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To amend sections 1751.33, 1753.33, 3901.021, | 1 |
3903.81, 3903.83, 3905.04, 3905.041, 3905.05, | 2 |
3905.06, 3905.061, 3905.07, 3905.071, 3905.12, | 3 |
3905.14, 3905.16, 3905.20, 3905.30, 3905.35, | 4 |
3905.36, 3905.40, 3905.41, 3905.481, 3905.483, | 5 |
3905.484, 3905.841, 3905.85, 3905.86, 3905.862, | 6 |
3905.87, 3905.88, 3905.89, 3905.932, 3924.01, | 7 |
3924.09, 3924.10, 3929.30, 3956.04, 3960.03, and | 8 |
5725.18, to enact section 3905.051, and to repeal | 9 |
sections 3905.10, 3905.482, and 3929.301 of the | 10 |
Revised Code to make changes to the law governing | 11 |
the licensure and regulation of insurance agents, | 12 |
certain insurance-related taxes, the Ohio Life and | 13 |
Health Insurance Guaranty Association, Ohio health | 14 |
care plans, risk-based capital reports, reporting | 15 |
requirements for insurers, and notice requirements | 16 |
for health insuring corporations, to temporarily | 17 |
extend the time after employment during which a | 18 |
person can keep the person's health insurance | 19 |
coverage, and to declare an emergency. | 20 |
Section 1. That sections 1751.33, 1753.33, 3901.021, 3903.81, | 21 |
3903.83, 3905.04, 3905.041, 3905.05, 3905.06, 3905.061, 3905.07, | 22 |
3905.071, 3905.12, 3905.14, 3905.16, 3905.20, 3905.30, 3905.35, | 23 |
3905.36, 3905.40, 3905.41, 3905.481, 3905.483, 3905.484, 3905.841, | 24 |
3905.85, 3905.86, 3905.862, 3905.87, 3905.88, 3905.89, 3905.932, | 25 |
3924.01, 3924.09, 3924.10, 3929.30, 3956.04, 3960.03, and 5725.18 | 26 |
be amended and section 3905.051 of the Revised Code be enacted to | 27 |
read as follows: | 28 |
Sec. 1751.33. (A) Each health insuring corporation shall | 29 |
provide to its subscribers | 30 |
insuring corporation, its method of operation, its service area, | 31 |
its most recent provider list, its complaint procedure established | 32 |
pursuant to section 1751.19 of the Revised Code, and a description | 33 |
of its utilization review, internal review, and external review | 34 |
processes established under sections 1751.77 to 1751.85 of the | 35 |
Revised Code. A health insuring corporation may satisfy this | 36 |
requirement by delivering to its subscribers a document that | 37 |
identifies a web site where the subscriber may view this | 38 |
information. At the request of | 39 |
subscriber, a health insuring corporation | 40 |
information in hard copy by
| 41 |
A health insuring corporation providing basic health care services | 42 |
or supplemental health care services shall provide this | 43 |
information annually. A health insuring corporation providing only | 44 |
specialty health care services shall provide this information | 45 |
biennially. | 46 |
(B) Each health insuring corporation, upon the request of a | 47 |
subscriber, shall make available its most recent statutory | 48 |
financial statement. | 49 |
Sec. 1753.33. (A) For purposes of sections 1753.31 to | 50 |
1753.43 of the Revised Code, a "company action level event" is any | 51 |
of the following events: | 52 |
(1) A health insuring corporation's filing of an RBC report | 53 |
that indicates that the health insuring corporation's total | 54 |
adjusted capital is greater than or equal to its regulatory action | 55 |
level RBC but less than its company action level RBC; | 56 |
(2) A health insuring corporation's filing of an RBC report | 57 |
that indicates that the health insuring corporation's total | 58 |
adjusted capital is greater than or equal to its company action | 59 |
level RBC but less than the product of its authorized control | 60 |
level RBC and 3.0, and that triggers the trend test determined in | 61 |
accordance with the trend test calculation included in the RBC | 62 |
instructions; | 63 |
(3) The notification by the superintendent of insurance to a | 64 |
health insuring corporation of an adjustment to the health | 65 |
insuring corporation's RBC report, which adjusted RBC report shows | 66 |
the health insuring corporation's total adjusted capital within | 67 |
the range described in division (A)(1) of this section, provided | 68 |
that the health insuring corporation does not challenge the | 69 |
adjusted RBC report under section 1753.37 of the Revised Code; | 70 |
| 71 |
insuring corporation, following the hearing required under section | 72 |
1753.37 of the Revised Code, that the superintendent has rejected | 73 |
the health insuring corporation's challenge to an adjusted RBC | 74 |
report showing the health insuring corporation's total adjusted | 75 |
capital within the range described in division (A)(1) of this | 76 |
section. | 77 |
(B) In the case of a company action level event, the health | 78 |
insuring corporation shall prepare and submit to the | 79 |
superintendent an RBC plan that shall do all of the following: | 80 |
(1) Identify the conditions that contributed to the company | 81 |
action level event; | 82 |
(2) Contain proposals of corrective actions that the health | 83 |
insuring corporation intends to take to eliminate the conditions | 84 |
contributing to the company action level event; | 85 |
(3) Provide projections of the health insuring corporation's | 86 |
financial results in the current year and at least the two | 87 |
succeeding years, both in the absence of the proposed corrective | 88 |
actions and giving effect to the proposed corrective actions. The | 89 |
projections shall include projections of statutory balance sheets, | 90 |
operating income, net income, capital, surplus, and RBC levels. | 91 |
Projections for both new and renewal business may include separate | 92 |
projections for each major line of business, and may separately | 93 |
identify each significant income, expense, and benefit component | 94 |
of the projection. | 95 |
(4) Identify the key assumptions impacting the health | 96 |
insuring corporation's projections made pursuant to division | 97 |
(B)(3) of this section, and describe the sensitivity of the | 98 |
projections to the assumptions; | 99 |
(5) Identify the quality of, and problems associated with, | 100 |
the health insuring corporation's business, including, but not | 101 |
limited to, its assets, anticipated business growth and associated | 102 |
surplus strain, extraordinary exposure to risk, mix of business, | 103 |
and the use of reinsurance, if any, in each case. | 104 |
(C) The RBC plan shall be submitted within forty-five days | 105 |
after a company action level event. However, if a health insuring | 106 |
corporation has challenged an adjusted RBC report pursuant to | 107 |
section 1753.37 of the Revised Code, an RBC plan need not be | 108 |
submitted unless the superintendent rejects the challenge | 109 |
following the hearing required under section 1753.37 of the | 110 |
Revised Code. If the superintendent rejects the health insuring | 111 |
corporation's challenge, the RBC plan shall be submitted within | 112 |
forty-five days after the superintendent's notification to the | 113 |
health insuring corporation of the superintendent's rejection of | 114 |
the challenge. | 115 |
(D)(1) Within sixty days after a health insuring corporation | 116 |
submits an RBC plan to the superintendent, the superintendent | 117 |
shall either require the health insuring corporation to implement | 118 |
the RBC plan or notify the health insuring corporation that the | 119 |
RBC plan is unsatisfactory in the judgment of the superintendent. | 120 |
If the superintendent has determined that the RBC plan is | 121 |
unsatisfactory, the notification to the health insuring | 122 |
corporation shall set forth the reasons for the determination, and | 123 |
may set forth proposed revisions that will render the RBC plan | 124 |
satisfactory in the judgment of the superintendent. Upon its | 125 |
receipt of such notification from the superintendent, the health | 126 |
insuring corporation shall prepare and submit a revised RBC plan, | 127 |
which may incorporate by reference any revisions proposed by the | 128 |
superintendent. | 129 |
(2) If a health insuring corporation challenges, under | 130 |
section 1753.37 of the Revised Code, a notification by the | 131 |
superintendent that the health insuring corporation's RBC plan or | 132 |
a revised RBC plan is unsatisfactory, submission of a revised RBC | 133 |
plan need not be made unless the superintendent rejects the health | 134 |
insuring corporation's challenge and notifies the health insuring | 135 |
corporation of this rejection. A health insuring corporation shall | 136 |
submit a revised RBC plan to the superintendent within forty-five | 137 |
days after receiving notification from the superintendent that its | 138 |
RBC plan is unsatisfactory, or that its challenge to a | 139 |
notification made under division (D)(1) of this section has been | 140 |
rejected, as applicable. | 141 |
(E) Notwithstanding division (D) of this section, if the | 142 |
superintendent notifies a health insuring corporation that its RBC | 143 |
plan or revised RBC plan is unsatisfactory, the superintendent | 144 |
may, at the superintendent's discretion but subject to the health | 145 |
insuring corporation's right to a hearing under section 1753.37 of | 146 |
the Revised Code, specify in the notification that the | 147 |
notification constitutes a regulatory action level event. | 148 |
(F) Every domestic health insuring corporation that submits | 149 |
an RBC plan or revised RBC plan to the superintendent shall file a | 150 |
copy of the RBC plan or revised RBC plan with the insurance | 151 |
regulatory authority of every state in which the health insuring | 152 |
corporation is authorized to do business upon receiving the | 153 |
insurance regulatory authority's written request for a copy of the | 154 |
plan, if the state has a confidentiality law substantially similar | 155 |
to section 1753.38 of the Revised Code. The health insuring | 156 |
corporation shall file the copy in that state no later than the | 157 |
later of: | 158 |
(1) Fifteen days after receiving the request for a copy of | 159 |
the plan; | 160 |
(2) The date on which the RBC plan or revised RBC plan is | 161 |
filed pursuant to division (C) or (D) of this section. | 162 |
Sec. 3901.021. (A) Three-fourths of all appointment and | 163 |
other fees collected under
| 164 |
section 3905.20 of the Revised Code shall be paid into the state | 165 |
treasury to the credit of the department of insurance operating | 166 |
fund, which is hereby created. The remaining one-fourth shall be | 167 |
credited to the general revenue fund. Other revenues collected by | 168 |
the superintendent of insurance, such as registration fees for | 169 |
sponsored seminars or conferences and grants from private | 170 |
entities, shall be paid into the state treasury to the credit of | 171 |
the department of insurance operating fund. | 172 |
(B) Seven-tenths of all fees collected under divisions | 173 |
(A)(2), (A)(3), and (A)(6) of section 3905.40 of the Revised Code | 174 |
shall be paid into the state treasury to the credit of the | 175 |
department of insurance operating fund. The remaining three-tenths | 176 |
shall be credited to the general revenue fund. | 177 |
(C) All operating expenses of the department of insurance | 178 |
except those expenses defined under section 3901.07 of the Revised | 179 |
Code shall be paid from the department of insurance operating | 180 |
fund. | 181 |
Sec. 3903.81. As used in sections 3903.81 to 3903.93 of the | 182 |
Revised Code: | 183 |
(A) "Adjusted RBC report" means an RBC report that has been | 184 |
adjusted by the superintendent of insurance in accordance with | 185 |
division (C) of section 3903.82 of the Revised Code. | 186 |
(B) "Authorized control level RBC" means the number | 187 |
determined under the risk-based capital formula in accordance with | 188 |
the RBC instructions. | 189 |
(C) "Company action level RBC" means the product of 2.0 and | 190 |
an insurer's authorized control level RBC. | 191 |
(D) "Corrective order" means an order issued by the | 192 |
superintendent of insurance in accordance with division (B)(3) of | 193 |
section 3903.84 of the Revised Code specifying corrective actions | 194 |
that the superintendent has determined are required. | 195 |
(E) "Domestic insurer" means any insurance company organized | 196 |
under Chapter 3907. or 3925. of the Revised Code. | 197 |
(F) "Foreign insurer" means any insurance company licensed | 198 |
under section 3909.01 or 3927.01 of the Revised Code. | 199 |
(G) "Life or health insurer" means any insurance company | 200 |
licensed under section 3907.08 or 3909.01 of the Revised Code, or | 201 |
a company possessing a certificate of authority pursuant to | 202 |
section 3929.01 of the Revised Code that writes only accident and | 203 |
health insurance. | 204 |
(H) "Mandatory control level RBC" means the product of .70 | 205 |
and an insurer's authorized control level RBC. | 206 |
(I) "NAIC" means the national association of insurance | 207 |
commissioners. | 208 |
(J) "Negative trend" means a negative trend over a period of | 209 |
time for a life or health insurer as determined in accordance with | 210 |
the trend test calculation included in the RBC instructions. | 211 |
(K) "Property and casualty insurer" means any insurance | 212 |
company that has a certificate of authority pursuant to section | 213 |
3929.01 of the Revised Code. "Property and casualty insurer" does | 214 |
not include monoline mortgage guarantee insurers, financial | 215 |
guarantee insurers, or title insurers. | 216 |
(L) "RBC" means risk-based capital. | 217 |
(M) "RBC instructions" means the RBC report, including | 218 |
risk-based capital instructions, as adopted by the NAIC and as | 219 |
amended by the NAIC from time to time in accordance with the | 220 |
procedures adopted by the NAIC. | 221 |
222 | |
223 | |
instructions" shall also include any modifications adopted by the | 224 |
superintendent, as the superintendent considers to be necessary. | 225 |
(N) "RBC level" means an insurer's company action level RBC, | 226 |
regulatory action level RBC, authorized control level RBC, or | 227 |
mandatory control level RBC. | 228 |
(O) "RBC plan" means a comprehensive financial plan | 229 |
containing the elements specified in division (B) of section | 230 |
3903.83 of the Revised Code. | 231 |
(P) "Revised RBC plan" means an RBC plan rejected by the | 232 |
superintendent of insurance and then revised by an insurer with or | 233 |
without incorporating the superintendent of insurance's | 234 |
recommendation. | 235 |
(Q) "RBC report" means the report required by section 3903.82 | 236 |
of the Revised Code. | 237 |
(R) "Regulatory action level RBC" means the product of 1.5 | 238 |
and an insurer's authorized control level RBC. | 239 |
(S) "Total adjusted capital" means the sum of both of the | 240 |
following: | 241 |
(1) An insurer's statutory capital and surplus as determined | 242 |
in accordance with the statutory accounting applicable to the | 243 |
annual statements prepared on a form adopted under section 3901.77 | 244 |
of the Revised Code, as required to be filed by sections 3907.19, | 245 |
3909.06, and 3929.30 of the Revised Code; | 246 |
(2) Such other items, if any, as the RBC instructions may | 247 |
provide. | 248 |
Sec. 3903.83. (A) For purposes of sections 3903.81 to | 249 |
3903.93 of the Revised Code, a "company action level event" is any | 250 |
of the following events: | 251 |
(1) A domestic or foreign insurer's filing of an RBC report | 252 |
that indicates that the insurer's total adjusted capital is | 253 |
greater than or equal to its regulatory action level RBC but less | 254 |
than its company action level RBC; | 255 |
(2) A life or health insurer's filing of an RBC report that | 256 |
indicates that the insurer's total adjusted capital is greater | 257 |
than or equal to its company action level RBC but less than the | 258 |
product of 2.5 and its authorized control level RBC, and that | 259 |
indicates a negative trend; | 260 |
(3) A property and casualty insurer's filing of an RBC report | 261 |
that indicates that the insurer's total adjusted capital is | 262 |
greater than or equal to its company action level RBC but less | 263 |
than the product of its authorized control level RBC and 3.0, and | 264 |
that triggers the trend test determined in accordance with the | 265 |
trend test calculation included in the property and casualty RBC | 266 |
instructions; | 267 |
(4) The notification by the superintendent of insurance to an | 268 |
insurer of an adjustment to the insurer's RBC report, which | 269 |
adjusted RBC report shows the insurer's total adjusted capital | 270 |
within the range described in either division (A)(1) or (2) of | 271 |
this section, provided that the insurer does not challenge the | 272 |
adjusted RBC report under section 3903.87 of the Revised Code; | 273 |
| 274 |
following the hearing required under section 3903.87 of the | 275 |
Revised Code, that the superintendent has rejected the insurer's | 276 |
challenge to an adjusted RBC report showing the insurer's total | 277 |
adjusted capital within the range described in either division | 278 |
(A)(1) or (2) of this section. | 279 |
(B) In the case of a company action level event, the insurer | 280 |
shall prepare and submit to the superintendent an RBC plan that | 281 |
shall: | 282 |
(1) Identify the conditions that contributed to the company | 283 |
action level event; | 284 |
(2) Contain proposals of corrective actions that the insurer | 285 |
intends to take to eliminate the conditions leading to the company | 286 |
action level event; | 287 |
(3) Provide projections of the insurer's financial results in | 288 |
the current year and at least the four succeeding years, both in | 289 |
the absence of the proposed corrective actions and giving effect | 290 |
to the proposed corrective actions. The projections shall include | 291 |
projections of statutory operating income, net income, capital, | 292 |
and surplus. Projections for both new and renewal business may | 293 |
include separate projections for each major line of business, and | 294 |
may separately identify each significant income, expense, and | 295 |
benefit component of the projection. | 296 |
(4) Identify the key assumptions impacting the insurer's | 297 |
projections made pursuant to division (B)(3) of this section, and | 298 |
describe the sensitivity of the projections to the assumptions; | 299 |
(5) Identify the quality of, and problems associated with, | 300 |
the insurer's business, including, but not limited to, its assets, | 301 |
anticipated business growth and associated surplus strain, | 302 |
extraordinary exposure to risk, mix of business, and use of | 303 |
reinsurance. | 304 |
(C) The RBC plan shall be submitted within forty-five days | 305 |
after a company action level event. However, if an insurer has | 306 |
challenged an adjusted RBC report pursuant to section 3903.87 of | 307 |
the Revised Code, the RBC plan need not be submitted until after | 308 |
the hearing required under section 3903.87 of the Revised Code. If | 309 |
the superintendent rejects the insurer's challenge, the RBC plan | 310 |
shall be submitted within forty-five days after the | 311 |
superintendent's notification to the insurer of the rejection of | 312 |
the challenge. | 313 |
(D)(1) Within sixty days after an insurer submits an RBC plan | 314 |
to the superintendent, the superintendent shall either require the | 315 |
insurer to implement the RBC plan or shall notify the insurer that | 316 |
the RBC plan is unsatisfactory in the judgment of the | 317 |
superintendent. If the superintendent has determined that the RBC | 318 |
plan is unsatisfactory, the notification to the insurer shall set | 319 |
forth the reasons for the determination, and may set forth | 320 |
proposed revisions that will render the RBC plan satisfactory in | 321 |
the judgment of the superintendent. Upon such notification from | 322 |
the superintendent, the insurer shall prepare and submit a revised | 323 |
RBC plan, which may incorporate by reference any revisions | 324 |
proposed by the superintendent. | 325 |
(2) If an insurer challenges, under section 3903.87 of the | 326 |
Revised Code, a notification from the Superintendent that the | 327 |
insurer's RBC plan or a revised RBC plan is unsatisfactory, | 328 |
submission of a revised RBC plan need not be made unless the | 329 |
superintendent rejects the insurer's challenge following the | 330 |
hearing required by section 3903.87 of the Revised Code and then | 331 |
notifies the insurer of this rejection. | 332 |
