Section 1. That sections 3901.21, 3937.18, 3937.30, 3937.31, | 22 |
3937.32, 3937.33, 3937.34, 3937.35, 4505.11, 4509.01, 4509.20, | 23 |
4509.41, and 4509.51 be amended and section 3937.46 of the Revised | 24 |
Code be enacted to read as follows: | 25 |
(A) Making, issuing, circulating, or causing or permitting to | 28 |
be made, issued, or circulated, or preparing with intent to so | 29 |
use, any estimate, illustration, circular, or statement | 30 |
misrepresenting the terms of any policy issued or to be issued or | 31 |
the benefits or advantages promised thereby or the dividends or | 32 |
share of the surplus to be received thereon, or making any false | 33 |
or misleading statements as to the dividends or share of surplus | 34 |
previously paid on similar policies, or making any misleading | 35 |
representation or any misrepresentation as to the financial | 36 |
condition of any insurer as shown by the last preceding verified | 37 |
statement made by it to the insurance department of this state, or | 38 |
as to the legal reserve system upon which any life insurer | 39 |
operates, or using any name or title of any policy or class of | 40 |
policies misrepresenting the true nature thereof, or making any | 41 |
misrepresentation or incomplete comparison to any person for the | 42 |
purpose of inducing or tending to induce such person to purchase, | 43 |
amend, lapse, forfeit, change, or surrender insurance. | 44 |
Any written statement concerning the premiums for a policy | 45 |
which refers to the net cost after credit for an assumed dividend, | 46 |
without an accurate written statement of the gross premiums, cash | 47 |
values, and dividends based on the insurer's current dividend | 48 |
scale, which are used to compute the net cost for such policy, and | 49 |
a prominent warning that the rate of dividend is not guaranteed, | 50 |
is a misrepresentation for the purposes of this division. | 51 |
(B) Making, publishing, disseminating, circulating, or | 52 |
placing before the public or causing, directly or indirectly, to | 53 |
be made, published, disseminated, circulated, or placed before the | 54 |
public, in a newspaper, magazine, or other publication, or in the | 55 |
form of a notice, circular, pamphlet, letter, or poster, or over | 56 |
any radio station, or in any other way, or preparing with intent | 57 |
to so use, an advertisement, announcement, or statement containing | 58 |
any assertion, representation, or statement, with respect to the | 59 |
business of insurance or with respect to any person in the conduct | 60 |
of the person's insurance business, which is untrue, deceptive, or | 61 |
misleading. | 62 |
(C) Making, publishing, disseminating, or circulating, | 63 |
directly or indirectly, or aiding, abetting, or encouraging the | 64 |
making, publishing, disseminating, or circulating, or preparing | 65 |
with intent to so use, any statement, pamphlet, circular, article, | 66 |
or literature, which is false as to the financial condition of an | 67 |
insurer and which is calculated to injure any person engaged in | 68 |
the business of insurance. | 69 |
(D) Filing with any supervisory or other public official, or | 70 |
making, publishing, disseminating, circulating, or delivering to | 71 |
any person, or placing before the public, or causing directly or | 72 |
indirectly to be made, published, disseminated, circulated, | 73 |
delivered to any person, or placed before the public, any false | 74 |
statement of financial condition of an insurer. | 75 |
Making any false entry in any book, report, or statement of | 76 |
any insurer with intent to deceive any agent or examiner lawfully | 77 |
appointed to examine into its condition or into any of its | 78 |
affairs, or any public official to whom such insurer is required | 79 |
by law to report, or who has authority by law to examine into its | 80 |
condition or into any of its affairs, or, with like intent, | 81 |
willfully omitting to make a true entry of any material fact | 82 |
pertaining to the business of such insurer in any book, report, or | 83 |
statement of such insurer, or mutilating, destroying, suppressing, | 84 |
withholding, or concealing any of its records. | 85 |
(G)(1) Except as otherwise expressly provided by law, | 97 |
knowingly permitting or offering to make or making any contract of | 98 |
life insurance, life annuity or accident and health insurance, or | 99 |
agreement as to such contract other than as plainly expressed in | 100 |
the contract issued thereon, or paying or allowing, or giving or | 101 |
