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| To amend sections 3905.01, 3905.06, and 3905.40 and | 1 |
| to enact section 3905.062 of the Revised Code to | 2 |
| establish requirements and procedures for issuing | 3 |
| portable electronics insurance. | 4 |
| Section 1. That sections 3905.01, 3905.06, and 3905.40 be | 5 |
| amended and section 3905.062 of the Revised Code be enacted to | 6 |
| read as follows: | 7 |
| Sec. 3905.01. As used in this chapter: | 8 |
| (A) "Business entity" means a corporation, association, | 9 |
| partnership, limited liability company, limited liability | 10 |
| partnership, or other legal entity. | 11 |
| (B) "Home state" means the state or territory of the United | 12 |
| States, including the District of Columbia, in which an insurance | 13 |
| agent maintains the insurance agent's principal place of residence | 14 |
| or principal place of business and is licensed to act as an | 15 |
| insurance agent. | 16 |
| (C) "Insurance" means any of the lines of authority set forth | 17 |
| in Chapter 1739., 1751., or 1761. or Title XXXIX of the Revised | 18 |
| Code, or as additionally determined by the superintendent of | 19 |
| insurance. | 20 |
| (D) "Insurance agent" or "agent" means any person that, in | 21 |
| order to sell, solicit, or negotiate insurance, is required to be | 22 |
| licensed under the laws of this state, including limited lines | 23 |
| insurance agents and surplus line brokers. | 24 |
| (E) "Insurer" has the same meaning as in section 3901.32 of | 25 |
| the Revised Code. | 26 |
| (F) "License" means the authority issued by the | 27 |
| superintendent to a person to act as an insurance agent for the | 28 |
| lines of authority specified, but that does not create any actual, | 29 |
| apparent, or inherent authority in the person to represent or | 30 |
| commit an insurer. | 31 |
| (G) "Limited line credit insurance" means credit life, credit | 32 |
| disability, credit property, credit unemployment, involuntary | 33 |
| unemployment, mortgage life, mortgage guaranty, mortgage | 34 |
| disability, guaranteed automobile protection insurance, or any | 35 |
| other form of insurance offered in connection with an extension of | 36 |
| credit that is limited to partially or wholly extinguishing that | 37 |
| credit obligation and that is designated by the superintendent as | 38 |
| limited line credit insurance. | 39 |
| (H) "Limited line credit insurance agent" means a person that | 40 |
| sells, solicits, or negotiates one or more forms of limited line | 41 |
| credit insurance to individuals through a master, corporate, | 42 |
| group, or individual policy. | 43 |
| (I) "Limited lines insurance" means those lines of authority | 44 |
|
set forth in divisions (B)(7) to | 45 |
| the Revised Code or in rules adopted by the superintendent, or any | 46 |
| lines of authority the superintendent considers necessary to | 47 |
| recognize for purposes of complying with section 3905.072 of the | 48 |
| Revised Code. | 49 |
| (J) "Limited lines insurance agent" means a person authorized | 50 |
| by the superintendent to sell, solicit, or negotiate limited lines | 51 |
| insurance. | 52 |
| (K) "NAIC" means the national association of insurance | 53 |
| commissioners. | 54 |
| (L) "Negotiate" means to confer directly with, or offer | 55 |
| advice directly to, a purchaser or prospective purchaser of a | 56 |
| particular contract of insurance with respect to the substantive | 57 |
| benefits, terms, or conditions of the contract, provided the | 58 |
| person that is conferring or offering advice either sells | 59 |
| insurance or obtains insurance from insurers for purchasers. | 60 |
| (M) "Person" means an individual or a business entity. | 61 |
| (N) "Sell" means to exchange a contract of insurance by any | 62 |
| means, for money or its equivalent, on behalf of an insurer. | 63 |
| (O) "Solicit" means to attempt to sell insurance, or to ask | 64 |
| or urge a person to apply for a particular kind of insurance from | 65 |
| a particular insurer. | 66 |
| (P) "Superintendent" or "superintendent of insurance" means | 67 |
| the superintendent of insurance of this state. | 68 |
| (Q) "Terminate" means to cancel the relationship between an | 69 |
| insurance agent and the insurer or to terminate an insurance | 70 |
| agent's authority to transact insurance. | 71 |
| (R) "Uniform application" means the NAIC uniform application | 72 |
| for resident and nonresident agent licensing, as amended by the | 73 |
| NAIC from time to time. | 74 |
| (S) "Uniform business entity application" means the NAIC | 75 |
| uniform business entity application for resident and nonresident | 76 |
| business entities, as amended by the NAIC from time to time. | 77 |
| Sec. 3905.06. (A)(1) The superintendent of insurance shall | 78 |
| issue a resident insurance agent license to an individual | 79 |
