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To amend sections 3901.021, 3905.04, 3905.041, | 1 |
3905.05, 3905.06, 3905.061, 3905.07, 3905.071, | 2 |
3905.12, 3905.14, 3905.16, 3905.20, 3905.30, | 3 |
3905.35, 3905.36, 3905.40, 3905.41, 3905.481, | 4 |
3905.483, 3905.484, 3905.841, 3905.85, 3905.86, | 5 |
3905.862, 3905.87, 3905.88, 3905.89, 3905.932, and | 6 |
3960.03, to enact section 3905.051, and to repeal | 7 |
sections 3905.10 and 3905.482 of the Revised Code | 8 |
to make changes to the law governing the licensure | 9 |
and regulation of insurance agents and certain | 10 |
insurance-related taxes. | 11 |
Section 1. That sections 3901.021, 3905.04, 3905.041, | 12 |
3905.05, 3905.06, 3905.061, 3905.07, 3905.071, 3905.12, 3905.14, | 13 |
3905.16, 3905.20, 3905.30, 3905.35, 3905.36, 3905.40, 3905.41, | 14 |
3905.481, 3905.483, 3905.484, 3905.841, 3905.85, 3905.86, | 15 |
3905.862, 3905.87, 3905.88, 3905.89, 3905.932, and 3960.03 be | 16 |
amended and section 3905.051 of the Revised Code be enacted to | 17 |
read as follows: | 18 |
Sec. 3901.021. (A) Three-fourths of all appointment and | 19 |
other
fees collected under
| 20 |
section 3905.20 of the Revised Code shall be paid into the state | 21 |
treasury to the credit of the department of insurance operating | 22 |
fund, which is hereby created. The remaining one-fourth shall be | 23 |
credited to the general revenue fund. Other revenues collected by | 24 |
the superintendent of insurance, such as registration fees for | 25 |
sponsored seminars or conferences and grants from private | 26 |
entities, shall be paid into the state treasury to the credit of | 27 |
the department of insurance operating fund. | 28 |
(B) Seven-tenths of all fees collected under divisions | 29 |
(A)(2), (A)(3), and (A)(6) of section 3905.40 of the Revised Code | 30 |
shall be paid into the state treasury to the credit of the | 31 |
department of insurance operating fund. The remaining three-tenths | 32 |
shall be credited to the general revenue fund. | 33 |
(C) All operating expenses of the department of insurance | 34 |
except those expenses defined under section 3901.07 of the Revised | 35 |
Code shall be paid from the department of insurance operating | 36 |
fund. | 37 |
Sec. 3905.04. (A) Except as otherwise provided in this | 38 |
section or in section 3905.041 of the Revised Code, a resident | 39 |
individual applying for an insurance agent license for any of the | 40 |
lines of authority described in division (B) of this section shall | 41 |
take and pass a written examination prior to application for | 42 |
licensure. The examination shall test the knowledge of the | 43 |
individual with respect to the lines of authority for which | 44 |
application | 45 |
insurance agent, and the insurance laws of this state. Before | 46 |
admission to the examination, each individual shall pay the | 47 |
nonrefundable examination fee | 48 |
49 |
(B) The examination described in division (A) of this section | 50 |
shall be required for the following lines of authority: | 51 |
(1) Any of the lines of authority set forth in divisions | 52 |
(B)(1) to | 53 |
(2) Title insurance; | 54 |
(3) Surety bail bonds as provided in sections 3905.83 to | 55 |
3905.95 of the Revised Code; | 56 |
(4) Any other line of authority designated by the | 57 |
superintendent of insurance. | 58 |
(C) An individual shall not be permitted to take the | 59 |
examination described in division (A) of this section unless one | 60 |
61 |
(1) The individual has earned a bachelor's or associate's | 62 |
degree in insurance from an accredited institution. | 63 |
(2) The individual has earned a professional designation | 64 |
approved by the superintendent. | 65 |
(3) The individual has completed, for each line of authority | 66 |
for which the individual has applied, twenty hours of study in a | 67 |
program of insurance education approved by the superintendent, in | 68 |
consultation with the insurance agent education advisory council, | 69 |
under criteria established by the superintendent. Division (C) of | 70 |
this section does not apply with respect to title insurance or any | 71 |
other line of authority designated by the superintendent. | 72 |
(D) An individual who fails to appear for an examination as | 73 |
scheduled, or fails to pass an examination, may reapply for the | 74 |
examination if the individual pays the required fee and submits | 75 |
any necessary forms prior to being rescheduled for the | 76 |
examination. | 77 |
(E)(1) The superintendent may, in accordance with Chapter | 78 |
119. of the Revised Code, adopt any rule necessary for the | 79 |
implementation of this section. | 80 |
(2) The superintendent may make any necessary arrangements, | 81 |
including contracting with an outside testing service, for the | 82 |
administration of the examinations and the collection of the fees | 83 |
required by this section. | 84 |
Sec. 3905.041. (A)(1) An individual who applies for a | 85 |
resident insurance agent license in this state within ninety days | 86 |
after establishing a principal place of residence or principal | 87 |
place of business in this state shall not be required under | 88 |
section 3905.04 of the Revised Code to complete a program of | 89 |
insurance education or to pass a written examination if the | 90 |
individual has paid all applicable fees required under this | 91 |
chapter and if either of the following applies: | 92 |
(a) The individual is currently licensed in another state and | 93 |
is in good standing for the line or lines of authority requested. | 94 |
(b) The individual was previously licensed in another state, | 95 |
the individual's application for a resident insurance agent | 96 |
license in this state is received within ninety days after the | 97 |
cancellation of the individual's previous license, and, at the | 98 |
time of license cancellation, the individual was in good standing | 99 |
for the line or lines of authority requested. | 100 |
(2) To determine an applicant's licensure status and standing | 101 |
102 | |
utilize the producer database maintained by the NAIC or its | 103 |
affiliates or subsidiaries. If that information is not available | 104 |
on the producer database, the superintendent may require | 105 |
106 |
(B) An individual who applies for a temporary insurance agent | 107 |
license in this state shall not be required under section 3905.04 | 108 |
of the Revised Code to complete any prelicensing education or to | 109 |
pass a written examination. | 110 |
(C) The superintendent may exempt any limited lines insurance | 111 |
from the examination requirement of section 3905.04 of the Revised | 112 |
Code. | 113 |
Sec. 3905.05. (A) A natural person shall apply for a | 114 |
resident insurance agent license by submitting to the | 115 |
superintendent of insurance the uniform application or any other | 116 |
application prescribed by the superintendent, any additional | 117 |
information required by the superintendent, and a declaration made | 118 |
under penalty of refusal, suspension, or revocation of the | 119 |
license, that the statements made in the application are true, | 120 |
correct, and complete to the best of the applicant's knowledge and | 121 |
belief and paying any applicable fees required under this chapter. | 122 |
A person who applies for a resident insurance agent license | 123 |
with a variable life-variable annuity line of authority shall | 124 |
include in the person's application the person's individual | 125 |
central registration depository number. | 126 |
The applicant shall also | 127 |
records check
| 128 |
129 | |
130 | |
131 | |
132 | |
133 | |
134 | |
135 | |
136 | |
137 | |
138 | |
139 | |
section 3905.051 of the Revised Code. | 140 |
(B) A business entity acting as an insurance agent shall | 141 |
apply for a resident insurance agent license by submitting to the | 142 |
superintendent | 143 |
application or any other application prescribed by the | 144 |
superintendent and paying any applicable fees required under this | 145 |
chapter. | 146 |
(C) The superintendent may require an applicant to submit any | 147 |
document reasonably necessary to verify the information contained | 148 |
in an application. | 149 |
Sec. 3905.051. As used in this section: | 150 |
(A) "Applicant" means a natural person applying for either of | 151 |
the following: | 152 |
(1) A resident license as an insurance agent or surety bail | 153 |
bond agent; | 154 |
(2) An additional line of authority under an existing | 155 |
resident insurance agent license if a criminal record check has | 156 |
not been obtained within the last twelve months for insurance | 157 |
license purposes. | 158 |
(B) "Fingerprint" means an impression of the lines on the | 159 |
finger taken for the purpose of identification. The impression may | 160 |
be electronic or converted to an electronic format. | 161 |
(C) Each applicant shall consent to a criminal record check | 162 |
in accordance with this section and shall submit a full set of | 163 |
fingerprints to the superintendent of insurance for that purpose. | 164 |
(D) The superintendent of insurance shall request the | 165 |
superintendent of the bureau of criminal identification and | 166 |
investigation to conduct a criminal records check based on the | 167 |
applicant's fingerprints. The superintendent of insurance shall | 168 |
request that criminal record information from the federal bureau | 169 |
of investigation be obtained as part of the criminal records | 170 |
check. | 171 |
(E) The superintendent of insurance may contract for the | 172 |
collection and transmission of fingerprints authorized under this | 173 |
section. The superintendent may order the fee for collecting and | 174 |
transmitting fingerprints to be payable directly to the contractor | 175 |
by the applicant. The superintendent may agree to a reasonable | 176 |
fingerprinting fee to be charged by the contractor. Any fee | 177 |
required under this section shall be paid by the applicant. | 178 |
(F) The superintendent may receive criminal record | 179 |
information directly in lieu of the bureau of criminal | 180 |
identification and investigation that submitted the fingerprints | 181 |
to the federal bureau of investigation. | 182 |
(G) The superintendent shall treat and maintain an | 183 |
applicant's fingerprints and any criminal record information | 184 |
obtained under this section as confidential and shall apply | 185 |
security measures consistent with the criminal justice | 186 |
information services division of the federal bureau of | 187 |
investigation standards for the electronic storage of fingerprints | 188 |
and necessary identifying information and limit the use of records | 189 |
solely to the purposes authorized by this section. The | 190 |
fingerprints and any criminal record information are not subject | 191 |
to subpoena other than one issued pursuant to a criminal | 192 |
investigation, are confidential by law and privileged, are not | 193 |
subject to discovery, and are not admissible in any private civil | 194 |
action. | 195 |
(H) This section does not apply to an agent applying for | 196 |
renewal of an existing resident or nonresident license in this | 197 |
state. | 198 |
Sec. 3905.06. (A)(1) The superintendent of insurance shall | 199 |
issue a resident insurance agent license to an individual | 200 |
applicant whose home state is Ohio upon submission of a completed | 201 |
application and payment of any applicable fee required under this | 202 |
chapter, if the superintendent finds all of the following: | 203 |
(a) The applicant is at least eighteen years of age. | 204 |
(b) The applicant has not committed any act that is a ground | 205 |
for the denial, suspension, or revocation of a license under | 206 |
section 3905.14 of the Revised Code. | 207 |
(c) If required under section 3905.04 of the Revised Code, | 208 |
the applicant has completed a program of insurance education for | 209 |
each line of authority for which the applicant has applied. | 210 |
(d) If required under section 3905.04 of the Revised Code, | 211 |
the applicant has passed an examination for each line of authority | 212 |
for which the applicant has applied. | 213 |
(e) Any applicant applying for variable life-variable annuity | 214 |
line of authority is registered with the financial industry | 215 |
regulatory authority (FINRA) as a registered representative after | 216 |
having passed at least one of the following examinations | 217 |
administered by the FINRA: the series 6 examination, the series 7 | 218 |
examination, the series 63 examination, the series 66 | 219 |
examination, or any other FINRA examination approved by the | 220 |
superintendent. | 221 |
(f) If required under section 3905.051 of the Revised Code, | 222 |
the applicant has consented to a criminal records check and the | 223 |
results of the applicant's criminal records check are determined | 224 |
to be satisfactory by the superintendent. | 225 |
(g) The applicant is a United States citizen or has provided | 226 |
proof of having legal authorization to work in the United States. | 227 |
(h) The applicant is of good reputation and character, is | 228 |
honest and trustworthy, and is otherwise suitable to be licensed. | 229 |
(2) The superintendent shall issue a resident insurance agent | 230 |
license to a business entity applicant upon submission of a | 231 |