(3) An insurer shall submit a revised RBC plan to the | 333 |
superintendent within forty-five days after receiving notification | 334 |
from the superintendent that its RBC plan is unsatisfactory, or, | 335 |
that its challenge to a notification made under division (D)(1) of | 336 |
this section has been rejected, as applicable. | 337 |
(E) Notwithstanding division (D) of this section, if the | 338 |
superintendent notifies an insurer that its RBC plan or revised | 339 |
RBC plan is unsatisfactory, the superintendent may, at the | 340 |
superintendent's discretion, but subject to the insurer's right to | 341 |
a hearing under section 3903.87 of the Revised Code, specify in | 342 |
the notification that the notification constitutes a regulatory | 343 |
action level event. | 344 |
(F) Every domestic insurer that submits an RBC plan or | 345 |
revised RBC plan to the superintendent shall file a copy of the | 346 |
RBC plan or revised RBC plan with the insurance regulatory | 347 |
authority of every state in which the insurer is authorized to do | 348 |
business upon receiving the insurance regulatory authority's | 349 |
written request for a copy of the plan, if the state has a | 350 |
confidentiality law with provisions substantially similar to those | 351 |
set forth in divisions (A) and (B) of section 3903.88 of the | 352 |
Revised Code. The insurer shall file the copy in that state no | 353 |
later than the later of: | 354 |
(1) Fifteen days after receiving the request for a copy of | 355 |
the plan; | 356 |
(2) The date on which the RBC plan or revised RBC plan is | 357 |
filed pursuant to division (C) or (D) of this section. | 358 |
Sec. 3905.04. (A) Except as otherwise provided in this | 359 |
section or in section 3905.041 of the Revised Code, a resident | 360 |
individual applying for an insurance agent license for any of the | 361 |
lines of authority described in division (B) of this section shall | 362 |
take and pass a written examination prior to application for | 363 |
licensure. The examination shall test the knowledge of the | 364 |
individual with respect to the lines of authority for which | 365 |
application | 366 |
insurance agent, and the insurance laws of this state. Before | 367 |
admission to the examination, each individual shall pay the | 368 |
nonrefundable examination fee | 369 |
370 |
(B) The examination described in division (A) of this section | 371 |
shall be required for the following lines of authority: | 372 |
(1) Any of the lines of authority set forth in divisions | 373 |
(B)(1) to | 374 |
(2) Title insurance; | 375 |
(3) Surety bail bonds as provided in sections 3905.83 to | 376 |
3905.95 of the Revised Code; | 377 |
(4) Any other line of authority designated by the | 378 |
superintendent of insurance. | 379 |
(C) An individual shall not be permitted to take the | 380 |
examination described in division (A) of this section unless one | 381 |
382 |
(1) The individual has earned a bachelor's or associate's | 383 |
degree in insurance from an accredited institution. | 384 |
(2) The individual has earned a professional designation | 385 |
approved by the superintendent. | 386 |
(3) The individual has completed, for each line of authority | 387 |
for which the individual has applied, twenty hours of study in a | 388 |
program of insurance education approved by the superintendent, in | 389 |
consultation with the insurance agent education advisory council, | 390 |
under criteria established by the superintendent. Division (C) of | 391 |
this section does not apply with respect to title insurance or any | 392 |
other line of authority designated by the superintendent. | 393 |
(D) An individual who fails to appear for an examination as | 394 |
scheduled, or fails to pass an examination, may reapply for the | 395 |
examination if the individual pays the required fee and submits | 396 |
any necessary forms prior to being rescheduled for the | 397 |
examination. | 398 |
(E)(1) The superintendent may, in accordance with Chapter | 399 |
119. of the Revised Code, adopt any rule necessary for the | 400 |
implementation of this section. | 401 |
(2) The superintendent may make any necessary arrangements, | 402 |
including contracting with an outside testing service, for the | 403 |
administration of the examinations and the collection of the fees | 404 |
required by this section. | 405 |
Sec. 3905.041. (A)(1) An individual who applies for a | 406 |
resident insurance agent license in this state within ninety days | 407 |
after establishing a principal place of residence or principal | 408 |
place of business in this state shall not be required under | 409 |
section 3905.04 of the Revised Code to complete a program of | 410 |
insurance education or to pass a written examination if the | 411 |
individual has paid all applicable fees required under this | 412 |
chapter and if either of the following applies: | 413 |
(a) The individual is currently licensed in another state and | 414 |
is in good standing for the line or lines of authority requested. | 415 |
(b) The individual was previously licensed in another state, | 416 |
the individual's application for a resident insurance agent | 417 |
license in this state is received within ninety days after the | 418 |
cancellation of the individual's previous license, and, at the | 419 |
time of license cancellation, the individual was in good standing | 420 |
for the line or lines of authority requested. | 421 |
(2) To determine an applicant's licensure status and standing | 422 |
423 | |
utilize the producer database maintained by the NAIC or its | 424 |
affiliates or subsidiaries. If that information is not available | 425 |
on the producer database, the superintendent may require | 426 |
427 |
(B) An individual who applies for a temporary insurance agent | 428 |
license in this state shall not be required under section 3905.04 | 429 |
of the Revised Code to complete any prelicensing education or to | 430 |
pass a written examination. | 431 |
(C) The superintendent may exempt any limited lines insurance | 432 |
from the examination requirement of section 3905.04 of the Revised | 433 |
Code. | 434 |
Sec. 3905.05. (A) A natural person shall apply for a | 435 |
resident insurance agent license by submitting to the | 436 |
superintendent of insurance the uniform application or any other | 437 |
application prescribed by the superintendent, any additional | 438 |
information required by the superintendent, and a declaration made | 439 |
under penalty of refusal, suspension, or revocation of the | 440 |
license, that the statements made in the application are true, | 441 |
correct, and complete to the best of the applicant's knowledge and | 442 |
belief and paying any applicable fees required under this chapter. | 443 |
A person who applies for a resident insurance agent license | 444 |
with a variable life-variable annuity line of authority shall | 445 |
include in the person's application the person's individual | 446 |
central registration depository number. | 447 |
The applicant shall also | 448 |
records check
| 449 |
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460 | |
section 3905.051 of the Revised Code. | 461 |
(B) A business entity acting as an insurance agent shall | 462 |
apply for a resident insurance agent license by submitting to the | 463 |
superintendent | 464 |
application or any other application prescribed by the | 465 |
superintendent and paying any applicable fees required under this | 466 |
chapter. | 467 |
(C) The superintendent may require an applicant to submit any | 468 |
document reasonably necessary to verify the information contained | 469 |
in an application. | 470 |
Sec. 3905.051. As used in this section: | 471 |
(A) "Applicant" means a natural person applying for either of | 472 |
the following: | 473 |
(1) A resident license as an insurance agent or surety bail | 474 |
bond agent; | 475 |
(2) An additional line of authority under an existing | 476 |
resident insurance agent license if a criminal record check has | 477 |
not been obtained within the last twelve months for insurance | 478 |
license purposes. | 479 |
(B) "Fingerprint" means an impression of the lines on the | 480 |
finger taken for the purpose of identification. The impression may | 481 |
be electronic or converted to an electronic format. | 482 |
(C) Each applicant shall consent to a criminal record check | 483 |
in accordance with this section and shall submit a full set of | 484 |
fingerprints to the superintendent of insurance for that purpose. | 485 |
(D) The superintendent of insurance shall request the | 486 |
superintendent of the bureau of criminal identification and | 487 |
investigation to conduct a criminal records check based on the | 488 |
applicant's fingerprints. The superintendent of insurance shall | 489 |
request that criminal record information from the federal bureau | 490 |
of investigation be obtained as part of the criminal records | 491 |
check. | 492 |
(E) The superintendent of insurance may contract for the | 493 |
collection and transmission of fingerprints authorized under this | 494 |
section. The superintendent may order the fee for collecting and | 495 |
transmitting fingerprints to be payable directly to the contractor | 496 |
by the applicant. The superintendent may agree to a reasonable | 497 |
fingerprinting fee to be charged by the contractor. Any fee | 498 |
required under this section shall be paid by the applicant. | 499 |
(F) The superintendent may receive criminal record | 500 |
information directly in lieu of the bureau of criminal | 501 |
identification and investigation that submitted the fingerprints | 502 |
to the federal bureau of investigation. | 503 |
(G) The superintendent shall treat and maintain an | 504 |
applicant's fingerprints and any criminal record information | 505 |
obtained under this section as confidential and shall apply | 506 |
security measures consistent with the criminal justice information | 507 |
services division of the federal bureau of investigation standards | 508 |
for the electronic storage of fingerprints and necessary | 509 |
identifying information and limit the use of records solely to the | 510 |
purposes authorized by this section. The fingerprints and any | 511 |
criminal record information are not subject to subpoena other than | 512 |
one issued pursuant to a criminal investigation, are confidential | 513 |
by law and privileged, are not subject to discovery, and are not | 514 |
admissible in any private civil action. | 515 |
(H) This section does not apply to an agent applying for | 516 |
renewal of an existing resident or nonresident license in this | 517 |
state. | 518 |
Sec. 3905.06. (A)(1) The superintendent of insurance shall | 519 |
issue a resident insurance agent license to an individual | 520 |
applicant whose home state is Ohio upon submission of a completed | 521 |
application and payment of any applicable fee required under this | 522 |
chapter, if the superintendent finds all of the following: | 523 |
(a) The applicant is at least eighteen years of age. | 524 |
(b) The applicant has not committed any act that is a ground | 525 |
for the denial, suspension, or revocation of a license under | 526 |
section 3905.14 of the Revised Code. | 527 |
(c) If required under section 3905.04 of the Revised Code, | 528 |
the applicant has completed a program of insurance education for | 529 |
each line of authority for which the applicant has applied. | 530 |
(d) If required under section 3905.04 of the Revised Code, | 531 |
the applicant has passed an examination for each line of authority | 532 |
for which the applicant has applied. | 533 |
(e) Any applicant applying for variable life-variable annuity | 534 |
line of authority is registered with the financial industry | 535 |
regulatory authority (FINRA) as a registered representative after | 536 |
having passed at least one of the following examinations | 537 |
administered by the FINRA: the series 6 examination, the series 7 | 538 |
examination, the series 63 examination, the series 66 examination, | 539 |
or any other FINRA examination approved by the superintendent. | 540 |
(f) If required under section 3905.051 of the Revised Code, | 541 |
the applicant has consented to a criminal records check and the | 542 |
results of the applicant's criminal records check are determined | 543 |
to be satisfactory by the superintendent. | 544 |
(g) The applicant is a United States citizen or has provided | 545 |
proof of having legal authorization to work in the United States. | 546 |
(h) The applicant is of good reputation and character, is | 547 |
honest and trustworthy, and is otherwise suitable to be licensed. | 548 |
(2) The superintendent shall issue a resident insurance agent | 549 |
license to a business entity applicant upon submission of a | 550 |
completed application and payment of any applicable fees required | 551 |
under this chapter if the superintendent finds all of the | 552 |
following: | 553 |
(a) The applicant either is domiciled in Ohio or maintains | 554 |
its principal place of business in Ohio. | 555 |
(b) The applicant has designated a licensed insurance agent | 556 |
who will be responsible for the applicant's compliance with the | 557 |
insurance laws of this state. | 558 |
(c) The applicant has not committed any act that is a ground | 559 |
for the denial, suspension, or revocation of a license under | 560 |
section 3905.14 of the Revised Code. | 561 |
(d) The applicant has submitted any other documents requested | 562 |
by the superintendent. | 563 |
(B) An insurance agent license issued pursuant to division | 564 |
(A) of this section shall state the licensee's name, the license | 565 |
number, the date of issuance, the date the license expires, the | 566 |
line or lines of authority for which the licensee is qualified, | 567 |
and any other information the superintendent deems necessary. | 568 |
A licensee may be qualified for any of the following lines of | 569 |
authority: | 570 |
(1) Life, which is insurance coverage on human lives, | 571 |
including benefits of endowment and annuities, and may include | 572 |
benefits in the event of death or dismemberment by accident and | 573 |
benefits for disability income; | 574 |
(2) Accident and health, which is insurance coverage for | 575 |
sickness, bodily injury, or accidental death, and may include | 576 |
benefits for disability income; | 577 |
(3) Property, which is insurance coverage for the direct or | 578 |
consequential loss or damage to property of any kind; | 579 |
(4) Casualty, which is insurance coverage against legal | 580 |
liability, including coverage for death, injury, or disability or | 581 |
damage to real or personal property; | 582 |
(5) | 583 |
584 | |
585 |
| 586 |
coverage sold to individuals and families for noncommercial | 587 |
purposes; | 588 |
(6) Variable life and variable annuity products, which is | 589 |
insurance coverage provided under variable life insurance | 590 |
contracts and variable annuities; | 591 |
(7) Credit, which is limited line credit insurance; | 592 |
(8) Title, which is insurance coverage against loss or damage | 593 |
suffered by reason of liens against, encumbrances upon, defects | 594 |
in, or the unmarketability of, real property; | 595 |
(9) Surety bail bond, which is the authority set forth in | 596 |
sections 3905.83 to 3905.95 of the Revised Code; | 597 |
(10) Any other line of authority designated by the | 598 |
superintendent. | 599 |
(C) | 600 |
agent license shall | 601 |
602 | |
biennially for a renewal of the license on or before the last day | 603 |
of the licensee's birth month. A business entity seeking to renew | 604 |
a resident insurance agent license shall apply biennially for a | 605 |
renewal of the license on or before the date determined by the | 606 |
superintendent. The superintendent shall send a renewal notice to | 607 |
all licensees at least one month prior to the renewal date. | 608 |
Applications shall be submitted to the superintendent on | 609 |
forms prescribed by the superintendent. Each application shall be | 610 |
accompanied by a biennial renewal fee. The superintendent also may | 611 |
require an applicant to submit any document reasonably necessary | 612 |
to verify the information contained in the renewal application. | 613 |
(2) To be eligible for renewal, an individual applicant shall | 614 |
complete the continuing education requirements pursuant to section | 615 |
3905.481 of the Revised Code prior to the renewal date. | 616 |
(3) If an applicant submits a completed renewal application, | 617 |
qualifies for renewal pursuant to divisions (C)(1) and (2) of this | 618 |
section, and has not committed any act that is a ground for the | 619 |
refusal to issue, suspension of, or revocation of a license under | 620 |
section 3905.14 of the Revised Code, the superintendent shall | 621 |
renew the applicant's resident insurance agent license. | 622 |
(D) If an individual or business entity does not apply for | 623 |
the renewal of the individual or business entity's license on or | 624 |
before the license renewal date specified in division (C)(1) of | 625 |
this section, the individual or business entity may submit a late | 626 |
renewal application along with all applicable fees required under | 627 |
this chapter prior to the first day of the second month following | 628 |
the license renewal date. | 629 |
(E) A license issued under this section that is not renewed | 630 |
on or before its renewal date pursuant to division (C) of this | 631 |
section or its late renewal date pursuant to division (D) of this | 632 |
section automatically is suspended for nonrenewal on the first day | 633 |
of the second month following the renewal date. If a license is | 634 |
suspended for nonrenewal pursuant to this division, the individual | 635 |
or business entity is eligible to apply for reinstatement of the | 636 |
license within the twelve-month period following the date by which | 637 |
the license should have been renewed by complying with the | 638 |
reinstatement procedure established by the superintendent and | 639 |
paying all applicable fees required under this chapter. | 640 |
(F) A license that is suspended for nonrenewal that is not | 641 |
reinstated pursuant to division (E) of this section automatically | 642 |
is canceled unless the superintendent is investigating any | 643 |
allegations of wrongdoing by the agent or has initiated | 644 |
proceedings under Chapter 119. of the Revised Code. In that case, | 645 |
the license automatically is canceled after the completion of the | 646 |
investigation or proceedings unless the superintendent revokes the | 647 |
license. | 648 |
(G) An individual licensed as a resident insurance agent who | 649 |
is unable to comply with the license renewal procedures | 650 |
established under this section and who is unable to engage in the | 651 |
business of insurance due to military service, a long-term medical | 652 |
disability, or some other extenuating circumstance may request an | 653 |
extension of the renewal date of the individual's license. To be | 654 |
eligible for such an extension, the individual shall submit a | 655 |
written request with supporting documentation to the | 656 |
superintendent. At the superintendent's discretion, the | 657 |
superintendent may not consider a written request made after the | 658 |
renewal date of the license. | 659 |
Sec. 3905.061. (A) If a person licensed as an insurance | 660 |
agent under section 3905.06 of the Revised Code changes the | 661 |
person's address within the state, the person shall, within thirty | 662 |
days after making that change, file a change of address with the | 663 |
superintendent of insurance or the superintendent's designee. | 664 |
(B)(1) If a person licensed as an insurance agent under | 665 |
section 3905.06 of the Revised Code changes the person's home | 666 |
state | 667 |
making that change, file a change of address with the | 668 |
superintendent and provide the superintendent with certification | 669 |
from the new home state
| 670 |
(2) If | 671 |
(B)(1) of this section and the agent is in good standing with the | 672 |
superintendent, the agent's license shall be changed to that of a | 673 |
nonresident license and no fee or license application shall be | 674 |
required. A change in the residency status of an insurance agent | 675 |
license under this section does not change the license renewal | 676 |
date established by the initial licensure under section 3905.06 of | 677 |
the Revised Code. | 678 |
