As Introduced

128th General Assembly Regular Session 2009-2010

H. B. No. 300

Representatives Dyer, Hottinger 

Cosponsors: Representatives Heard, Combs, Luckie, Murray, Williams, B., Okey, Fende, Brown 

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A BILL

To amend sections 3901.021, 3905.04, 3905.041,

1

3905.05, 3905.06, 3905.061, 3905.07, 3905.071,

2

3905.12, 3905.14, 3905.16, 3905.20, 3905.30,

3

3905.35, 3905.36, 3905.40, 3905.41, 3905.481,

4

3905.483, 3905.484, 3905.841, 3905.85, 3905.86,

5

3905.862, 3905.87, 3905.88, 3905.89, 3905.932, and

6

3960.03, to enact section 3905.051, and to repeal

7

sections 3905.10 and 3905.482 of the Revised Code

8

to make changes to the law governing the licensure

9

and regulation of insurance agents and certain

10

insurance-related taxes.

11

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

Section 1. That sections 3901.021, 3905.04, 3905.041,	12
3905.05, 3905.06, 3905.061, 3905.07, 3905.071, 3905.12, 3905.14,	13
3905.16, 3905.20, 3905.30, 3905.35, 3905.36, 3905.40, 3905.41,	14
3905.481, 3905.483, 3905.484, 3905.841, 3905.85, 3905.86,	15
3905.862, 3905.87, 3905.88, 3905.89, 3905.932, and 3960.03 be	16
amended and section 3905.051 of the Revised Code be enacted to	17
read as follows:	18

Sec. 3901.021.  (A) Three-fourths of all appointment and	19
other fees collected under section 3905.10 and division (B) of	20
section 3905.20 of the Revised Code shall be paid into the state	21
treasury to the credit of the department of insurance operating	22
fund, which is hereby created. The remaining one-fourth shall be	23
credited to the general revenue fund. Other revenues collected by	24
the superintendent of insurance, such as registration fees for	25
sponsored seminars or conferences and grants from private	26
entities, shall be paid into the state treasury to the credit of	27
the department of insurance operating fund.	28

(B) Seven-tenths of all fees collected under divisions	29
(A)(2), (A)(3), and (A)(6) of section 3905.40 of the Revised Code	30
shall be paid into the state treasury to the credit of the	31
department of insurance operating fund. The remaining three-tenths	32
shall be credited to the general revenue fund.	33

(C) All operating expenses of the department of insurance	34
except those expenses defined under section 3901.07 of the Revised	35
Code shall be paid from the department of insurance operating	36
fund.	37

Sec. 3905.04.  (A) Except as otherwise provided in this	38
section or in section 3905.041 of the Revised Code, a resident	39
individual applying for an insurance agent license for any of the	40
lines of authority described in division (B) of this section shall	41
take and pass a written examination prior to application for	42
licensure. The examination shall test the knowledge of the	43
individual with respect to the lines of authority for which	44
application iswill be made, the duties and responsibilities of an	45
insurance agent, and the insurance laws of this state. Before	46
admission to the examination, each individual shall pay the	47
nonrefundable examination fee required under division (C) of	48
section 3905.40 of the Revised Code.	49

(B) The examination described in division (A) of this section	50
shall be required for the following lines of authority:	51

(1) Any of the lines of authority set forth in divisions	52
(B)(1) to (6)(5) of section 3905.06 of the Revised Code;	53

(2) Title insurance;

54

(3) Surety bail bonds as provided in sections 3905.83 to	55
3905.95 of the Revised Code;	56

(4) Any other line of authority designated by the	57
superintendent of insurance.	58

(C) An individual shall not be permitted to take the	59
examination described in division (A) of this section unless one	60
or both of the following applyapplies:	61

(1) The individual has earned a bachelor's or associate's	62
degree in insurance from an accredited institution.	63

(2) The individual has earned a professional designation	64
approved by the superintendent.	65

(3) The individual has completed, for each line of authority	66
for which the individual has applied, twenty hours of study in a	67
program of insurance education approved by the superintendent, in	68
consultation with the insurance agent education advisory council,	69
under criteria established by the superintendent. Division (C) of	70
this section does not apply with respect to title insurance or any	71
other line of authority designated by the superintendent.	72

(D) An individual who fails to appear for an examination as	73
scheduled, or fails to pass an examination, may reapply for the	74
examination if the individual pays the required fee and submits	75
any necessary forms prior to being rescheduled for the	76
examination.	77

(E)(1) The superintendent may, in accordance with Chapter	78
119. of the Revised Code, adopt any rule necessary for the	79
implementation of this section.	80

(2) The superintendent may make any necessary arrangements,	81
including contracting with an outside testing service, for the	82
administration of the examinations and the collection of the fees	83
required by this section.	84

Sec. 3905.041.  (A)(1) An individual who applies for a	85
resident insurance agent license in this state within ninety days	86
after establishing a principal place of residence or principal	87
place of business in this state shall not be required under	88
section 3905.04 of the Revised Code to complete a program of	89
insurance education or to pass a written examination if the	90
individual has paid all applicable fees required under this	91
chapter and if either of the following applies:	92

(a) The individual is currently licensed in another state and	93
is in good standing for the line or lines of authority requested.	94

(b) The individual was previously licensed in another state,	95
the individual's application for a resident insurance agent	96
license in this state is received within ninety days after the	97
cancellation of the individual's previous license, and, at the	98
time of license cancellation, the individual was in good standing	99
for the line or lines of authority requested.	100

(2) To determine an applicant's licensure status and standing	101
status in another state, the superintendent of insurance may	102
utilize the producer database maintained by the NAIC or its	103
affiliates or subsidiaries. If that information is not available	104
on the producer database, the superintendent may require a	105
certification letterdocumentation from the prior home state.	106

(B) An individual who applies for a temporary insurance agent	107
license in this state shall not be required under section 3905.04	108
of the Revised Code to complete any prelicensing education or to	109
pass a written examination.	110

(C) The superintendent may exempt any limited lines insurance	111
from the examination requirement of section 3905.04 of the Revised	112
Code.	113

Sec. 3905.05.  (A) A natural person shall apply for a	114
resident insurance agent license by submitting to the	115
superintendent of insurance the uniform application or any other	116
application prescribed by the superintendent, any additional	117
information required by the superintendent, and a declaration made	118
under penalty of refusal, suspension, or revocation of the	119
license, that the statements made in the application are true,	120
correct, and complete to the best of the applicant's knowledge and	121
belief and paying any applicable fees required under this chapter.	122

A person who applies for a resident insurance agent license	123
with a variable life-variable annuity line of authority shall	124
include in the person's application the person's individual	125
central registration depository number.	126

The applicant shall also requestconsent to a criminal	127
records check conducted by the superintendent of the bureau of	128
criminal identification and investigation in accordance with	129
section 109.572 of the Revised Code, or other governmental	130
agencies, or other sources, as required and designated by the	131
superintendent of insurance, and direct that the responses to that	132
request be transmitted to the superintendent of insurance, or to	133
the superintendent's designee. If the superintendent of insurance	134
or the superintendent's designee fails to receive a response to a	135
requested criminal records check, or if the applicant fails to	136
request the criminal records check, the superintendent may refuse	137
to issue a license under this section. The applicant shall pay any	138
fee required for conducting the criminal records checkpursuant to	139
section 3905.051 of the Revised Code.	140

(B) A business entity acting as an insurance agent shall	141
apply for a resident insurance agent license by submitting to the	142
superintendent of insurance the uniform business entity	143
application or any other application prescribed by the	144
superintendent and paying any applicable fees required under this	145
chapter.	146

(C) The superintendent may require an applicant to submit any	147
document reasonably necessary to verify the information contained	148
in an application.	149

Sec. 3905.051.  As used in this section:

150

(A) "Applicant" means a natural person applying for either of	151
the following:	152

(1) A resident license as an insurance agent or surety bail	153
bond agent;	154

(2) An additional line of authority under an existing	155
resident insurance agent license if a criminal record check has	156
not been obtained within the last twelve months for insurance	157
license purposes.	158

(B) "Fingerprint" means an impression of the lines on the	159
finger taken for the purpose of identification. The impression may	160
be electronic or converted to an electronic format.	161

(C) Each applicant shall consent to a criminal record check	162
in accordance with this section and shall submit a full set of	163
fingerprints to the superintendent of insurance for that purpose.	164

(D) The superintendent of insurance shall request the	165
superintendent of the bureau of criminal identification and	166
investigation to conduct a criminal records check based on the	167
applicant's fingerprints. The superintendent of insurance shall	168
request that criminal record information from the federal bureau	169
of investigation be obtained as part of the criminal records	170
check.	171

(E) The superintendent of insurance may contract for the	172
collection and transmission of fingerprints authorized under this	173
section. The superintendent may order the fee for collecting and	174
transmitting fingerprints to be payable directly to the contractor	175
by the applicant. The superintendent may agree to a reasonable	176
fingerprinting fee to be charged by the contractor. Any fee	177
required under this section shall be paid by the applicant.	178

(F) The superintendent may receive criminal record	179
information directly in lieu of the bureau of criminal	180
identification and investigation that submitted the fingerprints	181
to the federal bureau of investigation.	182

(G) The superintendent shall treat and maintain an	183
applicant's fingerprints and any criminal record information	184
obtained under this section as confidential and shall apply	185
security measures consistent with the criminal justice	186
information services division of the federal bureau of	187
investigation standards for the electronic storage of fingerprints	188
and necessary identifying information and limit the use of records	189
solely to the purposes authorized by this section. The	190
fingerprints and any criminal record information are not subject	191
to subpoena other than one issued pursuant to a criminal	192
investigation, are confidential by law and privileged, are not	193
subject to discovery, and are not admissible in any private civil	194
action.	195

(H) This section does not apply to an agent applying for	196
renewal of an existing resident or nonresident license in this	197
state.	198

Sec. 3905.06. (A)(1) The superintendent of insurance shall	199
issue a resident insurance agent license to an individual	200
applicant whose home state is Ohio upon submission of a completed	201
application and payment of any applicable fee required under this	202
chapter, if the superintendent finds all of the following:	203

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

204

(b) The applicant has not committed any act that is a ground	205
for the denial, suspension, or revocation of a license under	206
section 3905.14 of the Revised Code.	207

(c) If required under section 3905.04 of the Revised Code,	208
the applicant has completed a program of insurance education for	209
each line of authority for which the applicant has applied.	210

(d) If required under section 3905.04 of the Revised Code,	211
the applicant has passed an examination for each line of authority	212
for which the applicant has applied.	213

(e) Any applicant applying for variable life-variable annuity	214
line of authority is registered with the financial industry	215
regulatory authority (FINRA) as a registered representative after	216
having passed at least one of the following examinations	217
administered by the FINRA: the series 6 examination, the series 7	218
examination, the series 63 examination, the series 66	219
examination, or any other FINRA examination approved by the	220
superintendent.	221

(f) If required under section 3905.051 of the Revised Code,	222
the applicant has consented to a criminal records check and the	223
results of the applicant's criminal records check are determined	224
to be satisfactory by the superintendent.	225

(g) The applicant is a United States citizen or has provided	226
proof of having legal authorization to work in the United States.	227

(h) The applicant is of good reputation and character, is	228
honest and trustworthy, and is otherwise suitable to be licensed.	229

(2) The superintendent shall issue a resident insurance agent	230
license to a business entity applicant upon submission of a	231
completed application and payment of any applicable fees required	232
under this chapter if the superintendent finds all of the	233
following:	234

(a) The applicant either is domiciled in Ohio or maintains	235
its principal place of business in Ohio.	236