| applicant whose home state is Ohio upon submission of a completed | 80 |
| application and payment of any applicable fee required under this | 81 |
| chapter, if the superintendent finds all of the following: | 82 |
| (a) The applicant is at least eighteen years of age. | 83 |
| (b) The applicant has not committed any act that is a ground | 84 |
| for the denial, suspension, or revocation of a license under | 85 |
| section 3905.14 of the Revised Code. | 86 |
| (c) If required under section 3905.04 of the Revised Code, | 87 |
| the applicant has completed a program of insurance education for | 88 |
| each line of authority for which the applicant has applied. | 89 |
| (d) If required under section 3905.04 of the Revised Code, | 90 |
| the applicant has passed an examination for each line of authority | 91 |
| for which the applicant has applied. | 92 |
| (e) Any applicant applying for variable life-variable annuity | 93 |
| line of authority is registered with the financial industry | 94 |
| regulatory authority (FINRA) as a registered representative after | 95 |
| having passed at least one of the following examinations | 96 |
| administered by the FINRA: the series 6 examination, the series 7 | 97 |
| examination, the series 63 examination, the series 66 examination, | 98 |
| or any other FINRA examination approved by the superintendent. | 99 |
| (f) If required under section 3905.051 of the Revised Code, | 100 |
| the applicant has consented to a criminal records check and the | 101 |
| results of the applicant's criminal records check are determined | 102 |
| to be satisfactory by the superintendent. | 103 |
| (g) The applicant is a United States citizen or has provided | 104 |
| proof of having legal authorization to work in the United States. | 105 |
| (h) The applicant is of good reputation and character, is | 106 |
| honest and trustworthy, and is otherwise suitable to be licensed. | 107 |
| (2) The superintendent shall issue a resident insurance agent | 108 |
| license to a business entity applicant upon submission of a | 109 |
| completed application and payment of any applicable fees required | 110 |
| under this chapter if the superintendent finds all of the | 111 |
| following: | 112 |
| (a) | 113 |
| 3905.062 of the Revised Code, the applicant either is domiciled in | 114 |
| Ohio or maintains its principal place of business in Ohio. | 115 |
| (b) The applicant has designated a licensed insurance agent | 116 |
| who will be responsible for the applicant's compliance with the | 117 |
| insurance laws of this state. | 118 |
| (c) The applicant has not committed any act that is a ground | 119 |
| for the denial, suspension, or revocation of a license under | 120 |
| section 3905.14 of the Revised Code. | 121 |
| (d) Any applicant applying for a portable electronics | 122 |
| insurance license line of authority satisfies the requirements of | 123 |
| division (C)(1) of section 3905.062 of the Revised Code. | 124 |
| (e) The applicant has submitted any other documents requested | 125 |
| by the superintendent. | 126 |
| (B) An insurance agent license issued pursuant to division | 127 |
| (A) of this section shall state the licensee's name, the license | 128 |
| number, the date of issuance, the date the license expires, the | 129 |
| line or lines of authority for which the licensee is qualified, | 130 |
| and any other information the superintendent deems necessary. | 131 |
| A licensee may be qualified for any of the following lines of | 132 |
| authority: | 133 |
| (1) Life, which is insurance coverage on human lives, | 134 |
| including benefits of endowment and annuities, and may include | 135 |
| benefits in the event of death or dismemberment by accident and | 136 |
| benefits for disability income; | 137 |
| (2) Accident and health, which is insurance coverage for | 138 |
| sickness, bodily injury, or accidental death, and may include | 139 |
| benefits for disability income; | 140 |
| (3) Property, which is insurance coverage for the direct or | 141 |
| consequential loss or damage to property of any kind; | 142 |
| (4) Casualty, which is insurance coverage against legal | 143 |
| liability, including coverage for death, injury, or disability or | 144 |
| damage to real or personal property; | 145 |
| (5) Personal lines, which is property and casualty insurance | 146 |
| coverage sold to individuals and families for noncommercial | 147 |
| purposes; | 148 |
| (6) Variable life and variable annuity products, which is | 149 |
| insurance coverage provided under variable life insurance | 150 |
| contracts and variable annuities; | 151 |
| (7) Credit, which is limited line credit insurance; | 152 |
| (8) Title, which is insurance coverage against loss or damage | 153 |
| suffered by reason of liens against, encumbrances upon, defects | 154 |
| in, or the unmarketability of, real property; | 155 |