completed application and payment of any applicable fees required | 232 |
under this chapter if the superintendent finds all of the | 233 |
following: | 234 |
(a) The applicant either is domiciled in Ohio or maintains | 235 |
its principal place of business in Ohio. | 236 |
(b) The applicant has designated a licensed insurance agent | 237 |
who will be responsible for the applicant's compliance with the | 238 |
insurance laws of this state. | 239 |
(c) The applicant has not committed any act that is a ground | 240 |
for the denial, suspension, or revocation of a license under | 241 |
section 3905.14 of the Revised Code. | 242 |
(d) The applicant has submitted any other documents requested | 243 |
by the superintendent. | 244 |
(B) An insurance agent license issued pursuant to division | 245 |
(A) of this section shall state the licensee's name, the license | 246 |
number, the date of issuance, the date the license expires, the | 247 |
line or lines of authority for which the licensee is qualified, | 248 |
and any other information the superintendent deems necessary. | 249 |
A licensee may be qualified for any of the following lines of | 250 |
authority: | 251 |
(1) Life, which is insurance coverage on human lives, | 252 |
including benefits of endowment and annuities, and may include | 253 |
benefits in the event of death or dismemberment by accident and | 254 |
benefits for disability income; | 255 |
(2) Accident and health, which is insurance coverage for | 256 |
sickness, bodily injury, or accidental death, and may include | 257 |
benefits for disability income; | 258 |
(3) Property, which is insurance coverage for the direct or | 259 |
consequential loss or damage to property of any kind; | 260 |
(4) Casualty, which is insurance coverage against legal | 261 |
liability, including coverage for death, injury, or disability or | 262 |
damage to real or personal property; | 263 |
(5) | 264 |
265 | |
266 |
| 267 |
coverage sold to individuals and families for noncommercial | 268 |
purposes; | 269 |
(6) Variable life and variable annuity products, which is | 270 |
insurance coverage provided under variable life insurance | 271 |
contracts and variable annuities; | 272 |
(7) Credit, which is limited line credit insurance; | 273 |
(8) Title, which is insurance coverage against loss or damage | 274 |
suffered by reason of liens against, encumbrances upon, defects | 275 |
in, or the unmarketability of, real property; | 276 |
(9) Surety bail bond, which is the authority set forth in | 277 |
sections 3905.83 to 3905.95 of the Revised Code; | 278 |
(10) Any other line of authority designated by the | 279 |
superintendent. | 280 |
(C) | 281 |
agent license shall | 282 |
283 | |
biennially for a renewal of the license on or before the last day | 284 |
of the licensee's birth month. A business entity seeking to renew | 285 |
a resident insurance agent license shall apply biennially for a | 286 |
renewal of the license on or before the date determined by the | 287 |
superintendent. The superintendent shall send a renewal notice to | 288 |
all licensees at least one month prior to the renewal date. | 289 |
Applications shall be submitted to the superintendent on | 290 |
forms prescribed by the superintendent. Each application shall be | 291 |
accompanied by a biennial renewal fee. The superintendent also | 292 |
may require an applicant to submit any document reasonably | 293 |
necessary to verify the information contained in the renewal | 294 |
application. | 295 |
(2) To be eligible for renewal, an individual applicant shall | 296 |
complete the continuing education requirements pursuant to section | 297 |
3905.481 of the Revised Code prior to the renewal date. | 298 |
(3) If an applicant submits a completed renewal application, | 299 |
qualifies for renewal pursuant to divisions (C)(1) and (2) of this | 300 |
section, and has not committed any act that is a ground for the | 301 |
refusal to issue, suspension of, or revocation of a license under | 302 |
section 3905.14 of the Revised Code, the superintendent shall | 303 |
renew the applicant's resident insurance agent license. | 304 |
(D) If an individual or business entity does not apply for | 305 |
the renewal of the individual or business entity's license on or | 306 |
before the license renewal date specified in division (C)(1) of | 307 |
this section, the individual or business entity may submit a late | 308 |
renewal application along with all applicable fees required under | 309 |
this chapter prior to the first day of the second month following | 310 |
the license renewal date. | 311 |
(E) A license issued under this section that is not renewed | 312 |
on or before its renewal date pursuant to division (C) of this | 313 |
section or its late renewal date pursuant to division (D) of this | 314 |
section automatically is suspended for nonrenewal on the first | 315 |
day of the second month following the renewal date. If a license | 316 |
is suspended for nonrenewal pursuant to this division, the | 317 |
individual or business entity is eligible to apply for | 318 |
reinstatement of the license within the twelve-month period | 319 |
following the date by which the license should have been renewed | 320 |
by complying with the reinstatement procedure established by the | 321 |
superintendent and paying all applicable fees required under | 322 |
this chapter. | 323 |
(F) A license that is suspended for nonrenewal that is not | 324 |
reinstated pursuant to division (E) of this section automatically | 325 |
is canceled unless the superintendent is investigating any | 326 |
allegations of wrongdoing by the agent or has initiated | 327 |
proceedings under Chapter 119. of the Revised Code. In that case, | 328 |
the license automatically is canceled after the completion of the | 329 |
investigation or proceedings unless the superintendent revokes the | 330 |
license. | 331 |
(G) An individual licensed as a resident insurance agent who | 332 |
is unable to comply with the license renewal procedures | 333 |
established under this section and who is unable to engage in the | 334 |
business of insurance due to military service, a long-term medical | 335 |
disability, or some other extenuating circumstance may request an | 336 |
extension of the renewal date of the individual's license. To be | 337 |
eligible for such an extension, the individual shall submit a | 338 |
written request with supporting documentation to the | 339 |
superintendent. At the superintendent's discretion, the | 340 |
superintendent may not consider a written request made after the | 341 |
renewal date of the license. | 342 |
Sec. 3905.061. (A) If a person licensed as an insurance | 343 |
agent under section 3905.06 of the Revised Code changes the | 344 |
person's address within the state, the person shall, within thirty | 345 |
days after making that change, file a change of address with the | 346 |
superintendent of insurance or the superintendent's designee. | 347 |
(B)(1) If a person licensed as an insurance agent under | 348 |
section 3905.06 of the Revised Code changes the person's home | 349 |
state | 350 |
making that change, file a change of address with the | 351 |
superintendent and provide the superintendent with certification | 352 |
from the new home state
| 353 |
(2) If | 354 |
(B)(1) of this section and the agent is in good standing with the | 355 |
superintendent, the agent's license shall be changed to that of a | 356 |
nonresident license and no fee or license application shall be | 357 |
required. A change in the residency status of an insurance agent | 358 |
license under this section does not change the license renewal | 359 |
date established by the initial licensure under section 3905.06 of | 360 |
the Revised Code. | 361 |
Sec. 3905.07. (A) The superintendent of insurance shall issue | 362 |
a nonresident insurance agent license to an applicant that is a | 363 |
nonresident person upon payment of all applicable fees required | 364 |
under this chapter if the superintendent finds all of the | 365 |
following: | 366 |
(1) The applicant is currently licensed as a resident and is | 367 |
in good standing in the applicant's home state. | 368 |
(2) The applicant | 369 |
370 | |
home state for the lines of authority requested in this state. | 371 |
(3) The applicant has submitted or has had transmitted to the | 372 |
superintendent the application for licensure that the applicant | 373 |
submitted to the applicant's home state or a completed applicable | 374 |
uniform application | 375 |
376 |
(4) The applicant has not committed any act that is a ground | 377 |
for the denial, suspension, or revocation of a license under | 378 |
section 3905.14 of the Revised Code. | 379 |
(5) The applicant is of good reputation and character, is | 380 |
honest and trustworthy, and is otherwise suitable to be licensed. | 381 |
(6) The applicant's home state issues nonresident insurance | 382 |
agent licenses to residents of this state on the same basis as set | 383 |
forth in division (A) of this section. | 384 |
(7) If the applicant is a business entity, the applicant has | 385 |
designated an insurance agent licensed as an agent in this state | 386 |
to be responsible for the applicant's compliance with the | 387 |
insurance laws of this state. | 388 |
(8) The applicant has submitted any other documents requested | 389 |
by the superintendent. | 390 |
(B) To determine an applicant's licensure and standing status | 391 |
in another state, the superintendent may utilize the producer | 392 |
database maintained by the NAIC or its affiliates or subsidiaries. | 393 |
If that information is not available on the producer database, the | 394 |
superintendent may require a certification letter from the | 395 |
applicant's home state. | 396 |
(C) | 397 |
insurance agent license shall | 398 |
399 | |
biennially for a renewal of the license on or before the last day | 400 |
of the licensee's birth month. A business entity seeking to renew | 401 |
a nonresident insurance agent license shall apply biennially for a | 402 |
renewal of the license on or before the date determined by the | 403 |
superintendent. | 404 |
Applications shall be submitted to the superintendent on | 405 |
forms prescribed by the superintendent. Each application shall be | 406 |
accompanied by a biennial renewal fee. The superintendent also | 407 |
may require an applicant to submit any document reasonably | 408 |
necessary to verify the information contained in the renewal | 409 |
application. | 410 |
(2) To be eligible for renewal, an applicant shall maintain a | 411 |
resident license in the applicant's home state for the lines of | 412 |
authority held in this state. | 413 |
(3) If an applicant submits a completed renewal application, | 414 |
qualifies for renewal pursuant to divisions (C)(1) and (2) of this | 415 |
section, and has not committed any act that is a ground for the | 416 |
refusal to issue, suspension of, or revocation of a license under | 417 |
section 3905.14 of the Revised Code, the superintendent shall | 418 |
renew the applicant's nonresident insurance agent license. | 419 |
(D) If an individual or business entity does not apply for | 420 |
the renewal of the individual or business entity's license on or | 421 |
before the license renewal date specified in division (C)(1) of | 422 |
this section, the individual or business entity may submit a late | 423 |
renewal application along with all applicable fees required under | 424 |
this chapter prior to the first day of the second month following | 425 |
the license renewal date. | 426 |
(E) A license issued under this section that is not renewed | 427 |
on or before its renewal date pursuant to division (C) of this | 428 |
section or its late renewal date pursuant to division (D) of this | 429 |
section automatically is suspended for nonrenewal on the first day | 430 |
of the second month following the renewal date. If a license is | 431 |
suspended for nonrenewal pursuant to this division, the | 432 |
individual or business entity is eligible to apply for a | 433 |
reinstatement of the license within the twelve-month period | 434 |
following the date by which the license should have been renewed | 435 |
by complying with the reinstatement procedure established by the | 436 |
superintendent and paying all applicable fees required under | 437 |
this chapter. | 438 |
(F) A license that is suspended for nonrenewal that is not | 439 |
reinstated pursuant to division (E) of this section automatically | 440 |
is canceled unless the superintendent is investigating any | 441 |
allegations of wrongdoing by the agent or has initiated | 442 |
proceedings under Chapter 119. of the Revised Code. In that case, | 443 |
the license automatically is canceled after the completion of the | 444 |
investigation or proceedings unless the superintendent revokes the | 445 |
license. | 446 |
(G) An individual licensed as a nonresident insurance agent | 447 |
who is unable to comply with the license renewal procedures | 448 |
established under this section and who is unable to engage in the | 449 |
business of insurance due to military service, a long-term medical | 450 |
disability, or some other extenuating circumstance may request an | 451 |
extension of the renewal date of the individual's license. To be | 452 |
