1989.	3416

Sec. 3960.11.  (A) No person shall act or aid in any manner	3417
in soliciting, negotiating, or procuring liability insurance in	3418
this state from a risk retention group unless the person is	3419
licensed as an insurance agent or broker in accordance with	3420
section 3905.02 or 3905.30Chapter 3905. of the Revised Code.	3421

(B) No person shall act or aid in any manner in soliciting,	3422
negotiating, or procuring liability insurance in this state for a	3423
purchasing group from an authorized insurer or a risk retention	3424
group chartered in a state unless the person is licensed as an	3425
insurance agent or broker in accordance with section 3905.02 or	3426
3905.30Chapter 3905. of the Revised Code.	3427

(C) No person shall act or aid in any manner in soliciting,	3428
negotiating, or procuring liability insurance coverage in this	3429
state for any member of a purchasing group under a purchasing	3430
group's policy unless the person is licensed as an insurance agent	3431
or broker in accordance with section 3905.02 or 3905.30Chapter	3432
3905. of the Revised Code.	3433

(D) No person shall act or aid in any manner in soliciting,	3434
negotiating, or procuring liability insurance from an insurer not	3435
authorized to do business in this state on behalf of a purchasing	3436
group located in this state unless the person is licensed as a	3437
surplus line broker in accordance with section 3905.30 of the	3438
Revised Code.	3439

Section 2. That existing sections 1751.38, 3901.021, 3901.19,	3440
3901.22, 3901.51, 3901.62, 3903.81, 3905.012, 3905.03, 3905.06,	3441
3905.09, 3905.11, 3905.12, 3905.13, 3905.14, 3905.181, 3905.24,	3442
3905.25, 3905.26, 3905.27, 3905.28, 3905.29, 3905.30, 3905.31,	3443
3905.34, 3905.36, 3905.41, 3905.47, 3905.482, 3905.483,	3444
3905.484, 3905.486, 3905.49, 3905.491, 3905.492, 3905.50, 3905.52,	3445
3905.72, 3905.85, 3905.861, 3905.89, 3905.94, 3905.99, 3907.19,	3446
3909.06, 3911.011, 3923.121, 3929.30, 3931.101, 3931.11, 3933.04,	3447
3953.21, 3953.23, 3957.14, 3960.03, and 3960.11 and sections	3448
3905.01, 3905.011, 3905.013, 3905.02, 3905.04, 3905.07, 3905.08,	3449
3905.15, 3905.16, 3905.17, 3905.18, 3905.19, 3905.20, 3905.21,	3450
3905.22, 3905.23, 3905.40, 3905.48, 3905.51, and 3905.54 of the	3451
Revised Code are hereby repealed.	3452

Section 3. Sections 1 and 2 of this act, except for sections	3453
3905.34, 3905.36, and 3960.03 of the Revised Code, shall take	3454
effect September 1, 2002. Section 3905.34, 3905.36, and 3960.03 of	3455
the Revised Code, as amended by this act, shall take effect at the	3456
earliest time permitted by law and shall first apply in accordance	3457
with Section 4 of this act.	3458

Section 4. Sections 3905.34, 3905.36, and 3960.03 of the	3459
Revised Code, as amended by this act, first applies to the filing	3460
or reporting period that begins January 1, 2003, and concludes	3461
December 31, 2003. For those persons that, on the effective date	3462
of sections 3905.34, 3905.36, and 3960.03 of the Revised Code, as	3463
amended by this act, are subject to a quarterly filing	3464
requirement, the last quarterly filing period concludes December	3465
31, 2002. For those persons that, on the effective date of	3466
sections 3905.34, 3905.36, and 3960.03 of the Revised Code, as	3467
amended by this act, are subject to an annual reporting period	3468
that concludes July 1, 2002, that reporting period is extended for	3469
six months and concludes December 31, 2002.	3470