| (9) Surety bail bond, which is the authority set forth in | 156 |
| sections 3905.83 to 3905.95 of the Revised Code; | 157 |
| (10) Portable electronics insurance, which is a limited line | 158 |
| described in section 3905.062 of the Revised Code; | 159 |
| (11) Any other line of authority designated by the | 160 |
| superintendent. | 161 |
| (C)(1) An individual seeking to renew a resident insurance | 162 |
| agent license shall apply biennially for a renewal of the license | 163 |
| on or before the last day of the licensee's birth month. A | 164 |
| business entity seeking to renew a resident insurance agent | 165 |
| license shall apply biennially for a renewal of the license on or | 166 |
| before the date determined by the superintendent. The | 167 |
| superintendent shall send a renewal notice to all licensees at | 168 |
| least one month prior to the renewal date. | 169 |
| Applications shall be submitted to the superintendent on | 170 |
| forms prescribed by the superintendent. Each application shall be | 171 |
| accompanied by a biennial renewal fee. The superintendent also may | 172 |
| require an applicant to submit any document reasonably necessary | 173 |
| to verify the information contained in the renewal application. | 174 |
| (2) To be eligible for renewal, an individual applicant shall | 175 |
| complete the continuing education requirements pursuant to section | 176 |
| 3905.481 of the Revised Code prior to the renewal date. | 177 |
| (3) If an applicant submits a completed renewal application, | 178 |
| qualifies for renewal pursuant to divisions (C)(1) and (2) of this | 179 |
| section, and has not committed any act that is a ground for the | 180 |
| refusal to issue, suspension of, or revocation of a license under | 181 |
| section 3905.14 of the Revised Code, the superintendent shall | 182 |
| renew the applicant's resident insurance agent license. | 183 |
| (D) If an individual or business entity does not apply for | 184 |
| the renewal of the individual or business entity's license on or | 185 |
| before the license renewal date specified in division (C)(1) of | 186 |
| this section, the individual or business entity may submit a late | 187 |
| renewal application along with all applicable fees required under | 188 |
| this chapter prior to the first day of the second month following | 189 |
| the license renewal date. | 190 |
| (E) A license issued under this section that is not renewed | 191 |
| on or before its renewal date pursuant to division (C) of this | 192 |
| section or its late renewal date pursuant to division (D) of this | 193 |
| section automatically is suspended for nonrenewal on the first day | 194 |
| of the second month following the renewal date. If a license is | 195 |
| suspended for nonrenewal pursuant to this division, the individual | 196 |
| or business entity is eligible to apply for reinstatement of the | 197 |
| license within the twelve-month period following the date by which | 198 |
| the license should have been renewed by complying with the | 199 |
| reinstatement procedure established by the superintendent and | 200 |
| paying all applicable fees required under this chapter. | 201 |
| (F) A license that is suspended for nonrenewal that is not | 202 |
| reinstated pursuant to division (E) of this section automatically | 203 |
| is canceled unless the superintendent is investigating any | 204 |
| allegations of wrongdoing by the agent or has initiated | 205 |
| proceedings under Chapter 119. of the Revised Code. In that case, | 206 |
| the license automatically is canceled after the completion of the | 207 |
| investigation or proceedings unless the superintendent revokes the | 208 |
| license. | 209 |
| (G) An individual licensed as a resident insurance agent who | 210 |
| is unable to comply with the license renewal procedures | 211 |
| established under this section and who is unable to engage in the | 212 |
| business of insurance due to military service, a long-term medical | 213 |
| disability, or some other extenuating circumstance may request an | 214 |
| extension of the renewal date of the individual's license. To be | 215 |
| eligible for such an extension, the individual shall submit a | 216 |
| written request with supporting documentation to the | 217 |
| superintendent. At the superintendent's discretion, the | 218 |
| superintendent may not consider a written request made after the | 219 |
| renewal date of the license. | 220 |
| Sec. 3905.062. (A) As used in this section: | 221 |
| (1) "Customer" means a person who purchases portable | 222 |
| electronics or services. | 223 |
| (2) "Enrolled customer" means a customer who elects coverage | 224 |
| under a portable electronics insurance policy issued to a vendor | 225 |
| of portable electronics by an insurer. | 226 |
| (3) "Endorsee" means an employee or authorized representative | 227 |