Sec. 3905.07. (A) The superintendent of insurance shall issue | 679 |
a nonresident insurance agent license to an applicant that is a | 680 |
nonresident person upon payment of all applicable fees required | 681 |
under this chapter if the superintendent finds all of the | 682 |
following: | 683 |
(1) The applicant is currently licensed as a resident and is | 684 |
in good standing in the applicant's home state. | 685 |
(2) The applicant | 686 |
687 | |
home state for the lines of authority requested in this state. | 688 |
(3) The applicant has submitted or has had transmitted to the | 689 |
superintendent the application for licensure that the applicant | 690 |
submitted to the applicant's home state or a completed applicable | 691 |
uniform application | 692 |
693 |
(4) The applicant has not committed any act that is a ground | 694 |
for the denial, suspension, or revocation of a license under | 695 |
section 3905.14 of the Revised Code. | 696 |
(5) The applicant is of good reputation and character, is | 697 |
honest and trustworthy, and is otherwise suitable to be licensed. | 698 |
(6) The applicant's home state issues nonresident insurance | 699 |
agent licenses to residents of this state on the same basis as set | 700 |
forth in division (A) of this section. | 701 |
(7) If the applicant is a business entity, the applicant has | 702 |
designated an insurance agent licensed as an agent in this state | 703 |
to be responsible for the applicant's compliance with the | 704 |
insurance laws of this state. | 705 |
(8) The applicant has submitted any other documents requested | 706 |
by the superintendent. | 707 |
(B) To determine an applicant's licensure and standing status | 708 |
in another state, the superintendent may utilize the producer | 709 |
database maintained by the NAIC or its affiliates or subsidiaries. | 710 |
If that information is not available on the producer database, the | 711 |
superintendent may require a certification letter from the | 712 |
applicant's home state. | 713 |
(C) | 714 |
insurance agent license shall | 715 |
716 | |
biennially for a renewal of the license on or before the last day | 717 |
of the licensee's birth month. A business entity seeking to renew | 718 |
a nonresident insurance agent license shall apply biennially for a | 719 |
renewal of the license on or before the date determined by the | 720 |
superintendent. | 721 |
Applications shall be submitted to the superintendent on | 722 |
forms prescribed by the superintendent. Each application shall be | 723 |
accompanied by a biennial renewal fee. The superintendent also may | 724 |
require an applicant to submit any document reasonably necessary | 725 |
to verify the information contained in the renewal application. | 726 |
(2) To be eligible for renewal, an applicant shall maintain a | 727 |
resident license in the applicant's home state for the lines of | 728 |
authority held in this state. | 729 |
(3) If an applicant submits a completed renewal application, | 730 |
qualifies for renewal pursuant to divisions (C)(1) and (2) of this | 731 |
section, and has not committed any act that is a ground for the | 732 |
refusal to issue, suspension of, or revocation of a license under | 733 |
section 3905.14 of the Revised Code, the superintendent shall | 734 |
renew the applicant's nonresident insurance agent license. | 735 |
(D) If an individual or business entity does not apply for | 736 |
the renewal of the individual or business entity's license on or | 737 |
before the license renewal date specified in division (C)(1) of | 738 |
this section, the individual or business entity may submit a late | 739 |
renewal application along with all applicable fees required under | 740 |
this chapter prior to the first day of the second month following | 741 |
the license renewal date. | 742 |
(E) A license issued under this section that is not renewed | 743 |
on or before its renewal date pursuant to division (C) of this | 744 |
section or its late renewal date pursuant to division (D) of this | 745 |
section automatically is suspended for nonrenewal on the first day | 746 |
of the second month following the renewal date. If a license is | 747 |
suspended for nonrenewal pursuant to this division, the individual | 748 |
or business entity is eligible to apply for a reinstatement of the | 749 |
license within the twelve-month period following the date by which | 750 |
the license should have been renewed by complying with the | 751 |
reinstatement procedure established by the superintendent and | 752 |
paying all applicable fees required under this chapter. | 753 |
(F) A license that is suspended for nonrenewal that is not | 754 |
reinstated pursuant to division (E) of this section automatically | 755 |
is canceled unless the superintendent is investigating any | 756 |
allegations of wrongdoing by the agent or has initiated | 757 |
proceedings under Chapter 119. of the Revised Code. In that case, | 758 |
the license automatically is canceled after the completion of the | 759 |
investigation or proceedings unless the superintendent revokes the | 760 |
license. | 761 |
(G) An individual licensed as a nonresident insurance agent | 762 |
who is unable to comply with the license renewal procedures | 763 |
established under this section and who is unable to engage in the | 764 |
business of insurance due to military service, a long-term medical | 765 |
disability, or some other extenuating circumstance may request an | 766 |
extension of the renewal date of the individual's license. To be | 767 |
eligible for such an extension, the individual shall submit a | 768 |
written request with supporting documentation to the | 769 |
superintendent. At the superintendent's discretion, the | 770 |
superintendent may not consider a written request made after the | 771 |
renewal date of the license. | 772 |
| 773 |
nonresident person licensed as a surplus lines producer in the | 774 |
applicant's home state shall receive a nonresident surplus lines | 775 |
broker license pursuant to division (A) of this section. Nothing | 776 |
in this section otherwise affects or supersedes any provision of | 777 |
sections 3905.30 to 3905.37 of the Revised Code. | 778 |
Sec. 3905.071. (A)(1) If a nonresident person licensed as a | 779 |
nonresident insurance agent under section 3905.07 of the Revised | 780 |
Code changes the person's address within the person's state of | 781 |
residence, the person shall, within thirty days after making that | 782 |
change, file a change of address with the superintendent of | 783 |
insurance or the superintendent's designee. | 784 |
(2) If a nonresident person licensed as a nonresident | 785 |
insurance agent under section 3905.07 of the Revised Code changes | 786 |
the person's home state | 787 |
788 | |
within thirty days after making that change, file a change of | 789 |
address with the superintendent and provide the superintendent | 790 |
with certification from the | 791 |
state | 792 |
(B) If a nonresident insurance agent complies with division | 793 |
(A) of this section and the agent is in good standing with the | 794 |
superintendent, no fee or license application shall be required. A | 795 |
change in the residency status of an agent's license under this | 796 |
section does not change the license renewal date established by | 797 |
the initial license under section 3905.07 of the Revised Code. | 798 |
Sec. 3905.12. (A) The superintendent of insurance may adopt | 799 |
rules in accordance with Chapter 119. of the Revised Code to do | 800 |
the following: | 801 |
(1) Establish procedures for the issuance | 802 |
renewal, extension, reactivation, and reinstatement of insurance | 803 |
agent licenses; | 804 |
(2) Provide for the issuance and renewal of limited authority | 805 |
licenses, and establish any prelicensing education, examination, | 806 |
or continuing education requirements the superintendent considers | 807 |
appropriate for such a license; | 808 |
(3) Establish a schedule of fees to be paid to the | 809 |
superintendent for extensions, late renewals, reinstatements, and | 810 |
reactivations of a license under this chapter and for credit card | 811 |
payments, electronic processing service, and manual processing | 812 |
service. Fees collected under this section shall be credited to | 813 |
the department of insurance operating fund created under section | 814 |
3901.021 of the Revised Code. | 815 |
(B) To assist the superintendent in carrying out the | 816 |
superintendent's duties under this chapter, the superintendent may | 817 |
contract with any nongovernmental entity, including the NAIC and | 818 |
its affiliates or subsidiaries, to perform any ministerial | 819 |
function related to insurance agent licensing, including the | 820 |
collection of fees, that the superintendent considers to be | 821 |
appropriate. | 822 |
Sec. 3905.14. (A) As used in sections 3905.14 to 3905.16 of | 823 |
the Revised Code: | 824 |
(1) "Insurance agent" includes a limited lines insurance | 825 |
agent, surety bail bond agent, and surplus line broker. | 826 |
(2) "Refusal to issue or renew" means the decision of the | 827 |
superintendent of insurance not to process either the initial | 828 |
application for a license as an agent or the renewal of such a | 829 |
license. | 830 |
(3) "Revocation" means the permanent termination of all | 831 |
authority to hold any license as an agent in this state. | 832 |
(4) "Surrender for cause" means the voluntary termination of | 833 |
all authority to hold any license as an agent in this state, in | 834 |
lieu of a revocation or suspension order. | 835 |
(5) "Suspension" means the termination of all authority to | 836 |
hold any license as an agent in this state, for either a specified | 837 |
period of time or an indefinite period of time and under any terms | 838 |
or conditions determined by the superintendent. | 839 |
(B) The superintendent may suspend, revoke, or refuse to | 840 |
issue or renew any license of an insurance agent, assess a civil | 841 |
penalty, or impose any other sanction or sanctions authorized | 842 |
under this chapter, for one or more of the following reasons: | 843 |
(1) Providing incorrect, misleading, incomplete, or | 844 |
materially untrue information in a license or appointment | 845 |
application; | 846 |
(2) Violating or failing to comply with any insurance law, | 847 |
rule, subpoena, consent agreement, or order of the superintendent | 848 |
or of the insurance authority of another state; | 849 |
(3) Obtaining, maintaining, or attempting to obtain or | 850 |
maintain a license through misrepresentation or fraud; | 851 |
(4) Improperly withholding, misappropriating, or converting | 852 |
any money or property received in the course of doing insurance | 853 |
business; | 854 |
(5) Intentionally misrepresenting the terms, benefits, value, | 855 |
cost, or effective dates of any actual or proposed insurance | 856 |
contract or application for insurance; | 857 |
(6) Having been convicted of or pleaded guilty or no contest | 858 |
to a felony regardless of whether a judgment of conviction has | 859 |
been entered by the court; | 860 |
(7) Having been convicted of or pleaded guilty or no contest | 861 |
to a misdemeanor that involves the misuse or theft of money or | 862 |
property belonging to another, fraud, forgery, dishonest acts, or | 863 |
breach of a fiduciary duty, that is based on any act or omission | 864 |
relating to the business of insurance, securities, or financial | 865 |
services, or that involves moral turpitude regardless of whether a | 866 |
judgment has been entered by the court; | 867 |
(8) Having admitted to committing, or having been found to | 868 |
have committed, any insurance unfair trade act or practice or | 869 |
insurance fraud; | 870 |
(9) Using fraudulent, coercive, or dishonest practices, or | 871 |
demonstrating incompetence, untrustworthiness, or financial | 872 |
irresponsibility, in the conduct of business in this state or | 873 |
elsewhere; | 874 |
(10) Having an insurance agent license, or its equivalent, | 875 |
denied, suspended, or revoked in any other state, province, | 876 |
district, or territory; | 877 |
(11) Forging or causing the forgery of an application for | 878 |
insurance or any document related to or used in an insurance | 879 |
transaction; | 880 |
(12) Improperly using notes | 881 |
equipment, or devices of any kind to complete an examination for | 882 |
an insurance agent license; | 883 |
(13) Knowingly accepting insurance business from an | 884 |
individual who is not licensed; | 885 |
(14) Failing to comply with any
| 886 |
official invoice, notice, assessment, or order directing payment | 887 |
of federal, state, or local income tax, state or local sales tax, | 888 |
or workers' compensation premiums; | 889 |
(15) Failing to timely submit an application for insurance. | 890 |
For purposes of division (B)(15) of this section, a submission is | 891 |
considered timely if it occurs within the time period expressly | 892 |
provided for by the insurer, or within seven days after the | 893 |
insurance agent accepts a premium or an order to bind coverage | 894 |
from a policyholder or applicant for insurance, whichever is | 895 |
later. | 896 |
(16) Failing to disclose to an applicant for insurance or | 897 |
policyholder upon accepting a premium or an order to bind coverage | 898 |
from the applicant or policyholder, that the person has not been | 899 |
appointed by the insurer; | 900 |
(17) Having any professional license or financial industry | 901 |
regulatory authority registration suspended or revoked | 902 |
903 |
(18) Having been subject to a cease and desist order or | 904 |
permanent injunction related to mishandling of funds or breach of | 905 |
fiduciary responsibilities or | 906 |
907 | |
unregistered activities; | 908 |
| 909 |
for insurance to designate the insurance agent or the insurance | 910 |
agent's spouse, parent, child, or sibling as the beneficiary of a | 911 |
policy or annuity sold by the insurance agent or of a policy or | 912 |
annuity for which the agent, at any time, was designated as the | 913 |
agent of record, unless the insurance agent or a relative of the | 914 |
insurance agent is the insured or applicant; | 915 |
| 916 |
for insurance to designate the insurance agent or the insurance | 917 |
agent's spouse, parent, child, or sibling as the owner or | 918 |
beneficiary of a trust funded, in whole or in part, by a policy or | 919 |
annuity sold by the insurance agent or by a policy or annuity for | 920 |
which the agent, at any time, was designated as the agent of | 921 |
record, unless the insurance agent or a relative of the insurance | 922 |
agent is the insured or applicant; | 923 |
(21) Failing to provide a written response to the department | 924 |
of insurance within twenty-one calendar days after receipt of any | 925 |
written inquiry from the department, unless a reasonable extension | 926 |
of time has been requested of, and granted by, the superintendent | 927 |
or the superintendent's designee; | 928 |
| 929 |
superintendent after being notified in writing by the | 930 |
superintendent of a scheduled interview, unless a reasonable | 931 |
extension of time has been requested of, and granted by, the | 932 |
superintendent or the superintendent's designee; | 933 |
(23) Transferring or placing insurance with an insurer other | 934 |
than the insurer expressly chosen by the applicant for insurance | 935 |
or policyholder without the consent of the applicant or | 936 |
policyholder or absent extenuating circumstances; | 937 |
| 938 |
insurance of the identity of the insurer or insurers, or the | 939 |
identity of any other insurance agent or licensee known to be | 940 |
involved in procuring, placing, or continuing the insurance for | 941 |
the policyholder or applicant, upon the binding of the coverage; | 942 |
| 943 |
failing to report an individual licensee's violation to the | 944 |
department when the violation was known or should have been known | 945 |
by one or more of the partners, officers, managers, or members of | 946 |
the business entity; | 947 |
| 948 |
business of insurance when the person knew or should have known | 949 |
that the document contained | 950 |
951 | |
Revised Code; | 952 |
| 953 |
or relationship to another person, agency, or entity, or using in | 954 |
any way a professional designation that has not been conferred | 955 |
upon the person by the appropriate accrediting organization; | 956 |
| 957 |
causing a premium loan or policy surrender to be made to or in the | 958 |
name of an insured or policyholder without that person's knowledge | 959 |
and written authorization; | 960 |
| 961 |
provided by an insurer after the insurer has terminated the | 962 |
authority of the licensee, if the use of such materials would | 963 |
cause a reasonable person to believe that the licensee was acting | 964 |
on behalf of or otherwise representing the insurer; | 965 |
| 966 |
placing, either directly or indirectly, any insurance policy when | 967 |
the person is not authorized under this chapter to engage in such | 968 |
activity; | 969 |
| 970 |
any product or service that offers benefits similar to insurance | 971 |
but is not regulated by the superintendent, without fully | 972 |
disclosing, orally and in writing, to the prospective purchaser | 973 |
that the product or service is not insurance and is not regulated | 974 |
by the superintendent; | 975 |
| 976 |
policyholder or applicant in a timely manner. For purposes of | 977 |
division (B) | 978 |
exists that a refund obligation is not fulfilled in a timely | 979 |
manner unless it is fulfilled within one of the following time | 980 |
periods: | 981 |
(a) Thirty days after the date the policyholder, applicant, | 982 |
or insurer takes or requests action resulting in a refund; | 983 |
(b) Thirty days after the date of the insurer's refund check, | 984 |
if the agent is expected to issue a portion of the total refund; | 985 |
(c) Forty-five days after the date of the agent's statement | 986 |
of account on which the refund first appears. | 987 |
The presumption may be rebutted by proof that the | 988 |
policyholder or applicant consented to the delay or agreed to | 989 |
permit the agent to apply the refund to amounts due for other | 990 |
coverages. | 991 |
| 992 |
rebating or offering to rebate, or unlawfully dividing or offering | 993 |
to divide, any commission, premium, or fee; | 994 |
| 995 |
procuring, receiving, or forwarding applications for insurance of | 996 |
any kind, other than life, or soliciting, placing, or effecting | 997 |
such insurance directly or indirectly upon or in connection with | 998 |
the property of the licensee or that of relatives, employers, | 999 |
employees, or that for which they or the licensee is an agent, | 1000 |
custodian, vendor, bailee, trustee, or payee; | 1001 |
| 1002 |
entity, using a life license for the principal purpose of | 1003 |
soliciting or placing insurance on the lives of the business | 1004 |
entity's officers, employees, or shareholders, or on the lives of | 1005 |
relatives of such officers, employees, or shareholders, or on the | 1006 |
lives of persons for whom they, their relatives, or the business | 1007 |
entity is agent, custodian, vendor, bailee, trustee, or payee; | 1008 |
| 1009 |
policies, contracts, agreements, or applications for insurance, or | 1010 |
annuities providing fixed, variable, or fixed and variable | 1011 |
benefits, or contractual payments, for or on behalf of any insurer | 1012 |
or multiple employer welfare arrangement not authorized to | 1013 |
transact business in this state, or for or on behalf of any | 1014 |
spurious, fictitious, nonexistent, dissolved, inactive, liquidated | 1015 |
or liquidating, or bankrupt insurer or multiple employer welfare | 1016 |
arrangement; | 1017 |
(37) In the case of a resident business entity, failing to be | 1018 |
qualified to do business in this state under Title XVII of the | 1019 |
Revised Code, failing to be in good standing with the secretary of | 1020 |
state, or failing to maintain a valid appointment of statutory | 1021 |
agent with the secretary of state; | 1022 |
(38) In the case of a nonresident agent, failing to maintain | 1023 |
licensure as an insurance agent in the agent's home state for the | 1024 |
lines of authority held in this state; | 1025 |
(39) Knowingly aiding and abetting another person or entity | 1026 |
in the violation of any insurance law of this state or the rules | 1027 |
adopted under it. | 1028 |
(C) Before denying, revoking, suspending, or refusing to | 1029 |