offering to pay, allow, or give, directly or indirectly, as | 102 |
inducement to such insurance, or annuity, any rebate of premiums | 103 |
payable on the contract, or any special favor or advantage in the | 104 |
dividends or other benefits thereon, or any valuable consideration | 105 |
or inducement whatever not specified in the contract; or giving, | 106 |
or selling, or purchasing, or offering to give, sell, or purchase, | 107 |
as inducement to such insurance or annuity or in connection | 108 |
therewith, any stocks, bonds, or other securities, or other | 109 |
obligations of any insurance company or other corporation, | 110 |
association, or partnership, or any dividends or profits accrued | 111 |
thereon, or anything of value whatsoever not specified in the | 112 |
contract. | 113 |
(2) Nothing in division (F) or division (G)(1) of this | 114 |
section shall be construed as prohibiting any of the following | 115 |
practices: (a) in the case of any contract of life insurance or | 116 |
life annuity, paying bonuses to policyholders or otherwise abating | 117 |
their premiums in whole or in part out of surplus accumulated from | 118 |
nonparticipating insurance, provided that any such bonuses or | 119 |
abatement of premiums shall be fair and equitable to policyholders | 120 |
and for the best interests of the company and its policyholders; | 121 |
(b) in the case of life insurance policies issued on the | 122 |
industrial debit plan, making allowance to policyholders who have | 123 |
continuously for a specified period made premium payments directly | 124 |
to an office of the insurer in an amount which fairly represents | 125 |
the saving in collection expenses; (c) readjustment of the rate of | 126 |
premium for a group insurance policy based on the loss or expense | 127 |
experience thereunder, at the end of the first or any subsequent | 128 |
policy year of insurance thereunder, which may be made retroactive | 129 |
only for such policy year. | 130 |
(H) Making, issuing, circulating, or causing or permitting to | 131 |
be made, issued, or circulated, or preparing with intent to so | 132 |
use, any statement to the effect that a policy of life insurance | 133 |
is, is the equivalent of, or represents shares of capital stock or | 134 |
any rights or options to subscribe for or otherwise acquire any | 135 |
such shares in the life insurance company issuing that policy or | 136 |
any other company. | 137 |
(J) Making, issuing, circulating, or causing or permitting to | 144 |
be made, issued, or circulated, or preparing with intent to so | 145 |
use, any statement to the effect that any insurance company was | 146 |
required to change a policy form or related material to comply | 147 |
with Title XXXIX of the Revised Code or any regulation of the | 148 |
superintendent of insurance, for the purpose of inducing or | 149 |
intending to induce any policyholder or prospective policyholder | 150 |
to purchase, amend, lapse, forfeit, change, or surrender | 151 |
insurance. | 152 |
(M) Making or permitting any unfair discrimination between | 158 |
individuals of the same class and of essentially the same hazard | 159 |
in the amount of premium, policy fees, or rates charged for any | 160 |
policy or contract of insurance, other than life insurance, or in | 161 |
the benefits payable thereunder, or in underwriting standards and | 162 |
practices or eligibility requirements, or in any of the terms or | 163 |
conditions of such contract, or in any other manner whatever. | 164 |
(O) Refusing, when offering maternity benefits under any | 168 |
individual or group sickness and accident insurance policy, to | 169 |
make maternity benefits available to the policyholder for the | 170 |
individual or individuals to be covered under any comparable | 171 |
policy to be issued for delivery in this state, including family | 172 |
members if the policy otherwise provides coverage for family | 173 |
members. Nothing in this division shall be construed to prohibit | 174 |
an insurer from imposing a reasonable waiting period for such | 175 |
benefits under an individual sickness and accident insurance | 176 |
policy issued to an individual who is not a federally eligible | 177 |
individual or a nonemployer-related group sickness and accident | 178 |
insurance policy, but in no event shall such waiting period exceed | 179 |
two hundred seventy days. | 180 |
(P) Using, or permitting to be used, a pattern settlement as | 184 |
the basis of any offer of settlement. As used in this division, | 185 |