| of a vendor authorized to sell or offer portable electronics | 228 |
| insurance. | 229 |
| (4) "Location" means any physical location in this state or | 230 |
| any web site, call center site, or similar location directed to | 231 |
| residents of this state. | 232 |
| (5) "Portable electronics" means a personal, self-contained, | 233 |
| battery-operated electronic communication, viewing, listening, | 234 |
| recording, gaming, computing, or global positioning device that is | 235 |
| easily carried by an individual, including a cellular or satellite | 236 |
| telephone; pager; personal global positioning satellite unit; | 237 |
| portable computer; portable audio listening, video viewing or | 238 |
| recording device; digital camera; video camcorder; portable gaming | 239 |
| system; docking station; automatic answering device; and any other | 240 |
| similar device, and any accessory related to the use of the | 241 |
| device. | 242 |
| (6) "Portable electronics insurance" means insurance | 243 |
| providing coverage for the repair or replacement of portable | 244 |
| electronics, which may be offered on a month-to-month or other | 245 |
| periodic basis as a group or master commercial inland marine | 246 |
| policy issued to a vendor by an insurer, and may cover portable | 247 |
| electronics against loss, theft, inoperability due to mechanical | 248 |
| failure, malfunction, damage, or other applicable perils. | 249 |
| "Portable electronics insurance" does not mean any of the | 250 |
| following: | 251 |
| (a) A consumer goods service contract governed by section | 252 |
| 3905.423 of the Revised Code; | 253 |
| (b) A policy of insurance covering a seller's or a | 254 |
| manufacturer's obligations under a warranty; | 255 |
| (c) A homeowner's, renter's, private passenger automobile, | 256 |
| commercial multi-peril, or similar insurance policy. | 257 |
| (7) "Portable electronics transaction" means the sale or | 258 |
| lease of portable electronics by a vendor to a customer or the | 259 |
| sale of a service related to the use of portable electronics by a | 260 |
| vendor to a customer. | 261 |
| (8) "Supervising entity" means an insurer or a business | 262 |
| entity licensed as an insurance agent under section 3905.06 of the | 263 |
| Revised Code that is appointed by an insurer to supervise the | 264 |
| administration of a portable electronics insurance program. | 265 |
| (9) "Vendor" means a person in the business of engaging in | 266 |
| portable electronics transactions directly or indirectly. | 267 |
| (B)(1) Except as provided in division (B)(2) of this section, | 268 |
| no vendor or vendor's employee shall offer, sell, solicit, or | 269 |
| place portable electronics insurance unless the vendor is licensed | 270 |
| under section 3905.06 or 3905.07 of the Revised Code with a | 271 |
| portable electronics insurance line of authority. | 272 |
| (2) Any vendor offering or selling portable electronics | 273 |
| insurance on or before the effective date of this section that | 274 |
| wishes to continue offering or selling that insurance shall apply | 275 |
| for a license within ninety days after the superintendent of | 276 |
| insurance makes the application available. | 277 |
| (C)(1) The superintendent shall issue a resident business | 278 |
| entity license to a vendor under section 3905.06 of the Revised | 279 |
| Code if the vendor satisfies the requirements of sections 3905.05 | 280 |
| and 3905.06 of the Revised Code, except that the application for a | 281 |
| portable electronics insurance license shall satisfy the following | 282 |
| additional requirements: | 283 |
| (a) The application shall include the location of the | 284 |
| vendor's home office. | 285 |
| (b) If the application requires the vendor to designate an | 286 |
| individual or entity as a responsible insurance agent, that agent | 287 |
| shall not be required to be an employee of the applicant and may | 288 |
| be the supervising entity or an individual agent who is an | 289 |
| employee of the supervising entity. | 290 |
| (c) If the vendor derives less than fifty per cent of the | 291 |
| vendor's revenue from the sale of portable electronics insurance, | 292 |
| the application for a portable electronics insurance license may | 293 |
| require the vendor to provide the name, residence address, and | 294 |
| other information required by the superintendent for one employee | 295 |
| or officer of the vendor who is designated by the vendor as the | 296 |
| person responsible for the vendor's compliance with the | 297 |
| requirements of this chapter. | 298 |
| (d) If the vendor derives fifty per cent or more of the | 299 |
| vendor's revenue from the sale of portable electronics insurance, | 300 |
| the application may require the information listed under division | 301 |
| (C)(1)(c) of this section for all owners with at least ten per | 302 |