(b) The applicant has designated a licensed insurance agent	237
who will be responsible for the applicant's compliance with the	238
insurance laws of this state.	239

(c) The applicant has not committed any act that is a ground	240
for the denial, suspension, or revocation of a license under	241
section 3905.14 of the Revised Code.	242

(d) The applicant has submitted any other documents requested	243
by the superintendent.	244

(B) An insurance agent license issued pursuant to division	245
(A) of this section shall state the licensee's name, the license	246
number, the date of issuance, the date the license expires, the	247
line or lines of authority for which the licensee is qualified,	248
and any other information the superintendent deems necessary.	249

A licensee may be qualified for any of the following lines of	250
authority:	251

(1) Life, which is insurance coverage on human lives,	252
including benefits of endowment and annuities, and may include	253
benefits in the event of death or dismemberment by accident and	254
benefits for disability income;	255

(2) Accident and health, which is insurance coverage for	256
sickness, bodily injury, or accidental death, and may include	257
benefits for disability income;	258

(3) Property, which is insurance coverage for the direct or	259
consequential loss or damage to property of any kind;	260

(4) Casualty, which is insurance coverage against legal	261
liability, including coverage for death, injury, or disability or	262
damage to real or personal property;	263

(5) Variable life and variable annuity products, which is	264
insurance coverage provided under variable life insurance	265
contracts and variable annuities;	266

(6) Personal lines, which is property and casualty insurance	267
coverage sold to individuals and families for noncommercial	268
purposes;	269

(6) Variable life and variable annuity products, which is	270
insurance coverage provided under variable life insurance	271
contracts and variable annuities;	272

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

273

(8) Title, which is insurance coverage against loss or damage	274
suffered by reason of liens against, encumbrances upon, defects	275
in, or the unmarketability of, real property;	276

(9) Surety bail bond, which is the authority set forth in	277
sections 3905.83 to 3905.95 of the Revised Code;	278

(10) Any other line of authority designated by the	279
superintendent.	280

(C) A(1) An individual seeking to renew a resident insurance	281
agent license shall be perpetual unless surrendered by the	282
licensee or suspended or revoked by the superintendentapply	283
biennially for a renewal of the license on or before the last day	284
of the licensee's birth month. A business entity seeking to renew	285
a resident insurance agent license shall apply biennially for a	286
renewal of the license on or before the date determined by the	287
superintendent. The superintendent shall send a renewal notice to	288
all licensees at least one month prior to the renewal date.	289

Applications shall be submitted to the superintendent on	290
forms prescribed by the superintendent. Each application shall be	291
accompanied by a biennial renewal fee. The superintendent also	292
may require an applicant to submit any document reasonably	293
necessary to verify the information contained in the renewal	294
application.	295

(2) To be eligible for renewal, an individual applicant shall	296
complete the continuing education requirements pursuant to section	297
3905.481 of the Revised Code prior to the renewal date.	298

(3) If an applicant submits a completed renewal application,	299
qualifies for renewal pursuant to divisions (C)(1) and (2) of this	300
section, and has not committed any act that is a ground for the	301
refusal to issue, suspension of, or revocation of a license under	302
section 3905.14 of the Revised Code, the superintendent shall	303
renew the applicant's resident insurance agent license.	304

(D) If an individual or business entity does not apply for	305
the renewal of the individual or business entity's license on or	306
before the license renewal date specified in division (C)(1) of	307
this section, the individual or business entity may submit a late	308
renewal application along with all applicable fees required under	309
this chapter prior to the first day of the second month following	310
the license renewal date.	311

(E) A license issued under this section that is not renewed	312
on or before its renewal date pursuant to division (C) of this	313
section or its late renewal date pursuant to division (D) of this	314
section automatically is suspended for nonrenewal on the first	315
day of the second month following the renewal date. If a license	316
is suspended for nonrenewal pursuant to this division, the	317
individual or business entity is eligible to apply for	318
reinstatement of the license within the twelve-month period	319
following the date by which the license should have been renewed	320
by complying with the reinstatement procedure established by the	321
superintendent and paying all applicable fees required under	322
this chapter.	323

(F) A license that is suspended for nonrenewal that is not	324
reinstated pursuant to division (E) of this section automatically	325
is canceled unless the superintendent is investigating any	326
allegations of wrongdoing by the agent or has initiated	327
proceedings under Chapter 119. of the Revised Code. In that case,	328
the license automatically is canceled after the completion of the	329
investigation or proceedings unless the superintendent revokes the	330
license.	331

(G) An individual licensed as a resident insurance agent who	332
is unable to comply with the license renewal procedures	333
established under this section and who is unable to engage in the	334
business of insurance due to military service, a long-term medical	335
disability, or some other extenuating circumstance may request an	336
extension of the renewal date of the individual's license. To be	337
eligible for such an extension, the individual shall submit a	338
written request with supporting documentation to the	339
superintendent. At the superintendent's discretion, the	340
superintendent may not consider a written request made after the	341
renewal date of the license.	342

Sec. 3905.061.  (A) If a person licensed as an insurance	343
agent under section 3905.06 of the Revised Code changes the	344
person's address within the state, the person shall, within thirty	345
days after making that change, file a change of address with the	346
superintendent of insurance or the superintendent's designee.	347

(B)(1) If a person licensed as an insurance agent under	348
section 3905.06 of the Revised Code changes the person's home	349
state of residence, the person shall, within thirty days after	350
making that change, file a change of address with the	351
superintendent and provide the superintendent with certification	352
from the new home state of residence.	353

(2) If ana resident insurance agent complies with division	354
(B)(1) of this section and the agent is in good standing with the	355
superintendent, the agent's license shall be changed to that of a	356
nonresident license and no fee or license application shall be	357
required. A change in the residency status of an insurance agent	358
license under this section does not change the license renewal	359
date established by the initial licensure under section 3905.06 of	360
the Revised Code.	361

Sec. 3905.07. (A) The superintendent of insurance shall issue	362
a nonresident insurance agent license to an applicant that is a	363
nonresident person upon payment of all applicable fees required	364
under this chapter if the superintendent finds all of the	365
following:	366

(1) The applicant is currently licensed as a resident and is	367
in good standing in the applicant's home state.	368

(2) The applicant has submitted the request for licensure	369
prescribed by the superintendentis licensed in the applicant's	370
home state for the lines of authority requested in this state.	371

(3) The applicant has submitted or has had transmitted to the	372
superintendent the application for licensure that the applicant	373
submitted to the applicant's home state or a completed applicable	374
uniform application or uniform business entity application, as	375
applicable.	376

(4) The applicant has not committed any act that is a ground	377
for the denial, suspension, or revocation of a license under	378
section 3905.14 of the Revised Code.	379

(5) The applicant is of good reputation and character, is	380
honest and trustworthy, and is otherwise suitable to be licensed.	381

(6) The applicant's home state issues nonresident insurance	382
agent licenses to residents of this state on the same basis as set	383
forth in division (A) of this section.	384

(7) If the applicant is a business entity, the applicant has	385
designated an insurance agent licensed as an agent in this state	386
to be responsible for the applicant's compliance with the	387
insurance laws of this state.	388

(8) The applicant has submitted any other documents requested	389
by the superintendent.	390

(B) To determine an applicant's licensure and standing status	391
in another state, the superintendent may utilize the producer	392
database maintained by the NAIC or its affiliates or subsidiaries.	393
If that information is not available on the producer database, the	394
superintendent may require a certification letter from the	395
applicant's home state.	396

(C) A(1) An individual seeking to renew a nonresident	397
insurance agent license shall be perpetual unless surrendered by	398
the licensee or suspended or revoked by the superintendentapply	399
biennially for a renewal of the license on or before the last day	400
of the licensee's birth month. A business entity seeking to renew	401
a nonresident insurance agent license shall apply biennially for a	402
renewal of the license on or before the date determined by the	403
superintendent.	404

Applications shall be submitted to the superintendent on	405
forms prescribed by the superintendent. Each application shall be	406
accompanied by a biennial renewal fee. The superintendent also	407
may require an applicant to submit any document reasonably	408
necessary to verify the information contained in the renewal	409
application.	410

(2) To be eligible for renewal, an applicant shall maintain a	411
resident license in the applicant's home state for the lines of	412
authority held in this state.	413

(3) If an applicant submits a completed renewal application,	414
qualifies for renewal pursuant to divisions (C)(1) and (2) of this	415
section, and has not committed any act that is a ground for the	416
refusal to issue, suspension of, or revocation of a license under	417
section 3905.14 of the Revised Code, the superintendent shall	418
renew the applicant's nonresident insurance agent license.	419

(D) If an individual or business entity does not apply for	420
the renewal of the individual or business entity's license on or	421
before the license renewal date specified in division (C)(1) of	422
this section, the individual or business entity may submit a late	423
renewal application along with all applicable fees required under	424
this chapter prior to the first day of the second month following	425
the license renewal date.	426

(E) A license issued under this section that is not renewed	427
on or before its renewal date pursuant to division (C) of this	428
section or its late renewal date pursuant to division (D) of this	429
section automatically is suspended for nonrenewal on the first day	430
of the second month following the renewal date. If a license is	431
suspended for nonrenewal pursuant to this division, the	432
individual or business entity is eligible to apply for a	433
reinstatement of the license within the twelve-month period	434
following the date by which the license should have been renewed	435
by complying with the reinstatement procedure established by the	436
superintendent and paying all applicable fees required under	437
this chapter.	438

(F) A license that is suspended for nonrenewal that is not	439
reinstated pursuant to division (E) of this section automatically	440
is canceled unless the superintendent is investigating any	441
allegations of wrongdoing by the agent or has initiated	442
proceedings under Chapter 119. of the Revised Code. In that case,	443
the license automatically is canceled after the completion of the	444
investigation or proceedings unless the superintendent revokes the	445
license.	446

(G) An individual licensed as a nonresident insurance agent	447
who is unable to comply with the license renewal procedures	448
established under this section and who is unable to engage in the	449
business of insurance due to military service, a long-term medical	450
disability, or some other extenuating circumstance may request an	451
extension of the renewal date of the individual's license. To be	452
eligible for such an extension, the individual shall submit a	453
written request with supporting documentation to the	454
superintendent. At the superintendent's discretion, the	455
superintendent may not consider a written request made after the	456
renewal date of the license.	457

(D)(H) Notwithstanding any other provision of this chapter, a	458
nonresident person licensed as a surplus lines producer in the	459
applicant's home state shall receive a nonresident surplus lines	460
broker license pursuant to division (A) of this section. Nothing	461
in this section otherwise affects or supersedes any provision of	462
sections 3905.30 to 3905.37 of the Revised Code.	463

Sec. 3905.071. (A)(1) If a nonresident person licensed as a	464
nonresident insurance agent under section 3905.07 of the Revised	465
Code changes the person's address within the person's state of	466
residence, the person shall, within thirty days after making that	467
change, file a change of address with the superintendent of	468
insurance or the superintendent's designee.	469

(2) If a nonresident person licensed as a nonresident	470
insurance agent under section 3905.07 of the Revised Code changes	471
the person's home state of residence or the state in which the	472
person's principal place of business is located, the person shall,	473
within thirty days after making that change, file a change of	474
address with the superintendent and provide the superintendent	475
with certification from the new state of residence or the new home	476
state in which the principal place of business is located.	477

(B) If a nonresident insurance agent complies with division	478
(A) of this section and the agent is in good standing with the	479
superintendent, no fee or license application shall be required. A	480
change in the residency status of an agent's license under this	481
section does not change the license renewal date established by	482
the initial license under section 3905.07 of the Revised Code.	483