issue any license or imposing any penalty under this section, the | 1030 |
superintendent shall provide the licensee or applicant with notice | 1031 |
and an opportunity for hearing as provided in Chapter 119. of the | 1032 |
Revised Code, except as follows: | 1033 |
(1)(a) Any notice of opportunity for hearing, the hearing | 1034 |
officer's findings and recommendations, or the superintendent's | 1035 |
order shall be served by certified mail at the last known address | 1036 |
of the licensee or applicant. Service shall be evidenced by return | 1037 |
receipt signed by any person. | 1038 |
For purposes of this section, the "last known address" is the | 1039 |
residential address of a licensee or applicant, or the | 1040 |
principal-place-of-business address of a business entity, that is | 1041 |
contained in the licensing records of the department. | 1042 |
(b) If the certified mail envelope is returned with an | 1043 |
endorsement showing that service was refused, or that the envelope | 1044 |
was unclaimed, the notice and all subsequent notices required by | 1045 |
Chapter 119. of the Revised Code may be served by ordinary mail to | 1046 |
the last known address of the licensee or applicant. The mailing | 1047 |
shall be evidenced by a certificate of mailing. Service is deemed | 1048 |
complete as of the date of such certificate provided that the | 1049 |
ordinary mail envelope is not returned by the postal authorities | 1050 |
with an endorsement showing failure of delivery. The time period | 1051 |
in which to request a hearing, as provided in Chapter 119. of the | 1052 |
Revised Code, begins to run on the date of mailing. | 1053 |
(c) If service by ordinary mail fails, the superintendent may | 1054 |
cause a summary of the substantive provisions of the notice to be | 1055 |
published once a week for three consecutive weeks in a newspaper | 1056 |
of general circulation in the county where the last known place of | 1057 |
residence or business of the party is located. The notice is | 1058 |
considered served on the date of the third publication. | 1059 |
(d) Any notice required to be served under Chapter 119. of | 1060 |
the Revised Code shall also be served upon the party's attorney by | 1061 |
ordinary mail if the attorney has entered an appearance in the | 1062 |
matter. | 1063 |
(e) The superintendent may, at any time, perfect service on a | 1064 |
party by personal delivery of the notice by an employee of the | 1065 |
department. | 1066 |
(f) Notices regarding the scheduling of hearings and all | 1067 |
other matters not described in division (C)(1)(a) of this section | 1068 |
shall be sent by ordinary mail to the party and to the party's | 1069 |
attorney. | 1070 |
(2) Any subpoena for the appearance of a witness or the | 1071 |
production of documents or other evidence at a hearing, or for the | 1072 |
purpose of taking testimony for use at a hearing, shall be served | 1073 |
by certified mail, return receipt requested, by an attorney or by | 1074 |
an employee of the department designated by the superintendent. | 1075 |
Such subpoenas shall be enforced in the manner provided in section | 1076 |
119.09 of the Revised Code. Nothing in this section shall be | 1077 |
construed as limiting the superintendent's other statutory powers | 1078 |
to issue subpoenas. | 1079 |
(D) If the superintendent determines that a violation | 1080 |
described in this section has occurred, the superintendent may | 1081 |
take one or more of the following actions: | 1082 |
(1) Assess a civil penalty in an amount not exceeding | 1083 |
twenty-five thousand dollars per violation; | 1084 |
(2) Assess administrative costs to cover the expenses | 1085 |
incurred by the department in the administrative action, including | 1086 |
costs incurred in the investigation and hearing processes. Any | 1087 |
costs collected shall be paid into the state treasury to the | 1088 |
credit of the department of insurance operating fund created in | 1089 |
section 3901.021 of the Revised Code. | 1090 |
(3) Suspend all of the person's licenses for all lines of | 1091 |
insurance for either a specified period of time or an indefinite | 1092 |
period of time and under such terms and conditions as the | 1093 |
superintendent may determine; | 1094 |
(4) Permanently revoke all of the person's licenses for all | 1095 |
lines of insurance; | 1096 |
(5) Refuse to issue a license; | 1097 |
(6) Refuse to renew a license; | 1098 |
(7) Prohibit the person from being employed in any capacity | 1099 |
in the business of insurance and from having any financial | 1100 |
interest in any insurance agency, company, surety bail bond | 1101 |
business, or third-party administrator in this state. The | 1102 |
superintendent may, in the superintendent's discretion, determine | 1103 |
the nature, conditions, and duration of such restrictions. | 1104 |
(8) Order corrective actions in lieu of or in addition to the | 1105 |
other penalties listed in division (D) of this section. Such an | 1106 |
order may provide for the suspension of civil penalties, license | 1107 |
revocation, license suspension, or refusal to issue or renew a | 1108 |
license if the licensee complies with the terms and conditions of | 1109 |
the corrective action order. | 1110 |
(9) Accept a surrender for cause offered by the licensee, | 1111 |
which shall be for at least five years and shall prohibit the | 1112 |
licensee from seeking any license authorized under this chapter | 1113 |
during that time period. A surrender for cause shall be in lieu of | 1114 |
revocation or suspension and may include a corrective action order | 1115 |
as provided in division (D)(8) of this section. | 1116 |
(E) The superintendent may consider the following factors in | 1117 |
denying a license, imposing suspensions, revocations, fines, or | 1118 |
other penalties, and issuing orders under this section: | 1119 |
(1) Whether the person acted in good faith; | 1120 |
(2) Whether the person made restitution for any pecuniary | 1121 |
losses suffered by other persons as a result of the person's | 1122 |
actions; | 1123 |
(3) The actual harm or potential for harm to others; | 1124 |
(4) The degree of trust placed in the person by, and the | 1125 |
vulnerability of, persons who were or could have been adversely | 1126 |
affected by the person's actions; | 1127 |
(5) Whether the person was the subject of any previous | 1128 |
administrative actions by the superintendent; | 1129 |
(6) The number of individuals adversely affected by the | 1130 |
person's acts or omissions; | 1131 |
(7) Whether the person voluntarily reported the violation, | 1132 |
and the extent of the person's cooperation and acceptance of | 1133 |
responsibility; | 1134 |
(8) Whether the person obstructed or impeded, or attempted to | 1135 |
obstruct or impede, the superintendent's investigation; | 1136 |
(9) The person's efforts to conceal the misconduct; | 1137 |
(10) Remedial efforts to prevent future violations; | 1138 |
(11) If the person was convicted of a criminal offense, the | 1139 |
nature of the offense, whether the conviction was based on acts or | 1140 |
omissions taken under any professional license, whether the | 1141 |
offense involved the breach of a fiduciary duty, the amount of | 1142 |
time that has passed, and the person's activities subsequent to | 1143 |
the conviction; | 1144 |
(12) Such other factors as the superintendent determines to | 1145 |
be appropriate under the circumstances. | 1146 |
(F)(1) A violation described in division (B)(1), (2), (3), | 1147 |
(4), (5), (6), (7), (8), (9), (10), (11), (12), (13), (14), (16), | 1148 |
(17), (18), (19), (20), | 1149 |
(28), (29), (30), (31), (32), | 1150 |
this section is a class A offense for which the superintendent may | 1151 |
impose any penalty set forth in division (D) of this section. | 1152 |
(2) A violation described in division (B)(15) or
| 1153 |
this section, or a failure to comply with section 3905.061, | 1154 |
3905.071, or 3905.22 of the Revised Code, is a class B offense for | 1155 |
which the superintendent may impose any penalty set forth in | 1156 |
division (D)(1), (2), (8), or (9) of this section. | 1157 |
(3) If the superintendent determines that a violation | 1158 |
described in division (B) | 1159 |
the superintendent shall impose a minimum of a two-year suspension | 1160 |
on all of the person's licenses for all lines of insurance. | 1161 |
(G) If a violation described in this section has caused, is | 1162 |
causing, or is about to cause substantial and material harm, the | 1163 |
superintendent may issue an order requiring that person to cease | 1164 |
and desist from engaging in the violation. Notice of the order | 1165 |
shall be mailed by certified mail, return receipt requested, or | 1166 |
served in any other manner provided for in this section, | 1167 |
immediately after its issuance to the person subject to the order | 1168 |
and to all persons known to be involved in the violation. The | 1169 |
superintendent may thereafter publicize or otherwise make known to | 1170 |
all interested parties that the order has been issued. | 1171 |
The notice shall specify the particular act, omission, | 1172 |
practice, or transaction that is subject to the cease-and-desist | 1173 |
order and shall set a date, not more than fifteen days after the | 1174 |
date of the order, for a hearing on the continuation or revocation | 1175 |
of the order. The person shall comply with the order immediately | 1176 |
upon receipt of notice of the order. | 1177 |
The superintendent may, upon the application of a party and | 1178 |
for good cause shown, continue the hearing. Chapter 119. of the | 1179 |
Revised Code applies to such hearings to the extent that that | 1180 |
chapter does not conflict with the procedures set forth in this | 1181 |
section. The superintendent shall, within fifteen days after | 1182 |
objections are submitted to the hearing officer's report and | 1183 |
recommendation, issue a final order either confirming or revoking | 1184 |
the cease-and-desist order. The final order may be appealed as | 1185 |
provided under section 119.12 of the Revised Code. | 1186 |
The remedy under this division is cumulative and concurrent | 1187 |
with the other remedies available under this section. | 1188 |
(H) If the superintendent has reasonable cause to believe | 1189 |
that an order issued under this section has been violated in whole | 1190 |
or in part, the superintendent may request the attorney general to | 1191 |
commence and prosecute any appropriate action or proceeding in the | 1192 |
name of the state against such person. | 1193 |
The court may, in an action brought pursuant to this | 1194 |
division, impose any of the following: | 1195 |
(1) For each violation, a civil penalty of not more than | 1196 |
twenty-five thousand dollars; | 1197 |
(2) Injunctive relief; | 1198 |
(3) Restitution; | 1199 |
(4) Any other appropriate relief. | 1200 |
(I) With respect to a surety bail bond agent license: | 1201 |
(1) Upon the suspension or revocation of a license, or the | 1202 |
eligibility of a surety bail bond agent to hold a license, the | 1203 |
superintendent likewise may suspend or revoke the license or | 1204 |
eligibility of any surety bail bond agent who is employed by or | 1205 |
associated with that agent and who knowingly was a party to the | 1206 |
act that resulted in the suspension or revocation. | 1207 |
(2) The superintendent may revoke a license as a surety bail | 1208 |
bond agent if the licensee is adjudged bankrupt. | 1209 |
(J) Nothing in this section shall be construed to create or | 1210 |
imply a private cause of action against an agent or insurer. | 1211 |
Sec. 3905.16. (A)(1) Except as provided in division (A)(2) | 1212 |
of this section, any person licensed as an agent under this | 1213 |
chapter may at any time surrender any or all licenses held by the | 1214 |
person. | 1215 |
(2) No agent shall surrender the agent's licenses if the | 1216 |
superintendent of insurance is investigating any allegation of | 1217 |
wrongdoing by the agent or has initiated proceedings under Chapter | 1218 |
119. of the Revised Code and notice of an opportunity for a | 1219 |
hearing has been issued to the agent, and any attempt to so | 1220 |
surrender is invalid. | 1221 |
(B)(1) If an agent's license is surrendered, revoked, | 1222 |
suspended, canceled, or inactivated by request, all appointments | 1223 |
held by the agent are void. If a new license is issued to that | 1224 |
person or if that person's previous license is reinstated or | 1225 |
renewed, any appointment of the person to represent an insurer | 1226 |
must be made in accordance with the requirements of this chapter. | 1227 |
(2) If an agent's license is surrendered, revoked, or | 1228 |
canceled and the person wishes to apply for a new license, the | 1229 |
person shall apply as a new agent and shall satisfy all | 1230 |
requirements for a new agent license including, if applicable, | 1231 |
submitting to a criminal records check under section 3905.051 of | 1232 |
the Revised Code. | 1233 |
(C)(1) Any agent, other than a business entity, who is no | 1234 |
longer engaged in the business of insurance in any capacity for | 1235 |
which an agent's license is required may apply to the | 1236 |
superintendent for inactive status. The superintendent may grant | 1237 |
such status only if the superintendent is satisfied that the | 1238 |
person is not engaged in and does not intend to engage in any of | 1239 |
the activities set forth in section 3905.02 of the Revised Code | 1240 |
that requires an agent's license. | 1241 |
(2) A person who has been granted inactive status is exempt | 1242 |
from any continuing education requirements imposed under this | 1243 |
chapter. | 1244 |
(3) The superintendent may adopt rules in accordance with | 1245 |
Chapter 119. of the Revised Code to establish procedures for | 1246 |
applying for inactive status, criteria used to determine | 1247 |
eligibility for such status, and standards and procedures for | 1248 |
transferring from inactive to active status. | 1249 |
(D) The superintendent may suspend or revoke a license, or | 1250 |
take any other disciplinary action authorized by this chapter, | 1251 |
regardless of whether the person is appointed or otherwise | 1252 |
authorized to represent an insurer or agent. | 1253 |
Sec. 3905.20. (A) An insurance agent shall not act as an | 1254 |
agent of an insurer unless the insurance agent is appointed as an | 1255 |
agent of the insurer. An insurance agent who does not act as an | 1256 |
agent of an insurer shall not be required to be appointed as an | 1257 |
agent of the insurer. | 1258 |
For purposes of this division, an insurance agent acts as an | 1259 |
agent of an insurer when the insurance agent sells, solicits, or | 1260 |
negotiates any product of the insurer and is compensated | 1261 |
by the insurer. | 1262 |
(B)(1) To appoint an insurance agent as its agent, an insurer | 1263 |
shall file a notice of appointment with the superintendent of | 1264 |
insurance not later than thirty days after the date the agency | 1265 |
contract is executed or the first insurance application is | 1266 |
submitted, whichever is earlier. The notice of appointment shall | 1267 |
be provided in the manner prescribed by the superintendent. | 1268 |
Each insurer shall pay to the superintendent a fee | 1269 |
1270 | |
Code for every such appointment when issued and for each | 1271 |
continuance thereafter. Such an appointment, unless canceled by | 1272 |
the insurer, may be continued in force past the thirtieth day of | 1273 |
June next after its issue and after the thirtieth day of June of | 1274 |
each succeeding year, unless a different date is determined by the | 1275 |
superintendent. | 1276 |
A separate appointment and fee are required for a variable | 1277 |
life and variable annuity products line of authority. | 1278 |
(2) By appointing an insurance agent, an insurer certifies to | 1279 |
the superintendent that the person is competent, financially | 1280 |
responsible, and suitable to represent the insurer. | 1281 |
(3) While an appointment remains in force, an insurer shall | 1282 |
be bound by the acts of the person named in the appointment within | 1283 |
that person's actual and apparent authority as its agent. | 1284 |
(C) The superintendent may, in accordance with Chapter 119. | 1285 |
of the Revised Code, adopt rules to establish appointment | 1286 |
procedures, including cancellations and renewals, to clarify the | 1287 |
circumstances that require an appointment, and to provide for the | 1288 |
appointment of insurance agents to some or all of the insurers | 1289 |
within an insurer's holding company system or group. | 1290 |
Sec. 3905.30. The superintendent of insurance may issue a | 1291 |
surplus line broker's license to any natural person who is a | 1292 |
resident of this or any other state or to a business entity that | 1293 |
is organized under the laws of this or any other state. To be | 1294 |
eligible for a resident surplus line broker's license, a person | 1295 |
must have both a property license and a casualty license. | 1296 |
eligible for a nonresident surplus line broker's license, a person | 1297 |
must hold an active surplus line broker license in the person's | 1298 |
home state. A nonresident surplus line broker shall obtain a | 1299 |
nonresident license with a property and casualty line of authority | 1300 |
in this state if the broker is or will be personally performing | 1301 |
the due diligence requirements under section 3905.33 of the | 1302 |
Revised Code. | 1303 |
A surplus line broker's license permits the person named in | 1304 |
the license to negotiate for and obtain insurance, other than life | 1305 |
insurance, on property or persons in this state from insurers not | 1306 |
authorized to transact business in this state. Each such license | 1307 |
expires on the thirty-first day of January next after the year in | 1308 |
which it is issued, and may be then renewed. | 1309 |
Sec. 3905.35. Before | 1310 |
resident license under section 3905.30 of the Revised Code, the | 1311 |
person named in the license shall execute and deliver to the | 1312 |
superintendent of insurance a bond in the sum of twenty-five | 1313 |
thousand dollars, payable to the state and conditioned that the | 1314 |
person will faithfully comply with sections 3905.30 to 3905.35 of | 1315 |
the Revised Code. The bond required by this section shall be | 1316 |
issued by an insurance company authorized to transact surety | 1317 |
business in this state, be on a form prescribed by the | 1318 |
superintendent, and be deposited with the superintendent and kept | 1319 |
in the superintendent's office. | 1320 |
Sec. 3905.36. (A) Except as provided in divisions (B) and | 1321 |
(C) of this section, every insured association, company, | 1322 |
corporation, or other person that enters, directly or indirectly, | 1323 |
into any agreements with any insurance company, association, | 1324 |
individual, firm, underwriter, or Lloyd's, not authorized to do | 1325 |
business in this state, whereby the insured shall procure, | 1326 |
continue, or renew contracts of insurance covering subjects of | 1327 |
insurance resident, located, or to be performed within this state, | 1328 |
with such unauthorized insurance company, association, individual, | 1329 |
firm, underwriter, or Lloyd's, for which insurance there is a | 1330 |
gross premium, membership fee, assessment, dues, or other | 1331 |
consideration charged or collected, shall annually, on or before | 1332 |
the thirty-first day of
| 1333 |
superintendent of insurance a statement under oath showing the | 1334 |
name and address of the insured, name and address of the insurer, | 1335 |
subject of the insurance, general description of the coverage, and | 1336 |
amount of gross premium, fee, assessment, dues, or other | 1337 |
consideration for such insurance for the preceding | 1338 |
1339 | |
treasurer of state a tax of five per cent of such gross premium, | 1340 |
fee, assessment, dues, or other consideration, after a deduction | 1341 |
for return premium, if any, as calculated on a form prescribed by | 1342 |
the treasurer of state. All taxes collected under this section by | 1343 |
the treasurer of state shall be paid into the general revenue | 1344 |
fund. If the tax is not paid when due, the tax shall be increased | 1345 |
by a penalty of twenty-five per cent. An interest charge computed | 1346 |
as set forth in section 5725.221 of the Revised Code shall be made | 1347 |