| cent interest or voting interest, partners, officers, and | 303 |
| directors of the vendor, or members or managers of a vendor that | 304 |
| is a limited liability company. | 305 |
| (2) The superintendent shall issue a nonresident business | 306 |
| entity license to a vendor if the vendor satisfies the | 307 |
| requirements of section 3905.07 of the Revised Code. However, if | 308 |
| the nonresident vendor's home state does not issue a limited lines | 309 |
| license for portable electronics insurance, the nonresident vendor | 310 |
| may apply for a resident license under section 3905.06 of the | 311 |
| Revised Code in the same manner and with the same rights and | 312 |
| privileges as if the vendor were a resident of this state. | 313 |
| (D) The holder of a limited lines license may not sell, | 314 |
| solicit, or negotiate insurance on behalf of any insurer unless | 315 |
| appointed to represent that insurer under section 3905.20 of the | 316 |
| Revised Code. | 317 |
| (E) Division (B)(34) of section 3905.14 of the Revised Code | 318 |
| shall not apply to portable electronics vendors or the vendors' | 319 |
| endorsees. | 320 |
| (F)(1) A vendor may authorize any endorsee of the vendor to | 321 |
| sell or offer portable electronics insurance to a customer at any | 322 |
| location at which the vendor engages in portable electronics | 323 |
| transactions. | 324 |
| (2) An endorsee is not required to be licensed as an | 325 |
| insurance agent under this chapter if the vendor is licensed under | 326 |
| this section and the insurer issuing the portable electronics | 327 |
| insurance either directly supervises or appoints a supervising | 328 |
| entity to supervise the administration of the portable electronics | 329 |
| insurance program including development of a training program for | 330 |
| endorsees in accordance with division (G) of this section. | 331 |
| (3) No endorsee shall do any of the following: | 332 |
| (a) Advertise, represent, or otherwise represent the | 333 |
| endorsee's self as an insurance agent licensed under section | 334 |
| 3905.06 of the Revised Code; | 335 |
| (b) Offer, sell, or solicit the purchase of portable | 336 |
| electronics insurance except in conjunction with and incidental to | 337 |
| the sale or lease of portable electronics; | 338 |
| (c) Make any statement or engage in any conduct, express or | 339 |
| implied, that would lead a customer to believe any of the | 340 |
| following: | 341 |
| (i) That the insurance policies offered by the endorsee | 342 |
| provide coverage not already provided by a customer's homeowner's | 343 |
| insurance policy, renter's insurance policy, or by another source | 344 |
| of coverage; | 345 |
| (ii) That the purchase by the customer of portable | 346 |
| electronics insurance is required in order to purchase or lease | 347 |
| portable electronics or services from the portable electronics | 348 |
| vendor; | 349 |
| (iii) That the portable electronics vendor or its endorsees | 350 |
| are qualified to evaluate the adequacy of the customer's existing | 351 |
| insurance coverage. | 352 |
| (G) Each vendor, or the supervising entity to that vendor, | 353 |
| shall provide a training and education program for all endorsees | 354 |
| who sell or offer portable electronics insurance. The program may | 355 |
| be provided as a web-based training module or in any other | 356 |
| electronic or recorded video form. The training and education | 357 |
| program shall meet all of the following minimum standards: | 358 |
| (1) The training shall be delivered to each endorsee of each | 359 |
| vendor who sells or offers portable electronics insurance and the | 360 |
| endorsee shall complete the training; | 361 |
| (2) If the training is conducted in an electronic form, the | 362 |
| supervising entity shall implement a supplemental education | 363 |
| program regarding portable electronics insurance that is conducted | 364 |
| and overseen by employees of the supervising entity who are | 365 |
| licensed as insurance agents under section 3905.06 of the Revised | 366 |
| Code; | 367 |
| (3) The training and education program shall include basic | 368 |
| information about portable electronics insurance and information | 369 |
| concerning all of the following prohibited actions of endorsees: | 370 |
| (a) No endorsee shall advertise, represent, or otherwise | 371 |
| represent the endorsee's self as a licensed insurance agent. | 372 |
| (b) No endorsee shall offer, sell, or solicit the purchase of | 373 |
| portable electronics insurance except in conjunction with and | 374 |
| incidental to the sale or lease of portable electronics. | 375 |
| (c) No endorsee shall make any statement or engage in any | 376 |
| conduct, express or implied, that would lead a customer to believe | 377 |
| any of the following: | 378 |