eligible for such an extension, the individual shall submit a | 453 |
written request with supporting documentation to the | 454 |
superintendent. At the superintendent's discretion, the | 455 |
superintendent may not consider a written request made after the | 456 |
renewal date of the license. | 457 |
| 458 |
nonresident person licensed as a surplus lines producer in the | 459 |
applicant's home state shall receive a nonresident surplus lines | 460 |
broker license pursuant to division (A) of this section. Nothing | 461 |
in this section otherwise affects or supersedes any provision of | 462 |
sections 3905.30 to 3905.37 of the Revised Code. | 463 |
Sec. 3905.071. (A)(1) If a nonresident person licensed as a | 464 |
nonresident insurance agent under section 3905.07 of the Revised | 465 |
Code changes the person's address within the person's state of | 466 |
residence, the person shall, within thirty days after making that | 467 |
change, file a change of address with the superintendent of | 468 |
insurance or the superintendent's designee. | 469 |
(2) If a nonresident person licensed as a nonresident | 470 |
insurance agent under section 3905.07 of the Revised Code changes | 471 |
the person's home state | 472 |
473 | |
within thirty days after making that change, file a change of | 474 |
address with the superintendent and provide the superintendent | 475 |
with certification from the new state of residence or the new home | 476 |
state | 477 |
(B) If a nonresident insurance agent complies with division | 478 |
(A) of this section and the agent is in good standing with the | 479 |
superintendent, no fee or license application shall be required. A | 480 |
change in the residency status of an agent's license under this | 481 |
section does not change the license renewal date established by | 482 |
the initial license under section 3905.07 of the Revised Code. | 483 |
Sec. 3905.12. (A) The superintendent of insurance may adopt | 484 |
rules in accordance with Chapter 119. of the Revised Code to do | 485 |
the following: | 486 |
(1) Establish procedures for the issuance | 487 |
renewal, extension, reactivation, and reinstatement of insurance | 488 |
agent licenses; | 489 |
(2) Provide for the issuance and renewal of limited authority | 490 |
licenses, and establish any prelicensing education, examination, | 491 |
or continuing education requirements the superintendent considers | 492 |
appropriate for such a license; | 493 |
(3) Establish a schedule of fees to be paid to the | 494 |
superintendent for extensions, late renewals, reinstatements, and | 495 |
reactivations of a license under this chapter and for credit card | 496 |
payments, electronic processing service, and manual processing | 497 |
service. Fees collected under this section shall be credited to | 498 |
the department of insurance operating fund created under section | 499 |
3901.021 of the Revised Code. | 500 |
(B) To assist the superintendent in carrying out the | 501 |
superintendent's duties under this chapter, the superintendent may | 502 |
contract with any nongovernmental entity, including the NAIC and | 503 |
its affiliates or subsidiaries, to perform any ministerial | 504 |
function related to insurance agent licensing, including the | 505 |
collection of fees, that the superintendent considers to be | 506 |
appropriate. | 507 |
Sec. 3905.14. (A) As used in sections 3905.14 to 3905.16 of | 508 |
the Revised Code: | 509 |
(1) "Insurance agent" includes a limited lines insurance | 510 |
agent, surety bail bond agent, and surplus line broker. | 511 |
(2) "Refusal to issue or renew" means the decision of the | 512 |
superintendent of insurance not to process either the initial | 513 |
application for a license as an agent or the renewal of such a | 514 |
license. | 515 |
(3) "Revocation" means the permanent termination of all | 516 |
authority to hold any license as an agent in this state. | 517 |
(4) "Surrender for cause" means the voluntary termination of | 518 |
all authority to hold any license as an agent in this state, in | 519 |
lieu of a revocation or suspension order. | 520 |
(5) "Suspension" means the termination of all authority to | 521 |
hold any license as an agent in this state, for either a specified | 522 |
period of time or an indefinite period of time and under any terms | 523 |
or conditions determined by the superintendent. | 524 |
(B) The superintendent may suspend, revoke, or refuse to | 525 |
issue or renew any license of an insurance agent, assess a civil | 526 |
penalty, or impose any other sanction or sanctions authorized | 527 |
under this chapter, for one or more of the following reasons: | 528 |
(1) Providing incorrect, misleading, incomplete, or | 529 |
materially untrue information in a license or appointment | 530 |
application; | 531 |
(2) Violating or failing to comply with any insurance law, | 532 |
rule, subpoena, consent agreement, or order of the superintendent | 533 |
or of the insurance authority of another state; | 534 |
(3) Obtaining, maintaining, or attempting to obtain or | 535 |
maintain a license through misrepresentation or fraud; | 536 |
(4) Improperly withholding, misappropriating, or converting | 537 |
any money or property received in the course of doing insurance | 538 |
business; | 539 |
(5) Intentionally misrepresenting the terms, benefits, value, | 540 |
cost, or effective dates of any actual or proposed insurance | 541 |
contract or application for insurance; | 542 |
(6) Having been convicted of or pleaded guilty or no contest | 543 |
to a felony regardless of whether a judgment of conviction has | 544 |
been entered by the court; | 545 |
(7) Having been convicted of or pleaded guilty or no contest | 546 |
to a misdemeanor that involves the misuse or theft of money or | 547 |
property belonging to another, fraud, forgery, dishonest acts, or | 548 |
breach of a fiduciary duty, that is based on any act or omission | 549 |
relating to the business of insurance, securities, or financial | 550 |
services, or that involves moral turpitude regardless of whether a | 551 |
judgment has been entered by the court; | 552 |
(8) Having admitted to committing, or having been found to | 553 |
have committed, any insurance unfair trade act or practice or | 554 |
insurance fraud; | 555 |
(9) Using fraudulent, coercive, or dishonest practices, or | 556 |
demonstrating incompetence, untrustworthiness, or financial | 557 |
irresponsibility, in the conduct of business in this state or | 558 |
elsewhere; | 559 |
(10) Having an insurance agent license, or its equivalent, | 560 |
denied, suspended, or revoked in any other state, province, | 561 |
district, or territory; | 562 |
(11) Forging or causing the forgery of an application for | 563 |
insurance or any document related to or used in an insurance | 564 |
transaction; | 565 |
(12) Improperly using
notes | 566 |
equipment, or devices of any kind to complete an examination for | 567 |
an insurance agent license; | 568 |
(13) Knowingly accepting insurance business from an | 569 |
individual who is not licensed; | 570 |
(14) Failing to comply with any
| 571 |
official invoice, notice, assessment, or order directing payment | 572 |
of federal, state, or local income tax, state or local sales tax, | 573 |
or workers' compensation premiums; | 574 |
(15) Failing to timely submit an application for insurance. | 575 |
For purposes of division (B)(15) of this section, a submission is | 576 |
considered timely if it occurs within the time period expressly | 577 |
provided for by the insurer, or within seven days after the | 578 |
insurance agent accepts a premium or an order to bind coverage | 579 |
from a policyholder or applicant for insurance, whichever is | 580 |
later. | 581 |
(16) Failing to disclose to an applicant for insurance or | 582 |
policyholder upon accepting a premium or an order to bind coverage | 583 |
from the applicant or policyholder, that the person has not been | 584 |
appointed by the insurer; | 585 |
(17) Having any professional license or financial industry | 586 |
regulatory authority registration suspended or
revoked | 587 |
588 |
(18) Having been subject to a cease and desist order or | 589 |
permanent injunction related to mishandling of funds or breach of | 590 |
fiduciary
responsibilities
or | 591 |
592 | |
unregistered activities; | 593 |
| 594 |
for insurance to designate the insurance agent or the insurance | 595 |
agent's spouse, parent, child, or sibling as the beneficiary of a | 596 |
policy or annuity sold by the insurance agent or of a policy or | 597 |
annuity for which the agent, at any time, was designated as the | 598 |
agent of record, unless the insurance agent or a relative of the | 599 |
insurance agent is the insured or applicant; | 600 |
| 601 |
for insurance to designate the insurance agent or the insurance | 602 |
agent's spouse, parent, child, or sibling as the owner or | 603 |
beneficiary of a trust funded, in whole or in part, by a policy or | 604 |
annuity sold by the insurance agent or by a policy or annuity for | 605 |
which the agent, at any time, was designated as the agent of | 606 |
record, unless the insurance agent or a relative of the insurance | 607 |
agent is the insured or applicant; | 608 |
(21) Failing to provide a written response to the department | 609 |
of insurance within twenty-one calendar days after receipt of any | 610 |
written inquiry from the department, unless a reasonable extension | 611 |
of time has been requested of, and granted by, the superintendent | 612 |
or the superintendent's designee; | 613 |
| 614 |
superintendent after being notified in writing by the | 615 |
superintendent of a scheduled interview, unless a reasonable | 616 |
extension of time has been requested of, and granted by, the | 617 |
superintendent or the superintendent's designee; | 618 |
(23) Transferring or placing insurance with an insurer other | 619 |
than the insurer expressly chosen by the applicant for insurance | 620 |
or policyholder without the consent of the applicant or | 621 |
policyholder or absent extenuating circumstances; | 622 |
| 623 |
insurance of the identity of the insurer or insurers, or the | 624 |
identity of any other insurance agent or licensee known to be | 625 |
involved in procuring, placing, or continuing the insurance for | 626 |
the policyholder or applicant, upon the binding of the coverage; | 627 |
| 628 |
failing to report an individual licensee's violation to the | 629 |
department when the violation was known or should have been known | 630 |
by one or more of the partners, officers, managers, or members of | 631 |
the business entity; | 632 |
| 633 |
business of insurance when the person knew or should have known | 634 |
that the document contained | 635 |
636 | |
Revised Code; | 637 |
| 638 |
or relationship to another person, agency, or entity, or using in | 639 |
any way a professional designation that has not been conferred | 640 |
upon the person by the appropriate accrediting organization; | 641 |
| 642 |
causing a premium loan or policy surrender to be made to or in the | 643 |
name of an insured or policyholder without that person's knowledge | 644 |
and written authorization; | 645 |
| 646 |
provided by an insurer after the insurer has terminated the | 647 |
authority of the licensee, if the use of such materials would | 648 |
cause a reasonable person to believe that the licensee was acting | 649 |
on behalf of or otherwise representing the insurer; | 650 |
| 651 |
placing, either directly or indirectly, any insurance policy when | 652 |
the person is not authorized under this chapter to engage in such | 653 |
activity; | 654 |
| 655 |
any product or service that offers benefits similar to insurance | 656 |
but is not regulated by the superintendent, without fully | 657 |
disclosing, orally and in writing, to the prospective purchaser | 658 |
that the product or service is not insurance and is not regulated | 659 |
by the superintendent; | 660 |
| 661 |
policyholder or applicant in a timely manner. For purposes of | 662 |
division
(B) | 663 |
exists that a refund obligation is not fulfilled in a timely | 664 |
manner unless it is fulfilled within one of the following time | 665 |
periods: | 666 |
(a) Thirty days after the date the policyholder, applicant, | 667 |
or insurer takes or requests action resulting in a refund; | 668 |
(b) Thirty days after the date of the insurer's refund check, | 669 |
if the agent is expected to issue a portion of the total refund; | 670 |
(c) Forty-five days after the date of the agent's statement | 671 |
of account on which the refund first appears. | 672 |
The presumption may be rebutted by proof that the | 673 |
policyholder or applicant consented to the delay or agreed to | 674 |
permit the agent to apply the refund to amounts due for other | 675 |
coverages. | 676 |
| 677 |
rebating or offering to rebate, or unlawfully dividing or offering | 678 |
to divide, any commission, premium, or fee; | 679 |
| 680 |
procuring, receiving, or forwarding applications for insurance of | 681 |
any kind, other than life, or soliciting, placing, or effecting | 682 |
such insurance directly or indirectly upon or in connection with | 683 |
the property of the licensee or that of relatives, employers, | 684 |
employees, or that for which they or the licensee is an agent, | 685 |
custodian, vendor, bailee, trustee, or payee; | 686 |
| 687 |