Sec. 3905.12.  (A) The superintendent of insurance may adopt	484
rules in accordance with Chapter 119. of the Revised Code to do	485
the following:	486

(1) Establish procedures for the issuance and, renewal, late	487
renewal, extension, reactivation, and reinstatement of insurance	488
agent licenses;	489

(2) Provide for the issuance and renewal of limited authority	490
licenses, and establish any prelicensing education, examination,	491
or continuing education requirements the superintendent considers	492
appropriate for such a license;	493

(3) Establish a schedule of fees to be paid to the	494
superintendent for extensions, late renewals, reinstatements, and	495
reactivations of a license under this chapter and for credit card	496
payments, electronic processing service, and manual processing	497
service. Fees collected under this section shall be credited to	498
the department of insurance operating fund created under section	499
3901.021 of the Revised Code.	500

(B) To assist the superintendent in carrying out the	501
superintendent's duties under this chapter, the superintendent may	502
contract with any nongovernmental entity, including the NAIC and	503
its affiliates or subsidiaries, to perform any ministerial	504
function related to insurance agent licensing, including the	505
collection of fees, that the superintendent considers to be	506
appropriate.	507

Sec. 3905.14.  (A) As used in sections 3905.14 to 3905.16 of	508
the Revised Code:	509

(1) "Insurance agent" includes a limited lines insurance	510
agent, surety bail bond agent, and surplus line broker.	511

(2) "Refusal to issue or renew" means the decision of the	512
superintendent of insurance not to process either the initial	513
application for a license as an agent or the renewal of such a	514
license.	515

(3) "Revocation" means the permanent termination of all	516
authority to hold any license as an agent in this state.	517

(4) "Surrender for cause" means the voluntary termination of	518
all authority to hold any license as an agent in this state, in	519
lieu of a revocation or suspension order.	520

(5) "Suspension" means the termination of all authority to	521
hold any license as an agent in this state, for either a specified	522
period of time or an indefinite period of time and under any terms	523
or conditions determined by the superintendent.	524

(B) The superintendent may suspend, revoke, or refuse to	525
issue or renew any license of an insurance agent, assess a civil	526
penalty, or impose any other sanction or sanctions authorized	527
under this chapter, for one or more of the following reasons:	528

(1) Providing incorrect, misleading, incomplete, or	529
materially untrue information in a license or appointment	530
application;	531

(2) Violating or failing to comply with any insurance law,	532
rule, subpoena, consent agreement, or order of the superintendent	533
or of the insurance authority of another state;	534

(3) Obtaining, maintaining, or attempting to obtain or	535
maintain a license through misrepresentation or fraud;	536

(4) Improperly withholding, misappropriating, or converting	537
any money or property received in the course of doing insurance	538
business;	539

(5) Intentionally misrepresenting the terms, benefits, value,	540
cost, or effective dates of any actual or proposed insurance	541
contract or application for insurance;	542

(6) Having been convicted of or pleaded guilty or no contest	543
to a felony regardless of whether a judgment of conviction has	544
been entered by the court;	545

(7) Having been convicted of or pleaded guilty or no contest	546
to a misdemeanor that involves the misuse or theft of money or	547
property belonging to another, fraud, forgery, dishonest acts, or	548
breach of a fiduciary duty, that is based on any act or omission	549
relating to the business of insurance, securities, or financial	550
services, or that involves moral turpitude regardless of whether a	551
judgment has been entered by the court;	552

(8) Having admitted to committing, or having been found to	553
have committed, any insurance unfair trade act or practice or	554
insurance fraud;	555

(9) Using fraudulent, coercive, or dishonest practices, or	556
demonstrating incompetence, untrustworthiness, or financial	557
irresponsibility, in the conduct of business in this state or	558
elsewhere;	559

(10) Having an insurance agent license, or its equivalent,	560
denied, suspended, or revoked in any other state, province,	561
district, or territory;	562

(11) Forging or causing the forgery of an application for	563
insurance or any document related to or used in an insurance	564
transaction;	565

(12) Improperly using notes or, any other reference material,	566
equipment, or devices of any kind to complete an examination for	567
an insurance agent license;	568

(13) Knowingly accepting insurance business from an	569
individual who is not licensed;	570

(14) Failing to comply with any administrative or court order	571
official invoice, notice, assessment, or order directing payment	572
of federal, state, or local income tax, state or local sales tax,	573
or workers' compensation premiums;	574

(15) Failing to timely submit an application for insurance.	575
For purposes of division (B)(15) of this section, a submission is	576
considered timely if it occurs within the time period expressly	577
provided for by the insurer, or within seven days after the	578
insurance agent accepts a premium or an order to bind coverage	579
from a policyholder or applicant for insurance, whichever is	580
later.	581

(16) Failing to disclose to an applicant for insurance or	582
policyholder upon accepting a premium or an order to bind coverage	583
from the applicant or policyholder, that the person has not been	584
appointed by the insurer;	585

(17) Having any professional license or financial industry	586
regulatory authority registration suspended or revoked as a result	587
of aor having been barred from participation in any industry;	588

(18) Having been subject to a cease and desist order or	589
permanent injunction related to mishandling of funds or breach of	590
fiduciary responsibilities or having been subject to a cease and	591
desist order or permanent injunction for unlicensed or	592
unregistered activities;	593

(18)(19) Causing or permitting a policyholder or applicant	594
for insurance to designate the insurance agent or the insurance	595
agent's spouse, parent, child, or sibling as the beneficiary of a	596
policy or annuity sold by the insurance agent or of a policy or	597
annuity for which the agent, at any time, was designated as the	598
agent of record, unless the insurance agent or a relative of the	599
insurance agent is the insured or applicant;	600

(19)(20) Causing or permitting a policyholder or applicant	601
for insurance to designate the insurance agent or the insurance	602
agent's spouse, parent, child, or sibling as the owner or	603
beneficiary of a trust funded, in whole or in part, by a policy or	604
annuity sold by the insurance agent or by a policy or annuity for	605
which the agent, at any time, was designated as the agent of	606
record, unless the insurance agent or a relative of the insurance	607
agent is the insured or applicant;	608

(21) Failing to provide a written response to the department	609
of insurance within twenty-one calendar days after receipt of any	610
written inquiry from the department, unless a reasonable extension	611
of time has been requested of, and granted by, the superintendent	612
or the superintendent's designee;	613

(20)(22) Failing to appear to answer questions before the	614
superintendent after being notified in writing by the	615
superintendent of a scheduled interview, unless a reasonable	616
extension of time has been requested of, and granted by, the	617
superintendent or the superintendent's designee;	618

(23) Transferring or placing insurance with an insurer other	619
than the insurer expressly chosen by the applicant for insurance	620
or policyholder without the consent of the applicant or	621
policyholder or absent extenuating circumstances;	622

(21)(24) Failing to inform a policyholder or applicant for	623
insurance of the identity of the insurer or insurers, or the	624
identity of any other insurance agent or licensee known to be	625
involved in procuring, placing, or continuing the insurance for	626
the policyholder or applicant, upon the binding of the coverage;	627

(22)(25) In the case of an agent that is a business entity,	628
failing to report an individual licensee's violation to the	629
department when the violation was known or should have been known	630
by one or more of the partners, officers, managers, or members of	631
the business entity;	632

(23)(26) Submitting or using a document in the conduct of the	633
business of insurance when the person knew or should have known	634
that the document contained thea writing that was forged	635
signature of another personas defined in section 2913.01 of the	636
Revised Code;	637

(24)(27) Misrepresenting the person's qualifications, status	638
or relationship to another person, agency, or entity, or using in	639
any way a professional designation that has not been conferred	640
upon the person by the appropriate accrediting organization;	641

(25)(28) Obtaining a premium loan or policy surrender or	642
causing a premium loan or policy surrender to be made to or in the	643
name of an insured or policyholder without that person's knowledge	644
and written authorization;	645

(26)(29) Using paper, software, or any other materials of or	646
provided by an insurer after the insurer has terminated the	647
authority of the licensee, if the use of such materials would	648
cause a reasonable person to believe that the licensee was acting	649
on behalf of or otherwise representing the insurer;	650

(27)(30) Soliciting, procuring an application for, or	651
placing, either directly or indirectly, any insurance policy when	652
the person is not authorized under this chapter to engage in such	653
activity;	654

(28)(31) Soliciting, marketing, or selling, or negotiating	655
any product or service that offers benefits similar to insurance	656
but is not regulated by the superintendent, without fully	657
disclosing, orally and in writing, to the prospective purchaser	658
that the product or service is not insurance and is not regulated	659
by the superintendent;	660

(29)(32) Failing to fulfill a refund obligation to a	661
policyholder or applicant in a timely manner. For purposes of	662
division (B)(29)(32) of this section, a rebuttable presumption	663
exists that a refund obligation is not fulfilled in a timely	664
manner unless it is fulfilled within one of the following time	665
periods:	666

(a) Thirty days after the date the policyholder, applicant,	667
or insurer takes or requests action resulting in a refund;	668

(b) Thirty days after the date of the insurer's refund check,	669
if the agent is expected to issue a portion of the total refund;	670

(c) Forty-five days after the date of the agent's statement	671
of account on which the refund first appears.	672

The presumption may be rebutted by proof that the	673
policyholder or applicant consented to the delay or agreed to	674
permit the agent to apply the refund to amounts due for other	675
coverages.	676

(30)(33) With respect to a surety bail bond agent license,	677
rebating or offering to rebate, or unlawfully dividing or offering	678
to divide, any commission, premium, or fee;	679

(31)(34) Using a license for the principal purpose of	680
procuring, receiving, or forwarding applications for insurance of	681
any kind, other than life, or soliciting, placing, or effecting	682
such insurance directly or indirectly upon or in connection with	683
the property of the licensee or that of relatives, employers,	684
employees, or that for which they or the licensee is an agent,	685
custodian, vendor, bailee, trustee, or payee;	686

(32)(35) In the case of an insurance agent that is a business	687
entity, using a life license for the principal purpose of	688
soliciting or placing insurance on the lives of the business	689
entity's officers, employees, or shareholders, or on the lives of	690
relatives of such officers, employees, or shareholders, or on the	691
lives of persons for whom they, their relatives, or the business	692
entity is agent, custodian, vendor, bailee, trustee, or payee;	693

(33)(36) Offering, selling, soliciting, or negotiating	694
policies, contracts, agreements, or applications for insurance, or	695
annuities providing fixed, variable, or fixed and variable	696
benefits, or contractual payments, for or on behalf of any insurer	697
or multiple employer welfare arrangement not authorized to	698
transact business in this state, or for or on behalf of any	699
spurious, fictitious, nonexistent, dissolved, inactive, liquidated	700
or liquidating, or bankrupt insurer or multiple employer welfare	701
arrangement;	702

(37) In the case of a resident business entity, failing to be	703
qualified to do business in this state under Title XVII of the	704
Revised Code, failing to be in good standing with the secretary	705
of state, or failing to maintain a valid appointment of statutory	706
agent with the secretary of state;	707

(38) In the case of a nonresident agent, failing to maintain	708
licensure as an insurance agent in the agent's home state for the	709
lines of authority held in this state;	710

(39) Knowingly aiding and abetting another person or entity	711
in the violation of any insurance law of this state or the rules	712
adopted under it.	713

(C) Before denying, revoking, suspending, or refusing to	714
issue any license or imposing any penalty under this section, the	715
superintendent shall provide the licensee or applicant with notice	716
and an opportunity for hearing as provided in Chapter 119. of the	717
Revised Code, except as follows:	718