on the entire sum of the tax plus penalty, which interest shall be | 1348 |
computed from the date the tax is due until it is paid. For | 1349 |
purposes of this section, payment is considered made when it is | 1350 |
received by the treasurer of state, irrespective of any United | 1351 |
States postal service marking or other stamp or mark indicating | 1352 |
the date on which the payment may have been mailed. | 1353 |
(B) This section does not apply to: | 1354 |
(1) Transactions in this state involving a policy solicited, | 1355 |
written, and delivered outside this state covering only subjects | 1356 |
of insurance not resident, located, or to be performed in this | 1357 |
state at the time of issuance, provided such transactions are | 1358 |
subsequent to the issuance of the policy; | 1359 |
(2) Attorneys-at-law acting on behalf of their clients in the | 1360 |
adjustment of claims or losses; | 1361 |
(3) Transactions involving policies issued by a captive | 1362 |
insurer. For this purpose, a "captive insurer" means any of the | 1363 |
following: | 1364 |
(a) An insurer owned by one or more individuals or | 1365 |
organizations, whose exclusive purpose is to insure risks of one | 1366 |
or more of the parent organizations or individual owners and risks | 1367 |
of one or more affiliates of the parent organizations or | 1368 |
individual owners; | 1369 |
(b) In the case of groups and associations, insurers owned by | 1370 |
the group or association whose exclusive purpose is to insure | 1371 |
risks of members of the group or association and affiliates of the | 1372 |
members; | 1373 |
(c) Other types of insurers, licensed and operated in | 1374 |
accordance with the captive insurance laws of their jurisdictions | 1375 |
of domicile and operated in a manner so as to self-insure risks of | 1376 |
their owners and insureds. | 1377 |
(4) Professional or medical liability insurance procured by a | 1378 |
hospital organized under Chapter 3701. of the Revised Code; | 1379 |
(5) Insurance with an initial policy period of more than | 1380 |
three years and that is procured to cover known events related to | 1381 |
environmental remediation that occurred prior to the effective | 1382 |
date of that insurance; | 1383 |
(6) Insurance procured on behalf of an entity that | 1384 |
manufactures, packages, and sells, as more than fifty per cent of | 1385 |
the entity's business, pharmaceutical products for human use where | 1386 |
the production, packaging, and sale of such products are subject | 1387 |
to regulation by an agency of the United States. | 1388 |
(C) In transactions that are subject to sections 3905.30 to | 1389 |
3905.35 of the Revised Code, each person licensed under section | 1390 |
3905.30 of the Revised Code shall pay to the treasurer of state, | 1391 |
on or before the thirty-first day of
| 1392 |
five per cent of the balance of the gross premiums charged for | 1393 |
insurance placed or procured under the license after a deduction | 1394 |
for return premiums, as reported on a form prescribed by the | 1395 |
treasurer of state. The tax shall be collected from the insured by | 1396 |
the surplus line broker who placed or procured the policy of | 1397 |
insurance at the time the policy is delivered to the insured. No | 1398 |
license issued under section 3905.30 of the Revised Code shall be | 1399 |
renewed until payment is made. If the tax is not paid when due, | 1400 |
the tax shall be increased by a penalty of twenty-five per cent. | 1401 |
An interest charge computed as set forth in section 5725.221 of | 1402 |
the Revised Code shall be made on the entire sum of the tax plus | 1403 |
penalty, which interest shall be computed from the date the tax is | 1404 |
due until it is paid. For purposes of this section, payment is | 1405 |
considered made when it is received by the treasurer of state, | 1406 |
irrespective of any United States postal service marking or other | 1407 |
stamp or mark indicating the date on which the payment may have | 1408 |
been mailed. | 1409 |
Sec. 3905.40. There shall be paid to the superintendent of | 1410 |
insurance the following fees: | 1411 |
(A) Each insurance company doing business in this state shall | 1412 |
pay: | 1413 |
(1) For filing a copy of its charter or deed of settlement, | 1414 |
two hundred fifty dollars; | 1415 |
(2) For filing each statement, one hundred seventy-five | 1416 |
dollars; | 1417 |
(3) For each certificate of authority or license, one hundred | 1418 |
seventy-five, and for each certified copy thereof, five dollars; | 1419 |
(4) For each copy of a paper filed in the superintendent's | 1420 |
office, twenty cents per page; | 1421 |
(5) For issuing certificates of deposits or certified copies | 1422 |
thereof, five dollars for the first certificate or copy and one | 1423 |
dollar for each additional certificate or copy; | 1424 |
(6) For issuing certificates of compliance or certified | 1425 |
copies thereof, sixty dollars; | 1426 |
(7) For affixing the seal of office and certifying documents, | 1427 |
other than those enumerated herein, two dollars; | 1428 |
(8) For each agent appointment and each annual renewal of an | 1429 |
agent appointment, twenty dollars; | 1430 |
(9) For each termination of an agent appointment, five | 1431 |
dollars. | 1432 |
(B) Each domestic life insurance company doing business in | 1433 |
this state shall pay for annual valuation of its policies, one | 1434 |
cent on every one thousand dollars of insurance. | 1435 |
(C) Each applicant for licensure as an | 1436 |
agent except applicants for licensure as | 1437 |
surety bail bond agents and surplus line brokers shall pay ten | 1438 |
dollars for each line of authority requested. Fees collected under | 1439 |
this division shall be credited to the department of insurance | 1440 |
operating fund created in section 3901.021 of the Revised Code. | 1441 |
(D) Each domestic mutual life insurance company shall pay for | 1442 |
verifying that any amendment to its articles of incorporation was | 1443 |
regularly adopted, two hundred fifty dollars with each application | 1444 |
for verification. Any such amendment shall be considered to have | 1445 |
been regularly adopted when approved by the affirmative vote of | 1446 |
two-thirds of the policyholders present in person or by proxy at | 1447 |
any annual meeting of policyholders or at a special meeting of | 1448 |
policyholders called for that purpose. | 1449 |
(E) Each insurance agent doing business in this state shall | 1450 |
pay a biennial license renewal fee of twenty-five dollars, except | 1451 |
the following insurance agents are not required to pay the license | 1452 |
renewal fee: | 1453 |
(1) Individual resident agents who have met their continuing | 1454 |
education requirements under section 3905.481 of the Revised Code; | 1455 |
(2) Surety bail bond agents; | 1456 |
(3) Surplus line brokers. | 1457 |
(F) All fees collected by the superintendent under this | 1458 |
section except any fees collected under divisions (A)(2), (3), and | 1459 |
(6) of this section shall be credited to the department of | 1460 |
insurance operating fund created under section 3901.021 of the | 1461 |
Revised Code. | 1462 |
Sec. 3905.41. The superintendent of insurance may open an | 1463 |
account in the name of each insurance company authorized to do | 1464 |
business in this state and in the name of any authorized insurance | 1465 |
agent, and charge the accounts with all fees incurred by such | 1466 |
companies or agents in accordance with sections
| 1467 |
3905.40, 3919.26, and 3931.03 of the Revised Code, and other | 1468 |
statutes imposing fees. The statutory fee for each service | 1469 |
requested shall be charged against the proper account immediately | 1470 |
upon the rendition of the service. | 1471 |
Not later than the tenth day of each calendar month the | 1472 |
superintendent shall render an itemized statement to each company | 1473 |
or agent whose account has been charged during the month next | 1474 |
preceding, showing the amount of all fees charged during that | 1475 |
month and demanding that payment thereof be made not later than | 1476 |
the first day of the month next following. | 1477 |
The failure of any insurance company within that time to pay | 1478 |
the amount of such fees in accordance with the monthly statement, | 1479 |
or, if the statement or account is found to be incorrect, in | 1480 |
accordance with a corrected monthly statement rendered by the | 1481 |
superintendent, is grounds for the revocation of its certificate | 1482 |
of authority to do business in this state. In the event of such an | 1483 |
order of revocation, the superintendent shall immediately cause a | 1484 |
notice thereof to be published once in at least one newspaper at | 1485 |
the seat of the government and also, if a domestic company, once | 1486 |
in at least one newspaper published in the county where its home | 1487 |
office is located, or, if a foreign or alien company, once in at | 1488 |
least one newspaper published in a county of this state where an | 1489 |
agency of the company is located. After the publication of the | 1490 |
notice, no agent of the company shall procure applications for | 1491 |
insurance or issue policies. | 1492 |
In the event of the failure of any agent within the time | 1493 |
fixed to pay the amount of fees charged against the agent's | 1494 |
account in accordance with the monthly statement rendered by the | 1495 |
superintendent, the agent's license may be revoked in the manner | 1496 |
provided by section 3905.14 of the Revised Code. | 1497 |
Sec. 3905.481. | 1498 |
1499 | |
insurance agent license | 1500 |
1501 | |
1502 | |
continuing education in each license renewal period. The | 1503 |
continuing education shall be offered in a course or program of | 1504 |
study approved by the superintendent of insurance in consultation | 1505 |
with the insurance agent education advisory council and shall | 1506 |
include at least three hours of approved ethics training. | 1507 |
1508 | |
1509 | |
1510 | |
1511 | |
1512 | |
1513 | |
1514 | |
1515 | |
1516 | |
1517 |
| 1518 |
1519 | |
1520 | |
1521 | |
1522 | |
1523 | |
1524 | |
1525 | |
1526 | |
1527 | |
1528 |
| 1529 |
person or class of persons, as determined by the superintendent in | 1530 |
consultation with the council. | 1531 |
| 1532 |
1533 | |
1534 | |
1535 | |
1536 |
Sec. 3905.483. (A) There is hereby created the insurance | 1537 |
agent education advisory council to advise the superintendent of | 1538 |
insurance in carrying out the duties imposed under sections | 1539 |
3905.04 and 3905.481 to 3905.486 of the Revised Code. | 1540 |
(B) The council shall be composed of the superintendent, or | 1541 |
the superintendent's designee, and twelve members appointed by the | 1542 |
superintendent, as follows: | 1543 |
(1) One representative of the association of Ohio life | 1544 |
insurance companies; | 1545 |
(2) One representative of the independent insurance agents of | 1546 |
Ohio; | 1547 |
(3) One representative of the Ohio association of health | 1548 |
underwriters; | 1549 |
(4) One representative of the | 1550 |
1551 |
(5) One representative of the Ohio insurance institute; | 1552 |
(6) One representative of the professional insurance agents | 1553 |
association of Ohio; | 1554 |
(7) One representative of the Ohio land title association; | 1555 |
(8) Two insurance agents each of whom has been licensed | 1556 |
continuously during the five-year period immediately preceding the | 1557 |
agent's appointment; | 1558 |
(9) One representative of an insurance company admitted to | 1559 |
transact business in this state; | 1560 |
(10) Two representatives of consumers, one of whom shall be | 1561 |
at least sixty years of age. | 1562 |
(C)(1) Of the initial eleven appointments made by the | 1563 |
superintendent, three shall be for terms ending December 31, 1994, | 1564 |
four shall be for terms ending December 31, 1995, and four shall | 1565 |
be for terms ending December 31, 1996. Thereafter, terms of office | 1566 |
shall be for three years, each term ending on the thirty-first day | 1567 |
of December of the third year. | 1568 |
(2) The initial appointment of the twelfth member made by the | 1569 |
superintendent under division (B)(7) of this section, pursuant to | 1570 |
Am. Sub. S.B. 129 of the 124th general assembly, shall be for a | 1571 |
term ending December 31, 2003. Thereafter, the term of office | 1572 |
shall be for three years, ending on the thirty-first day of | 1573 |
December of the third year. | 1574 |
(D) Each member shall hold office from the date of | 1575 |
appointment until the end of the term for which the member was | 1576 |
appointed. Any member appointed to fill a vacancy occurring prior | 1577 |
to the expiration of the term for which the member's predecessor | 1578 |
was appointed shall hold office for the remainder of such term. | 1579 |
Any member shall continue in office subsequent to the expiration | 1580 |
date of the member's term until the member's successor takes | 1581 |
office, or until a period of sixty days has elapsed, whichever | 1582 |
occurs first. A vacancy shall be filled in the same manner as the | 1583 |
original appointment. | 1584 |
(E) Initial appointments to the council shall be made no | 1585 |
later than thirty days after April 16, 1993. The initial | 1586 |
appointment of the twelfth member to the council under division | 1587 |
(B)(7) of this section, pursuant to Am. Sub. S.B. 129 of the 124th | 1588 |
general assembly, shall be made no later than December 31, 2002. | 1589 |
(F) Any member is eligible for reappointment. The | 1590 |
superintendent, after notice and opportunity for a hearing, may | 1591 |
remove for cause any member the superintendent appoints. | 1592 |
(G) The superintendent or the superintendent's designee shall | 1593 |
serve as chairperson of the council. Meetings shall be held upon | 1594 |
the call of the chairperson and as may be provided by procedures | 1595 |
adopted by the superintendent. Seven members of the council | 1596 |
constitute a quorum. | 1597 |
(H) Each member shall receive mileage and necessary and | 1598 |
actual expenses while engaged in the business of the council. | 1599 |
Sec. 3905.484. (A) The superintendent of insurance, in | 1600 |
consultation with the insurance agent education advisory council, | 1601 |
shall establish criteria for any course or program of study that | 1602 |
is offered in this state under section 3905.04 or sections | 1603 |
3905.481 to 3905.486 of the Revised Code. | 1604 |
(B) No course or program of study shall be offered in this | 1605 |
state under section 3905.04 or sections 3905.481 to 3905.486 of | 1606 |
the Revised Code unless it is approved by the superintendent in | 1607 |
consultation with the council. | 1608 |
(C) A course or program of study offered in this state under | 1609 |
section 3905.04 or sections 3905.481 to 3905.486 of the Revised | 1610 |
Code shall be developed or sponsored only by one of the following: | 1611 |
(1) An insurance company admitted to transact business in | 1612 |
this state; | 1613 |
(2) An accredited college or university; | 1614 |
(3) An insurance trade association; | 1615 |
(4) An independent program of instruction that is approved by | 1616 |
the superintendent in consultation with the council; | 1617 |
(5) Any institution as defined in section 1713.01 of the | 1618 |
Revised Code that holds a certificate of authorization issued by | 1619 |
the Ohio board of regents under Chapter 1713. of the Revised Code | 1620 |
or is exempt under that chapter from the requirements for a | 1621 |
certificate of authorization. | 1622 |
| 1623 |
1624 | |
1625 | |
1626 |
Sec. 3905.841. The following persons or classes of persons | 1627 |
shall not act as surety bail bond agents or employees of a surety | 1628 |
bail bond agent or bail bond business and shall not directly or | 1629 |
indirectly receive any benefits from the execution of a bail bond, | 1630 |
except as a principal: | 1631 |
(A) Jailers or other persons employed in a detention | 1632 |
facility, as defined in section 2921.01 of the Revised Code; | 1633 |
(B) Prisoners incarcerated in any jail, prison, or any other | 1634 |
place used for the incarceration of persons; | 1635 |
(C) Peace officers as defined in section 2921.51 of the | 1636 |
Revised Code, including volunteer or honorary peace officers, or | 1637 |
other employees of a law enforcement agency; | 1638 |
| 1639 |
or employees of the clerk of any court; | 1640 |
| 1641 |
office; | 1642 |
| 1643 |
persons who have authority over or control of, federal, state, | 1644 |
county, or municipal corporation prisoners. | 1645 |
Sec. 3905.85. (A) | 1646 |
for a license as a surety bail bond agent shall submit an | 1647 |
application for the license in a manner prescribed by the | 1648 |
superintendent of insurance. The application shall be accompanied | 1649 |
by a one hundred fifty dollar fee and a statement that gives the | 1650 |
applicant's name, age, residence, present occupation, occupation | 1651 |
for the five years next preceding the date of the application, and | 1652 |
such other information as the superintendent may require. | 1653 |
| 1654 |
also | 1655 |
1656 | |
1657 | |
1658 | |
1659 | |
1660 | |
1661 | |
1662 | |
1663 | |
1664 | |
1665 | |
1666 | |
1667 | |
of the Revised Code. | 1668 |
| 1669 |
1670 |
(B)(1) The superintendent | 1671 |
applicant | 1672 |
substance that the person is authorized to do the business of a | 1673 |
surety bail bond agent, if the superintendent is satisfied that | 1674 |
all of the following apply: | 1675 |
| 1676 |
| 1677 |
(c) The applicant is a person of high character and | 1678 |
integrity. | 1679 |
| 1680 |
grounds for the refusal to issue, suspension of, or revocation of | 1681 |
a license under section 3905.14 of the Revised Code. | 1682 |
(e) The applicant is a United States citizen or has provided | 1683 |
proof of having legal authorization to work in the United States. | 1684 |
(f) The applicant has successfully completed the educational | 1685 |
requirements set forth in section 3905.04 of the Revised Code and | 1686 |
passed the examination required by that section. | 1687 |
(2) The superintendent shall issue to an applicant an | 1688 |
individual nonresident license that states in substance that the | 1689 |
person is authorized to do the business of a surety bail bond | 1690 |
agent, if the superintendent is satisfied that all of the | 1691 |
following apply: | 1692 |
(a) The applicant is eighteen years of age or older. | 1693 |
(b) The applicant is currently licensed as a resident in | 1694 |
another state and is in good standing in the applicant's home | 1695 |
state for surety bail bond or is qualified for the same authority. | 1696 |
(c) The applicant is a person of high character and | 1697 |
integrity. | 1698 |
(d) The applicant has not committed any act that is grounds | 1699 |
for the refusal to issue, suspension of, or revocation of a | 1700 |
license under section 3905.14 of the Revised Code. | 1701 |
(3) The superintendent shall issue an applicant a resident | 1702 |
business entity license that states in substance that the person | 1703 |
is authorized to do the business of a surety bail bond agent if | 1704 |
the superintendent is satisfied that all of the following apply: | 1705 |
(a) The applicant has submitted an application for the | 1706 |
license in a manner prescribed by the superintendent and the | 1707 |
one-hundred-fifty-dollar application fee. | 1708 |
(b) The applicant either is domiciled in this state or | 1709 |
maintains its principal place of business in this state. | 1710 |
(c) The applicant has designated an individual licensed | 1711 |
surety bail bond agent who will be responsible for the applicant's | 1712 |
compliance with the insurance laws of this state. | 1713 |
(d) The applicant has not committed any act that is grounds | 1714 |
for the refusal to issue, suspension of, or revocation of a | 1715 |
license under section 3905.14 of the Revised Code. | 1716 |
(e) The applicant is authorized to do business in this state | 1717 |
by the secretary of state if so required under the applicable | 1718 |
provisions of Title XVII of the Revised Code. | 1719 |
(f) The applicant has submitted any other documents requested | 1720 |
by the superintendent. | 1721 |
(4) The superintendent shall issue an applicant a nonresident | 1722 |
business entity license that states in substance that the person | 1723 |
is authorized to do the business of a surety bail bond agent if | 1724 |