entity, using a life license for the principal purpose of | 688 |
soliciting or placing insurance on the lives of the business | 689 |
entity's officers, employees, or shareholders, or on the lives of | 690 |
relatives of such officers, employees, or shareholders, or on the | 691 |
lives of persons for whom they, their relatives, or the business | 692 |
entity is agent, custodian, vendor, bailee, trustee, or payee; | 693 |
| 694 |
policies, contracts, agreements, or applications for insurance, or | 695 |
annuities providing fixed, variable, or fixed and variable | 696 |
benefits, or contractual payments, for or on behalf of any insurer | 697 |
or multiple employer welfare arrangement not authorized to | 698 |
transact business in this state, or for or on behalf of any | 699 |
spurious, fictitious, nonexistent, dissolved, inactive, liquidated | 700 |
or liquidating, or bankrupt insurer or multiple employer welfare | 701 |
arrangement; | 702 |
(37) In the case of a resident business entity, failing to be | 703 |
qualified to do business in this state under Title XVII of the | 704 |
Revised Code, failing to be in good standing with the secretary | 705 |
of state, or failing to maintain a valid appointment of statutory | 706 |
agent with the secretary of state; | 707 |
(38) In the case of a nonresident agent, failing to maintain | 708 |
licensure as an insurance agent in the agent's home state for the | 709 |
lines of authority held in this state; | 710 |
(39) Knowingly aiding and abetting another person or entity | 711 |
in the violation of any insurance law of this state or the rules | 712 |
adopted under it. | 713 |
(C) Before denying, revoking, suspending, or refusing to | 714 |
issue any license or imposing any penalty under this section, the | 715 |
superintendent shall provide the licensee or applicant with notice | 716 |
and an opportunity for hearing as provided in Chapter 119. of the | 717 |
Revised Code, except as follows: | 718 |
(1)(a) Any notice of opportunity for hearing, the hearing | 719 |
officer's findings and recommendations, or the superintendent's | 720 |
order shall be served by certified mail at the last known address | 721 |
of the licensee or applicant. Service shall be evidenced by return | 722 |
receipt signed by any person. | 723 |
For purposes of this section, the "last known address" is the | 724 |
residential address of a licensee or applicant, or the | 725 |
principal-place-of-business address of a business entity, that is | 726 |
contained in the licensing records of the department. | 727 |
(b) If the certified mail envelope is returned with an | 728 |
endorsement showing that service was refused, or that the envelope | 729 |
was unclaimed, the notice and all subsequent notices required by | 730 |
Chapter 119. of the Revised Code may be served by ordinary mail to | 731 |
the last known address of the licensee or applicant. The mailing | 732 |
shall be evidenced by a certificate of mailing. Service is deemed | 733 |
complete as of the date of such certificate provided that the | 734 |
ordinary mail envelope is not returned by the postal authorities | 735 |
with an endorsement showing failure of delivery. The time period | 736 |
in which to request a hearing, as provided in Chapter 119. of the | 737 |
Revised Code, begins to run on the date of mailing. | 738 |
(c) If service by ordinary mail fails, the superintendent may | 739 |
cause a summary of the substantive provisions of the notice to be | 740 |
published once a week for three consecutive weeks in a newspaper | 741 |
of general circulation in the county where the last known place of | 742 |
residence or business of the party is located. The notice is | 743 |
considered served on the date of the third publication. | 744 |
(d) Any notice required to be served under Chapter 119. of | 745 |
the Revised Code shall also be served upon the party's attorney by | 746 |
ordinary mail if the attorney has entered an appearance in the | 747 |
matter. | 748 |
(e) The superintendent may, at any time, perfect service on a | 749 |
party by personal delivery of the notice by an employee of the | 750 |
department. | 751 |
(f) Notices regarding the scheduling of hearings and all | 752 |
other matters not described in division (C)(1)(a) of this section | 753 |
shall be sent by ordinary mail to the party and to the party's | 754 |
attorney. | 755 |
(2) Any subpoena for the appearance of a witness or the | 756 |
production of documents or other evidence at a hearing, or for the | 757 |
purpose of taking testimony for use at a hearing, shall be served | 758 |
by certified mail, return receipt requested, by an attorney or by | 759 |
an employee of the department designated by the superintendent. | 760 |
Such subpoenas shall be enforced in the manner provided in section | 761 |
119.09 of the Revised Code. Nothing in this section shall be | 762 |
construed as limiting the superintendent's other statutory powers | 763 |
to issue subpoenas. | 764 |
(D) If the superintendent determines that a violation | 765 |
described in this section has occurred, the superintendent may | 766 |
take one or more of the following actions: | 767 |
(1) Assess a civil penalty in an amount not exceeding | 768 |
twenty-five thousand dollars per violation; | 769 |
(2) Assess administrative costs to cover the expenses | 770 |
incurred by the department in the administrative action, including | 771 |
costs incurred in the investigation and hearing processes. Any | 772 |
costs collected shall be paid into the state treasury to the | 773 |
credit of the department of insurance operating fund created in | 774 |
section 3901.021 of the Revised Code. | 775 |
(3) Suspend all of the person's licenses for all lines of | 776 |
insurance for either a specified period of time or an indefinite | 777 |
period of time and under such terms and conditions as the | 778 |
superintendent may determine; | 779 |
(4) Permanently revoke all of the person's licenses for all | 780 |
lines of insurance; | 781 |
(5) Refuse to issue a license; | 782 |
(6) Refuse to renew a license; | 783 |
(7) Prohibit the person from being employed in any capacity | 784 |
in the business of insurance and from having any financial | 785 |
interest in any insurance agency, company, surety bail bond | 786 |
business, or third-party administrator in this state. The | 787 |
superintendent may, in the superintendent's discretion, determine | 788 |
the nature, conditions, and duration of such restrictions. | 789 |
(8) Order corrective actions in lieu of or in addition to the | 790 |
other penalties listed in division (D) of this section. Such an | 791 |
order may provide for the suspension of civil penalties, license | 792 |
revocation, license suspension, or refusal to issue or renew a | 793 |
license if the licensee complies with the terms and conditions of | 794 |
the corrective action order. | 795 |
(9) Accept a surrender for cause offered by the licensee, | 796 |
which shall be for at least five years and shall prohibit the | 797 |
licensee from seeking any license authorized under this chapter | 798 |
during that time period. A surrender for cause shall be in lieu of | 799 |
revocation or suspension and may include a corrective action order | 800 |
as provided in division (D)(8) of this section. | 801 |
(E) The superintendent may consider the following factors in | 802 |
denying a license, imposing suspensions, revocations, fines, or | 803 |
other penalties, and issuing orders under this section: | 804 |
(1) Whether the person acted in good faith; | 805 |
(2) Whether the person made restitution for any pecuniary | 806 |
losses suffered by other persons as a result of the person's | 807 |
actions; | 808 |
(3) The actual harm or potential for harm to others; | 809 |
(4) The degree of trust placed in the person by, and the | 810 |
vulnerability of, persons who were or could have been adversely | 811 |
affected by the person's actions; | 812 |
(5) Whether the person was the subject of any previous | 813 |
administrative actions by the superintendent; | 814 |
(6) The number of individuals adversely affected by the | 815 |
person's acts or omissions; | 816 |
(7) Whether the person voluntarily reported the violation, | 817 |
and the extent of the person's cooperation and acceptance of | 818 |
responsibility; | 819 |
(8) Whether the person obstructed or impeded, or attempted to | 820 |
obstruct or impede, the superintendent's investigation; | 821 |
(9) The person's efforts to conceal the misconduct; | 822 |
(10) Remedial efforts to prevent future violations; | 823 |
(11) If the person was convicted of a criminal offense, the | 824 |
nature of the offense, whether the conviction was based on acts or | 825 |
omissions taken under any professional license, whether the | 826 |
offense involved the breach of a fiduciary duty, the amount of | 827 |
time that has passed, and the person's activities subsequent to | 828 |
the conviction; | 829 |
(12) Such other factors as the superintendent determines to | 830 |
be appropriate under the circumstances. | 831 |
(F)(1) A violation described in division (B)(1), (2), (3), | 832 |
(4), (5), (6), (7), (8), (9), (10), (11), (12), (13), (14), (16), | 833 |
(17),
(18), (19),
(20), | 834 |
(28),
(29), (30),
(31),
(32), | 835 |
this section is a class A offense for which the superintendent may | 836 |
impose any penalty set forth in division (D) of this section. | 837 |
(2) A violation described in division
(B)(15) or
| 838 |
this section, or a failure to comply with section 3905.061, | 839 |
3905.071, or 3905.22 of the Revised Code, is a class B offense for | 840 |
which the superintendent may impose any penalty set forth in | 841 |
division (D)(1), (2), (8), or (9) of this section. | 842 |
(3) If the superintendent determines that a violation | 843 |
described in division (B) | 844 |
the superintendent shall impose a minimum of a two-year suspension | 845 |
on all of the person's licenses for all lines of insurance. | 846 |
(G) If a violation described in this section has caused, is | 847 |
causing, or is about to cause substantial and material harm, the | 848 |
superintendent may issue an order requiring that person to cease | 849 |
and desist from engaging in the violation. Notice of the order | 850 |
shall be mailed by certified mail, return receipt requested, or | 851 |
served in any other manner provided for in this section, | 852 |
immediately after its issuance to the person subject to the order | 853 |
and to all persons known to be involved in the violation. The | 854 |
superintendent may thereafter publicize or otherwise make known to | 855 |
all interested parties that the order has been issued. | 856 |
The notice shall specify the particular act, omission, | 857 |
practice, or transaction that is subject to the cease-and-desist | 858 |
order and shall set a date, not more than fifteen days after the | 859 |
date of the order, for a hearing on the continuation or revocation | 860 |
of the order. The person shall comply with the order immediately | 861 |
upon receipt of notice of the order. | 862 |
The superintendent may, upon the application of a party and | 863 |
for good cause shown, continue the hearing. Chapter 119. of the | 864 |
Revised Code applies to such hearings to the extent that that | 865 |
chapter does not conflict with the procedures set forth in this | 866 |
section. The superintendent shall, within fifteen days after | 867 |
objections are submitted to the hearing officer's report and | 868 |
recommendation, issue a final order either confirming or revoking | 869 |
the cease-and-desist order. The final order may be appealed as | 870 |
provided under section 119.12 of the Revised Code. | 871 |
The remedy under this division is cumulative and concurrent | 872 |
with the other remedies available under this section. | 873 |
(H) If the superintendent has reasonable cause to believe | 874 |
that an order issued under this section has been violated in whole | 875 |
or in part, the superintendent may request the attorney general to | 876 |
commence and prosecute any appropriate action or proceeding in the | 877 |
name of the state against such person. | 878 |
The court may, in an action brought pursuant to this | 879 |
division, impose any of the following: | 880 |
(1) For each violation, a civil penalty of not more than | 881 |
twenty-five thousand dollars; | 882 |
(2) Injunctive relief; | 883 |
(3) Restitution; | 884 |
(4) Any other appropriate relief. | 885 |
(I) With respect to a surety bail bond agent license: | 886 |
(1) Upon the suspension or revocation of a license, or the | 887 |
eligibility of a surety bail bond agent to hold a license, the | 888 |
superintendent likewise may suspend or revoke the license or | 889 |
eligibility of any surety bail bond agent who is employed by or | 890 |
associated with that agent and who knowingly was a party to the | 891 |
act that resulted in the suspension or revocation. | 892 |
(2) The superintendent may revoke a license as a surety bail | 893 |
bond agent if the licensee is adjudged bankrupt. | 894 |
(J) Nothing in this section shall be construed to create or | 895 |
imply a private cause of action against an agent or insurer. | 896 |
Sec. 3905.16. (A)(1) Except as provided in division (A)(2) | 897 |
of this section, any person licensed as an agent under this | 898 |
chapter may at any time surrender any or all licenses held by the | 899 |