(1)(a) Any notice of opportunity for hearing, the hearing	719
officer's findings and recommendations, or the superintendent's	720
order shall be served by certified mail at the last known address	721
of the licensee or applicant. Service shall be evidenced by return	722
receipt signed by any person.	723

For purposes of this section, the "last known address" is the	724
residential address of a licensee or applicant, or the	725
principal-place-of-business address of a business entity, that is	726
contained in the licensing records of the department.	727

(b) If the certified mail envelope is returned with an	728
endorsement showing that service was refused, or that the envelope	729
was unclaimed, the notice and all subsequent notices required by	730
Chapter 119. of the Revised Code may be served by ordinary mail to	731
the last known address of the licensee or applicant. The mailing	732
shall be evidenced by a certificate of mailing. Service is deemed	733
complete as of the date of such certificate provided that the	734
ordinary mail envelope is not returned by the postal authorities	735
with an endorsement showing failure of delivery. The time period	736
in which to request a hearing, as provided in Chapter 119. of the	737
Revised Code, begins to run on the date of mailing.	738

(c) If service by ordinary mail fails, the superintendent may	739
cause a summary of the substantive provisions of the notice to be	740
published once a week for three consecutive weeks in a newspaper	741
of general circulation in the county where the last known place of	742
residence or business of the party is located. The notice is	743
considered served on the date of the third publication.	744

(d) Any notice required to be served under Chapter 119. of	745
the Revised Code shall also be served upon the party's attorney by	746
ordinary mail if the attorney has entered an appearance in the	747
matter.	748

(e) The superintendent may, at any time, perfect service on a	749
party by personal delivery of the notice by an employee of the	750
department.	751

(f) Notices regarding the scheduling of hearings and all	752
other matters not described in division (C)(1)(a) of this section	753
shall be sent by ordinary mail to the party and to the party's	754
attorney.	755

(2) Any subpoena for the appearance of a witness or the	756
production of documents or other evidence at a hearing, or for the	757
purpose of taking testimony for use at a hearing, shall be served	758
by certified mail, return receipt requested, by an attorney or by	759
an employee of the department designated by the superintendent.	760
Such subpoenas shall be enforced in the manner provided in section	761
119.09 of the Revised Code. Nothing in this section shall be	762
construed as limiting the superintendent's other statutory powers	763
to issue subpoenas.	764

(D) If the superintendent determines that a violation	765
described in this section has occurred, the superintendent may	766
take one or more of the following actions:	767

(1) Assess a civil penalty in an amount not exceeding	768
twenty-five thousand dollars per violation;	769

(2) Assess administrative costs to cover the expenses	770
incurred by the department in the administrative action, including	771
costs incurred in the investigation and hearing processes. Any	772
costs collected shall be paid into the state treasury to the	773
credit of the department of insurance operating fund created in	774
section 3901.021 of the Revised Code.	775

(3) Suspend all of the person's licenses for all lines of	776
insurance for either a specified period of time or an indefinite	777
period of time and under such terms and conditions as the	778
superintendent may determine;	779

(4) Permanently revoke all of the person's licenses for all	780
lines of insurance;	781

(5) Refuse to issue a license;

782

(6) Refuse to renew a license;

783

(7) Prohibit the person from being employed in any capacity	784
in the business of insurance and from having any financial	785
interest in any insurance agency, company, surety bail bond	786
business, or third-party administrator in this state. The	787
superintendent may, in the superintendent's discretion, determine	788
the nature, conditions, and duration of such restrictions.	789

(8) Order corrective actions in lieu of or in addition to the	790
other penalties listed in division (D) of this section. Such an	791
order may provide for the suspension of civil penalties, license	792
revocation, license suspension, or refusal to issue or renew a	793
license if the licensee complies with the terms and conditions of	794
the corrective action order.	795

(9) Accept a surrender for cause offered by the licensee,	796
which shall be for at least five years and shall prohibit the	797
licensee from seeking any license authorized under this chapter	798
during that time period. A surrender for cause shall be in lieu of	799
revocation or suspension and may include a corrective action order	800
as provided in division (D)(8) of this section.	801

(E) The superintendent may consider the following factors in	802
denying a license, imposing suspensions, revocations, fines, or	803
other penalties, and issuing orders under this section:	804

(1) Whether the person acted in good faith;

805

(2) Whether the person made restitution for any pecuniary	806
losses suffered by other persons as a result of the person's	807
actions;	808

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

809

(4) The degree of trust placed in the person by, and the	810
vulnerability of, persons who were or could have been adversely	811
affected by the person's actions;	812

(5) Whether the person was the subject of any previous	813
administrative actions by the superintendent;	814

(6) The number of individuals adversely affected by the	815
person's acts or omissions;	816

(7) Whether the person voluntarily reported the violation,	817
and the extent of the person's cooperation and acceptance of	818
responsibility;	819

(8) Whether the person obstructed or impeded, or attempted to	820
obstruct or impede, the superintendent's investigation;	821

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

822

(10) Remedial efforts to prevent future violations;

823

(11) If the person was convicted of a criminal offense, the	824
nature of the offense, whether the conviction was based on acts or	825
omissions taken under any professional license, whether the	826
offense involved the breach of a fiduciary duty, the amount of	827
time that has passed, and the person's activities subsequent to	828
the conviction;	829

(12) Such other factors as the superintendent determines to	830
be appropriate under the circumstances.	831

(F)(1) A violation described in division (B)(1), (2), (3),	832
(4), (5), (6), (7), (8), (9), (10), (11), (12), (13), (14), (16),	833
(17), (18), (19), (20), (21), (22), (23), (24), (25), (26), (27),	834
(28), (29), (30), (31), (32), or (33), (34), (35), and (36) of	835
this section is a class A offense for which the superintendent may	836
impose any penalty set forth in division (D) of this section.	837

(2) A violation described in division (B)(15) or (19)(21) of	838
this section, or a failure to comply with section 3905.061,	839
3905.071, or 3905.22 of the Revised Code, is a class B offense for	840
which the superintendent may impose any penalty set forth in	841
division (D)(1), (2), (8), or (9) of this section.	842

(3) If the superintendent determines that a violation	843
described in division (B)(33)(36) of this section has occurred,	844
the superintendent shall impose a minimum of a two-year suspension	845
on all of the person's licenses for all lines of insurance.	846

(G) If a violation described in this section has caused, is	847
causing, or is about to cause substantial and material harm, the	848
superintendent may issue an order requiring that person to cease	849
and desist from engaging in the violation. Notice of the order	850
shall be mailed by certified mail, return receipt requested, or	851
served in any other manner provided for in this section,	852
immediately after its issuance to the person subject to the order	853
and to all persons known to be involved in the violation. The	854
superintendent may thereafter publicize or otherwise make known to	855
all interested parties that the order has been issued.	856

The notice shall specify the particular act, omission,	857
practice, or transaction that is subject to the cease-and-desist	858
order and shall set a date, not more than fifteen days after the	859
date of the order, for a hearing on the continuation or revocation	860
of the order. The person shall comply with the order immediately	861
upon receipt of notice of the order.	862

The superintendent may, upon the application of a party and	863
for good cause shown, continue the hearing. Chapter 119. of the	864
Revised Code applies to such hearings to the extent that that	865
chapter does not conflict with the procedures set forth in this	866
section. The superintendent shall, within fifteen days after	867
objections are submitted to the hearing officer's report and	868
recommendation, issue a final order either confirming or revoking	869
the cease-and-desist order. The final order may be appealed as	870
provided under section 119.12 of the Revised Code.	871

The remedy under this division is cumulative and concurrent	872
with the other remedies available under this section.	873

(H) If the superintendent has reasonable cause to believe	874
that an order issued under this section has been violated in whole	875
or in part, the superintendent may request the attorney general to	876
commence and prosecute any appropriate action or proceeding in the	877
name of the state against such person.	878

The court may, in an action brought pursuant to this	879
division, impose any of the following:	880

(1) For each violation, a civil penalty of not more than	881
twenty-five thousand dollars;	882

(2) Injunctive relief;

883

(3) Restitution;

884

(4) Any other appropriate relief.

885

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

886

(1) Upon the suspension or revocation of a license, or the	887
eligibility of a surety bail bond agent to hold a license, the	888
superintendent likewise may suspend or revoke the license or	889
eligibility of any surety bail bond agent who is employed by or	890
associated with that agent and who knowingly was a party to the	891
act that resulted in the suspension or revocation.	892

(2) The superintendent may revoke a license as a surety bail	893
bond agent if the licensee is adjudged bankrupt.	894

(J) Nothing in this section shall be construed to create or	895
imply a private cause of action against an agent or insurer.	896

Sec. 3905.16.  (A)(1) Except as provided in division (A)(2)	897
of this section, any person licensed as an agent under this	898
chapter may at any time surrender any or all licenses held by the	899
person.	900

(2) No agent shall surrender the agent's licenses if the	901
superintendent of insurance is investigating any allegation of	902
wrongdoing by the agent or has initiated proceedings under Chapter	903
119. of the Revised Code and notice of an opportunity for a	904
hearing has been issued to the agent, and any attempt to so	905
surrender is invalid.	906

(B)(1) If an agent's license is surrendered, revoked, or	907
suspended, canceled, or inactivated by request, all appointments	908
held by the agent are void. If a new license is issued to that	909
person or if that person's previous license is reinstated or	910
renewed, any appointment of the person to represent an insurer	911
must be made in accordance with the requirements of this chapter.	912

(2) If an agent's license is surrendered, revoked, or	913
canceled and the person wishes to apply for a new license, the	914
person shall apply as a new agent and shall satisfy all	915
requirements for a new agent license including, if applicable,	916
submitting to a criminal records check under section 3905.051 of	917
the Revised Code.	918

(C)(1) Any agent, other than a business entity, who is no	919
longer engaged in the business of insurance in any capacity for	920
which an agent's license is required may apply to the	921
superintendent for inactive status. The superintendent may grant	922
such status only if the superintendent is satisfied that the	923
person is not engaged in and does not intend to engage in any of	924
the activities set forth in section 3905.02 of the Revised Code	925
that requires an agent's license.	926

(2) A person who has been granted inactive status is exempt	927
from any continuing education requirements imposed under this	928
chapter.	929

(3) The superintendent may adopt rules in accordance with	930
Chapter 119. of the Revised Code to establish procedures for	931
applying for inactive status, criteria used to determine	932
eligibility for such status, and standards and procedures for	933
transferring from inactive to active status.	934

(D) The superintendent may suspend or revoke a license, or	935
take any other disciplinary action authorized by this chapter,	936
regardless of whether the person is appointed or otherwise	937
authorized to represent an insurer or agent.	938

Sec. 3905.20.  (A) An insurance agent shall not act as an	939
agent of an insurer unless the insurance agent is appointed as an	940
agent of the insurer. An insurance agent who does not act as an	941
agent of an insurer shall not be required to be appointed as an	942
agent of the insurer.	943

For purposes of this division, an insurance agent acts as an	944
agent of an insurer when the insurance agent sells, solicits, or	945
negotiates any product of the insurer and is compensated directly	946
by the insurer.	947

(B)(1) To appoint an insurance agent as its agent, an insurer	948
shall file a notice of appointment with the superintendent of	949
insurance not later than thirty days after the date the agency	950
contract is executed or the first insurance application is	951
submitted, whichever is earlier. The notice of appointment shall	952
be provided in the manner prescribed by the superintendent.	953

Each insurer shall pay to the superintendent a fee of twenty	954
dollarspursuant to division (A) of section 3905.40 of the Revised	955
Code for every such appointment when issued and for each	956
continuance thereafter. Such an appointment, unless canceled by	957
the insurer, may be continued in force past the thirtieth day of	958
June next after its issue and after the thirtieth day of June of	959
each succeeding year, unless a different date is determined by the	960
superintendent.	961