"pattern settlement" means a method by which liability is | 186 |
routinely imputed to a claimant without an investigation of the | 187 |
particular occurrence upon which the claim is based and by using a | 188 |
predetermined formula for the assignment of liability arising out | 189 |
of occurrences of a similar nature. Nothing in this division shall | 190 |
be construed to prohibit an insurer from determining a claimant's | 191 |
liability by applying formulas or guidelines to the facts and | 192 |
circumstances disclosed by the insurer's investigation of the | 193 |
particular occurrence upon which a claim is based. | 194 |
(Q) Refusing to insure, or refusing to continue to insure, or | 195 |
limiting the amount, extent, or kind of life or sickness and | 196 |
accident insurance or annuity coverage available to an individual, | 197 |
or charging an individual a different rate for the same coverage | 198 |
solely because of blindness or partial blindness. With respect to | 199 |
all other conditions, including the underlying cause of blindness | 200 |
or partial blindness, persons who are blind or partially blind | 201 |
shall be subject to the same standards of sound actuarial | 202 |
principles or actual or reasonably anticipated actuarial | 203 |
experience as are sighted persons. Refusal to insure includes, but | 204 |
is not limited to, denial by an insurer of disability insurance | 205 |
coverage on the grounds that the policy defines "disability" as | 206 |
being presumed in the event that the eyesight of the insured is | 207 |
lost. However, an insurer may exclude from coverage disabilities | 208 |
consisting solely of blindness or partial blindness when such | 209 |
conditions existed at the time the policy was issued. To the | 210 |
extent that the provisions of this division may appear to conflict | 211 |
with any provision of section 3999.16 of the Revised Code, this | 212 |
division applies. | 213 |
(R)(1) Directly or indirectly offering to sell, selling, or | 214 |
delivering, issuing for delivery, renewing, or using or otherwise | 215 |
marketing any policy of insurance or insurance product in | 216 |
connection with or in any way related to the grant of a student | 217 |
loan guaranteed in whole or in part by an agency or commission of | 218 |
this state or the United States, except insurance that is required | 219 |
under federal or state law as a condition for obtaining such a | 220 |
loan and the premium for which is included in the fees and charges | 221 |
applicable to the loan; or, in the case of an insurer or insurance | 222 |
agent, knowingly permitting any lender making such loans to engage | 223 |
in such acts or practices in connection with the insurer's or | 224 |
agent's insurance business. | 225 |
(b) Acts or practices of an insurer, its agents, | 234 |
representatives, or employees in connection with the solicitation, | 235 |
processing, or issuance of an insurance policy or product covering | 236 |
the student loan borrower or the borrower's spouse or dependent | 237 |
children, where such acts or practices take place more than one | 238 |
hundred eighty days after the date on which the borrower is | 239 |
notified that the student loan was approved. | 240 |
(Y)(1)(a) Limiting coverage under, refusing to issue, | 288 |
canceling, or refusing to renew, any individual policy or contract | 289 |
of life insurance, or limiting coverage under or refusing to issue | 290 |
any individual policy or contract of health insurance, for the | 291 |
reason that the insured or applicant for insurance is or has been | 292 |
a victim of domestic violence; | 293 |
(d) Inquiring, directly or indirectly, of an insured under, | 302 |
or of an applicant for, a policy or contract of life or health | 303 |
insurance, as to whether the insured or applicant is or has been a | 304 |
victim of domestic violence, or inquiring as to whether the | 305 |
insured or applicant has sought shelter or protection from | 306 |
domestic violence or has sought medical or psychological treatment | 307 |
as a victim of domestic violence. | 308 |
(b) Nothing in division (Y)(2) of this section shall be | 337 |
construed to permit an insurer to cancel or refuse to renew any | 338 |
policy or contract of health insurance in violation of the "Health | 339 |
Insurance Portability and Accountability Act of 1996," 110 Stat. | 340 |
1955, 42 U.S.C.A. 300gg-41(b), as amended, or in a manner that | 341 |
violates or is inconsistent with any provision of the Revised Code | 342 |
that implements the "Health Insurance Portability and | 343 |