person. | 900 |
(2) No agent shall surrender the agent's licenses if the | 901 |
superintendent of insurance is investigating any allegation of | 902 |
wrongdoing by the agent or has initiated proceedings under Chapter | 903 |
119. of the Revised Code and notice of an opportunity for a | 904 |
hearing has been issued to the agent, and any attempt to so | 905 |
surrender is invalid. | 906 |
(B)(1) If an
agent's license is
surrendered, revoked, | 907 |
suspended, canceled, or inactivated by request, all appointments | 908 |
held by the agent are void. If a new license is issued to that | 909 |
person or if that person's previous license is reinstated or | 910 |
renewed, any appointment of the person to represent an insurer | 911 |
must be made in accordance with the requirements of this chapter. | 912 |
(2) If an agent's license is surrendered, revoked, or | 913 |
canceled and the person wishes to apply for a new license, the | 914 |
person shall apply as a new agent and shall satisfy all | 915 |
requirements for a new agent license including, if applicable, | 916 |
submitting to a criminal records check under section 3905.051 of | 917 |
the Revised Code. | 918 |
(C)(1) Any agent, other than a business entity, who is no | 919 |
longer engaged in the business of insurance in any capacity for | 920 |
which an agent's license is required may apply to the | 921 |
superintendent for inactive status. The superintendent may grant | 922 |
such status only if the superintendent is satisfied that the | 923 |
person is not engaged in and does not intend to engage in any of | 924 |
the activities set forth in section 3905.02 of the Revised Code | 925 |
that requires an agent's license. | 926 |
(2) A person who has been granted inactive status is exempt | 927 |
from any continuing education requirements imposed under this | 928 |
chapter. | 929 |
(3) The superintendent may adopt rules in accordance with | 930 |
Chapter 119. of the Revised Code to establish procedures for | 931 |
applying for inactive status, criteria used to determine | 932 |
eligibility for such status, and standards and procedures for | 933 |
transferring from inactive to active status. | 934 |
(D) The superintendent may suspend or revoke a license, or | 935 |
take any other disciplinary action authorized by this chapter, | 936 |
regardless of whether the person is appointed or otherwise | 937 |
authorized to represent an insurer or agent. | 938 |
Sec. 3905.20. (A) An insurance agent shall not act as an | 939 |
agent of an insurer unless the insurance agent is appointed as an | 940 |
agent of the insurer. An insurance agent who does not act as an | 941 |
agent of an insurer shall not be required to be appointed as an | 942 |
agent of the insurer. | 943 |
For purposes of this division, an insurance agent acts as an | 944 |
agent of an insurer when the insurance agent sells, solicits, or | 945 |
negotiates any product of the insurer and is
compensated | 946 |
by the insurer. | 947 |
(B)(1) To appoint an insurance agent as its agent, an insurer | 948 |
shall file a notice of appointment with the superintendent of | 949 |
insurance not later than thirty days after the date the agency | 950 |
contract is executed or the first insurance application is | 951 |
submitted, whichever is earlier. The notice of appointment shall | 952 |
be provided in the manner prescribed by the superintendent. | 953 |
Each insurer shall pay to the superintendent a fee | 954 |
955 | |
Code for every such appointment when issued and for each | 956 |
continuance thereafter. Such an appointment, unless canceled by | 957 |
the insurer, may be continued in force past the thirtieth day of | 958 |
June next after its issue and after the thirtieth day of June of | 959 |
each succeeding year, unless a different date is determined by the | 960 |
superintendent. | 961 |
A separate appointment and fee are required for a variable | 962 |
life and variable annuity products line of authority. | 963 |
(2) By appointing an insurance agent, an insurer certifies to | 964 |
the superintendent that the person is competent, financially | 965 |
responsible, and suitable to represent the insurer. | 966 |
(3) While an appointment remains in force, an insurer shall | 967 |
be bound by the acts of the person named in the appointment within | 968 |
that person's actual and apparent authority as its agent. | 969 |
(C) The superintendent may, in accordance with Chapter 119. | 970 |
of the Revised Code, adopt rules to establish appointment | 971 |
procedures, including cancellations and renewals, to clarify the | 972 |
circumstances that require an appointment, and to provide for the | 973 |
appointment of insurance agents to some or all of the insurers | 974 |
within an insurer's holding company system or group. | 975 |
Sec. 3905.30. The superintendent of insurance may issue a | 976 |
surplus line broker's license to any natural person who is a | 977 |
resident of this or any other state or to a business entity that | 978 |
is organized under the laws of this or any other state. To be | 979 |
eligible for a resident surplus line broker's license, a person | 980 |
must have
both a property license and a casualty
license. | 981 |
eligible for a nonresident surplus line broker's license, a person | 982 |
must hold an active surplus line broker license in the person's | 983 |
home state. A nonresident surplus line broker shall obtain a | 984 |
nonresident license with a property and casualty line of authority | 985 |
in this state if the broker is or will be personally performing | 986 |
the due diligence requirements under section 3905.33 of the | 987 |
Revised Code. | 988 |
A surplus line broker's license permits the person named in | 989 |
the license to negotiate for and obtain insurance, other than life | 990 |
insurance, on property or persons in this state from insurers not | 991 |
authorized to transact business in this state. Each such license | 992 |
expires on the thirty-first day of January next after the year in | 993 |
which it is issued, and may be then renewed. | 994 |
Sec. 3905.35. Before | 995 |
resident license under section 3905.30 of the Revised Code, the | 996 |
person named in the license shall execute and deliver to the | 997 |
superintendent of insurance a bond in the sum of twenty-five | 998 |
thousand dollars, payable to the state and conditioned that the | 999 |
person will faithfully comply with sections 3905.30 to 3905.35 of | 1000 |
the Revised Code. The bond required by this section shall be | 1001 |
issued by an insurance company authorized to transact surety | 1002 |
business in this state, be on a form prescribed by the | 1003 |
superintendent, and be deposited with the superintendent and kept | 1004 |
in the superintendent's office. | 1005 |
Sec. 3905.36. (A) Except as provided in divisions (B) and | 1006 |
(C) of this section, every insured association, company, | 1007 |
corporation, or other person that enters, directly or indirectly, | 1008 |
into any agreements with any insurance company, association, | 1009 |
individual, firm, underwriter, or Lloyd's, not authorized to do | 1010 |
business in this state, whereby the insured shall procure, | 1011 |
continue, or renew contracts of insurance covering subjects of | 1012 |
insurance resident, located, or to be performed within this state, | 1013 |
with such unauthorized insurance company, association, individual, | 1014 |
firm, underwriter, or Lloyd's, for which insurance there is a | 1015 |
gross premium, membership fee, assessment, dues, or other | 1016 |
consideration charged or collected, shall annually, on or before | 1017 |
the
thirty-first day
of
| 1018 |
superintendent of insurance a statement under oath showing the | 1019 |
name and address of the insured, name and address of the insurer, | 1020 |
subject of the insurance, general description of the coverage, and | 1021 |
amount of gross premium, fee, assessment, dues, or other | 1022 |
consideration for
such insurance for
the preceding | 1023 |
1024 | |
treasurer of state a tax of five per cent of such gross premium, | 1025 |
fee, assessment, dues, or other consideration, after a deduction | 1026 |
for return premium, if any, as calculated on a form prescribed by | 1027 |
the treasurer of state. All taxes collected under this section by | 1028 |
the treasurer of state shall be paid into the general revenue | 1029 |
fund. If the tax is not paid when due, the tax shall be increased | 1030 |
by a penalty of twenty-five per cent. An interest charge computed | 1031 |
as set forth in section 5725.221 of the Revised Code shall be made | 1032 |
on the entire sum of the tax plus penalty, which interest shall be | 1033 |
computed from the date the tax is due until it is paid. For | 1034 |
purposes of this section, payment is considered made when it is | 1035 |
received by the treasurer of state, irrespective of any United | 1036 |
States postal service marking or other stamp or mark indicating | 1037 |
the date on which the payment may have been mailed. | 1038 |
(B) This section does not apply to: | 1039 |
(1) Transactions in this state involving a policy solicited, | 1040 |
written, and delivered outside this state covering only subjects | 1041 |
of insurance not resident, located, or to be performed in this | 1042 |
state at the time of issuance, provided such transactions are | 1043 |
subsequent to the issuance of the policy; | 1044 |
(2) Attorneys-at-law acting on behalf of their clients in the | 1045 |
adjustment of claims or losses; | 1046 |
(3) Transactions involving policies issued by a captive | 1047 |
insurer. For this purpose, a "captive insurer" means any of the | 1048 |
following: | 1049 |
(a) An insurer owned by one or more individuals or | 1050 |
organizations, whose exclusive purpose is to insure risks of one | 1051 |
or more of the parent organizations or individual owners and risks | 1052 |
of one or more affiliates of the parent organizations or | 1053 |
individual owners; | 1054 |
(b) In the case of groups and associations, insurers owned by | 1055 |
the group or association whose exclusive purpose is to insure | 1056 |
risks of members of the group or association and affiliates of the | 1057 |
members; | 1058 |
(c) Other types of insurers, licensed and operated in | 1059 |
accordance with the captive insurance laws of their jurisdictions | 1060 |
of domicile and operated in a manner so as to self-insure risks of | 1061 |
their owners and insureds. | 1062 |
(4) Professional or medical liability insurance procured by a | 1063 |
hospital organized under Chapter 3701. of the Revised Code; | 1064 |
(5) Insurance with an initial policy period of more than | 1065 |
three years and that is procured to cover known events related to | 1066 |
environmental remediation that occurred prior to the effective | 1067 |
date of that insurance; | 1068 |
(6) Insurance procured on behalf of an entity that | 1069 |
manufactures, packages, and sells, as more than fifty per cent of | 1070 |
the entity's business, pharmaceutical products for human use where | 1071 |
the production, packaging, and sale of such products are subject | 1072 |
to regulation by an agency of the United States. | 1073 |
(C) In transactions that are subject to sections 3905.30 to | 1074 |
3905.35 of the Revised Code, each person licensed under section | 1075 |
3905.30 of the Revised Code shall pay to the treasurer of state, | 1076 |
on or before the
thirty-first day of
| 1077 |
five per cent of the balance of the gross premiums charged for | 1078 |
insurance placed or procured under the license after a deduction | 1079 |
for return premiums, as reported on a form prescribed by the | 1080 |
treasurer of state. The tax shall be collected from the insured by | 1081 |
the surplus line broker who placed or procured the policy of | 1082 |
insurance at the time the policy is delivered to the insured. No | 1083 |
license issued under section 3905.30 of the Revised Code shall be | 1084 |
renewed until payment is made. If the tax is not paid when due, | 1085 |
the tax shall be increased by a penalty of twenty-five per cent. | 1086 |
An interest charge computed as set forth in section 5725.221 of | 1087 |
the Revised Code shall be made on the entire sum of the tax plus | 1088 |
penalty, which interest shall be computed from the date the tax is | 1089 |
due until it is paid. For purposes of this section, payment is | 1090 |
considered made when it is received by the treasurer of state, | 1091 |
irrespective of any United States postal service marking or other | 1092 |
stamp or mark indicating the date on which the payment may have | 1093 |
been mailed. | 1094 |
Sec. 3905.40. There shall be paid to the superintendent of | 1095 |
insurance the following fees: | 1096 |
(A) Each insurance company doing business in this state shall | 1097 |
pay: | 1098 |
(1) For filing a copy of its charter or deed of settlement, | 1099 |
two hundred fifty dollars; | 1100 |
(2) For filing each statement, one hundred seventy-five | 1101 |
dollars; | 1102 |
(3) For each certificate of authority or license, one hundred | 1103 |
seventy-five, and for each certified copy thereof, five dollars; | 1104 |
(4) For each copy of a paper filed in the superintendent's | 1105 |
office, twenty cents per page; | 1106 |
(5) For issuing certificates of deposits or certified copies | 1107 |