A separate appointment and fee are required for a variable	962
life and variable annuity products line of authority.	963

(2) By appointing an insurance agent, an insurer certifies to	964
the superintendent that the person is competent, financially	965
responsible, and suitable to represent the insurer.	966

(3) While an appointment remains in force, an insurer shall	967
be bound by the acts of the person named in the appointment within	968
that person's actual and apparent authority as its agent.	969

(C) The superintendent may, in accordance with Chapter 119.	970
of the Revised Code, adopt rules to establish appointment	971
procedures, including cancellations and renewals, to clarify the	972
circumstances that require an appointment, and to provide for the	973
appointment of insurance agents to some or all of the insurers	974
within an insurer's holding company system or group.	975

Sec. 3905.30.  The superintendent of insurance may issue a	976
surplus line broker's license to any natural person who is a	977
resident of this or any other state or to a business entity that	978
is organized under the laws of this or any other state. To be	979
eligible for a resident surplus line broker's license, a person	980
must have both a property license and a casualty license. ATo be	981
eligible for a nonresident surplus line broker's license, a person	982
must hold an active surplus line broker license in the person's	983
home state. A nonresident surplus line broker shall obtain a	984
nonresident license with a property and casualty line of authority	985
in this state if the broker is or will be personally performing	986
the due diligence requirements under section 3905.33 of the	987
Revised Code.	988

A surplus line broker's license permits the person named in	989
the license to negotiate for and obtain insurance, other than life	990
insurance, on property or persons in this state from insurers not	991
authorized to transact business in this state. Each such license	992
expires on the thirty-first day of January next after the year in	993
which it is issued, and may be then renewed.	994

Sec. 3905.35.  Before receivingan applicant receives a	995
resident license under section 3905.30 of the Revised Code, the	996
person named in the license shall execute and deliver to the	997
superintendent of insurance a bond in the sum of twenty-five	998
thousand dollars, payable to the state and conditioned that the	999
person will faithfully comply with sections 3905.30 to 3905.35 of	1000
the Revised Code. The bond required by this section shall be	1001
issued by an insurance company authorized to transact surety	1002
business in this state, be on a form prescribed by the	1003
superintendent, and be deposited with the superintendent and kept	1004
in the superintendent's office.	1005

Sec. 3905.36.  (A) Except as provided in divisions (B) and	1006
(C) of this section, every insured association, company,	1007
corporation, or other person that enters, directly or indirectly,	1008
into any agreements with any insurance company, association,	1009
individual, firm, underwriter, or Lloyd's, not authorized to do	1010
business in this state, whereby the insured shall procure,	1011
continue, or renew contracts of insurance covering subjects of	1012
insurance resident, located, or to be performed within this state,	1013
with such unauthorized insurance company, association, individual,	1014
firm, underwriter, or Lloyd's, for which insurance there is a	1015
gross premium, membership fee, assessment, dues, or other	1016
consideration charged or collected, shall annually, on or before	1017
the thirty-first day of JanuaryMarch, return to the	1018
superintendent of insurance a statement under oath showing the	1019
name and address of the insured, name and address of the insurer,	1020
subject of the insurance, general description of the coverage, and	1021
amount of gross premium, fee, assessment, dues, or other	1022
consideration for such insurance for the preceding twelve-month	1023
periodcalendar year and shall at the same time pay to the	1024
treasurer of state a tax of five per cent of such gross premium,	1025
fee, assessment, dues, or other consideration, after a deduction	1026
for return premium, if any, as calculated on a form prescribed by	1027
the treasurer of state. All taxes collected under this section by	1028
the treasurer of state shall be paid into the general revenue	1029
fund. If the tax is not paid when due, the tax shall be increased	1030
by a penalty of twenty-five per cent. An interest charge computed	1031
as set forth in section 5725.221 of the Revised Code shall be made	1032
on the entire sum of the tax plus penalty, which interest shall be	1033
computed from the date the tax is due until it is paid. For	1034
purposes of this section, payment is considered made when it is	1035
received by the treasurer of state, irrespective of any United	1036
States postal service marking or other stamp or mark indicating	1037
the date on which the payment may have been mailed.	1038

(B) This section does not apply to:

1039

(1) Transactions in this state involving a policy solicited,	1040
written, and delivered outside this state covering only subjects	1041
of insurance not resident, located, or to be performed in this	1042
state at the time of issuance, provided such transactions are	1043
subsequent to the issuance of the policy;	1044

(2) Attorneys-at-law acting on behalf of their clients in the	1045
adjustment of claims or losses;	1046

(3) Transactions involving policies issued by a captive	1047
insurer. For this purpose, a "captive insurer" means any of the	1048
following:	1049

(a) An insurer owned by one or more individuals or	1050
organizations, whose exclusive purpose is to insure risks of one	1051
or more of the parent organizations or individual owners and risks	1052
of one or more affiliates of the parent organizations or	1053
individual owners;	1054

(b) In the case of groups and associations, insurers owned by	1055
the group or association whose exclusive purpose is to insure	1056
risks of members of the group or association and affiliates of the	1057
members;	1058

(c) Other types of insurers, licensed and operated in	1059
accordance with the captive insurance laws of their jurisdictions	1060
of domicile and operated in a manner so as to self-insure risks of	1061
their owners and insureds.	1062

(4) Professional or medical liability insurance procured by a	1063
hospital organized under Chapter 3701. of the Revised Code;	1064

(5) Insurance with an initial policy period of more than	1065
three years and that is procured to cover known events related to	1066
environmental remediation that occurred prior to the effective	1067
date of that insurance;	1068

(6) Insurance procured on behalf of an entity that	1069
manufactures, packages, and sells, as more than fifty per cent of	1070
the entity's business, pharmaceutical products for human use where	1071
the production, packaging, and sale of such products are subject	1072
to regulation by an agency of the United States.	1073

(C) In transactions that are subject to sections 3905.30 to	1074
3905.35 of the Revised Code, each person licensed under section	1075
3905.30 of the Revised Code shall pay to the treasurer of state,	1076
on or before the thirty-first day of JanuaryMarch of each year,	1077
five per cent of the balance of the gross premiums charged for	1078
insurance placed or procured under the license after a deduction	1079
for return premiums, as reported on a form prescribed by the	1080
treasurer of state. The tax shall be collected from the insured by	1081
the surplus line broker who placed or procured the policy of	1082
insurance at the time the policy is delivered to the insured. No	1083
license issued under section 3905.30 of the Revised Code shall be	1084
renewed until payment is made. If the tax is not paid when due,	1085
the tax shall be increased by a penalty of twenty-five per cent.	1086
An interest charge computed as set forth in section 5725.221 of	1087
the Revised Code shall be made on the entire sum of the tax plus	1088
penalty, which interest shall be computed from the date the tax is	1089
due until it is paid. For purposes of this section, payment is	1090
considered made when it is received by the treasurer of state,	1091
irrespective of any United States postal service marking or other	1092
stamp or mark indicating the date on which the payment may have	1093
been mailed.	1094

Sec. 3905.40.  There shall be paid to the superintendent of	1095
insurance the following fees:	1096

(A) Each insurance company doing business in this state shall	1097
pay:	1098

(1) For filing a copy of its charter or deed of settlement,	1099
two hundred fifty dollars;	1100

(2) For filing each statement, one hundred seventy-five	1101
dollars;	1102

(3) For each certificate of authority or license, one hundred	1103
seventy-five, and for each certified copy thereof, five dollars;	1104

(4) For each copy of a paper filed in the superintendent's	1105
office, twenty cents per page;	1106

(5) For issuing certificates of deposits or certified copies	1107
thereof, five dollars for the first certificate or copy and one	1108
dollar for each additional certificate or copy;	1109

(6) For issuing certificates of compliance or certified	1110
copies thereof, sixty dollars;	1111

(7) For affixing the seal of office and certifying documents,	1112
other than those enumerated herein, two dollars;	1113

(8) For each agent appointment and each annual renewal of an	1114
agent appointment, twenty dollars;	1115

(9) For each termination of an agent appointment, five	1116
dollars.	1117

(B) Each domestic life insurance company doing business in	1118
this state shall pay for annual valuation of its policies, one	1119
cent on every one thousand dollars of insurance.	1120

(C) Each applicant for licensure as an individual insurance	1121
agent except applicants for licensure as limited lines insurance	1122
surety bail bond agents and surplus line brokers shall pay ten	1123
dollars for each line of authority requested. Fees collected	1124
under this division shall be credited to the department of	1125
insurance operating fund created in section 3901.021 of the	1126
Revised Code.	1127

(D) Each domestic mutual life insurance company shall pay for	1128
verifying that any amendment to its articles of incorporation was	1129
regularly adopted, two hundred fifty dollars with each application	1130
for verification. Any such amendment shall be considered to have	1131
been regularly adopted when approved by the affirmative vote of	1132
two-thirds of the policyholders present in person or by proxy at	1133
any annual meeting of policyholders or at a special meeting of	1134
policyholders called for that purpose.	1135

(E) Each insurance agent doing business in this state shall	1136
pay a biennial license renewal fee of twenty-five dollars, except	1137
the following insurance agents are not required to pay the license	1138
renewal fee:	1139

(1) Individual resident agents who have met their continuing	1140
education requirements under section 3905.481 of the Revised Code;	1141

(2) Surety bail bond agents;

1142

(3) Surplus line brokers.

1143

(F) All fees collected by the superintendent under this	1144
section shall be credited to the department of insurance operating	1145
fund created under section 3901.021 of the Revised Code.	1146

Sec. 3905.41.  The superintendent of insurance may open an	1147
account in the name of each insurance company authorized to do	1148
business in this state and in the name of any authorized insurance	1149
agent, and charge the accounts with all fees incurred by such	1150
companies or agents in accordance with sections 3905.10, 3905.20,	1151
3905.40, 3919.26, and 3931.03 of the Revised Code, and other	1152
statutes imposing fees. The statutory fee for each service	1153
requested shall be charged against the proper account immediately	1154
upon the rendition of the service.	1155

Not later than the tenth day of each calendar month the	1156
superintendent shall render an itemized statement to each company	1157
or agent whose account has been charged during the month next	1158
preceding, showing the amount of all fees charged during that	1159
month and demanding that payment thereof be made not later than	1160
the first day of the month next following.	1161

The failure of any insurance company within that time to pay	1162
the amount of such fees in accordance with the monthly statement,	1163
or, if the statement or account is found to be incorrect, in	1164
accordance with a corrected monthly statement rendered by the	1165
superintendent, is grounds for the revocation of its certificate	1166
of authority to do business in this state. In the event of such an	1167
order of revocation, the superintendent shall immediately cause a	1168
notice thereof to be published once in at least one newspaper at	1169
the seat of the government and also, if a domestic company, once	1170
in at least one newspaper published in the county where its home	1171
office is located, or, if a foreign or alien company, once in at	1172
least one newspaper published in a county of this state where an	1173
agency of the company is located. After the publication of the	1174
notice, no agent of the company shall procure applications for	1175
insurance or issue policies.	1176

In the event of the failure of any agent within the time	1177
fixed to pay the amount of fees charged against the agent's	1178
account in accordance with the monthly statement rendered by the	1179
superintendent, the agent's license may be revoked in the manner	1180
provided by section 3905.14 of the Revised Code.	1181