Accountability Act of 1996." | 344 |
(BB) With respect to private passenger automobile insurance, | 371 |
no insurer shall charge differentcharging premium rates to | 372 |
persons residing within the limits of any municipal corporation | 373 |
that are excessive, inadequate, or unfairly discriminatory, | 374 |
pursuant to division (D) of section 3937.02 of the Revised Code, | 375 |
based solely on the location of the residence of the insured | 376 |
within those limits. | 377 |
Sec. 3937.18. (A) Any policy of insurance delivered or | 392 |
issued for delivery in this state with respect to any motor | 393 |
vehicle registered or principally garaged in this state that | 394 |
insures against loss resulting from liability imposed by law for | 395 |
bodily injury or death suffered by any person arising out of the | 396 |
ownership, maintenance, or use of a motor vehicle, may, but is not | 397 |
required to, include uninsured motorist coverage, underinsured | 398 |
motorist coverage, or both uninsured and underinsured motorist | 399 |
coverages. | 400 |
Unless otherwise defined in the policy or any endorsement to | 401 |
the policy, "motor vehicle," for purposes of the uninsured | 402 |
motorist coverage, underinsured motorist coverage, or both | 403 |
uninsured and underinsured motorist coverages, means a | 404 |
self-propelled vehicle designed for use and principally used on | 405 |
public roads, including an automobile, truck, semi-tractor, | 406 |
motorcycle, and bus. "Motor vehicle" also includes a motor home, | 407 |
provided the motor home is not stationary and is not being used as | 408 |
a temporary or permanent residence or office. "Motor vehicle" does | 409 |
not include a trolley, streetcar, trailer, railroad engine, | 410 |
railroad car, motorized bicycle, golf cart, off-road recreational | 411 |
vehicle, snowmobile, fork lift, aircraft, watercraft, construction | 412 |
equipment, farm tractor or other vehicle designed and principally | 413 |
used for agricultural purposes, mobile home, vehicle traveling on | 414 |
treads or rails, or any similar vehicle. | 415 |
(3) The identity of the owner or operator cannot be | 426 |
determined, but independent corroborative evidence exists to prove | 427 |
that the bodily injury, sickness, disease, or death of the insured | 428 |
was proximately caused by the negligence or intentional actions of | 429 |
the unidentified operator of the motor vehicle. For purposes of | 430 |
division (B)(3) of this section, the testimony of any insured | 431 |
seeking recovery from the insurer shall not constitute independent | 432 |
corroborative evidence, unless the testimony is supported by | 433 |
additional evidence. | 434 |
(C) If underinsured motorist coverage is included in a policy | 442 |
of insurance, the underinsured motorist coverage shall provide | 443 |
protection for insureds thereunder for bodily injury, sickness, or | 444 |
disease, including death, suffered by any insured under the | 445 |
policy, where the limits of coverage available for payment to the | 446 |
insured under all bodily injury liability bonds and insurance | 447 |
policies covering persons liable to the insured are less than the | 448 |
limits for the underinsured motorist coverage. Underinsured | 449 |
motorist coverage in this state is not and shall not be excess | 450 |
coverage to other applicable liability coverages, and shall only | 451 |
provide the insured an amount of protection not greater than that | 452 |
which would be available under the insured's uninsured motorist | 453 |
coverage if the person or persons liable to the insured were | 454 |
uninsured at the time of the accident. The policy limits of the | 455 |
underinsured motorist coverage shall be reduced by those amounts | 456 |
available for payment under all applicable bodily injury liability | 457 |
bonds and insurance policies covering persons liable to the | 458 |
insured. | 459 |
(G) Any policy of insurance that includes uninsured motorist | 488 |
coverage, underinsured motorist coverage, or both uninsured and | 489 |
underinsured motorist coverages and that provides a limit of | 490 |
coverage for payment of damages for bodily injury, including | 491 |
death, sustained by any one person in any one automobile accident, | 492 |
may, notwithstanding Chapter 2125. of the Revised Code, include | 493 |
terms and conditions to the effect that all claims resulting from | 494 |
or arising out of any one person's bodily injury, including death, | 495 |