thereof, five dollars for the first certificate or copy and one | 1108 |
dollar for each additional certificate or copy; | 1109 |
(6) For issuing certificates of compliance or certified | 1110 |
copies thereof, sixty dollars; | 1111 |
(7) For affixing the seal of office and certifying documents, | 1112 |
other than those enumerated herein, two dollars; | 1113 |
(8) For each agent appointment and each annual renewal of an | 1114 |
agent appointment, twenty dollars; | 1115 |
(9) For each termination of an agent appointment, five | 1116 |
dollars. | 1117 |
(B) Each domestic life insurance company doing business in | 1118 |
this state shall pay for annual valuation of its policies, one | 1119 |
cent on every one thousand dollars of insurance. | 1120 |
(C) Each
applicant for licensure as an | 1121 |
agent except applicants for licensure as | 1122 |
surety bail bond agents and surplus line brokers shall pay ten | 1123 |
dollars for each line of authority requested. Fees collected | 1124 |
under this division shall be credited to the department of | 1125 |
insurance operating fund created in section 3901.021 of the | 1126 |
Revised Code. | 1127 |
(D) Each domestic mutual life insurance company shall pay for | 1128 |
verifying that any amendment to its articles of incorporation was | 1129 |
regularly adopted, two hundred fifty dollars with each application | 1130 |
for verification. Any such amendment shall be considered to have | 1131 |
been regularly adopted when approved by the affirmative vote of | 1132 |
two-thirds of the policyholders present in person or by proxy at | 1133 |
any annual meeting of policyholders or at a special meeting of | 1134 |
policyholders called for that purpose. | 1135 |
(E) Each insurance agent doing business in this state shall | 1136 |
pay a biennial license renewal fee of twenty-five dollars, except | 1137 |
the following insurance agents are not required to pay the license | 1138 |
renewal fee: | 1139 |
(1) Individual resident agents who have met their continuing | 1140 |
education requirements under section 3905.481 of the Revised Code; | 1141 |
(2) Surety bail bond agents; | 1142 |
(3) Surplus line brokers. | 1143 |
(F) All fees collected by the superintendent under this | 1144 |
section except any fees collected under divisions (A)(2), (3), and | 1145 |
(6) of this section shall be credited to the department of | 1146 |
insurance operating fund created under section 3901.021 of the | 1147 |
Revised Code. | 1148 |
Sec. 3905.41. The superintendent of insurance may open an | 1149 |
account in the name of each insurance company authorized to do | 1150 |
business in this state and in the name of any authorized insurance | 1151 |
agent, and charge the accounts with all fees incurred by such | 1152 |
companies or
agents in accordance with
sections
| 1153 |
3905.40, 3919.26, and 3931.03 of the Revised Code, and other | 1154 |
statutes imposing fees. The statutory fee for each service | 1155 |
requested shall be charged against the proper account immediately | 1156 |
upon the rendition of the service. | 1157 |
Not later than the tenth day of each calendar month the | 1158 |
superintendent shall render an itemized statement to each company | 1159 |
or agent whose account has been charged during the month next | 1160 |
preceding, showing the amount of all fees charged during that | 1161 |
month and demanding that payment thereof be made not later than | 1162 |
the first day of the month next following. | 1163 |
The failure of any insurance company within that time to pay | 1164 |
the amount of such fees in accordance with the monthly statement, | 1165 |
or, if the statement or account is found to be incorrect, in | 1166 |
accordance with a corrected monthly statement rendered by the | 1167 |
superintendent, is grounds for the revocation of its certificate | 1168 |
of authority to do business in this state. In the event of such an | 1169 |
order of revocation, the superintendent shall immediately cause a | 1170 |
notice thereof to be published once in at least one newspaper at | 1171 |
the seat of the government and also, if a domestic company, once | 1172 |
in at least one newspaper published in the county where its home | 1173 |
office is located, or, if a foreign or alien company, once in at | 1174 |
least one newspaper published in a county of this state where an | 1175 |
agency of the company is located. After the publication of the | 1176 |
notice, no agent of the company shall procure applications for | 1177 |
insurance or issue policies. | 1178 |
In the event of the failure of any agent within the time | 1179 |
fixed to pay the amount of fees charged against the agent's | 1180 |
account in accordance with the monthly statement rendered by the | 1181 |
superintendent, the agent's license may be revoked in the manner | 1182 |
provided by section 3905.14 of the Revised Code. | 1183 |
Sec. 3905.481. | 1184 |
1185 | |
insurance agent license | 1186 |
1187 | |
1188 | |
continuing education in each license renewal period. The | 1189 |
continuing education shall be offered in a course or program of | 1190 |
study approved by the superintendent of insurance in consultation | 1191 |
with the insurance agent education advisory council and shall | 1192 |
include at least three hours of approved ethics training. | 1193 |
1194 | |
1195 | |
1196 | |
1197 | |
1198 | |
1199 | |
1200 | |
1201 | |
1202 | |
1203 |
| 1204 |
1205 | |
1206 | |
1207 | |
1208 | |
1209 | |
1210 | |
1211 | |
1212 | |
1213 | |
1214 |
| 1215 |
person or class of persons, as determined by the superintendent in | 1216 |
consultation with the council. | 1217 |
| 1218 |
1219 | |
1220 | |
1221 | |
1222 |
Sec. 3905.483. (A) There is hereby created the insurance | 1223 |
agent education advisory council to advise the superintendent of | 1224 |
insurance in carrying out the duties imposed under sections | 1225 |
3905.04 and 3905.481 to 3905.486 of the Revised Code. | 1226 |
(B) The council shall be composed of the superintendent, or | 1227 |
the superintendent's designee, and twelve members appointed by the | 1228 |
superintendent, as follows: | 1229 |
(1) One representative of the association of Ohio life | 1230 |
insurance companies; | 1231 |
(2) One representative of the independent insurance agents of | 1232 |
Ohio; | 1233 |
(3) One representative of the Ohio association of health | 1234 |
underwriters; | 1235 |
(4) One representative of the | 1236 |
1237 |
(5) One representative of the Ohio insurance institute; | 1238 |
(6) One representative of the professional insurance agents | 1239 |
association of Ohio; | 1240 |
(7) One representative of the Ohio land title association; | 1241 |
(8) Two insurance agents each of whom has been licensed | 1242 |
continuously during the five-year period immediately preceding the | 1243 |
agent's appointment; | 1244 |
(9) One representative of an insurance company admitted to | 1245 |
transact business in this state; | 1246 |
(10) Two representatives of consumers, one of whom shall be | 1247 |
at least sixty years of age. | 1248 |
(C)(1) Of the initial eleven appointments made by the | 1249 |
superintendent, three shall be for terms ending December 31, 1994, | 1250 |
four shall be for terms ending December 31, 1995, and four shall | 1251 |
be for terms ending December 31, 1996. Thereafter, terms of office | 1252 |
shall be for three years, each term ending on the thirty-first day | 1253 |
of December of the third year. | 1254 |
(2) The initial appointment of the twelfth member made by the | 1255 |
superintendent under division (B)(7) of this section, pursuant to | 1256 |
Am. Sub. S.B. 129 of the 124th general assembly, shall be for a | 1257 |
term ending December 31, 2003. Thereafter, the term of office | 1258 |
shall be for three years, ending on the thirty-first day of | 1259 |
December of the third year. | 1260 |
(D) Each member shall hold office from the date of | 1261 |
appointment until the end of the term for which the member was | 1262 |
appointed. Any member appointed to fill a vacancy occurring prior | 1263 |
to the expiration of the term for which the member's predecessor | 1264 |
was appointed shall hold office for the remainder of such term. | 1265 |
Any member shall continue in office subsequent to the expiration | 1266 |
date of the member's term until the member's successor takes | 1267 |
office, or until a period of sixty days has elapsed, whichever | 1268 |
occurs first. A vacancy shall be filled in the same manner as the | 1269 |
original appointment. | 1270 |
(E) Initial appointments to the council shall be made no | 1271 |
later than thirty days after April 16, 1993. The initial | 1272 |
appointment of the twelfth member to the council under division | 1273 |
(B)(7) of this section, pursuant to Am. Sub. S.B. 129 of the 124th | 1274 |
general assembly, shall be made no later than December 31, 2002. | 1275 |
(F) Any member is eligible for reappointment. The | 1276 |
superintendent, after notice and opportunity for a hearing, may | 1277 |
remove for cause any member the superintendent appoints. | 1278 |
(G) The superintendent or the superintendent's designee shall | 1279 |
serve as chairperson of the council. Meetings shall be held upon | 1280 |
the call of the chairperson and as may be provided by procedures | 1281 |
adopted by the superintendent. Seven members of the council | 1282 |
constitute a quorum. | 1283 |
(H) Each member shall receive mileage and necessary and | 1284 |
actual expenses while engaged in the business of the council. | 1285 |
Sec. 3905.484. (A) The superintendent of insurance, in | 1286 |
consultation with the insurance agent education advisory council, | 1287 |
shall establish criteria for any course or program of study that | 1288 |
is offered in this state under section 3905.04 or sections | 1289 |
3905.481 to 3905.486 of the Revised Code. | 1290 |
(B) No course or program of study shall be offered in this | 1291 |
state under section 3905.04 or sections 3905.481 to 3905.486 of | 1292 |
the Revised Code unless it is approved by the superintendent in | 1293 |
consultation with the council. | 1294 |
(C) A course or program of study offered in this state under | 1295 |
section 3905.04 or sections 3905.481 to 3905.486 of the Revised | 1296 |
Code shall be developed or sponsored only by one of the following: | 1297 |
(1) An insurance company admitted to transact business in | 1298 |
this state; | 1299 |
(2) An accredited college or university; | 1300 |
(3) An insurance trade association; | 1301 |
(4) An independent program of instruction that is approved by | 1302 |
the superintendent in consultation with the council; | 1303 |
(5) Any institution as defined in section 1713.01 of the | 1304 |
Revised Code that holds a certificate of authorization issued by | 1305 |
the Ohio board of regents under Chapter 1713. of the Revised Code | 1306 |
or is exempt under that chapter from the requirements for a | 1307 |
certificate of authorization. | 1308 |
| 1309 |
1310 | |
1311 | |
1312 |
Sec. 3905.841. The following persons or classes of persons | 1313 |
shall not act as surety bail bond agents or employees of a surety | 1314 |
bail bond agent or bail bond business and shall not directly or | 1315 |
indirectly receive any benefits from the execution of a bail bond, | 1316 |
except as a principal: | 1317 |
(A) Jailers or other persons employed in a detention | 1318 |
facility, as defined in section 2921.01 of the Revised Code; | 1319 |
(B) Prisoners incarcerated in any jail, prison, or any other | 1320 |
place used for the incarceration of persons; | 1321 |
(C) Peace officers as defined in section 2921.51 of the | 1322 |
Revised Code, including volunteer or honorary peace officers, or | 1323 |
other employees of a law enforcement agency; | 1324 |
| 1325 |
or employees of the clerk of any court; | 1326 |
| 1327 |
office; | 1328 |
| 1329 |
persons who have authority over or control of, federal, state, | 1330 |
county, or municipal corporation prisoners. | 1331 |
Sec. 3905.85. (A) | 1332 |
for a license as a surety bail bond agent shall submit an | 1333 |
application for the license in a manner prescribed by the | 1334 |
superintendent of insurance. The application shall be accompanied | 1335 |
by a one hundred fifty dollar fee and a statement that gives the | 1336 |
applicant's name, age, residence, present occupation, occupation | 1337 |
for the five years next preceding the date of the application, and | 1338 |
such other information as the superintendent may require. | 1339 |
| 1340 |
also | 1341 |
1342 | |
1343 | |
1344 | |
1345 | |
1346 | |
1347 | |
1348 | |
1349 | |
1350 | |
1351 | |
1352 | |
1353 | |
of the Revised Code. | 1354 |
| 1355 |
1356 |
(B)(1) The superintendent | 1357 |
applicant | 1358 |
substance that the person is authorized to do the business of a | 1359 |
surety bail bond agent, if the superintendent is satisfied that | 1360 |
all of the following apply: | 1361 |
| 1362 |
| 1363 |
(c) The applicant is a person of high character and | 1364 |
integrity. | 1365 |
| 1366 |
grounds for the refusal to issue, suspension of, or revocation of | 1367 |
a license under section 3905.14 of the Revised Code. | 1368 |
(e) The applicant is a United States citizen or has provided | 1369 |
proof of having legal authorization to work in the United States. | 1370 |
(f) The applicant has successfully completed the educational | 1371 |