Sec. 3905.481. (A)(1) Except as provided in division (B) of	1182
this section, each personEach individual who is issued a resident	1183
insurance agent license as an agent on or after the effective date	1184
of this amendment shall complete in accordance with division	1185
(A)(1) of this section at least twentytwenty-four hours of	1186
continuing education in each license renewal period. The	1187
continuing education shall be offered in a course or program of	1188
study approved by the superintendent of insurance in consultation	1189
with the insurance agent education advisory council and shall	1190
include at least three hours of approved ethics training. The	1191
person shall complete the initial twenty hours of continuing	1192
education during a period not to exceed twenty-four months	1193
commencing on the first day of January of the year immediately	1194
following the year of the issuance of the license and ending on	1195
the thirty-first day of December of the second year following the	1196
year of the issuance of the license. Thereafter, the person shall	1197
complete at least twenty hours of continuing education in every	1198
subsequent twenty-four-month period commencing on the first day of	1199
January and ending on the thirty-first day of December of the	1200
following year.	1201

(2) Except as provided in division (B) of this section, each	1202
person who, on the effective date of this amendment, holds a	1203
license as an agent issued prior to that date shall complete	1204
during that person's applicable twenty-four month reporting	1205
period, at least twenty hours of continuing education offered in a	1206
course or program of study approved by the superintendent in	1207
consultation with the council. Thereafter, the person shall	1208
complete at least twenty hours of continuing education in every	1209
subsequent twenty-four-month period commencing on the first day of	1210
January and ending on the thirty-first day of December of the	1211
following year.	1212

(B) Division (A) of thisThis section does not apply to any	1213
person or class of persons, as determined by the superintendent in	1214
consultation with the council.	1215

(C) A person may comply with division (A) of this section by	1216
demonstrating to the council that the person has completed the	1217
minimum number of hours required by that division in a	1218
substantially similar course or program of study offered in	1219
another state.	1220

Sec. 3905.483.  (A) There is hereby created the insurance	1221
agent education advisory council to advise the superintendent of	1222
insurance in carrying out the duties imposed under sections	1223
3905.04 and 3905.481 to 3905.486 of the Revised Code.	1224

(B) The council shall be composed of the superintendent, or	1225
the superintendent's designee, and twelve members appointed by the	1226
superintendent, as follows:	1227

(1) One representative of the association of Ohio life	1228
insurance companies;	1229

(2) One representative of the independent insurance agents of	1230
Ohio;	1231

(3) One representative of the Ohio association of health	1232
underwriters;	1233

(4) One representative of the Ohionational association of	1234
life underwritersinsurance and financial advisors-Ohio;	1235

(5) One representative of the Ohio insurance institute;

1236

(6) One representative of the professional insurance agents	1237
association of Ohio;	1238

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

1239

(8) Two insurance agents each of whom has been licensed	1240
continuously during the five-year period immediately preceding the	1241
agent's appointment;	1242

(9) One representative of an insurance company admitted to	1243
transact business in this state;	1244

(10) Two representatives of consumers, one of whom shall be	1245
at least sixty years of age.	1246

(C)(1) Of the initial eleven appointments made by the	1247
superintendent, three shall be for terms ending December 31, 1994,	1248
four shall be for terms ending December 31, 1995, and four shall	1249
be for terms ending December 31, 1996. Thereafter, terms of office	1250
shall be for three years, each term ending on the thirty-first day	1251
of December of the third year.	1252

(2) The initial appointment of the twelfth member made by the	1253
superintendent under division (B)(7) of this section, pursuant to	1254
Am. Sub. S.B. 129 of the 124th general assembly, shall be for a	1255
term ending December 31, 2003. Thereafter, the term of office	1256
shall be for three years, ending on the thirty-first day of	1257
December of the third year.	1258

(D) Each member shall hold office from the date of	1259
appointment until the end of the term for which the member was	1260
appointed. Any member appointed to fill a vacancy occurring prior	1261
to the expiration of the term for which the member's predecessor	1262
was appointed shall hold office for the remainder of such term.	1263
Any member shall continue in office subsequent to the expiration	1264
date of the member's term until the member's successor takes	1265
office, or until a period of sixty days has elapsed, whichever	1266
occurs first. A vacancy shall be filled in the same manner as the	1267
original appointment.	1268

(E) Initial appointments to the council shall be made no	1269
later than thirty days after April 16, 1993. The initial	1270
appointment of the twelfth member to the council under division	1271
(B)(7) of this section, pursuant to Am. Sub. S.B. 129 of the 124th	1272
general assembly, shall be made no later than December 31, 2002.	1273

(F) Any member is eligible for reappointment. The	1274
superintendent, after notice and opportunity for a hearing, may	1275
remove for cause any member the superintendent appoints.	1276

(G) The superintendent or the superintendent's designee shall	1277
serve as chairperson of the council. Meetings shall be held upon	1278
the call of the chairperson and as may be provided by procedures	1279
adopted by the superintendent. Seven members of the council	1280
constitute a quorum.	1281

(H) Each member shall receive mileage and necessary and	1282
actual expenses while engaged in the business of the council.	1283

Sec. 3905.484.  (A) The superintendent of insurance, in	1284
consultation with the insurance agent education advisory council,	1285
shall establish criteria for any course or program of study that	1286
is offered in this state under section 3905.04 or sections	1287
3905.481 to 3905.486 of the Revised Code.	1288

(B) No course or program of study shall be offered in this	1289
state under section 3905.04 or sections 3905.481 to 3905.486 of	1290
the Revised Code unless it is approved by the superintendent in	1291
consultation with the council.	1292

(C) A course or program of study offered in this state under	1293
section 3905.04 or sections 3905.481 to 3905.486 of the Revised	1294
Code shall be developed or sponsored only by one of the following:	1295

(1) An insurance company admitted to transact business in	1296
this state;	1297

(2) An accredited college or university;

1298

(3) An insurance trade association;

1299

(4) An independent program of instruction that is approved by	1300
the superintendent in consultation with the council;	1301

(5) Any institution as defined in section 1713.01 of the	1302
Revised Code that holds a certificate of authorization issued by	1303
the Ohio board of regents under Chapter 1713. of the Revised Code	1304
or is exempt under that chapter from the requirements for a	1305
certificate of authorization.	1306

(D) Any person who teaches any approved course or program of	1307
study qualifies for the same number of classroom hours as would be	1308
granted to any person who takes and successfully completes that	1309
course or program.	1310

Sec. 3905.841.  The following persons or classes of persons	1311
shall not act as surety bail bond agents or employees of a surety	1312
bail bond agent or bail bond business and shall not directly or	1313
indirectly receive any benefits from the execution of a bail bond,	1314
except as a principal:	1315

(A) Jailers or other persons employed in a detention	1316
facility, as defined in section 2921.01 of the Revised Code;	1317

(B) Prisoners incarcerated in any jail, prison, or any other	1318
place used for the incarceration of persons;	1319

(C) Peace officers as defined in section 2921.51 of the	1320
Revised Code, including volunteer or honorary peace officers, or	1321
other employees of a law enforcement agency;	1322

(C)(D) Committing magistrates, judges, employees of a court,	1323
or employees of the clerk of any court;	1324

(D)(E) Attorneys or any person employed at an attorney's	1325
office;	1326

(E)(F) Any other persons having the power to arrest, or	1327
persons who have authority over or control of, federal, state,	1328
county, or municipal corporation prisoners.	1329

Sec. 3905.85.  (A) An applicant(1) An individual who applies	1330
for a license as a surety bail bond agent shall submit an	1331
application for the license in a manner prescribed by the	1332
superintendent of insurance. The application shall be accompanied	1333
by a one hundred fifty dollar fee and a statement that gives the	1334
applicant's name, age, residence, present occupation, occupation	1335
for the five years next preceding the date of the application, and	1336
such other information as the superintendent may require.	1337

The(2) An applicant for an individual resident license shall	1338
also requestsubmit to a criminal records check conducted by the	1339
superintendent of the bureau of criminal identification and	1340
investigation in accordance with section 109.572 of the Revised	1341
Code, or other governmental agencies, or other sources, as	1342
required and designated by the superintendent of insurance, and	1343
direct that the responses to that request be transmitted to the	1344
superintendent of insurance, or to the superintendent's designee.	1345
If the superintendent of insurance or the superintendent's	1346
designee fails to receive a response to a requested criminal	1347
records check, or if the applicant fails to request the criminal	1348
records check, the superintendent may refuse to issue a license	1349
under this section. The applicant shall pay any fee required for	1350
conducting the criminal records checkpursuant to section 3905.051	1351
of the Revised Code.	1352

An applicant for a license shall submit to an examination as	1353
to the qualifications set forth in division (B) of this section.	1354

(B)(1) The superintendent of insurance shall issue to an	1355
applicant aan individual resident license that states in	1356
substance that the person is authorized to do the business of a	1357
surety bail bond agent, if the superintendent is satisfied that	1358
all of the following apply:	1359

(1)(a) The applicant is eighteen years of age or older.

1360

(2)(b) The applicant's home state is Ohio.

1361

(c) The applicant is a person of high character and	1362
integrity.	1363

(3)(d) The applicant has not committed any act that is	1364
grounds for the refusal to issue, suspension of, or revocation of	1365
a license under section 3905.14 of the Revised Code.	1366

(e) The applicant is a United States citizen or has provided	1367
proof of having legal authorization to work in the United States.	1368

(f) The applicant has successfully completed the educational	1369
requirements set forth in section 3905.04 of the Revised Code and	1370
passed the examination required by that section.	1371

(2) The superintendent shall issue to an applicant an	1372
individual nonresident license that states in substance that the	1373
person is authorized to do the business of a surety bail bond	1374
agent, if the superintendent is satisfied that all of the	1375
following apply:	1376

(a) The applicant is eighteen years of age or older.

1377

(b) The applicant is currently licensed as a resident in	1378
another state and is in good standing in the applicant's home	1379
state for surety bail bond or is qualified for the same authority.	1380

(c) The applicant is a person of high character and	1381
integrity.	1382

(d) The applicant has not committed any act that is grounds	1383
for the refusal to issue, suspension of, or revocation of a	1384
license under section 3905.14 of the Revised Code.	1385

(3) The superintendent shall issue an applicant a resident	1386
business entity license that states in substance that the person	1387
is authorized to do the business of a surety bail bond agent if	1388
the superintendent is satisfied that all of the following apply:	1389

(a) The applicant has submitted an application for the	1390
license in a manner prescribed by the superintendent and the	1391
one-hundred-fifty-dollar application fee.	1392

(b) The applicant either is domiciled in this state or	1393
maintains its principal place of business in this state.	1394

(c) The applicant has designated an individual licensed	1395
surety bail bond agent who will be responsible for the applicant's	1396
compliance with the insurance laws of this state.	1397

(d) The applicant has not committed any act that is grounds	1398
for the refusal to issue, suspension of, or revocation of a	1399
license under section 3905.14 of the Revised Code.	1400

(e) The applicant is authorized to do business in this state	1401
by the secretary of state if so required under the applicable	1402
provisions of Title XVII of the Revised Code.	1403

(f) The applicant has submitted any other documents requested	1404
by the superintendent.	1405

(4) The superintendent shall issue an applicant a nonresident	1406
business entity license that states in substance that the person	1407
is authorized to do the business of a surety bail bond agent if	1408
the superintendent is satisfied that all of the following apply:	1409

(a) The applicant has submitted an application for the	1410
license in a manner prescribed by the superintendent and the	1411
one-hundred-fifty-dollar application fee.	1412

(b) The applicant is currently licensed and is in good	1413
standing in the applicant's home state with surety bail bond	1414
authority.	1415

(c) The applicant has designated an individual licensed	1416
surety bail bond agent who will be responsible for the applicant's	1417
compliance with the insurance laws of this state.	1418