the superintendent is satisfied that all of the following apply: | 1725 |
(a) The applicant has submitted an application for the | 1726 |
license in a manner prescribed by the superintendent and the | 1727 |
one-hundred-fifty-dollar application fee. | 1728 |
(b) The applicant is currently licensed and is in good | 1729 |
standing in the applicant's home state with surety bail bond | 1730 |
authority. | 1731 |
(c) The applicant has designated an individual licensed | 1732 |
surety bail bond agent who will be responsible for the applicant's | 1733 |
compliance with the insurance laws of this state. | 1734 |
(d) The applicant has not committed any act that is grounds | 1735 |
for the refusal to issue, suspension of, or revocation of a | 1736 |
license under section 3905.14 of the Revised Code. | 1737 |
(e) The applicant has submitted any other documents requested | 1738 |
by the superintendent. | 1739 |
(C) A resident and nonresident surety bail bond agent license | 1740 |
issued pursuant to this section authorizes the holder, when | 1741 |
appointed by an insurer, to execute or countersign bail bonds in | 1742 |
connection with judicial proceedings and to receive money or other | 1743 |
things of value for those services. However, the holder shall not | 1744 |
execute or deliver a bond during the first one hundred eighty days | 1745 |
after the license is initially issued. This restriction does not | 1746 |
apply with respect to license renewals or any license issued under | 1747 |
divisions (B)(3) and (4) of this section. | 1748 |
(D) The superintendent | 1749 |
refuse to renew a surety bail bond agent's license as provided in | 1750 |
division (B) of section
| 1751 |
may suspend, revoke, or refuse to issue or renew such a license as | 1752 |
provided in section 3905.14 of the Revised Code. | 1753 |
If the superintendent refuses to issue such a license based | 1754 |
in whole or in part upon the written response to a criminal | 1755 |
records check | 1756 |
section, the superintendent shall send a copy of the response that | 1757 |
was transmitted to the superintendent | 1758 |
1759 | |
the applicant's submission of a written request to the | 1760 |
superintendent. | 1761 |
(E) Any person licensed as a surety bail bond agent may | 1762 |
surrender the person's license in accordance with section 3905.16 | 1763 |
of the Revised Code. | 1764 |
(F) | 1765 |
1766 | |
1767 | |
1768 | |
1769 | |
1770 | |
a surety bail bond agent license shall apply annually for a | 1771 |
renewal of the license on or before the last day of February. | 1772 |
Applications shall be submitted to the superintendent on forms | 1773 |
prescribed by the superintendent. Each application shall be | 1774 |
accompanied by a one-hundred-fifty-dollar renewal fee. | 1775 |
(2) To be eligible for renewal, an individual applicant shall | 1776 |
complete the continuing education requirements pursuant to section | 1777 |
3905.88 of the Revised Code prior to the renewal date. | 1778 |
(3) If an applicant submits a completed renewal application, | 1779 |
qualifies for renewal pursuant to divisions (F)(1) and (2) of this | 1780 |
section, and has not committed any act that is a ground for the | 1781 |
refusal to issue, suspension of, or revocation of a license under | 1782 |
section 3905.14 or sections 3905.83 to 3905.99 of the Revised | 1783 |
Code, the superintendent shall renew the applicant's surety bail | 1784 |
bond insurance agent license. | 1785 |
(4) If an individual or business entity does not apply for | 1786 |
the renewal of the individual or business entity's license on or | 1787 |
before the license renewal date specified in division (F)(1) of | 1788 |
this section, the individual or business entity may submit a late | 1789 |
renewal application along with all applicable fees required under | 1790 |
this chapter prior to the last day of March following the renewal | 1791 |
date. The superintendent shall renew the license of an applicant | 1792 |
that submits a late renewal application if the applicant satisfies | 1793 |
all of the following conditions: | 1794 |
(a) The applicant submits a completed renewal application. | 1795 |
(b) The applicant pays the one-hundred-fifty-dollar renewal | 1796 |
fee. | 1797 |
(c) The applicant pays the late renewal fee established by | 1798 |
the superintendent. | 1799 |
(d) The applicant provides proof of compliance with the | 1800 |
continuing education requirements pursuant to section 3905.88 of | 1801 |
the Revised Code. | 1802 |
(e) The applicant has not committed any act that is grounds | 1803 |
for the refusal to issue, suspension of, or revocation of a | 1804 |
license under section 3905.14 or sections 3905.83 to 3905.99 of | 1805 |
the Revised Code. | 1806 |
(5) A license issued under this section that is not renewed | 1807 |
on or before its late renewal date specified in division (F)(4) of | 1808 |
this section is automatically suspended for nonrenewal effective | 1809 |
the first day of April. | 1810 |
(6) If a license is suspended for nonrenewal pursuant to | 1811 |
division (F)(5) of this section, the individual or business entity | 1812 |
is eligible to apply for reinstatement of the license within the | 1813 |
twelve-month period following the date by which the license should | 1814 |
have been renewed by complying with the reinstatement procedure | 1815 |
established by the superintendent and paying all applicable fees | 1816 |
required under this chapter. | 1817 |
(7) A license that is suspended for nonrenewal that is not | 1818 |
reinstated pursuant to division (F)(6) of this section | 1819 |
automatically is canceled unless the superintendent is | 1820 |
investigating any allegations of wrongdoing by the agent or has | 1821 |
initiated proceedings under Chapter 119. of the Revised Code. In | 1822 |
that case, the license automatically is canceled after the | 1823 |
completion of the investigation or proceedings unless the | 1824 |
superintendent revokes the license. | 1825 |
(G) The superintendent | 1826 |
to be used as evidence of the issuance of a license under this | 1827 |
section. The superintendent shall require each licensee to | 1828 |
acquire, from a source designated by the superintendent, a wallet | 1829 |
identification card that includes the licensee's photograph and | 1830 |
any other information required by the superintendent. The licensee | 1831 |
shall keep the wallet identification card on the licensee's person | 1832 |
while engaging in the bail bond business. | 1833 |
(H)(1) The superintendent of insurance shall not issue or | 1834 |
renew the license of a business entity organized under the laws of | 1835 |
this or any other state unless the business entity is qualified to | 1836 |
do business in this state under the applicable provisions of Title | 1837 |
XVII of the Revised Code. | 1838 |
(2) The failure of a business entity to be in good standing | 1839 |
with the secretary of state or to maintain a valid appointment of | 1840 |
statutory agent is grounds for suspending, revoking, or refusing | 1841 |
to renew its license. | 1842 |
(3) By applying for a surety bail bond agent license under | 1843 |
this section, an individual or business entity consents to the | 1844 |
jurisdiction of the courts of this state. | 1845 |
(I) A surety bail bond agent licensed pursuant to this | 1846 |
section is an officer of the court. | 1847 |
(J) Any fee collected under this section shall be paid into | 1848 |
the state treasury to the credit of the department of insurance | 1849 |
operating fund created by section 3901.021 of the Revised Code. | 1850 |
Sec. 3905.86. (A) Any person licensed as a surety bail bond | 1851 |
agent may be appointed by an insurer in accordance with this | 1852 |
section. | 1853 |
(B) | 1854 |
1855 | |
1856 | |
1857 | |
surety bail bond agent as its agent, an insurer shall file a | 1858 |
notice of appointment with the superintendent of insurance in the | 1859 |
manner prescribed by the superintendent. All insurers shall pay to | 1860 |
the superintendent a fee | 1861 |
(A)(8) of section 3905.40 of the Revised Code for each such | 1862 |
appointment when issued and for each continuance thereafter. Such | 1863 |
an appointment, unless canceled by the insurer, may be continued | 1864 |
in force past the thirtieth day of June next after its issue and | 1865 |
after the thirtieth day of June of each succeeding year provided | 1866 |
that the appointee is licensed and is eligible for the | 1867 |
appointment. | 1868 |
Any fee collected under this division shall be paid into the | 1869 |
state treasury to the credit of the department of insurance | 1870 |
operating fund created by section 3901.021 of the Revised Code. | 1871 |
(C)(1) By appointing a surety bail bond agent, an insurer | 1872 |
certifies to the superintendent that the person is competent, | 1873 |
financially responsible, and suitable to represent the insurer. | 1874 |
(2) An insurer shall be bound by the acts of the person named | 1875 |
in the appointment within that person's actual or apparent | 1876 |
authority as its agent. | 1877 |
(D) A surety bail bond agent shall not represent to the | 1878 |
public that the agent has authority to represent a particular | 1879 |
insurer until the insurer has acknowledged that authority by | 1880 |
appointment of the agent in accordance with this section. | 1881 |
Sec. 3905.862. Upon the expiration or cancellation of a | 1882 |
surety bail bond agent's appointment, the agent shall not engage | 1883 |
or attempt to engage in any activity requiring such an | 1884 |
appointment. However, an insurer that cancels the appointment of a | 1885 |
surety bail bond agent may authorize the agent to continue to | 1886 |
attempt the arrest and surrender of a defendant for whom a bail | 1887 |
bond had been written prior to the cancellation and to seek | 1888 |
discharge of forfeitures and judgments. | 1889 |
An insurer that cancels the appointment of a surety bail bond | 1890 |
agent or allows that appointment to expire shall pay to the | 1891 |
superintendent of insurance a fee pursuant to division (A)(9) of | 1892 |
section 3905.40 of the Revised Code. | 1893 |
Sec. 3905.87. (A) A surety bail bond agent shall not file a | 1894 |
bond in any court of this state unless | 1895 |
1896 |
| 1897 |
3905.83 to 3905.95 of the Revised Code and has registered with the | 1898 |
clerk of that court pursuant to division (B) of this section, if | 1899 |
registration is required by the court. | 1900 |
| 1901 |
1902 |
(B) To register with a court, a surety bail bond agent shall | 1903 |
file, with the clerk of the court, a copy of the agent's surety | 1904 |
bail bond license, a copy of the agent's driver's license or state | 1905 |
identification card, and a certified copy of the surety bail bond | 1906 |
agent's appointment by power of attorney from each insurer that | 1907 |
the surety bail bond agent represents.
| 1908 |
1909 | |
An agent shall renew the agent's registration biennially by the | 1910 |
first day of August of each odd-numbered year. | 1911 |
1912 | |
1913 | |
1914 | |
1915 |
(C) The clerk of the court shall make available a list of | 1916 |
court-registered surety bail bond agents to the appropriate | 1917 |
holding facility, jail, correction facility, or other similar | 1918 |
entity within the court's jurisdiction annually not later than the | 1919 |
first day of September. If an agent registers with a court after | 1920 |
the last day of August, the court shall add that agent to the list | 1921 |
and make the updated list available to the appropriate holding | 1922 |
facility, jail, correction facility, or other similar entity | 1923 |
within the court's jurisdiction within twenty-four hours of the | 1924 |
court's approval of that registration. | 1925 |
Sec. 3905.88. (A) Each individual who is issued a license as | 1926 |
a resident surety bail bond agent shall complete | 1927 |
1928 | |
hours of continuing education in each license renewal period. The | 1929 |
continuing education shall be offered in a course or program of | 1930 |
study related to the bail bond business that is approved by the | 1931 |
superintendent of insurance in consultation with the insurance | 1932 |
agent education advisory council and shall include at least one | 1933 |
hour of approved ethics training. | 1934 |
(B) The superintendent shall | 1935 |
1936 | |
license of any surety bail bond agent who fails to meet the | 1937 |
requirements of division (A) of this section | 1938 |
1939 | |
1940 | |
requirements of section 3905.85 of the Revised Code. | 1941 |
| 1942 |
1943 | |
1944 |
Sec. 3905.89. Each person licensed under sections 3905.83 to | 1945 |
3905.95 of the Revised Code shall notify in writing the | 1946 |
appropriate insurer or managing general agent, and the clerk of | 1947 |
the court of common pleas of the county in which the licensee | 1948 |
1949 | |
licensee's principal business address or telephone number. | 1950 |
This notification requirement is in addition to the | 1951 |
notification requirements set forth in other provisions of this | 1952 |
chapter. | 1953 |
Sec. 3905.932. A surety bail bond agent or insurer shall not | 1954 |
do any of the following: | 1955 |
(A) Suggest or advise the employment of, or name for | 1956 |
employment, any particular attorney to represent its principal; | 1957 |
(B) | 1958 |
the property or grounds of, a detention facility, as defined in | 1959 |
section 2921.01 of the Revised Code, or in, or on the property or | 1960 |
grounds of, any court. For purposes of this division, "solicit" | 1961 |
includes, but is not limited to, the distribution of business | 1962 |
cards, print advertising, or any other written information | 1963 |
directed to prisoners or potential indemnitors, unless a request | 1964 |
is initiated by the prisoner or potential indemnitor. Permissible | 1965 |
print advertising in a detention facility is strictly limited to a | 1966 |
listing in a telephone directory and the posting of the surety | 1967 |
bail bond agent's name, address, and telephone number in a | 1968 |
designated location within the detention facility. | 1969 |
(C) Wear or otherwise display any identification, other than | 1970 |
the wallet identification card required under division (G) of | 1971 |
section 3905.85 of the Revised Code, in or on the property or | 1972 |
grounds of a detention facility, as defined in section 2921.01 of | 1973 |
the Revised Code, or in or on the property or grounds of any | 1974 |
court; | 1975 |
(D) Pay a fee or rebate or give or promise anything of value | 1976 |
to a jailer, law enforcement officer, committing magistrate, or | 1977 |
other person who has power to arrest or to hold in custody, or to | 1978 |
any public official or public employee, in order to secure a | 1979 |
settlement, compromise, remission, or reduction of the amount of | 1980 |
any bail bond or estreatment of bail; | 1981 |
(E) Pay a fee or rebate or give or promise anything of value | 1982 |
to an attorney in a bail bond matter, except in defense of any | 1983 |
action on a bond; | 1984 |
(F) Pay a fee or rebate or give or promise anything of value | 1985 |
to the principal or to anyone in the principal's behalf; | 1986 |
(G) Post anything without using a bail instrument | 1987 |
representing an insurer, to have a defendant released on bail on | 1988 |
all types of set court bail, except for the following: | 1989 |
(1) Cash court fees or cash reparation fees; | 1990 |
(2) Ten per cent assignments; | 1991 |
(3) Other nonsurety court bonds, if the agent provides full | 1992 |
written disclosure and receipts and retains copies of all | 1993 |
documents and receipts for not less than three years. | 1994 |
(H) Participate in the capacity of an attorney at a trial or | 1995 |
hearing of a principal; | 1996 |
| 1997 |
providing a bail bond, other than the premium filed with and | 1998 |
approved by the superintendent of insurance and an expense fee, | 1999 |
except that the surety bail bond agent may, in accordance with | 2000 |
section 3905.92 of the Revised Code, accept collateral security or | 2001 |
other indemnity from a principal or other person together with | 2002 |
documentary stamp taxes if applicable. No fees, expenses, or | 2003 |
charges of any kind shall be deducted from the collateral held or | 2004 |
any return premium due, except as authorized by sections 3905.83 | 2005 |
to 3905.95 of the Revised Code or by rule of the superintendent. A | 2006 |
surety bail bond agent, upon written agreement with another party, | 2007 |
may receive a fee or other compensation for returning to custody | 2008 |
an individual who has fled the jurisdiction of the court or caused | 2009 |
the forfeiture of a bond. | 2010 |
| 2011 |
behalf; | 2012 |
| 2013 |
entered on a bond executed by the surety bail bond agent, which | 2014 |
judgment has remained unpaid for at least sixty days after all | 2015 |
appeals have been exhausted, unless the full amount of the | 2016 |
judgment is deposited with the clerk of the court. | 2017 |
As used in this section, "instrument" means a fiduciary form | 2018 |
showing a dollar amount for a surety bail bond. | 2019 |
Sec. 3924.01. As used in sections 3924.01 to 3924.14 of the | 2020 |
Revised Code: | 2021 |
(A) "Actuarial certification" means a written statement | 2022 |
prepared by a member of the American academy of actuaries, or by | 2023 |
any other person acceptable to the superintendent of insurance, | 2024 |
that states that, based upon the person's examination, a carrier | 2025 |
offering health benefit plans to small employers is in compliance | 2026 |
with sections 3924.01 to 3924.14 of the Revised Code. "Actuarial | 2027 |
certification" shall include a review of the appropriate records | 2028 |
of, and the actuarial assumptions and methods used by, the carrier | 2029 |
relative to establishing premium rates for the health benefit | 2030 |
plans. | 2031 |
(B) "Adjusted average market premium price" means the average | 2032 |
market premium price as determined by the board of directors of | 2033 |
the Ohio health reinsurance program either on the basis of the | 2034 |
arithmetic mean of all carriers' premium rates for an OHC plan | 2035 |
sold to groups with similar case characteristics by all carriers | 2036 |
selling OHC plans in the state, or on any other equitable basis | 2037 |
determined by the board. | 2038 |
(C) "Base premium rate" means, as to any health benefit plan | 2039 |
that is issued by a carrier and that covers at least two but no | 2040 |
more than fifty employees of a small employer, the lowest premium | 2041 |
rate for a new or existing business prescribed by the carrier for | 2042 |
the same or similar coverage under a plan or arrangement covering | 2043 |
any small employer with similar case characteristics. | 2044 |
(D) "Carrier" means any sickness and accident insurance | 2045 |
company or health insuring corporation authorized to issue health | 2046 |
benefit plans in this state or a MEWA. A sickness and accident | 2047 |
insurance company that owns or operates a health insuring | 2048 |
corporation, either as a separate corporation or as a line of | 2049 |
business, shall be considered as a separate carrier from that | 2050 |
health insuring corporation for purposes of sections 3924.01 to | 2051 |
3924.14 of the Revised Code. | 2052 |
(E) "Case characteristics" means, with respect to a small | 2053 |
employer, the geographic area in which the employees work; the age | 2054 |
and sex of the individual employees and their dependents; the | 2055 |
appropriate industry classification as determined by the carrier; | 2056 |
the number of employees and dependents; and such other objective | 2057 |
criteria as may be established by the carrier. "Case | 2058 |
characteristics" does not include claims experience, health | 2059 |
status, or duration of coverage from the date of issue. | 2060 |
(F) "Dependent" means the spouse or child of an eligible | 2061 |
employee, subject to applicable terms of the health benefits plan | 2062 |
covering the employee. | 2063 |
(G) "Eligible employee" means an employee who works a normal | 2064 |
work week of twenty-five or more hours. "Eligible employee" does | 2065 |
not include a temporary or substitute employee, or a seasonal | 2066 |
employee who works only part of the calendar year on the basis of | 2067 |
natural or suitable times or circumstances. | 2068 |
(H) "Health benefit plan" means any hospital or medical | 2069 |
expense policy or certificate or any health plan provided by a | 2070 |
carrier, that is delivered, issued for delivery, renewed, or used | 2071 |