| (i) That the insurance policies offered by the endorsee | 379 |
| provide coverage not already provided by a customer's homeowner's | 380 |
| insurance policy, renter's insurance policy, or by another source | 381 |
| of coverage; | 382 |
| (ii) That the purchase by the customer of portable | 383 |
| electronics insurance is required in order to purchase or lease | 384 |
| portable electronics or services from the portable electronics | 385 |
| vendor; | 386 |
| (iii) That the portable electronics vendor or its endorsees | 387 |
| are qualified to evaluate the adequacy of the customer's existing | 388 |
| insurance coverage. | 389 |
| (H) A supervising entity appointed to supervise the | 390 |
| administration of a portable electronics insurance program under | 391 |
| division (F)(2) of this section shall maintain a registry of | 392 |
| locations supervised by that entity that are authorized to sell or | 393 |
| solicit portable electronics insurance in this state. The | 394 |
| supervising entity shall make the registry available to the | 395 |
| superintendent upon request by the superintendent if the | 396 |
| superintendent provides ten days' notice to the vendor or | 397 |
| supervising entity. | 398 |
| (I) At every location where a vendor offers portable | 399 |
| electronics insurance to customers, the vendor shall provide | 400 |
| brochures or other written materials to prospective customers that | 401 |
| include all of the following: | 402 |
| (1) A summary of the material terms of the insurance | 403 |
| coverage, including all of the following: | 404 |
| (a) The identity of the insurer; | 405 |
| (b) The identity of the supervising entity; | 406 |
| (c) The amount of any applicable deductible and how it is to | 407 |
| be paid; | 408 |
| (d) Benefits of the coverage; | 409 |
| (e) Key terms and conditions of coverage such as whether | 410 |
| portable electronics may be replaced with a similar make and | 411 |
| model, replaced with a reconditioned device, or repaired with | 412 |
| nonoriginal manufacturer parts or equipment. | 413 |
| (2) A summary of the process for filing a claim, including a | 414 |
| description of how to return portable electronics equipment and | 415 |
| the maximum fee applicable if a customer fails to comply with any | 416 |
| equipment return requirements; | 417 |
| (3) A disclosure that portable electronics insurance may | 418 |
| provide a duplication of coverage already provided by a customer's | 419 |
| homeowner's insurance policy, renter's insurance policy, or other | 420 |
| source of coverage; | 421 |
| (4) A disclosure that the enrollment by the customer in a | 422 |
| portable electronics insurance program is not required to purchase | 423 |
| or lease portable electronics or services; | 424 |
| (5) A disclosure that neither the endorsee nor the vendor is | 425 |
| qualified to evaluate the adequacy of the customer's existing | 426 |
| insurance coverage; | 427 |
| (6) A disclosure that the customer may cancel enrollment for | 428 |
| coverage under a portable electronics insurance policy at any time | 429 |
| and receive a refund of any applicable premium. | 430 |
| (J)(1) The charges for portable electronics insurance may be | 431 |
| billed and collected by the vendor of portable electronics, and | 432 |
| the vendor may receive compensation for performing billing and | 433 |
| collection services, if either of the following conditions are | 434 |
| met: | 435 |
| (a) If the charge to the customer for coverage is not | 436 |
| included in the cost associated with the purchase or lease of | 437 |
| portable electronics or related services, the charge for coverage | 438 |
| is separately itemized on the customer's bill. | 439 |
| (b) If the charge to the customer for coverage is included in | 440 |
| the cost associated with the purchase or lease of portable | 441 |
| electronics or related services, the vendor clearly and | 442 |
| conspicuously discloses to the customer that the charge for | 443 |
| portable electronics insurance coverage is included with the | 444 |
| charge for portable electronics or related services. | 445 |
| (2) All funds received by a vendor from a customer for the | 446 |
| sale of portable electronics insurance shall be considered funds | 447 |
| held in trust by the vendor in a fiduciary capacity for the | 448 |
| benefit of the insurer. Vendors that bill and collect such charges | 449 |
| are not required to maintain those funds in a segregated account | 450 |
| if the vendor is authorized by the insurer to hold those funds in | 451 |
| an alternate manner and the vendor remits the amount of the | 452 |
| charges to the supervising entity within sixty days after | 453 |
| receiving the charges. | 454 |
| (K)(1) Except as otherwise provided in divisions (K)(2) and | 455 |
| (3) of this section, an insurer may terminate or otherwise change | 456 |