requirements set forth in section 3905.04 of the Revised Code and | 1372 |
passed the examination required by that section. | 1373 |
(2) The superintendent shall issue to an applicant an | 1374 |
individual nonresident license that states in substance that the | 1375 |
person is authorized to do the business of a surety bail bond | 1376 |
agent, if the superintendent is satisfied that all of the | 1377 |
following apply: | 1378 |
(a) The applicant is eighteen years of age or older. | 1379 |
(b) The applicant is currently licensed as a resident in | 1380 |
another state and is in good standing in the applicant's home | 1381 |
state for surety bail bond or is qualified for the same authority. | 1382 |
(c) The applicant is a person of high character and | 1383 |
integrity. | 1384 |
(d) The applicant has not committed any act that is grounds | 1385 |
for the refusal to issue, suspension of, or revocation of a | 1386 |
license under section 3905.14 of the Revised Code. | 1387 |
(3) The superintendent shall issue an applicant a resident | 1388 |
business entity license that states in substance that the person | 1389 |
is authorized to do the business of a surety bail bond agent if | 1390 |
the superintendent is satisfied that all of the following apply: | 1391 |
(a) The applicant has submitted an application for the | 1392 |
license in a manner prescribed by the superintendent and the | 1393 |
one-hundred-fifty-dollar application fee. | 1394 |
(b) The applicant either is domiciled in this state or | 1395 |
maintains its principal place of business in this state. | 1396 |
(c) The applicant has designated an individual licensed | 1397 |
surety bail bond agent who will be responsible for the applicant's | 1398 |
compliance with the insurance laws of this state. | 1399 |
(d) The applicant has not committed any act that is grounds | 1400 |
for the refusal to issue, suspension of, or revocation of a | 1401 |
license under section 3905.14 of the Revised Code. | 1402 |
(e) The applicant is authorized to do business in this state | 1403 |
by the secretary of state if so required under the applicable | 1404 |
provisions of Title XVII of the Revised Code. | 1405 |
(f) The applicant has submitted any other documents requested | 1406 |
by the superintendent. | 1407 |
(4) The superintendent shall issue an applicant a nonresident | 1408 |
business entity license that states in substance that the person | 1409 |
is authorized to do the business of a surety bail bond agent if | 1410 |
the superintendent is satisfied that all of the following apply: | 1411 |
(a) The applicant has submitted an application for the | 1412 |
license in a manner prescribed by the superintendent and the | 1413 |
one-hundred-fifty-dollar application fee. | 1414 |
(b) The applicant is currently licensed and is in good | 1415 |
standing in the applicant's home state with surety bail bond | 1416 |
authority. | 1417 |
(c) The applicant has designated an individual licensed | 1418 |
surety bail bond agent who will be responsible for the applicant's | 1419 |
compliance with the insurance laws of this state. | 1420 |
(d) The applicant has not committed any act that is grounds | 1421 |
for the refusal to issue, suspension of, or revocation of a | 1422 |
license under section 3905.14 of the Revised Code. | 1423 |
(e) The applicant has submitted any other documents requested | 1424 |
by the superintendent. | 1425 |
(C) A resident and nonresident surety bail bond agent license | 1426 |
issued pursuant to this section authorizes the holder, when | 1427 |
appointed by an insurer, to execute or countersign bail bonds in | 1428 |
connection with judicial proceedings and to receive money or other | 1429 |
things of value for those services. However, the holder shall not | 1430 |
execute or deliver a bond during the first one hundred eighty days | 1431 |
after the license is initially issued. This restriction does not | 1432 |
apply with respect to license renewals or any license issued under | 1433 |
divisions (B)(3) and (4) of this section. | 1434 |
(D) The superintendent | 1435 |
refuse to renew a surety bail bond agent's license as provided in | 1436 |
division (B) of section
| 1437 |
may suspend, revoke, or refuse to issue or renew such a license as | 1438 |
provided in section 3905.14 of the Revised Code. | 1439 |
If the superintendent refuses to issue such a license based | 1440 |
in whole or in part upon the written response to a criminal | 1441 |
records
check | 1442 |
section, the superintendent shall send a copy of the response that | 1443 |
was
transmitted to the superintendent | 1444 |
1445 | |
the applicant's submission of a written request to the | 1446 |
superintendent. | 1447 |
(E) Any person licensed as a surety bail bond agent may | 1448 |
surrender the person's license in accordance with section 3905.16 | 1449 |
of the Revised Code. | 1450 |
(F) | 1451 |
1452 | |
1453 | |
1454 | |
1455 | |
1456 | |
a surety bail bond agent license shall apply annually for a | 1457 |
renewal of the license on or before the last day of February. | 1458 |
Applications shall be submitted to the superintendent on forms | 1459 |
prescribed by the superintendent. Each application shall be | 1460 |
accompanied by a one-hundred-fifty-dollar renewal fee. | 1461 |
(2) To be eligible for renewal, an individual applicant shall | 1462 |
complete the continuing education requirements pursuant to | 1463 |
section 3905.88 of the Revised Code prior to the renewal date. | 1464 |
(3) If an applicant submits a completed renewal application, | 1465 |
qualifies for renewal pursuant to divisions (F)(1) and (2) of this | 1466 |
section, and has not committed any act that is a ground for the | 1467 |
refusal to issue, suspension of, or revocation of a license under | 1468 |
section 3905.14 or sections 3905.83 to 3905.99 of the Revised | 1469 |
Code, the superintendent shall renew the applicant's surety bail | 1470 |
bond insurance agent license. | 1471 |
(4) If an individual or business entity does not apply for | 1472 |
the renewal of the individual or business entity's license on or | 1473 |
before the license renewal date specified in division (F)(1) of | 1474 |
this section, the individual or business entity may submit a late | 1475 |
renewal application along with all applicable fees required under | 1476 |
this chapter prior to the last day of March following the renewal | 1477 |
date. The superintendent shall renew the license of an applicant | 1478 |
that submits a late renewal application if the applicant | 1479 |
satisfies all of the following conditions: | 1480 |
(a) The applicant submits a completed renewal application. | 1481 |
(b) The applicant pays the one-hundred-fifty-dollar renewal | 1482 |
fee. | 1483 |
(c) The applicant pays the late renewal fee established by | 1484 |
the superintendent. | 1485 |
(d) The applicant provides proof of compliance with the | 1486 |
continuing education requirements pursuant to section 3905.88 of | 1487 |
the Revised Code. | 1488 |
(e) The applicant has not committed any act that is grounds | 1489 |
for the refusal to issue, suspension of, or revocation of a | 1490 |
license under section 3905.14 or sections 3905.83 to 3905.99 of | 1491 |
the Revised Code. | 1492 |
(5) A license issued under this section that is not renewed | 1493 |
on or before its late renewal date specified in division (F)(4) of | 1494 |
this section is automatically suspended for nonrenewal effective | 1495 |
the first day of April. | 1496 |
(6) If a license is suspended for nonrenewal pursuant to | 1497 |
division (F)(5) of this section, the individual or business entity | 1498 |
is eligible to apply for reinstatement of the license within the | 1499 |
twelve-month period following the date by which the license should | 1500 |
have been renewed by complying with the reinstatement procedure | 1501 |
established by the superintendent and paying all applicable fees | 1502 |
required under this chapter. | 1503 |
(7) A license that is suspended for nonrenewal that is not | 1504 |
reinstated pursuant to division (F)(6) of this section | 1505 |
automatically is canceled unless the superintendent is | 1506 |
investigating any allegations of wrongdoing by the agent or has | 1507 |
initiated proceedings under Chapter 119. of the Revised Code. In | 1508 |
that case, the license automatically is canceled after the | 1509 |
completion of the investigation or proceedings unless the | 1510 |
superintendent revokes the license. | 1511 |
(G) The superintendent | 1512 |
to be used as evidence of the issuance of a license under this | 1513 |
section. The superintendent shall require each licensee to | 1514 |
acquire, from a source designated by the superintendent, a wallet | 1515 |
identification card that includes the licensee's photograph and | 1516 |
any other information required by the superintendent. The licensee | 1517 |
shall keep the wallet identification card on the licensee's person | 1518 |
while engaging in the bail bond business. | 1519 |
(H)(1) The superintendent of insurance shall not issue or | 1520 |
renew the license of a business entity organized under the laws of | 1521 |
this or any other state unless the business entity is qualified to | 1522 |
do business in this state under the applicable provisions of Title | 1523 |
XVII of the Revised Code. | 1524 |
(2) The failure of a business entity to be in good standing | 1525 |
with the secretary of state or to maintain a valid appointment of | 1526 |
statutory agent is grounds for suspending, revoking, or refusing | 1527 |
to renew its license. | 1528 |
(3) By applying for a surety bail bond agent license under | 1529 |
this section, an individual or business entity consents to the | 1530 |
jurisdiction of the courts of this state. | 1531 |
(I) A surety bail bond agent licensed pursuant to this | 1532 |
section is an officer of the court. | 1533 |
(J) Any fee collected under this section shall be paid into | 1534 |
the state treasury to the credit of the department of insurance | 1535 |
operating fund created by section 3901.021 of the Revised Code. | 1536 |
Sec. 3905.86. (A) Any person licensed as a surety bail bond | 1537 |
agent may be appointed by an insurer in accordance with this | 1538 |
section. | 1539 |
(B) | 1540 |
1541 | |
1542 | |
1543 | |
surety bail bond agent as its agent, an insurer shall file a | 1544 |
notice of appointment with the superintendent of insurance in the | 1545 |
manner prescribed by the superintendent. All insurers shall pay to | 1546 |
the superintendent a fee | 1547 |
(A)(8) of section 3905.40 of the Revised Code for each such | 1548 |
appointment when issued and for each continuance thereafter. Such | 1549 |
an appointment, unless canceled by the insurer, may be continued | 1550 |
in force past the thirtieth day of June next after its issue and | 1551 |
after the thirtieth day of June of each succeeding year provided | 1552 |
that the appointee is licensed and is eligible for the | 1553 |
appointment. | 1554 |
Any fee collected under this division shall be paid into the | 1555 |
state treasury to the credit of the department of insurance | 1556 |
operating fund created by section 3901.021 of the Revised Code. | 1557 |
(C)(1) By appointing a surety bail bond agent, an insurer | 1558 |
certifies to the superintendent that the person is competent, | 1559 |
financially responsible, and suitable to represent the insurer. | 1560 |
(2) An insurer shall be bound by the acts of the person named | 1561 |
in the appointment within that person's actual or apparent | 1562 |
authority as its agent. | 1563 |
(D) A surety bail bond agent shall not represent to the | 1564 |
public that the agent has authority to represent a particular | 1565 |
insurer until the insurer has acknowledged that authority by | 1566 |
appointment of the agent in accordance with this section. | 1567 |
Sec. 3905.862. Upon the expiration or cancellation of a | 1568 |
surety bail bond agent's appointment, the agent shall not engage | 1569 |
or attempt to engage in any activity requiring such an | 1570 |
appointment. However, an insurer that cancels the appointment of | 1571 |
a surety bail bond agent may authorize the agent to continue to | 1572 |
attempt the arrest and surrender of a defendant for whom a bail | 1573 |
bond had been written prior to the cancellation and to seek | 1574 |
discharge of forfeitures and judgments. | 1575 |
An insurer that cancels the appointment of a surety bail bond | 1576 |
agent or allows that appointment to expire shall pay to the | 1577 |
superintendent of insurance a fee pursuant to division (A)(9) of | 1578 |
section 3905.40 of the Revised Code. | 1579 |
Sec. 3905.87. (A) A surety bail bond agent shall not file a | 1580 |
bond
in any court of
this state unless | 1581 |
1582 |
| 1583 |
3905.83 to 3905.95 of the Revised Code and has registered with the | 1584 |
clerk of that court pursuant to division (B) of this section, if | 1585 |
registration is required by the court. | 1586 |
| 1587 |
1588 |
(B) To register with a court, a surety bail bond agent shall | 1589 |
file, with the clerk of the court, a copy of the agent's surety | 1590 |
bail bond license, a copy of the agent's driver's license or state | 1591 |
identification card, and a certified copy of the surety bail bond | 1592 |
agent's appointment by power of attorney from each insurer that | 1593 |
the surety bail bond agent represents.