in this state on or after the date occurring six months after | 2072 |
November 24, 1995. "Health benefit plan" does not include policies | 2073 |
covering only accident, credit, dental, disability income, | 2074 |
long-term care, hospital indemnity, medicare supplement, specified | 2075 |
disease, or vision care; coverage under a | 2076 |
one-time-limited-duration policy of no longer than six months; | 2077 |
coverage issued as a supplement to liability insurance; insurance | 2078 |
arising out of a workers' compensation or similar law; automobile | 2079 |
medical-payment insurance; or insurance under which benefits are | 2080 |
payable with or without regard to fault and which is statutorily | 2081 |
required to be contained in any liability insurance policy or | 2082 |
equivalent self-insurance. | 2083 |
(I) "Late enrollee" means an eligible employee or dependent | 2084 |
who enrolls in a small employer's health benefit plan other than | 2085 |
during the first period in which the employee or dependent is | 2086 |
eligible to enroll under the plan or during a special enrollment | 2087 |
period described in section 2701(f) of the "Health Insurance | 2088 |
Portability and Accountability Act of 1996," Pub. L. No. 104-191, | 2089 |
110 Stat. 1955, 42 U.S.C.A. 300gg, as amended. | 2090 |
(J) "MEWA" means any "multiple employer welfare arrangement" | 2091 |
as defined in section 3 of the "Federal Employee Retirement Income | 2092 |
Security Act of 1974," 88 Stat. 832, 29 U.S.C.A. 1001, as amended, | 2093 |
except for any arrangement which is fully insured as defined in | 2094 |
division (b)(6)(D) of section 514 of that act. | 2095 |
(K) "Midpoint rate" means, for small employers with similar | 2096 |
case characteristics and plan designs and as determined by the | 2097 |
applicable carrier for a rating period, the arithmetic average of | 2098 |
the applicable base premium rate and the corresponding highest | 2099 |
premium rate. | 2100 |
(L) "Pre-existing conditions provision" means a policy | 2101 |
provision that excludes or limits coverage for charges or expenses | 2102 |
incurred during a specified period following the insured's | 2103 |
enrollment date as to a condition for which medical advice, | 2104 |
diagnosis, care, or treatment was recommended or received during a | 2105 |
specified period immediately preceding the enrollment date. | 2106 |
Genetic information shall not be treated as such a condition in | 2107 |
the absence of a diagnosis of the condition related to such | 2108 |
information. | 2109 |
For purposes of this division, "enrollment date" means, with | 2110 |
respect to an individual covered under a group health benefit | 2111 |
plan, the date of enrollment of the individual in the plan or, if | 2112 |
earlier, the first day of the waiting period for such enrollment. | 2113 |
(M) "Service waiting period" means the period of time after | 2114 |
employment begins before an employee is eligible to be covered for | 2115 |
benefits under the terms of any applicable health benefit plan | 2116 |
offered by the small employer. | 2117 |
(N)(1) "Small employer" means, in connection with a group | 2118 |
health benefit plan and with respect to a calendar year and a plan | 2119 |
year, an employer who employed an average of at least two but no | 2120 |
more than fifty eligible employees on business days during the | 2121 |
preceding calendar year and who employs at least two employees on | 2122 |
the first day of the plan year. | 2123 |
(2) For purposes of division (N)(1) of this section, all | 2124 |
persons treated as a single employer under subsection (b), (c), | 2125 |
(m), or (o) of section 414 of the "Internal Revenue Code of 1986," | 2126 |
100 Stat. 2085, 26 U.S.C.A. 1, as amended, shall be considered one | 2127 |
employer. In the case of an employer that was not in existence | 2128 |
throughout the preceding calendar year, the determination of | 2129 |
whether the employer is a small or large employer shall be based | 2130 |
on the average number of eligible employees that it is reasonably | 2131 |
expected the employer will employ on business days in the current | 2132 |
calendar year. Any reference in division (N) of this section to an | 2133 |
"employer" includes any predecessor of the employer. Except as | 2134 |
otherwise specifically provided, provisions of sections 3924.01 to | 2135 |
3924.14 of the Revised Code that apply to a small employer that | 2136 |
has a health benefit plan shall continue to apply until the plan | 2137 |
anniversary following the date the employer no longer meets the | 2138 |
requirements of this division. | 2139 |
(O) "OHC plan" means an Ohio health care plan, which is the | 2140 |
basic, standard, or carrier reimbursement plan for small employers | 2141 |
and individuals established | 2142 |
section 3924.10 of the Revised Code. | 2143 |
Sec. 3924.09. The Ohio health reinsurance program shall have | 2144 |
the general powers and authority granted under the laws of the | 2145 |
state to insurance companies licensed to transact sickness and | 2146 |
accident insurance, except the power to issue insurance. The board | 2147 |
of directors of the program also shall have the specific authority | 2148 |
to do all of the following: | 2149 |
(A) Enter into contracts as are necessary or proper to carry | 2150 |
out the provisions and purposes of sections 3924.07 to 3924.14 of | 2151 |
the Revised Code, including the authority to enter into contracts | 2152 |
with similar programs of other states for the joint performance of | 2153 |
common functions, or with persons or other organizations for the | 2154 |
performance of administrative functions; | 2155 |
(B) Sue or be sued, including taking any legal actions | 2156 |
necessary or proper for recovery of any assessments for, on behalf | 2157 |
of, or against any program or board member; | 2158 |
(C) Take such legal action as is necessary to avoid the | 2159 |
payment of improper claims against the program; | 2160 |
(D) | 2161 |
insurance regarding the design of the OHC plans which, when | 2162 |
offered by a carrier, are eligible for reinsurance and issue | 2163 |
reinsurance policies in accordance with the requirements of | 2164 |
sections 3924.07 to 3924.14 of the Revised Code; | 2165 |
(E) Establish rules, conditions, and procedures pertaining to | 2166 |
the reinsurance of members' risks by the program; | 2167 |
(F) Establish appropriate rates, rate schedules, rate | 2168 |
adjustments, rate classifications, and any other actuarial | 2169 |
functions appropriate to the operation of the program; | 2170 |
(G) Assess members in accordance with division (G) of section | 2171 |
3924.11 and the provisions of section 3924.13 of the Revised Code, | 2172 |
and make such advance interim assessments as may be reasonable and | 2173 |
necessary for organizational and interim operating expenses. Any | 2174 |
interim assessments shall be credited as offsets against any | 2175 |
regular assessments due following the close of the calendar year. | 2176 |
(H) Appoint members to appropriate legal, actuarial, and | 2177 |
other committees if necessary to provide technical assistance with | 2178 |
respect to the operation of the program, policy and other contract | 2179 |
design, and any other function within the authority of the | 2180 |
program; | 2181 |
(I) Borrow money to effect the purposes of the program. Any | 2182 |
notes or other evidence of indebtedness of the program not in | 2183 |
default shall be legal investments for carriers and may be carried | 2184 |
as admitted assets. | 2185 |
(J) Reinsure risks, collect assessments, and otherwise carry | 2186 |
out its duties under division (G) of section 3924.11 of the | 2187 |
Revised Code; | 2188 |
(K) Study the operation of the Ohio health reinsurance | 2189 |
program and the open enrollment reinsurance program and, based on | 2190 |
its findings, make legislative recommendations to the general | 2191 |
assembly for improvements in the effectiveness, operation, and | 2192 |
integrity of the programs; | 2193 |
(L) Design a basic and standard plan for purposes of sections | 2194 |
1751.16, 3923.122, and 3923.581 of the Revised Code. | 2195 |
Sec. 3924.10. (A) The board of directors of the Ohio health | 2196 |
reinsurance program | 2197 |
superintendent of insurance, and the superintendent may adopt or | 2198 |
amend by rule adopted in accordance with Chapter 119. of the | 2199 |
Revised Code, the OHC basic, standard, and carrier reimbursement | 2200 |
plans which, when offered by a carrier, are eligible for | 2201 |
reinsurance under the program. The | 2202 |
establish the form and level of coverage to be made available by | 2203 |
carriers in their OHC plans. | 2204 |
shall
| 2205 |
coinsurance factors, exclusions, and limitations for the plans. | 2206 |
The forms and levels of coverage | 2207 |
specify which components of health benefit plans offered by a | 2208 |
carrier may be reinsured. The OHC plans are subject to division | 2209 |
(C) of section 3924.02 of the Revised Code and to the provisions | 2210 |
in Chapters 1751., 1753., 3923., and any other chapter of the | 2211 |
Revised Code that require coverage or the offer of coverage of a | 2212 |
health care service or benefit. | 2213 |
(B) | 2214 |
2215 | |
adopting any rule that makes changes to the OHC basic or standard | 2216 |
plan, the superintendent shall conduct an actuarial analysis of | 2217 |
the cost impact of the proposed rule. The superintendent may | 2218 |
consider recommendations of the Ohio health care coverage and | 2219 |
quality council established under section 3923.90 of the Revised | 2220 |
Code. The plans may include cost containment features including | 2221 |
any of the following: | 2222 |
(1) Utilization review of health care services, including | 2223 |
review of the medical necessity of hospital and physician | 2224 |
services; | 2225 |
(2) Case management benefit alternatives; | 2226 |
(3) Selective contracting with hospitals, physicians, and | 2227 |
other health care providers; | 2228 |
(4) Reasonable benefit differentials applicable to | 2229 |
participating and nonparticipating providers; | 2230 |
(5) Employee assistance program options that provide | 2231 |
preventive and early intervention mental health and substance | 2232 |
abuse services; | 2233 |
(6) Other provisions for the cost-effective management of the | 2234 |
plans. | 2235 |
(C) OHC plans established for use by health insuring | 2236 |
corporations shall be consistent with the basic method of | 2237 |
operation of such corporations. | 2238 |
(D) Each carrier shall certify to the superintendent of | 2239 |
insurance, in the form and manner prescribed by the | 2240 |
superintendent, that the OHC plans filed by the carrier are in | 2241 |
substantial compliance with the provisions of the | 2242 |
designed or adopted under this section. Upon receipt by the | 2243 |
superintendent of the certification, the carrier may use the | 2244 |
certified plans. | 2245 |
(E) Each carrier shall, on and after sixty days after the | 2246 |
date that the program becomes operational and as a condition of | 2247 |
transacting business in this state, renew coverage provided to any | 2248 |
individual or group under its OHC plans. | 2249 |
(F) The OHC plans in effect as of June 1, 2009, shall remain | 2250 |
in effect until those plans are amended or new plans are adopted | 2251 |
in accordance with this section. | 2252 |
Sec. 3929.30. The president or the vice-president and the | 2253 |
secretary of each insurance company organized under the laws of | 2254 |
this or any other state and doing business in this state, | 2255 |
annually, on the first day of January or within sixty days | 2256 |
thereafter, shall prepare, under oath, and deposit in the office | 2257 |
of the superintendent of insurance a statement of the condition of | 2258 |
such company on the next preceding thirty-first day of December. | 2259 |
The statement shall be submitted on the forms adopted by the | 2260 |
superintendent pursuant to section 3901.77 of the Revised Code, | 2261 |
and shall exhibit the following facts and items: | 2262 |
(A) The amount of the capital stock of the company, | 2263 |
specifying the amount paid and unpaid; | 2264 |
(B) A detailed statement of all the assets of the company and | 2265 |
the manner of their investment. | 2266 |
(C) The liabilities of the company, specifying: | 2267 |
(1) The amount of losses due and unpaid; | 2268 |
(2) The amount of claims for losses resisted by the company; | 2269 |
(3) The amount of losses incurred during the year, including | 2270 |
those claimed and not due, and those reported to the company upon | 2271 |
which no action has been taken; | 2272 |
(4) The amount of dividends declared, due, and unpaid; | 2273 |
(5) The amount of dividends, either cash or scrip, declared | 2274 |
but not due; | 2275 |
(6) The amount of money borrowed and the security given for | 2276 |
its payment; | 2277 |
(7) The amount required for reinsurance, being a pro rata of | 2278 |
all premiums, received and receivable, on unexpired risks and | 2279 |
policies, provided that as to fire insurance business, a company | 2280 |
may, at its option, maintain a sum equal to fifty per cent of the | 2281 |
whole amount of premiums received and receivable on unexpired | 2282 |
risks and policies running one year and less from the date of the | 2283 |
policy. In the case of marine insurance, premiums on trip risks | 2284 |
not terminated shall be deemed unearned, and the superintendent | 2285 |
may require a reserve to be carried thereon equal to one hundred | 2286 |
per cent of the premiums on trip risks written during the month | 2287 |
ended as of the date of statement. | 2288 |
(8) The amount of all other existing claims against the | 2289 |
company | 2290 |
| 2291 |
2292 | |
2293 | |
2294 | |
2295 | |
2296 | |
2297 |
(D) The income of the company during the preceding year, | 2298 |
specifying: | 2299 |
(1) The amount of cash premiums received; | 2300 |
(2) The amount of notes or contingent assets received for | 2301 |
premiums; | 2302 |
(3) The amount of interest money received; | 2303 |
(4) The amount of income received from other sources. | 2304 |
(E) The expenditure during the preceding year, specifying: | 2305 |
(1) The amount of losses paid during the year, stating how | 2306 |
much of them accrued prior, and how much accrued subsequent, to | 2307 |
the date of the preceding statement, and the amount at which | 2308 |
losses were estimated in each preceding statement; | 2309 |
(2) The amount of dividends paid during the year; | 2310 |
(3) The amount of expenses paid during the year, including | 2311 |
commissions and fees to agents and officers of the company; | 2312 |
(4) The amount paid for taxes; | 2313 |
(5) The amount of all payments and expenditures; | 2314 |
(6) The amount of scrip dividend declared. | 2315 |
Sec. 3956.04. (A) This chapter provides coverage, by the | 2316 |
Ohio life and health insurance guaranty association, for the | 2317 |
policies and contracts specified in division (B) of this section | 2318 |
to all of the following persons: | 2319 |
(1) Persons who are the beneficiaries, assignees, or payees | 2320 |
of the persons covered under division (A)(2) of this section, | 2321 |
regardless of where they reside, except for nonresident | 2322 |
certificate holders under group policies or contracts; | 2323 |
(2) Persons who are owners of or certificate holders under | 2324 |
the policies or contracts, or, in the case of unallocated annuity | 2325 |
contracts, the persons who are the contract holders, if either of | 2326 |
the following applies: | 2327 |
(a) The persons are residents of this state; | 2328 |
(b) The persons are not residents of this state and all of | 2329 |
the following conditions apply: | 2330 |
(i) The insurers that issued the policies or contracts are | 2331 |
domiciled in this state; | 2332 |
(ii) At the time the policies or contracts were issued, the | 2333 |
insurers did not hold a license or certificate of authority in the | 2334 |
states in which the persons reside; | 2335 |
(iii) The states have associations similar to the association | 2336 |
created by section 3956.06 of the Revised Code; | 2337 |
(iv) The persons are not eligible for coverage by those | 2338 |
associations. | 2339 |
(B)(1) This chapter provides coverage to the persons | 2340 |
specified in division (A) of this section for direct, nongroup | 2341 |
life, health, annuity, and supplemental policies or contracts, for | 2342 |
certificates under direct group policies and contracts, and for | 2343 |
unallocated annuity contracts issued by member insurers, except as | 2344 |
otherwise limited in this chapter. Annuity contracts and | 2345 |
certificates under group annuity contracts include, but are not | 2346 |
limited to, guaranteed investment contracts, deposit | 2347 |
administration contracts, unallocated funding agreements, | 2348 |
allocated funding agreements, structured settlement agreements, | 2349 |
lottery contracts, and any immediate or deferred annuity | 2350 |
contracts. | 2351 |
(2) This chapter does not provide coverage for any of the | 2352 |
following: | 2353 |
(a) Any portion of a policy or contract not guaranteed by the | 2354 |
insurer, or under which the risk is borne by the policy or | 2355 |
contract holder; | 2356 |
(b) Any policy or contract of reinsurance, unless assumption | 2357 |
certificates have been issued; | 2358 |
(c) Any portion of a policy or contract to the extent that | 2359 |
the rate of interest on which it is based: | 2360 |
(i) Averaged over the period of four years prior to the date | 2361 |
on which the association becomes obligated with respect to the | 2362 |
policy or contract or if the policy or contract has been issued | 2363 |
for a lesser period averaged over that period, exceeds the rate of | 2364 |
interest determined by subtracting two percentage points from the | 2365 |
monthly average-corporates as published by Moody's investors | 2366 |
service, inc., or any successor to that service, averaged for the | 2367 |
same period; | 2368 |
(ii) On and after the date on which the association becomes | 2369 |
obligated with respect to the policy or contract, exceeds the rate | 2370 |
of interest determined by subtracting three percentage points from | 2371 |
the monthly average-corporates as published by Moody's investors | 2372 |
service, inc., or any successor to that service, as most recently | 2373 |
available. | 2374 |
If the monthly average-corporates is no longer published, the | 2375 |
superintendent, by rule, shall establish a substantially similar | 2376 |
average. | 2377 |
(d) Any plan or program of an employer, association, or | 2378 |
similar entity to provide life, health, or annuity benefits to its | 2379 |
employees or members to the extent that the plan or program is | 2380 |
self-funded or uninsured, including but not limited to benefits | 2381 |
payable by an employer, association, or similar entity under any | 2382 |
of the following: | 2383 |
(i) A multiple employer welfare arrangement as defined in | 2384 |
section 514 of the "Employee Retirement Income Security Act of | 2385 |
1974," 88 Stat. 833, 29 U.S.C.A. 1001, as amended; | 2386 |
(ii) A minimum premium group insurance plan; | 2387 |
(iii) A stop-loss group insurance plan; | 2388 |
(iv) An administrative services only contract. | 2389 |
(e) Any portion of a policy or contract to the extent that it | 2390 |
provides dividends or experience rating credits, or provides that | 2391 |
any fees or allowances be paid to any person, including the policy | 2392 |
or contract holder, in connection with the service to or | 2393 |
administration of the policy or contract; | 2394 |
(f) Any policy or contract issued in this state by a member | 2395 |
insurer at a time when it was not licensed or did not have a | 2396 |
certificate of authority to issue the policy or contract in this | 2397 |
state; | 2398 |
(g) Any unallocated annuity contract issued to an employee | 2399 |
benefit plan protected under the federal pension benefit guaranty | 2400 |
corporation; | 2401 |
(h) Any portion of any unallocated annuity contract that is | 2402 |
not issued to or in connection with a governmental lottery or a | 2403 |
benefit plan of a specific employee, union, or association of | 2404 |
natural persons; | 2405 |
(i) Any policy or contract issued to or for the benefit of a | 2406 |
past or present director or officer within one year of the filing | 2407 |
of the successful complaint that the insurer was impaired or | 2408 |