shall collectively be subject to the limit of the policy | 496 |
applicable to bodily injury, including death, sustained by one | 497 |
person, and, for the purpose of such policy limit shall constitute | 498 |
a single claim. Any such policy limit shall be enforceable | 499 |
regardless of the number of insureds, claims made, vehicles or | 500 |
premiums shown in the declarations or policy, or vehicles involved | 501 |
in the accident. | 502 |
(H) Any policy of insurance that includes uninsured motorist | 503 |
coverage, underinsured motorist coverage, or both uninsured and | 504 |
underinsured motorist coverages may include terms and conditions | 505 |
requiring that, so long as the insured has not prejudiced the | 506 |
insurer's subrogation rights, each claim or suit for uninsured | 507 |
motorist coverage, underinsured motorist coverage, or both | 508 |
uninsured and underinsured motorist coverages be made or brought | 509 |
within three years after the date of the accident causing the | 510 |
bodily injury, sickness, disease, or death, or within one year | 511 |
after the liability insurer for the owner or operator of the motor | 512 |
vehicle liable to the insured has become the subject of insolvency | 513 |
proceedings in any state, whichever is later. | 514 |
(I) Any policy of insurance that includes uninsured motorist | 515 |
coverage, underinsured motorist coverage, or both uninsured and | 516 |
underinsured motorist coverages may, subject to section 3937.46 of | 517 |
the Revised Code, include terms and conditions that preclude | 518 |
coverage for bodily injury or death suffered by an insured under | 519 |
specified circumstances, including but not limited to any of the | 520 |
following circumstances: | 521 |
(1) While the insured is operating or occupying a motor | 522 |
vehicle owned by, furnished to, or available for the regular use | 523 |
of a named insured, a spouse, or a resident relative of a named | 524 |
insured, if the motor vehicle is not specifically identified in | 525 |
the policy under which a claim is made, or is not a newly acquired | 526 |
or replacement motor vehicle covered under the terms of the policy | 527 |
under which the uninsured motorist coverage, underinsured motorist | 528 |
coverage, or both uninsured and underinsured motorist coverages | 529 |
are provided; | 530 |
(4) While any employee, officer, director, partner, trustee, | 542 |
member, executor, administrator, or beneficiary of the named | 543 |
insured, or any relative of any such person, is operating or | 544 |
occupying a motor vehicle, unless the employee, officer, director, | 545 |
partner, trustee, member, executor, administrator, beneficiary, or | 546 |
relative is operating or occupying a motor vehicle for which | 547 |
uninsured motorist coverage, underinsured motorist coverage, or | 548 |
both uninsured and underinsured motorist coverages are provided in | 549 |
the policy; | 550 |
(J) In the event of payment to any person under the uninsured | 553 |
motorist coverage, underinsured motorist coverage, or both | 554 |
uninsured and underinsured motorist coverages, and subject to the | 555 |
terms and conditions of that coverage, the insurer making such | 556 |
payment is entitled, to the extent of the payment, to the proceeds | 557 |
of any settlement or judgment resulting from the exercise of any | 558 |
rights of recovery of that person against any person or | 559 |
organization legally responsible for the bodily injury or death | 560 |
for which the payment is made, including any amount recoverable | 561 |
from an insurer that is or becomes the subject of insolvency | 562 |
proceedings, through such proceedings or in any other lawful | 563 |
manner. No insurer shall attempt to recover any amount against the | 564 |
insured of an insurer that is or becomes the subject of insolvency | 565 |
proceedings, to the extent of those rights against the insurer | 566 |
that the insured assigns to the paying insurer. | 567 |
(L) The superintendent of insurance shall study the market | 571 |
availability of, and competition for, uninsured and underinsured | 572 |
motorist coverages in this state and shall, from time to time, | 573 |
prepare status reports containing the superintendent's findings | 574 |
and any recommendations. The first status report shall be prepared | 575 |
not later than two years after the effective date of this | 576 |
amendmentOctober 31, 2001. To assist in preparing these status | 577 |
reports, the superintendent may require insurers and rating | 578 |
organizations operating in this state to collect pertinent data | 579 |