(d) The applicant has not committed any act that is grounds	1419
for the refusal to issue, suspension of, or revocation of a	1420
license under section 3905.14 of the Revised Code.	1421

(e) The applicant has submitted any other documents requested	1422
by the superintendent.	1423

(C) A resident and nonresident surety bail bond agent license	1424
issued pursuant to this section authorizes the holder, when	1425
appointed by an insurer, to execute or countersign bail bonds in	1426
connection with judicial proceedings and to receive money or other	1427
things of value for those services. However, the holder shall not	1428
execute or deliver a bond during the first one hundred eighty days	1429
after the license is initially issued. This restriction does not	1430
apply with respect to license renewals or any license issued under	1431
divisions (B)(3) and (4) of this section.	1432

(D) The superintendent of insurance may suspend or revoke	1433
refuse to renew a surety bail bond agent's license as provided in	1434
division (B) of section 3905.4823905.88 of the Revised Code, and	1435
may suspend, revoke, or refuse to issue or renew such a license as	1436
provided in section 3905.14 of the Revised Code.	1437

If the superintendent refuses to issue such a license based	1438
in whole or in part upon the written response to a criminal	1439
records check requestedcompleted pursuant to division (A) of this	1440
section, the superintendent shall send a copy of the response that	1441
was transmitted to the superintendent or to the superintendent's	1442
designee, to the applicant at the applicant's home address upon	1443
the applicant's submission of a written request to the	1444
superintendent.	1445

(E) Any person licensed as a surety bail bond agent may	1446
surrender the person's license in accordance with section 3905.16	1447
of the Revised Code.	1448

(F) Unless revoked or suspended by the superintendent of	1449
insurance or surrendered by the surety bail bond agent, such a	1450
license may, in the discretion of the superintendent and the	1451
payment of a one hundred fifty dollar fee, be renewed effective	1452
the first day of March next after its issue and after the first	1453
day of March in each succeeding year(1) A person seeking to renew	1454
a surety bail bond agent license shall apply annually for a	1455
renewal of the license on or before the last day of February.	1456
Applications shall be submitted to the superintendent on forms	1457
prescribed by the superintendent. Each application shall be	1458
accompanied by a one-hundred-fifty-dollar renewal fee.	1459

(2) To be eligible for renewal, an individual applicant shall	1460
complete the continuing education requirements pursuant to	1461
section 3905.88 of the Revised Code prior to the renewal date.	1462

(3) If an applicant submits a completed renewal application,	1463
qualifies for renewal pursuant to divisions (F)(1) and (2) of this	1464
section, and has not committed any act that is a ground for the	1465
refusal to issue, suspension of, or revocation of a license under	1466
section 3905.14 or sections 3905.83 to 3905.99 of the Revised	1467
Code, the superintendent shall renew the applicant's surety bail	1468
bond insurance agent license.	1469

(4) If an individual or business entity does not apply for	1470
the renewal of the individual or business entity's license on or	1471
before the license renewal date specified in division (F)(1) of	1472
this section, the individual or business entity may submit a late	1473
renewal application along with all applicable fees required under	1474
this chapter prior to the last day of March following the renewal	1475
date. The superintendent shall renew the license of an applicant	1476
that submits a late renewal application if the applicant	1477
satisfies all of the following conditions:	1478

(a) The applicant submits a completed renewal application.

1479

(b) The applicant pays the one-hundred-fifty-dollar renewal	1480
fee.	1481

(c) The applicant pays the late renewal fee established by	1482
the superintendent.	1483

(d) The applicant provides proof of compliance with the	1484
continuing education requirements pursuant to section 3905.88 of	1485
the Revised Code.	1486

(e) The applicant has not committed any act that is grounds	1487
for the refusal to issue, suspension of, or revocation of a	1488
license under section 3905.14 or sections 3905.83 to 3905.99 of	1489
the Revised Code.	1490

(5) A license issued under this section that is not renewed	1491
on or before its late renewal date specified in division (F)(4) of	1492
this section is automatically suspended for nonrenewal effective	1493
the first day of April.	1494

(6) If a license is suspended for nonrenewal pursuant to	1495
division (F)(5) of this section, the individual or business entity	1496
is eligible to apply for reinstatement of the license within the	1497
twelve-month period following the date by which the license should	1498
have been renewed by complying with the reinstatement procedure	1499
established by the superintendent and paying all applicable fees	1500
required under this chapter.	1501

(7) A license that is suspended for nonrenewal that is not	1502
reinstated pursuant to division (F)(6) of this section	1503
automatically is canceled unless the superintendent is	1504
investigating any allegations of wrongdoing by the agent or has	1505
initiated proceedings under Chapter 119. of the Revised Code. In	1506
that case, the license automatically is canceled after the	1507
completion of the investigation or proceedings unless the	1508
superintendent revokes the license.	1509

(G) The superintendent of insurance may prescribe the forms	1510
to be used as evidence of the issuance of a license under this	1511
section. The superintendent shall require each licensee to	1512
acquire, from a source designated by the superintendent, a wallet	1513
identification card that includes the licensee's photograph and	1514
any other information required by the superintendent. The licensee	1515
shall keep the wallet identification card on the licensee's person	1516
while engaging in the bail bond business.	1517

(H)(1) The superintendent of insurance shall not issue or	1518
renew the license of a business entity organized under the laws of	1519
this or any other state unless the business entity is qualified to	1520
do business in this state under the applicable provisions of Title	1521
XVII of the Revised Code.	1522

(2) The failure of a business entity to be in good standing	1523
with the secretary of state or to maintain a valid appointment of	1524
statutory agent is grounds for suspending, revoking, or refusing	1525
to renew its license.	1526

(3) By applying for a surety bail bond agent license under	1527
this section, an individual or business entity consents to the	1528
jurisdiction of the courts of this state.	1529

(I) A surety bail bond agent licensed pursuant to this	1530
section is an officer of the court.	1531

(J) Any fee collected under this section shall be paid into	1532
the state treasury to the credit of the department of insurance	1533
operating fund created by section 3901.021 of the Revised Code.	1534

Sec. 3905.86.  (A) Any person licensed as a surety bail bond	1535
agent may be appointed by an insurer in accordance with this	1536
section.	1537

(B) Each insurer shall certify to the superintendent of	1538
insurance before the thirtieth day of June each year the names and	1539
addresses of the surety bail bond agents for whom it requests	1540
appointments or the continuance of appointmentsTo appoint a	1541
surety bail bond agent as its agent, an insurer shall file a	1542
notice of appointment with the superintendent of insurance in the	1543
manner prescribed by the superintendent. All insurers shall pay to	1544
the superintendent a fee of twenty dollarspursuant to division	1545
(A)(8) of section 3905.40 of the Revised Code for each such	1546
appointment when issued and for each continuance thereafter. Such	1547
an appointment, unless canceled by the insurer, may be continued	1548
in force past the thirtieth day of June next after its issue and	1549
after the thirtieth day of June of each succeeding year provided	1550
that the appointee is licensed and is eligible for the	1551
appointment.	1552

Any fee collected under this division shall be paid into the	1553
state treasury to the credit of the department of insurance	1554
operating fund created by section 3901.021 of the Revised Code.	1555

(C)(1) By appointing a surety bail bond agent, an insurer	1556
certifies to the superintendent that the person is competent,	1557
financially responsible, and suitable to represent the insurer.	1558

(2) An insurer shall be bound by the acts of the person named	1559
in the appointment within that person's actual or apparent	1560
authority as its agent.	1561

(D) A surety bail bond agent shall not represent to the	1562
public that the agent has authority to represent a particular	1563
insurer until the insurer has acknowledged that authority by	1564
appointment of the agent in accordance with this section.	1565

Sec. 3905.862.  Upon the expiration or cancellation of a	1566
surety bail bond agent's appointment, the agent shall not engage	1567
or attempt to engage in any activity requiring such an	1568
appointment. However, an insurer that cancels the appointment of	1569
a surety bail bond agent may authorize the agent to continue to	1570
attempt the arrest and surrender of a defendant for whom a bail	1571
bond had been written prior to the cancellation and to seek	1572
discharge of forfeitures and judgments.	1573

An insurer that cancels the appointment of a surety bail bond	1574
agent or allows that appointment to expire shall pay to the	1575
superintendent of insurance a fee pursuant to division (A)(9) of	1576
section 3905.40 of the Revised Code.	1577

Sec. 3905.87.  (A) A surety bail bond agent shall not file a	1578
bond in any court of this state unless both of the following	1579
conditions are met:	1580

(1) Thethe agent is licensed and appointed under sections	1581
3905.83 to 3905.95 of the Revised Code and has registered with the	1582
clerk of that court pursuant to division (B) of this section, if	1583
registration is required by the court.	1584

(2) The agent has registered with the clerk of the court of	1585
common pleas of the county in which the agent resides.	1586

(B) To register with a court, a surety bail bond agent shall	1587
file, with the clerk of the court, a copy of the agent's surety	1588
bail bond license, a copy of the agent's driver's license or state	1589
identification card, and a certified copy of the surety bail bond	1590
agent's appointment by power of attorney from each insurer that	1591
the surety bail bond agent represents. Registration and filing of	1592
a certified copy of a renewed power of attorney shall be performed	1593
An agent shall renew the agent's registration biennially by the	1594
first day of August of each odd-numbered year. The clerk of the	1595
court shall not accept the registration of a surety bail bond	1596
agent unless the surety bail bond agent is currently licensed and	1597
appointed in accordance with sections 3905.83 to 3905.95 of the	1598
Revised Code.	1599

(C) The clerk of the court shall make available a list of	1600
court-registered surety bail bond agents to the appropriate	1601
holding facility, jail, correction facility, or other similar	1602
entity within the court's jurisdiction annually not later than the	1603
first day of September. If an agent registers with a court after	1604
the last day of August, the court shall add that agent to the list	1605
and make the updated list available to the appropriate holding	1606
facility, jail, correction facility, or other similar entity	1607
within the court's jurisdiction within twenty-four hours of the	1608
court's approval of that registration.	1609

Sec. 3905.88.  (A) Each individual who is issued a license as	1610
a resident surety bail bond agent shall complete, in accordance	1611
with section 3905.481 of the Revised Code, at least fourteenseven	1612
hours of continuing education in each license renewal period. The	1613
continuing education shall be offered in a course or program of	1614
study related to the bail bond business that is approved by the	1615
superintendent of insurance in consultation with the insurance	1616
agent education advisory council and shall include at least one	1617
hour of approved ethics training.	1618

(B) The superintendent shall, in accordance with section	1619
3905.482 of the Revised Code, suspend or revokenot renew the	1620
license of any surety bail bond agent who fails to meet the	1621
requirements of division (A) of this section and has not been	1622
granted an extension of time within which to complete the	1623
requirementsor whose application for renewal does not meet the	1624
requirements of section 3905.85 of the Revised Code.	1625

(C) The superintendent shall adopt, in accordance with	1626
Chapter 119. of the Revised Code, any rule necessary to carry out	1627
the superintendent's duties under this section.	1628

Sec. 3905.89.  Each person licensed under sections 3905.83 to	1629
3905.95 of the Revised Code shall notify in writing the	1630
appropriate insurer or managing general agent, and the clerk of	1631
the court of common pleas of the county in which the licensee	1632
residesis registered, within thirty days after a change in the	1633
licensee's principal business address or telephone number.	1634

This notification requirement is in addition to the	1635
notification requirements set forth in other provisions of this	1636
chapter.	1637

Sec. 3905.932.  A surety bail bond agent or insurer shall not	1638
do any of the following:	1639