insolvent; | 2409 |
(j) Any policy or contract issued by any entity described in | 2410 |
division (F)(2) of section 3956.01 of the Revised Code; | 2411 |
(k) Any policy or contract issued by a member insurer if the | 2412 |
member insurer is carrying on as a line of business, and not as a | 2413 |
separate legal entity, the activities of any entity described in | 2414 |
division (F)(2) of section 3956.01 of the Revised Code, and the | 2415 |
policy or contract is issued as a product of those activities. | 2416 |
(C) The benefits for which the association may become liable | 2417 |
shall not exceed the lesser of either of the following: | 2418 |
(1) The contractual obligations for which the insurer is | 2419 |
liable or would have been liable if it were not an impaired or | 2420 |
insolvent insurer; | 2421 |
(2)(a) With respect to any one life, regardless of the number | 2422 |
of policies or contracts: | 2423 |
(i) Three hundred thousand dollars in life insurance death | 2424 |
benefits, but not more than one hundred thousand dollars in net | 2425 |
cash surrender and net cash withdrawal values for life insurance; | 2426 |
(ii) One hundred thousand dollars in health insurance | 2427 |
benefits, including any net cash surrender and net cash withdrawal | 2428 |
values; | 2429 |
(iii) | 2430 |
value of annuity benefits, including net cash surrender and net | 2431 |
cash withdrawal values. | 2432 |
(b) With respect to each individual participating in a | 2433 |
governmental retirement plan established under section 401, | 2434 |
403(b), or 457 of the "Internal Revenue Code of 1986," 100 Stat. | 2435 |
2085, 26 U.S.C.A. 1, as amended, and covered by an unallocated | 2436 |
annuity contract, or the beneficiaries of each such individual if | 2437 |
deceased, in the aggregate, | 2438 |
in present value annuity benefits, including net cash surrender | 2439 |
and net cash withdrawal values. | 2440 |
The association is not liable to expend more than three | 2441 |
hundred thousand dollars in the aggregate with respect to any one | 2442 |
individual under divisions (C)(2)(a) and (b) of this section | 2443 |
combined. | 2444 |
(c) With respect to any one contract holder, covered by any | 2445 |
unallocated annuity contract not included in division (C)(2)(b) of | 2446 |
this section, one million dollars in benefits, irrespective of the | 2447 |
number of those contracts held by that contract holder. | 2448 |
(D) The liability of the association is limited strictly by | 2449 |
the express terms of the policies or contracts and by this | 2450 |
chapter, and is not affected by the contents of any brochures, | 2451 |
illustrations, advertisements in the print or electronic media, or | 2452 |
other advertising material used in connection with the sale of the | 2453 |
policies or contracts, or by oral statements made by agents or | 2454 |
other sales representatives in connection with the sale of the | 2455 |
policies or contracts. The association is not liable for | 2456 |
extra-contractual damages, punitive damages, attorney's fees, or | 2457 |
interest other than as provided for by the terms of the policies | 2458 |
or contracts as limited by this chapter, that might be awarded by | 2459 |
any court or governmental agency in connection with the policies | 2460 |
or contracts. | 2461 |
(E) The protection provided by this chapter does not apply | 2462 |
where any guaranty protection is provided to residents of this | 2463 |
state by the laws of the domiciliary state or jurisdiction of the | 2464 |
impaired or insolvent insurer other than this state. | 2465 |
Sec. 3960.03. All of the following apply to risk retention | 2466 |
groups chartered and licensed in states other than this state, | 2467 |
that seek to do business as a risk retention group in this state: | 2468 |
(A) No risk retention group shall offer insurance in this | 2469 |
state unless it has submitted to the superintendent of insurance, | 2470 |
in a form satisfactory to the superintendent, all of the | 2471 |
following: | 2472 |
(1) A statement identifying the state or states in which it | 2473 |
is chartered and licensed as a liability insurance company, the | 2474 |
date of chartering, its principal place of business, and any other | 2475 |
information, including but not limited to, information on its | 2476 |
membership, that the superintendent may require to verify that it | 2477 |
is qualified under division (J) of section 3960.01 of the Revised | 2478 |
Code; | 2479 |
(2) A copy of its plan of operation or a feasibility study | 2480 |
and revisions of the plan or study submitted to the state in which | 2481 |
the risk retention group is chartered and licensed. Division | 2482 |
(A)(2) of this section does not apply to any line or | 2483 |
classification of liability insurance that was defined in the | 2484 |
federal "Product Liability Risk Retention Act of 1981," 95 Stat. | 2485 |
949, 15 U.S.C.A. 3901, as amended, before October 27, 1986, and | 2486 |
was offered before that date by any risk retention group that had | 2487 |
been chartered and operating for not less than three years before | 2488 |
that date. The risk retention group shall submit a copy of any | 2489 |
revision to its plan of operation or feasibility study required by | 2490 |
division (A)(2) of section 3960.02 of the Revised Code at the same | 2491 |
time that the revision is submitted to the commissioner of | 2492 |
insurance of its chartering state. | 2493 |
(3) A statement of registration, for which a filing fee shall | 2494 |
be determined by the superintendent, that submits it to the | 2495 |
jurisdiction of the superintendent and the courts of this state. | 2496 |
The fee shall be paid into the state treasury to the credit of the | 2497 |
department of insurance operating fund pursuant to section | 2498 |
3901.021 of the Revised Code. | 2499 |
(B) A risk retention group doing business in this state shall | 2500 |
submit to the superintendent all of the following: | 2501 |
(1) A copy of its financial statement submitted to the state | 2502 |
in which the risk retention group is chartered and domiciled, | 2503 |
which shall be certified by an independent public accountant and | 2504 |
contain a statement of opinion on loss and loss adjustment expense | 2505 |
reserves made by a member of the American academy of actuaries or | 2506 |
a qualified loss reserve specialist under criteria established by | 2507 |
the national association of insurance commissioners; | 2508 |
(2) A copy of each examination of the group as certified by | 2509 |
the commissioner or public official conducting the examination; | 2510 |
(3) Upon request by the superintendent, a copy of any | 2511 |
information or document pertaining to any outside audit performed | 2512 |
with respect to the group; | 2513 |
(4) Any information that may be required to verify, to the | 2514 |
superintendent's satisfaction, its continuing qualification as a | 2515 |
risk retention group under division (J) of section 3960.01 of the | 2516 |
Revised Code. | 2517 |
(C)(1) Agents or brokers for the risk retention group shall | 2518 |
report to the superintendent the premiums for direct business for | 2519 |
risks resident or located within this state that they have placed | 2520 |
with or on behalf of a risk retention group not chartered in this | 2521 |
state. | 2522 |
(2) The agent or broker shall keep a complete and separate | 2523 |
record of all policies procured from each risk retention group, | 2524 |
which record shall be open to examination by the superintendent. | 2525 |
These records shall, for each policy and each kind of insurance | 2526 |
provided, include the following: | 2527 |
(a) The limit of liability; | 2528 |
(b) The time period covered; | 2529 |
(c) The effective date; | 2530 |
(d) The name of the risk retention group that issued the | 2531 |
policy; | 2532 |
(e) The gross premium charged; | 2533 |
(f) The amount of return premiums. | 2534 |
(D) Every risk retention group that is not chartered in this | 2535 |
state shall do both of the following: | 2536 |
(1) On or before the thirty-first day of
| 2537 |
to the treasurer of state five per cent of all premiums, fees, | 2538 |
assessments, dues, or other consideration for the preceding | 2539 |
2540 | |
this state, as calculated on a form prescribed by the treasurer of | 2541 |
state. If such tax is not paid when due, the tax shall be | 2542 |
increased by a penalty of twenty-five per cent. An interest charge | 2543 |
computed as set forth in section 5725.221 of the Revised Code | 2544 |
shall be made on the entire sum of the tax plus penalty, which | 2545 |
interest shall be computed from the date the tax is due until it | 2546 |
is paid. All taxes collected under this section shall be paid into | 2547 |
the general revenue fund. For purposes of division (D)(1) of this | 2548 |
section, payment is considered made when it is received by the | 2549 |
treasurer of state, irrespective of any United States postal | 2550 |
service marking or other stamp or mark indicating the date on | 2551 |
which the payment may have been mailed. | 2552 |
(2) On or before the thirty-first day of
| 2553 |
a statement with the superintendent, on a form prescribed by the | 2554 |
superintendent, showing the name and address of the insured, name | 2555 |
and address of the insurer, subject of the insurance, general | 2556 |
description of the coverage, the amount of gross premium, fee, | 2557 |
assessment, dues, or other consideration for the insurance, after | 2558 |
a deduction for return premium, if any, and any other information | 2559 |
the superintendent requires. | 2560 |
(E) The superintendent may examine the financial condition of | 2561 |
a risk retention group if the commissioner of insurance in the | 2562 |
state in which it is chartered and licensed has not initiated an | 2563 |
examination or does not initiate an examination within sixty days | 2564 |
after the superintendent has requested an examination. The | 2565 |
examination shall be conducted in an expeditious manner and in | 2566 |
accordance with the national association of insurance | 2567 |
commissioners' examiner handbook. | 2568 |
(F) The superintendent may issue any order appropriate in | 2569 |
voluntary dissolution proceedings or commence delinquency | 2570 |
proceedings against a risk retention group not chartered in this | 2571 |
state that does business in this state if the superintendent | 2572 |
finds, after an examination of the group under division (E) of | 2573 |
this section, that its financial condition is impaired. A risk | 2574 |
retention group that violates any provision of this chapter is | 2575 |
subject to fines and penalties, including revocation of its right | 2576 |
to do business in this state, applicable to licensed insurers | 2577 |
generally. | 2578 |
2579 | |
2580 | |
2581 |
Sec. 5725.18. (A) An annual franchise tax on the privilege | 2582 |
of being an insurance company is hereby levied on each domestic | 2583 |
insurance company. In the month of May, annually, the treasurer of | 2584 |
state shall charge for collection from each domestic insurance | 2585 |
company a franchise tax in the amount computed in accordance with | 2586 |
the following, as applicable: | 2587 |
(1) With respect to a domestic insurance company that is a | 2588 |
health insuring corporation, one per cent of all premium rate | 2589 |
payments received, exclusive of payments received under the | 2590 |
medicare program established under Title XVIII of the "Social | 2591 |
Security Act," 49 Stat. 620 (1935), 42 U.S.C.A. 301, as amended, | 2592 |
and exclusive of payments received pursuant to the medical | 2593 |
assistance program established under Chapter 5111. of the Revised | 2594 |
Code for the period ending September 30, 2009, as reflected in its | 2595 |
annual report for the preceding calendar year; | 2596 |
(2) With respect to a domestic insurance company that is not | 2597 |
a health insuring corporation, one and four-tenths per cent of the | 2598 |
gross amount of premiums received from policies covering risks | 2599 |
within this state, exclusive of premiums received under the | 2600 |
medicare program established under Title XVIII of the "Social | 2601 |
Security Act," 49 Stat. 620 (1935), 42 U.S.C.A. 301, as amended, | 2602 |
and exclusive of payments received pursuant to the medical | 2603 |
assistance program established under Chapter 5111. of the Revised | 2604 |
Code for the period ending September 30, 2009, as reflected in its | 2605 |
annual statement for the preceding calendar year, and, if the | 2606 |
company operates a health insuring corporation as a line of | 2607 |
business, one per cent of all premium rate payments received from | 2608 |
that line of business, exclusive of payments received under the | 2609 |
medicare program established under Title XVIII of the "Social | 2610 |
Security Act," 49 Stat. 620 (1935), 42 U.S.C.A. 301, as amended, | 2611 |
and exclusive of payments received pursuant to the medical | 2612 |
assistance program established under Chapter 5111. of the Revised | 2613 |
Code for the period ending September 30, 2009, as reflected in its | 2614 |
annual statement for the preceding calendar year. | 2615 |
Domestic insurance companies, including health insuring | 2616 |
corporations, receiving payments pursuant to the medical | 2617 |
assistance program established under Chapter 5111. of the Revised | 2618 |
Code during the period beginning October 1, 2009, and ending | 2619 |
December 31, 2009, shall file with the 2009 annual statement to | 2620 |
the superintendent a schedule that reflects those payments | 2621 |
received pursuant to the medical assistance program for that | 2622 |
period. The payments reflected in the schedule, plus all other | 2623 |
taxable premiums, are subject to the annual franchise tax due to | 2624 |
be paid in 2010. | 2625 |
(B) The gross amount of premium rate payments or premiums | 2626 |
used to compute the applicable tax in accordance with division (A) | 2627 |
of this section is subject to the deductions prescribed by section | 2628 |
5729.03 of the Revised Code for foreign insurance companies. The | 2629 |
objects of such tax are those declared in section 5725.24 of the | 2630 |
Revised Code, to which only such tax shall be applied. | 2631 |
(C) In no case shall such tax be less than two hundred fifty | 2632 |
dollars. | 2633 |
Section 2. That existing sections 1751.33, 1753.33, | 2634 |
3901.021, 3903.81, 3903.83, 3905.04, 3905.041, 3905.05, 3905.06, | 2635 |
3905.061, 3905.07, 3905.071, 3905.12, 3905.14, 3905.16, 3905.20, | 2636 |
3905.30, 3905.35, 3905.36, 3905.40, 3905.41, 3905.481, 3905.483, | 2637 |
3905.484, 3905.841, 3905.85, 3905.86, 3905.862, 3905.87, 3905.88, | 2638 |
3905.89, 3905.932, 3924.01, 3924.09, 3924.10, 3929.30, 3956.04, | 2639 |
3960.03, and 5725.18 and sections 3905.10 and 3905.482, and | 2640 |
3929.301 of the Revised Code are hereby repealed. | 2641 |
Section 3. Sections 1 and 2 of this act take effect on the | 2642 |
ninetieth day after the effective date of this act. The | 2643 |
Superintendent of Insurance may further delay the implementation | 2644 |
and enforcement of the requirements amended, enacted, or repealed | 2645 |
by those sections under Section 6 of this act. | 2646 |
Section 4. Notwithstanding section 3905.481 of the Revised | 2648 |
Code, the Superintendent of Insurance shall establish a prorated | 2649 |
phase-in schedule for the completion of continuing education | 2650 |
requirements for the first license renewal period after the | 2651 |
effective date of this act. | 2652 |
Section 5. For the time period beginning on the effective | 2653 |
date of Sections 1 and 2 of this act and ending upon | 2654 |
implementation and enforcement of section 3905.40 of the Revised | 2655 |
Code as amended by this act, each applicant for licensure as an | 2656 |
insurance agent except applicants for licensure as surety bail | 2657 |
bond agents and surplus line brokers shall pay ten dollars for | 2658 |
each line of authority requested. Fees collected under this | 2659 |
section shall be credited to the Department of Insurance Operating | 2660 |
Fund created in section 3901.021 of the Revised Code. | 2661 |
Section 6. (A) The Superintendent of Insurance may delay the | 2662 |
implementation and enforcement of the requirements of sections | 2663 |
3901.021, 3905.04, 3905.041, 3905.05, 3905.051, 3905.06, 3905.061, | 2664 |
3905.07, 3905.071, 3905.10, 3905.12, 3905.14, 3905.16, 3905.20, | 2665 |
3905.30, 3905.35, 3905.36, 3905.40, 3905.41, 3905.481, 3905.482, | 2666 |
3905.483, 3905.484, 3905.841, 3905.85, 3905.86, 3905.862, 3905.87, | 2667 |
3905.88, 3905.89, 3905.932, and 3960.03 of the Revised Code as | 2668 |
amended, enacted, or repealed by this act until the earlier of | 2669 |
January 1, 2011, or thirty days after the Superintendent of | 2670 |
Insurance determines that the Department of Insurance is able to | 2671 |
implement those requirements and places a notification of that | 2672 |
determination on the Department's web site. The Department shall | 2673 |
place a notification on the Department's web site stating the | 2674 |
effective date of the amendments, enactments, and repeals that are | 2675 |
delayed under this section. | 2676 |
(B) The Superintendent shall continue to enforce requirements | 2677 |
of the sections listed in division (A) of this section, as they | 2678 |
existed immediately prior to the effective date of this act, until | 2679 |
the Superintendent implements requirements amended, enacted, or | 2680 |
repealed by this act pursuant to division (A) of this section. | 2681 |
Section 7. Sections 1753.33 and 3903.83 of the Revised Code, | 2682 |
as amended by this act, shall take effect on January 1, 2012, for | 2683 |
year-end 2012 results. | 2684 |
Section 8. Section 3956.04 of the Revised Code, as amended | 2685 |
by this act, shall not apply to any liability incurred by the Ohio | 2686 |
Life and Health Insurance Guaranty Association from an insurer | 2687 |
that is an impaired or insolvent insurer on the effective date of | 2688 |
this act. | 2689 |
Section 9. (A) Notwithstanding the duration of coverage | 2690 |
specified in sections 1751.53 and 3923.38 of the Revised Code, a | 2691 |
group contract or group policy that is delivered, issued for | 2692 |
delivery, or renewed in this state on or after the effective date | 2693 |
of this act shall provide that any eligible employee may continue | 2694 |
the coverage under the contract or policy, for the employee and | 2695 |
the employee's eligible dependents, for the length of time for | 2696 |
which the employee is eligible for federal continuation coverage | 2697 |
premium subsidies but not longer than fifteen months after the | 2698 |
date that the group coverage would otherwise terminate by reason | 2699 |
of the termination of the employee's employment. Expiration of the | 2700 |
subsidized period or fifteen months, whichever occurs first, shall | 2701 |
end the employee's privilege to continue coverage and shall end | 2702 |
any coverage being continued pursuant to this section. | 2703 |
As used in this section: | 2704 |
(1) "Group contract" has the same meaning as in section | 2705 |
1751.53 of the Revised Code. | 2706 |
(2) "Group policy" has the same meaning as in section 3923.38 | 2707 |
of the Revised Code. | 2708 |
(3) "Eligible employee" has the same meaning as in section | 2709 |
1751.53 of the Revised Code for purposes of group contracts and | 2710 |
the same meaning as in section 3923.38 of the Revised Code for | 2711 |
purposes of group policies, but includes only those individuals | 2712 |
who are eligible for continuation coverage premium subsidies from | 2713 |
the federal government. | 2714 |
(B) This section does not apply to an individual who is not | 2715 |
an eligible employee as defined under division (A)(3) of this | 2716 |
section. | 2717 |
Section 10. Section 9 of this act shall apply until the day | 2718 |
after the last loss-of-employment date for which the federal | 2719 |
government is subsidizing continuation coverage. | 2720 |
Section 11. This act is hereby declared to be an emergency | 2721 |
measure necessary for the immediate preservation of the public | 2722 |
peace, health, and safety. The reason for such a necessity is to | 2723 |
provide as many Ohioans as possible the opportunity to take | 2724 |
advantage of federal subsidies for the continuation of health | 2725 |
insurance coverage following a loss of employment. Therefore, this | 2726 |
act shall go into immediate effect. | 2727 |