and to submit that data to the superintendent. | 580 |
(B) For purposes of this section, "motor vehicle," means a | 612 |
self-propelled vehicle designed for and principally used on public | 613 |
roads, including an automobile, truck, motorcycle, and a motor | 614 |
home, provided the motor home is not stationary and is not being | 615 |
used as a temporary or permanent residence or office. "Motor | 616 |
vehicle" does not include a trailer, motorized bicycle, golf cart, | 617 |
off-road recreational vehicle, snowmobile, watercraft, | 618 |
construction equipment, farm tractor or other vehicle designed and | 619 |
principally used for agricultural purposes, mobile home, vehicle | 620 |
traveling on treads or rails, or any similar vehicle. | 621 |
Sec. 3937.31. (A) Every automobile insurance policy shall be | 622 |
issued for a period of not less than two yearsone year or | 623 |
guaranteed renewable for successive policy periods totaling not | 624 |
less than two yearsone year. Where renewal is mandatory, | 625 |
"cancellation," as used in sections 3937.30 to 3937.39 of the | 626 |
Revised Code, includes refusal to renew a policy with at least the | 627 |
coverages, included insureds, and policy limits provided at the | 628 |
end of the next preceding policy period. No insurer may cancel any | 629 |
suchautomobile insurance policy except pursuant to the terms of | 630 |
the policy, and in accordance with sections 3937.30 to 3937.39 of | 631 |
the Revised Code, and for one or more of the following reasons: | 632 |
(2) Loss of driving privileges through suspension, | 637 |
revocation, or expiration of the driver's or commercial driver's | 638 |
license of the named insured or any member of the named insured's | 639 |
family covered as a driver; provided that the insurer shall | 640 |
continue the policy in effect but exclude by endorsement all | 641 |
coverage as to the person whose driver's license has been | 642 |
suspended, revoked, or has expired, if the person is other than | 643 |
the named insured or the principal operator; | 644 |
(F) A statement that if there is cause to believe such | 702 |
cancellation is based on erroneous information, or is contrary to | 703 |
law or the terms of the policy, the insured is entitled to have | 704 |
the matter reviewed by the superintendent of insurance, upon | 705 |
written application to the superintendent made not later than the | 706 |
effective date of cancellation of the policy, and that if a | 707 |
hearing is held by the superintendent of insurance, a deposit of | 708 |
five dollars shall be made, and that such deposit shall be | 709 |
returned to the insured if the finding is in his favor. | 710 |
Sec. 3937.33. An insurer may cancel an automobile insurance | 711 |
policy at such time prior to its expiration for such reasons as | 712 |
may be permitted by section 3937.31 of the Revised Code, by | 713 |
mailing to the insured, at histhe insured's last known address | 714 |
appearing on the insurer's records, at least thirty days prior to | 715 |
the effective date of cancellation, a notice of cancellation | 716 |
pursuant to section 3937.32 of the Revised Code. If such notice of | 717 |
cancellation, for a reason other than nonpayment of premium, does | 718 |
not contain an explanation of the reason for cancellation and the | 719 |
information upon which it is based, the insurer shall, within five | 720 |
days after receipt of the written request therefor by the insured, | 721 |
furnish explanation to the insured in writing. Prior to the | 722 |
effective date of cancellation, the insurer shall tenderrefund to | 723 |
the insured any refund premium and other sums which may be due the | 724 |
insured. | 725 |
Upon compliance by the insurer with all requirements of this | 726 |
section, such automobile insurance policy is cancelled on the | 727 |
effective date stated in the notice of cancellation, except as | 728 |
otherwise provided in section 3937.35 of the Revised Code. In the | 729 |
event of the insurer's failure to comply with any requirement of | 730 |
this section, such cancellation shall be ineffective and the | 731 |
policy shall continue in force until such time as it is cancelled | 732 |
or otherwise terminated pursuant to law and the terms of the | 733 |
policy. | 734 |
Sec. 3937.35. Upon receipt of a notice of cancellation given | 753 |
pursuant to section 3937.33 of the Revised Code at any time prior | 754 |
to the effective date of cancellation of a motor vehiclean | 755 |