| the terms and conditions of a policy of portable electronics | 457 |
| insurance only upon providing the vendor policyholder and enrolled | 458 |
| customers with at least sixty days' prior notice. If the insurer | 459 |
| changes the terms and conditions, the insurer shall promptly | 460 |
| provide the vendor policyholder with a revised policy or | 461 |
| endorsement and each enrolled customer with a revised certificate, | 462 |
| endorsement, updated brochure, or other evidence indicating that a | 463 |
| change in the terms and conditions has occurred and a summary of | 464 |
| material changes. | 465 |
| (2) An insurer may terminate an enrolled customer's | 466 |
| enrollment under a portable electronics insurance policy upon | 467 |
| fifteen days' prior notice for discovery of fraud or material | 468 |
| misrepresentation in obtaining coverage or in the presentation of | 469 |
| a claim under the policy. | 470 |
| (3) An insurer may immediately terminate an enrolled | 471 |
| customer's enrollment under a portable electronics insurance | 472 |
| policy for any of the following reasons: | 473 |
| (a) The enrolled customer fails to pay the required premium; | 474 |
| (b) The enrolled customer ceases to have an active service | 475 |
| plan, if applicable, with the vendor of portable electronics; | 476 |
| (c) The enrolled customer exhausts the aggregate limit of | 477 |
| liability, if any, under the terms of the portable electronics | 478 |
| insurance policy and the insurer sends notice of termination to | 479 |
| the customer within thirty calendar days after exhaustion of the | 480 |
| limit. However, if the insurer does not send the notice within the | 481 |
| thirty-day time frame, enrollment shall continue notwithstanding | 482 |
| the aggregate limit of liability until the insurer sends notice of | 483 |
| termination to the enrolled customer. | 484 |
| (4) If a portable electronics insurance policy is terminated | 485 |
| by a vendor policyholder, the vendor policyholder shall provide | 486 |
| notice to each enrolled customer advising the customer of the | 487 |
| termination of the policy and the effective date of the | 488 |
| termination. The written notice shall be mailed or delivered to | 489 |
| the customer at least thirty days prior to the termination. | 490 |
| (5) Notice required pursuant to this section shall be | 491 |
| provided in writing, either via mail or by electronic means. | 492 |
| (a) If notice is provided via mail, it shall be mailed or | 493 |
| delivered to the vendor at the vendor's mailing address and to all | 494 |
| affected enrolled customers at the last known mailing addresses of | 495 |
| those customers on file with the insurer. The insurer or vendor of | 496 |
| portable electronics shall maintain proof of mailing in a form | 497 |
| authorized or accepted by the United States postal service or | 498 |
| other commercial mail delivery service. | 499 |
| (b) If notice is provided electronically, it shall be | 500 |
| transmitted via facsimile or electronic mail to the vendor at the | 501 |
| vendor's facsimile number or electronic mail address and to all | 502 |
| affected enrolled customers at the last known facsimile numbers or | 503 |
| electronic mail addresses of those customers on file with the | 504 |
| insurer. The insurer or vendor shall maintain proof that the | 505 |
| notice was sent. | 506 |
| (L) An enrolled customer may cancel the enrolled customer's | 507 |
| coverage under a portable electronics insurance policy at any | 508 |
| time. Upon cancellation, the insurer shall refund any applicable | 509 |
| unearned premium. | 510 |
| (M) A license issued pursuant to this section shall authorize | 511 |
| the vendor and its endorsees to engage only in those activities | 512 |
| that are expressly permitted by this section. | 513 |
| (N)(1) If a vendor or a vendor's endorsee violates any | 514 |
| provision of this section, the superintendent may revoke or | 515 |
| suspend the license issued or impose any other sanctions provided | 516 |
| under section 3905.14 of the Revised Code. | 517 |
| (2) If any provision of this section is violated by a vendor | 518 |
| or a vendor's endorsee at a particular location, the | 519 |
| superintendent may issue a cease and desist order to a particular | 520 |
| location, or take any other administrative action authorized in | 521 |
| section 3901.22 and division (D) of section 3905.14 of the Revised | 522 |
| Code. | 523 |
| (3) If any person violates division (B) or (F)(3) of this | 524 |
| section, the superintendent may issue a cease and desist order in | 525 |
| addition to taking any other administrative action provided for in | 526 |
| sections 3901.22 and division (D) of section 3905.14 of the | 527 |
| Revised Code. | 528 |
| (4) If the superintendent determines that a violation of this | 529 |