| 1594 |
1595 | |
An agent shall renew the agent's registration biennially by the | 1596 |
first day of August of each odd-numbered
year. | 1597 |
1598 | |
1599 | |
1600 | |
1601 |
(C) The clerk of the court shall make available a list of | 1602 |
court-registered surety bail bond agents to the appropriate | 1603 |
holding facility, jail, correction facility, or other similar | 1604 |
entity within the court's jurisdiction annually not later than the | 1605 |
first day of September. If an agent registers with a court after | 1606 |
the last day of August, the court shall add that agent to the list | 1607 |
and make the updated list available to the appropriate holding | 1608 |
facility, jail, correction facility, or other similar entity | 1609 |
within the court's jurisdiction within twenty-four hours of the | 1610 |
court's approval of that registration. | 1611 |
Sec. 3905.88. (A) Each individual who is issued a license as | 1612 |
a resident surety bail bond agent shall
complete | 1613 |
1614 | |
hours of continuing education in each license renewal period. The | 1615 |
continuing education shall be offered in a course or program of | 1616 |
study related to the bail bond business that is approved by the | 1617 |
superintendent of insurance in consultation with the insurance | 1618 |
agent education advisory council and shall include at least one | 1619 |
hour of approved ethics training. | 1620 |
(B) The superintendent shall | 1621 |
1622 | |
license of any surety bail bond agent who fails to meet the | 1623 |
requirements of
division
(A) of this section | 1624 |
1625 | |
1626 | |
requirements of section 3905.85 of the Revised Code. | 1627 |
| 1628 |
1629 | |
1630 |
Sec. 3905.89. Each person licensed under sections 3905.83 to | 1631 |
3905.95 of the Revised Code shall notify in writing the | 1632 |
appropriate insurer or managing general agent, and the clerk of | 1633 |
the court of common pleas of the county in which the licensee | 1634 |
1635 | |
licensee's principal business address or telephone number. | 1636 |
This notification requirement is in addition to the | 1637 |
notification requirements set forth in other provisions of this | 1638 |
chapter. | 1639 |
Sec. 3905.932. A surety bail bond agent or insurer shall not | 1640 |
do any of the following: | 1641 |
(A) Suggest or advise the employment of, or name for | 1642 |
employment, any particular attorney to represent its principal; | 1643 |
(B) | 1644 |
the property or grounds of, a detention facility, as defined in | 1645 |
section 2921.01 of the Revised Code, or in, or on the property or | 1646 |
grounds of, any court. For purposes of this division, "solicit" | 1647 |
includes, but is not limited to, the distribution of business | 1648 |
cards, print advertising, or any other written information | 1649 |
directed to prisoners or potential indemnitors, unless a request | 1650 |
is initiated by the prisoner or potential indemnitor. Permissible | 1651 |
print advertising in a detention facility is strictly limited to | 1652 |
a listing in a telephone directory and the posting of the surety | 1653 |
bail bond agent's name, address, and telephone number in a | 1654 |
designated location within the detention facility. | 1655 |
(C) Wear or otherwise display any identification, other than | 1656 |
the wallet identification card required under division (G) of | 1657 |
section 3905.85 of the Revised Code, in or on the property or | 1658 |
grounds of a detention facility, as defined in section 2921.01 of | 1659 |
the Revised Code, or in or on the property or grounds of any | 1660 |
court; | 1661 |
(D) Pay a fee or rebate or give or promise anything of value | 1662 |
to a jailer, law enforcement officer, committing magistrate, or | 1663 |
other person who has power to arrest or to hold in custody, or to | 1664 |
any public official or public employee, in order to secure a | 1665 |
settlement, compromise, remission, or reduction of the amount of | 1666 |
any bail bond or estreatment of bail; | 1667 |
(E) Pay a fee or rebate or give or promise anything of value | 1668 |
to an attorney in a bail bond matter, except in defense of any | 1669 |
action on a bond; | 1670 |
(F) Pay a fee or rebate or give or promise anything of value | 1671 |
to the principal or to anyone in the principal's behalf; | 1672 |
(G) Post anything without using a bail instrument | 1673 |
representing an insurer, to have a defendant released on bail on | 1674 |
all types of set court bail, except for the following: | 1675 |
(1) Cash court fees or cash reparation fees; | 1676 |
(2) Ten per cent assignments; | 1677 |
(3) Other nonsurety court bonds, if the agent provides full | 1678 |
written disclosure and receipts and retains copies of all | 1679 |
documents and receipts for not less than three years. | 1680 |
(H) Participate in the capacity of an attorney at a trial or | 1681 |
hearing of a principal; | 1682 |
| 1683 |
providing a bail bond, other than the premium filed with and | 1684 |
approved by the superintendent of insurance and an expense fee, | 1685 |
except that the surety bail bond agent may, in accordance with | 1686 |
section 3905.92 of the Revised Code, accept collateral security or | 1687 |
other indemnity from a principal or other person together with | 1688 |
documentary stamp taxes if applicable. No fees, expenses, or | 1689 |
charges of any kind shall be deducted from the collateral held or | 1690 |
any return premium due, except as authorized by sections 3905.83 | 1691 |
to 3905.95 of the Revised Code or by rule of the superintendent. A | 1692 |
surety bail bond agent, upon written agreement with another party, | 1693 |
may receive a fee or other compensation for returning to custody | 1694 |
an individual who has fled the jurisdiction of the court or caused | 1695 |
the forfeiture of a bond. | 1696 |
| 1697 |
behalf; | 1698 |
| 1699 |
entered on a bond executed by the surety bail bond agent, which | 1700 |
judgment has remained unpaid for at least sixty days after all | 1701 |
appeals have been exhausted, unless the full amount of the | 1702 |
judgment is deposited with the clerk of the court. | 1703 |
As used in this section, "instrument" means a fiduciary form | 1704 |
showing a dollar amount for a surety bail bond. | 1705 |
Sec. 3960.03. All of the following apply to risk retention | 1706 |
groups chartered and licensed in states other than this state, | 1707 |
that seek to do business as a risk retention group in this state: | 1708 |
(A) No risk retention group shall offer insurance in this | 1709 |
state unless it has submitted to the superintendent of insurance, | 1710 |
in a form satisfactory to the superintendent, all of the | 1711 |
following: | 1712 |
(1) A statement identifying the state or states in which it | 1713 |
is chartered and licensed as a liability insurance company, the | 1714 |
date of chartering, its principal place of business, and any other | 1715 |
information, including but not limited to, information on its | 1716 |
membership, that the superintendent may require to verify that it | 1717 |
is qualified under division (J) of section 3960.01 of the Revised | 1718 |
Code; | 1719 |
(2) A copy of its plan of operation or a feasibility study | 1720 |
and revisions of the plan or study submitted to the state in which | 1721 |
the risk retention group is chartered and licensed. Division | 1722 |
(A)(2) of this section does not apply to any line or | 1723 |
classification of liability insurance that was defined in the | 1724 |
federal "Product Liability Risk Retention Act of 1981," 95 Stat. | 1725 |
949, 15 U.S.C.A. 3901, as amended, before October 27, 1986, and | 1726 |
was offered before that date by any risk retention group that had | 1727 |
been chartered and operating for not less than three years before | 1728 |
that date. The risk retention group shall submit a copy of any | 1729 |
revision to its plan of operation or feasibility study required by | 1730 |
division (A)(2) of section 3960.02 of the Revised Code at the same | 1731 |
time that the revision is submitted to the commissioner of | 1732 |
insurance of its chartering state. | 1733 |
(3) A statement of registration, for which a filing fee shall | 1734 |
be determined by the superintendent, that submits it to the | 1735 |
jurisdiction of the superintendent and the courts of this state. | 1736 |
The fee shall be paid into the state treasury to the credit of the | 1737 |
department of insurance operating fund pursuant to section | 1738 |
3901.021 of the Revised Code. | 1739 |
(B) A risk retention group doing business in this state shall | 1740 |
submit to the superintendent all of the following: | 1741 |
(1) A copy of its financial statement submitted to the state | 1742 |
in which the risk retention group is chartered and domiciled, | 1743 |
which shall be certified by an independent public accountant and | 1744 |
contain a statement of opinion on loss and loss adjustment expense | 1745 |
reserves made by a member of the American academy of actuaries or | 1746 |
a qualified loss reserve specialist under criteria established by | 1747 |
the national association of insurance commissioners; | 1748 |
(2) A copy of each examination of the group as certified by | 1749 |
the commissioner or public official conducting the examination; | 1750 |
(3) Upon request by the superintendent, a copy of any | 1751 |
information or document pertaining to any outside audit performed | 1752 |
with respect to the group; | 1753 |
(4) Any information that may be required to verify, to the | 1754 |
superintendent's satisfaction, its continuing qualification as a | 1755 |
risk retention group under division (J) of section 3960.01 of the | 1756 |
Revised Code. | 1757 |
(C)(1) Agents or brokers for the risk retention group shall | 1758 |
report to the superintendent the premiums for direct business for | 1759 |
risks resident or located within this state that they have placed | 1760 |
with or on behalf of a risk retention group not chartered in this | 1761 |
state. | 1762 |
(2) The agent or broker shall keep a complete and separate | 1763 |
record of all policies procured from each risk retention group, | 1764 |
which record shall be open to examination by the superintendent. | 1765 |
These records shall, for each policy and each kind of insurance | 1766 |
provided, include the following: | 1767 |
(a) The limit of liability; | 1768 |
(b) The time period covered; | 1769 |
(c) The effective date; | 1770 |
(d) The name of the risk retention group that issued the | 1771 |
policy; | 1772 |
(e) The gross premium charged; | 1773 |
(f) The amount of return premiums. | 1774 |
(D) Every risk retention group that is not chartered in this | 1775 |
state shall do both of the following: | 1776 |
(1) On or before the
thirty-first day of
| 1777 |
to the treasurer of state five per cent of all premiums, fees, | 1778 |
assessments, dues, or other consideration for the preceding | 1779 |
1780 | |
this state, as calculated on a form prescribed by the treasurer of | 1781 |
state. If such tax is not paid when due, the tax shall be | 1782 |
increased by a penalty of twenty-five per cent. An interest charge | 1783 |
computed as set forth in section 5725.221 of the Revised Code | 1784 |
shall be made on the entire sum of the tax plus penalty, which | 1785 |
interest shall be computed from the date the tax is due until it | 1786 |
is paid. All taxes collected under this section shall be paid | 1787 |
into the general revenue fund. For purposes of division (D)(1) of | 1788 |
this section, payment is considered made when it is received by | 1789 |
the treasurer of state, irrespective of any United States postal | 1790 |
service marking or other stamp or mark indicating the date on | 1791 |
which the payment may have been mailed. | 1792 |
(2)
On or before the
thirty-first day of
| 1793 |
a statement with the superintendent, on a form prescribed by the | 1794 |
superintendent, showing the name and address of the insured, name | 1795 |
and address of the insurer, subject of the insurance, general | 1796 |
description of the coverage, the amount of gross premium, fee, | 1797 |
assessment, dues, or other consideration for the insurance, after | 1798 |
a deduction for return premium, if any, and any other information | 1799 |
the superintendent requires. | 1800 |
(E) The superintendent may examine the financial condition of | 1801 |
a risk retention group if the commissioner of insurance in the | 1802 |
state in which it is chartered and licensed has not initiated an | 1803 |
examination or does not initiate an examination within sixty days | 1804 |
after the superintendent has requested an examination. The | 1805 |
examination shall be conducted in an expeditious manner and in | 1806 |
accordance with the national association of insurance | 1807 |
commissioners' examiner handbook. | 1808 |
(F) The superintendent may issue any order appropriate in | 1809 |
voluntary dissolution proceedings or commence delinquency | 1810 |
proceedings against a risk retention group not chartered in this | 1811 |
state that does business in this state if the superintendent | 1812 |
finds, after an examination of the group under division (E) of | 1813 |
this section, that its financial condition is impaired. A risk | 1814 |
retention group that violates any provision of this chapter is | 1815 |
subject to fines and penalties, including revocation of its right | 1816 |
to do business in this state, applicable to licensed insurers | 1817 |
generally. | 1818 |
1819 | |
1820 | |
1821 |
Section 2. That existing sections 3901.021, 3905.04, | 1822 |
3905.041, 3905.05, 3905.06, 3905.061, 3905.07, 3905.071, 3905.12, | 1823 |
3905.14, 3905.16, 3905.20, 3905.30, 3905.35, 3905.36, 3905.40, | 1824 |
3905.41, 3905.481, 3905.483, 3905.484, 3905.841, 3905.85, 3905.86, | 1825 |
3905.862, 3905.87, 3905.88, 3905.89, 3905.932, and 3960.03 and | 1826 |
sections 3905.10 and 3905.482 of the Revised Code are hereby | 1827 |
repealed. | 1828 |
Section 3. Notwithstanding section 3905.481 of the Revised | 1829 |
Code, the Superintendent of Insurance shall establish a prorated | 1830 |
phase-in schedule for the completion of continuing education | 1831 |
requirements for the first license renewal period after the | 1832 |
effective date of this act. | 1833 |
Section 4. For the time period beginning on the effective | 1834 |
date of this act and ending on June 1, 2010, notwithstanding | 1835 |
section 3905.40 of the Revised Code, each applicant for licensure | 1836 |
as an insurance agent except applicants for licensure as surety | 1837 |
bail bond agents and surplus line brokers shall pay ten dollars | 1838 |
for each line of authority requested. Fees collected under this | 1839 |
division shall be credited to the department of insurance | 1840 |
operating fund created in section 3901.021 of the Revised Code. | 1841 |
Section 5. (A) The Superintendent of Insurance may delay the | 1842 |
implementation and enforcement of the requirements of sections | 1843 |
3901.021, 3905.04, 3905.041, 3905.05, 3905.051, 3905.06, | 1844 |
3905.061, 3905.07, 3905.071, 3905.10, 3905.12, 3905.16, 3905.20, | 1845 |
3905.30, 3905.35, 3905.40, 3905.41, 3905.481, 3905.482, | 1846 |
3905.483, 3905.484, 3905.841, 3905.85, 3905.86, 3905.862, | 1847 |
3905.87, 3905.88, 3905.89, and 3905.932 of the Revised Code as | 1848 |
amended, enacted, or repealed by this act until the earlier of | 1849 |
January 1, 2011, or thirty days after the Superintendent of | 1850 |
Insurance determines that the Department of Insurance is able to | 1851 |
implement those requirements and places a notification of that | 1852 |
determination on the Department's web site. | 1853 |
(B) The Superintendent shall continue to enforce requirements | 1854 |
of the sections listed in division (A) of this Section, as they | 1855 |
existed immediately prior to the effective date of this act, until | 1856 |
the Superintendent implements requirements amended, enacted, or | 1857 |
repealed by this act pursuant to division (A) of this Section. | 1858 |