automobile insurance policy, the insured may apply in writing to | 756 |
the superintendent of insurance for review of such cancellation. | 757 |
If the superintendent finds that grounds for hearing do not exist, | 758 |
he shall forthwith give written notice to the insured and insurer | 759 |
of such finding. If the superintendent finds that there is cause | 760 |
to believe that such cancellation is based on erroneous | 761 |
information, or is contrary to law or the terms of the policy, he | 762 |
the superintendent shall, not later than ten days following | 763 |
receipt of the application, hold a hearing to determine whether | 764 |
such cancellation is effective and shall give written notice of | 765 |
such
hearingfinding to the insured and the insurer not later than | 766 |
five days prior to the hearing thereof, provided that the insured | 767 |
make a deposit of five dollars by the hearing date. Such deposit | 768 |
shall be returned if the finding is in the insured's favor but | 769 |
otherwise shall be paid into the general revenue fund by the | 770 |
department of insurance. | 771 |
If, upon hearing, the superintendent finds that such | 772 |
cancellation is in accordance with law and the terms of the | 773 |
policy, hethe superintendent shall, within five days following | 774 |
hearing, issue hisa written orderfinding approving such | 775 |
cancellation in such case. If such order is issued less than ten | 776 |
days prior to the effective date of cancellation of the policy, | 777 |
the policy shall continue in force for ten days following the date | 778 |
of the order or until the insured secures other coverage, | 779 |
whichever occurs first, and the order of the superintendent shall | 780 |
so state. | 781 |
If, upon hearingreview, the superintendent finds that such | 782 |
cancellation is contrary to law or the terms of the policy, hethe | 783 |
superintendent shall issue hisa written orderfinding | 784 |
disapproving the cancellation and stating in what particulars the | 785 |
same is improper. In such case, the policy continues in force as | 786 |
provided in section 3937.33 of the Revised Code if the insured | 787 |
tenders to the insurer at the time of hearing thewithin ten days | 788 |
any premium refund made by the insurer. | 789 |
(A) Each owner of a motor vehicle and each person mentioned | 814 |
as owner in the last certificate of title, when the motor vehicle | 815 |
is dismantled, destroyed, or changed in such manner that it loses | 816 |
its character as a motor vehicle, or changed in such manner that | 817 |
it is not the motor vehicle described in the certificate of title, | 818 |
shall surrender the certificate of title to that motor vehicle to | 819 |
a clerk of a court of common pleas, and the clerk, with the | 820 |
consent of any holders of any liens noted on the certificate of | 821 |
title, then shall enter a cancellation upon the clerk's records | 822 |
and shall notify the registrar of motor vehicles of the | 823 |
cancellation. | 824 |
(B)(1) If an Ohio certificate of title or salvage certificate | 829 |
of title to a motor vehicle is assigned to a salvage dealer, the | 830 |
dealer is not required to obtain an Ohio certificate of title or a | 831 |
salvage certificate of title to the motor vehicle in the dealer's | 832 |
own name if the dealer dismantles or destroys the motor vehicle, | 833 |
indicates the number of the dealer's motor vehicle salvage | 834 |
dealer's license on it, marks "FOR DESTRUCTION" across the face of | 835 |
the certificate of title or salvage certificate of title, and | 836 |
surrenders the certificate of title or salvage certificate of | 837 |
title to a clerk of a court of common pleas as provided in | 838 |
division (A) of this section. If the salvage dealer retains the | 839 |
motor vehicle for resale, the dealer shall make application for a | 840 |
salvage certificate of title to the motor vehicle in the dealer's | 841 |
own name as provided in division (C)(1) of this section. | 842 |
(b) If an insurance company obtains possession of the motor | 859 |
vehicle but is unable to obtain the properly endorsed certificate | 860 |
of title for the motor vehicle, within thirty business days | 861 |
following the vehicle's owner or lienholder's acceptance of the | 862 |
insurance company's payment for the vehicle, the insurance company | 863 |
may apply to the clerk of a court of common pleas for a salvage | 864 |
certificate of title without delivering the certificate of title | 865 |
for the motor vehicle. The application shall be accompanied by | 866 |