(A) Suggest or advise the employment of, or name for	1640
employment, any particular attorney to represent its principal;	1641

(B) Directly or indirectly solicitSolicit business in, or on	1642
the property or grounds of, a detention facility, as defined in	1643
section 2921.01 of the Revised Code, or in, or on the property or	1644
grounds of, any court. For purposes of this division, "solicit"	1645
includes, but is not limited to, the distribution of business	1646
cards, print advertising, or any other written information	1647
directed to prisoners or potential indemnitors, unless a request	1648
is initiated by the prisoner or potential indemnitor. Permissible	1649
print advertising in a detention facility is strictly limited to	1650
a listing in a telephone directory and the posting of the surety	1651
bail bond agent's name, address, and telephone number in a	1652
designated location within the detention facility.	1653

(C) Wear or otherwise display any identification, other than	1654
the wallet identification card required under division (G) of	1655
section 3905.85 of the Revised Code, in or on the property or	1656
grounds of a detention facility, as defined in section 2921.01 of	1657
the Revised Code, or in or on the property or grounds of any	1658
court;	1659

(D) Pay a fee or rebate or give or promise anything of value	1660
to a jailer, law enforcement officer, committing magistrate, or	1661
other person who has power to arrest or to hold in custody, or to	1662
any public official or public employee, in order to secure a	1663
settlement, compromise, remission, or reduction of the amount of	1664
any bail bond or estreatment of bail;	1665

(E) Pay a fee or rebate or give or promise anything of value	1666
to an attorney in a bail bond matter, except in defense of any	1667
action on a bond;	1668

(F) Pay a fee or rebate or give or promise anything of value	1669
to the principal or to anyone in the principal's behalf;	1670

(G) Post anything without using a bail instrument	1671
representing an insurer, to have a defendant released on bail on	1672
all types of set court bail, except for the following:	1673

(1) Cash court fees or cash reparation fees;

1674

(2) Ten per cent assignments;

1675

(3) Other nonsurety court bonds, if the agent provides full	1676
written disclosure and receipts and retains copies of all	1677
documents and receipts for not less than three years.	1678

(H) Participate in the capacity of an attorney at a trial or	1679
hearing of a principal;	1680

(H)(I) Accept anything of value from a principal for	1681
providing a bail bond, other than the premium filed with and	1682
approved by the superintendent of insurance and an expense fee,	1683
except that the surety bail bond agent may, in accordance with	1684
section 3905.92 of the Revised Code, accept collateral security or	1685
other indemnity from a principal or other person together with	1686
documentary stamp taxes if applicable. No fees, expenses, or	1687
charges of any kind shall be deducted from the collateral held or	1688
any return premium due, except as authorized by sections 3905.83	1689
to 3905.95 of the Revised Code or by rule of the superintendent. A	1690
surety bail bond agent, upon written agreement with another party,	1691
may receive a fee or other compensation for returning to custody	1692
an individual who has fled the jurisdiction of the court or caused	1693
the forfeiture of a bond.	1694

(I)(J) Execute a bond in this state on the person's own	1695
behalf;	1696

(J)(K) Execute a bond in this state if a judgment has been	1697
entered on a bond executed by the surety bail bond agent, which	1698
judgment has remained unpaid for at least sixty days after all	1699
appeals have been exhausted, unless the full amount of the	1700
judgment is deposited with the clerk of the court.	1701

As used in this section, "instrument" means a fiduciary form	1702
showing a dollar amount for a surety bail bond.	1703

Sec. 3960.03.  All of the following apply to risk retention	1704
groups chartered and licensed in states other than this state,	1705
that seek to do business as a risk retention group in this state:	1706

(A) No risk retention group shall offer insurance in this	1707
state unless it has submitted to the superintendent of insurance,	1708
in a form satisfactory to the superintendent, all of the	1709
following:	1710

(1) A statement identifying the state or states in which it	1711
is chartered and licensed as a liability insurance company, the	1712
date of chartering, its principal place of business, and any other	1713
information, including but not limited to, information on its	1714
membership, that the superintendent may require to verify that it	1715
is qualified under division (J) of section 3960.01 of the Revised	1716
Code;	1717

(2) A copy of its plan of operation or a feasibility study	1718
and revisions of the plan or study submitted to the state in which	1719
the risk retention group is chartered and licensed. Division	1720
(A)(2) of this section does not apply to any line or	1721
classification of liability insurance that was defined in the	1722
federal "Product Liability Risk Retention Act of 1981," 95 Stat.	1723
949, 15 U.S.C.A. 3901, as amended, before October 27, 1986, and	1724
was offered before that date by any risk retention group that had	1725
been chartered and operating for not less than three years before	1726
that date. The risk retention group shall submit a copy of any	1727
revision to its plan of operation or feasibility study required by	1728
division (A)(2) of section 3960.02 of the Revised Code at the same	1729
time that the revision is submitted to the commissioner of	1730
insurance of its chartering state.	1731

(3) A statement of registration, for which a filing fee shall	1732
be determined by the superintendent, that submits it to the	1733
jurisdiction of the superintendent and the courts of this state.	1734
The fee shall be paid into the state treasury to the credit of the	1735
department of insurance operating fund pursuant to section	1736
3901.021 of the Revised Code.	1737

(B) A risk retention group doing business in this state shall	1738
submit to the superintendent all of the following:	1739

(1) A copy of its financial statement submitted to the state	1740
in which the risk retention group is chartered and domiciled,	1741
which shall be certified by an independent public accountant and	1742
contain a statement of opinion on loss and loss adjustment expense	1743
reserves made by a member of the American academy of actuaries or	1744
a qualified loss reserve specialist under criteria established by	1745
the national association of insurance commissioners;	1746

(2) A copy of each examination of the group as certified by	1747
the commissioner or public official conducting the examination;	1748

(3) Upon request by the superintendent, a copy of any	1749
information or document pertaining to any outside audit performed	1750
with respect to the group;	1751

(4) Any information that may be required to verify, to the	1752
superintendent's satisfaction, its continuing qualification as a	1753
risk retention group under division (J) of section 3960.01 of the	1754
Revised Code.	1755

(C)(1) Agents or brokers for the risk retention group shall	1756
report to the superintendent the premiums for direct business for	1757
risks resident or located within this state that they have placed	1758
with or on behalf of a risk retention group not chartered in this	1759
state.	1760

(2) The agent or broker shall keep a complete and separate	1761
record of all policies procured from each risk retention group,	1762
which record shall be open to examination by the superintendent.	1763
These records shall, for each policy and each kind of insurance	1764
provided, include the following:	1765

(a) The limit of liability;

1766

(b) The time period covered;

1767

(c) The effective date;

1768

(d) The name of the risk retention group that issued the	1769
policy;	1770

(e) The gross premium charged;

1771

(f) The amount of return premiums.

1772

(D) Every risk retention group that is not chartered in this	1773
state shall do both of the following:	1774

(1) On or before the thirty-first day of JanuaryMarch, pay	1775
to the treasurer of state five per cent of all premiums, fees,	1776
assessments, dues, or other consideration for the preceding	1777
one-year periodcalendar year for risks resident or located in	1778
this state, as calculated on a form prescribed by the treasurer of	1779
state. If such tax is not paid when due, the tax shall be	1780
increased by a penalty of twenty-five per cent. An interest charge	1781
computed as set forth in section 5725.221 of the Revised Code	1782
shall be made on the entire sum of the tax plus penalty, which	1783
interest shall be computed from the date the tax is due until it	1784
is paid. All taxes collected under this section shall be paid	1785
into the general revenue fund. For purposes of division (D)(1) of	1786
this section, payment is considered made when it is received by	1787
the treasurer of state, irrespective of any United States postal	1788
service marking or other stamp or mark indicating the date on	1789
which the payment may have been mailed.	1790

(2) On or before the thirty-first day of JanuaryMarch, file	1791
a statement with the superintendent, on a form prescribed by the	1792
superintendent, showing the name and address of the insured, name	1793
and address of the insurer, subject of the insurance, general	1794
description of the coverage, the amount of gross premium, fee,	1795
assessment, dues, or other consideration for the insurance, after	1796
a deduction for return premium, if any, and any other information	1797
the superintendent requires.	1798

(E) The superintendent may examine the financial condition of	1799
a risk retention group if the commissioner of insurance in the	1800
state in which it is chartered and licensed has not initiated an	1801
examination or does not initiate an examination within sixty days	1802
after the superintendent has requested an examination. The	1803
examination shall be conducted in an expeditious manner and in	1804
accordance with the national association of insurance	1805
commissioners' examiner handbook.	1806

(F) The superintendent may issue any order appropriate in	1807
voluntary dissolution proceedings or commence delinquency	1808
proceedings against a risk retention group not chartered in this	1809
state that does business in this state if the superintendent	1810
finds, after an examination of the group under division (E) of	1811
this section, that its financial condition is impaired. A risk	1812
retention group that violates any provision of this chapter is	1813
subject to fines and penalties, including revocation of its right	1814
to do business in this state, applicable to licensed insurers	1815
generally. In addition to complying with the requirements of this	1816
section, any risk retention group operating in this state prior to	1817
enactment of this section shall comply with division (A)(1) of	1818
this section within thirty days after October 26, 1989.	1819

Section 2.  That existing sections 3901.021, 3905.04,	1820
3905.041, 3905.05, 3905.06, 3905.061, 3905.07, 3905.071, 3905.12,	1821
3905.14, 3905.16, 3905.20, 3905.30, 3905.35, 3905.36, 3905.40,	1822
3905.41, 3905.481, 3905.483, 3905.484, 3905.841, 3905.85, 3905.86,	1823
3905.862, 3905.87, 3905.88, 3905.89, 3905.932, and 3960.03 and	1824
sections 3905.10 and 3905.482 of the Revised Code are hereby	1825
repealed.	1826

Section 3. Notwithstanding section 3905.481 of the Revised	1827
Code, the Superintendent of Insurance shall establish a prorated	1828
phase-in schedule for the completion of continuing education	1829
requirements for the first license renewal period after the	1830
effective date of this act.	1831

Section 4. For the time period beginning on the effective	1832
date of this act and ending on June 1, 2010, notwithstanding	1833
section 3905.40 of the Revised Code, each applicant for licensure	1834
as an insurance agent except applicants for licensure as surety	1835
bail bond agents and surplus line brokers shall pay ten dollars	1836
for each line of authority requested. Fees collected under this	1837
division shall be credited to the department of insurance	1838
operating fund created in section 3901.021 of the Revised Code.	1839

Section 5. (A) The Superintendent of Insurance may delay the	1840
implementation and enforcement of the requirements of sections	1841
3901.021, 3905.04, 3905.041, 3905.05, 3905.051, 3905.06,	1842
3905.061, 3905.07, 3905.071, 3905.10, 3905.12, 3905.16, 3905.20,	1843
3905.30, 3905.35, 3905.40, 3905.41, 3905.481, 3905.482,	1844
3905.483, 3905.484, 3905.841, 3905.85, 3905.86, 3905.862,	1845
3905.87, 3905.88, 3905.89, and 3905.932 of the Revised Code as	1846
amended, enacted, or repealed by this act until the earlier of	1847
January 1, 2011, or thirty days after the Superintendent of	1848
Insurance determines that the Department of Insurance is able to	1849
implement those requirements and places a notification of that	1850
determination on the Department's web site.	1851

(B) The Superintendent shall continue to enforce requirements	1852
of the sections listed in division (A) of this Section, as they	1853
existed immediately prior to the effective date of this act, until	1854
the Superintendent implements requirements amended, enacted, or	1855
repealed by this act pursuant to division (A) of this Section.	1856