| section or section 3905.14 of the Revised Code has occurred, the | 530 |
| superintendent may assess a civil penalty in amount not exceeding | 531 |
| twenty-five thousand dollars per violation and an administrative | 532 |
| fee to cover the expenses incurred by the department in the | 533 |
| administrative action, including costs incurred in the | 534 |
| investigation and hearing process. | 535 |
| (O) The superintendent may adopt rules implementing this | 536 |
| section. | 537 |
| Sec. 3905.40. There shall be paid to the superintendent of | 538 |
| insurance the following fees: | 539 |
| (A) Each insurance company doing business in this state shall | 540 |
| pay: | 541 |
| (1) For filing a copy of its charter or deed of settlement, | 542 |
| two hundred fifty dollars; | 543 |
| (2) For filing each statement, one hundred seventy-five | 544 |
| dollars; | 545 |
| (3) For each certificate of authority or license, one hundred | 546 |
| seventy-five, and for each certified copy thereof, five dollars; | 547 |
| (4) For each copy of a paper filed in the superintendent's | 548 |
| office, twenty cents per page; | 549 |
| (5) For issuing certificates of deposits or certified copies | 550 |
| thereof, five dollars for the first certificate or copy and one | 551 |
| dollar for each additional certificate or copy; | 552 |
| (6) For issuing certificates of compliance or certified | 553 |
| copies thereof, sixty dollars; | 554 |
| (7) For affixing the seal of office and certifying documents, | 555 |
| other than those enumerated herein, two dollars; | 556 |
| (8) For each agent appointment and each annual renewal of an | 557 |
| agent appointment, twenty dollars; | 558 |
| (9) For each termination of an agent appointment, five | 559 |
| dollars. | 560 |
| (B) Each domestic life insurance company doing business in | 561 |
| this state shall pay for annual valuation of its policies, one | 562 |
| cent on every one thousand dollars of insurance. | 563 |
| (C) Each applicant for licensure as an insurance agent except | 564 |
|
applicants for licensure as surety bail bond agents | 565 |
| line brokers, and portable electronics insurance vendors shall pay | 566 |
| ten dollars for each line of authority requested. Fees collected | 567 |
| under this division shall be credited to the department of | 568 |
| insurance operating fund created in section 3901.021 of the | 569 |
| Revised Code. | 570 |
| (D) Each domestic mutual life insurance company shall pay for | 571 |
| verifying that any amendment to its articles of incorporation was | 572 |
| regularly adopted, two hundred fifty dollars with each application | 573 |
| for verification. Any such amendment shall be considered to have | 574 |
| been regularly adopted when approved by the affirmative vote of | 575 |
| two-thirds of the policyholders present in person or by proxy at | 576 |
| any annual meeting of policyholders or at a special meeting of | 577 |
| policyholders called for that purpose. | 578 |
| (E) Each insurance agent doing business in this state shall | 579 |
| pay a biennial license renewal fee of twenty-five dollars, except | 580 |
|
the following insurance agents are not required to pay | 581 |
| license renewal fee: | 582 |
| (1) Individual resident agents who have met their continuing | 583 |
| education requirements under section 3905.481 of the Revised Code; | 584 |
| (2) Surety bail bond agents; | 585 |
| (3) Surplus line brokers; | 586 |
| (4) Portable electronics insurance vendors. | 587 |
| (F) Each applicant for licensure as a portable electronics | 588 |
| insurance vendor with a portable electronics insurance limited | 589 |
| lines license and each licensed vendor doing business in this | 590 |
| state shall pay the following fees prescribed by the | 591 |
| superintendent: | 592 |
| (1) For vendors engaged in portable electronic transactions | 593 |
| at more than ten locations in this state, an application fee not | 594 |
| to exceed five thousand dollars for an initial license and a | 595 |
| biennial license renewal fee not to exceed two thousand five | 596 |
| hundred dollars for each renewal thereafter; | 597 |
| (2) For vendors engaged in portable electronic transactions | 598 |
| at ten or fewer locations in this state, an application fee not to | 599 |
| exceed three thousand dollars for an initial license and a | 600 |
| biennial license renewal fee not to exceed one thousand dollars | 601 |
| for each renewal thereafter. | 602 |
| (G) All fees collected by the superintendent under this | 603 |
| section except any fees collected under divisions (A)(2), (3), and | 604 |
| (6) of this section shall be credited to the department of | 605 |
| insurance operating fund created under section 3901.021 of the | 606 |
| Revised Code. | 607 |
| Section 2. That existing sections 3905.01, 3905.06, and | 608 |
| 3905.40 of the Revised Code are hereby repealed. | 609 |