evidence that the insurance company has paid a total loss claim on | 867 |
the vehicle, a copy of the written request for the certificate of | 868 |
title on the insurance company's letterhead, and the original | 869 |
certified mail, return receipt notice, addressed to the last known | 870 |
owner of the vehicle and any known lienholder, to obtain the | 871 |
certificate of title. | 872 |
(c) Upon receipt of a properly completed application for a | 873 |
salvage certificate of title as described in division (C)(1)(a) or | 874 |
(b) or (C)(2) of this section, the clerk shall issue the salvage | 875 |
certificate of title on a form, prescribed by the registrar, that | 876 |
shall be easily distinguishable from the original certificate of | 877 |
title and shall bear the same information as the original | 878 |
certificate of title except that it may bear a different number | 879 |
than that of the original certificate of title. Except as provided | 880 |
in division (C)(2)(3) of this section, the salvage certificate of | 881 |
title shall be assigned by the insurance company to a salvage | 882 |
dealer or any other person for use as evidence of ownership upon | 883 |
the sale or other disposition of the motor vehicle, and the | 884 |
salvage certificate of title shall be transferrable to any other | 885 |
person. The clerk shall charge a fee of four dollars for the cost | 886 |
of processing each salvage certificate of title. | 887 |
(2) If an insurance company requests that a salvage motor | 888 |
vehicle auction take possession of a motor vehicle that is the | 889 |
subject of an insurance claim, and subsequently the insurance | 890 |
company denies coverage with respect to the motor vehicle or does | 891 |
not otherwise take ownership of the motor vehicle, the salvage | 892 |
motor vehicle auction may proceed as follows. After the salvage | 893 |
motor vehicle auction has possession of the motor vehicle for | 894 |
forty-five days, it may apply to the clerk of a court of common | 895 |
pleas for a salvage certificate of title without delivering the | 896 |
certificate of title for the motor vehicle. The application shall | 897 |
be accompanied by a copy of the written request that the vehicle | 898 |
be removed from the facility on the salvage motor vehicle | 899 |
auction's letterhead, and the original certified mail, return | 900 |
receipt notice, addressed to the last known owner of the vehicle | 901 |
and any known lienholder, requesting that the vehicle be removed | 902 |
from the facility of the salvage motor vehicle auction. Upon | 903 |
receipt of a properly completed application, the clerk shall | 904 |
follow the process as described in division (C)(1)(c) of this | 905 |
section. The salvage certificate of title so issued shall be free | 906 |
and clear of all liens. | 907 |
(3) If an insurance company considers a motor vehicle as | 908 |
described in division (C)(1)(a) or (b) of this section to be | 909 |
impossible to restore for highway operation, the insurance company | 910 |
may assign the certificate of title to the motor vehicle to a | 911 |
salvage dealer or scrap metal processing facility and send the | 912 |
assigned certificate of title to the clerk of the court of common | 913 |
pleas of any county. The insurance company shall mark the face of | 914 |
the certificate of title "FOR DESTRUCTION" and shall deliver a | 915 |
photocopy of the certificate of title to the salvage dealer or | 916 |
scrap metal processing facility for its records. | 917 |
(3)(4) If an insurance company declares it economically | 918 |
impractical to repair a motor vehicle, agrees to pay to the | 919 |
insured or claimant owner an amount in settlement of a claim | 920 |
against a policy of motor vehicle insurance covering the motor | 921 |
vehicle, and agrees to permit the insured or claimant owner to | 922 |
retain possession of the motor vehicle, the insurance company | 923 |
shall not pay the insured or claimant owner any amount in | 924 |
settlement of the insurance claim until the owner obtains a | 925 |
salvage certificate of title to the vehicle and furnishes a copy | 926 |
of the salvage certificate of title to the insurance company. | 927 |
(D) When a self-insured organization, rental or leasing | 928 |
company, or secured creditor becomes the owner of a motor vehicle | 929 |
that is burned, damaged, or dismantled and is determined to be | 930 |
economically impractical to repair, the self-insured organization, | 931 |
rental or leasing company, or secured creditor shall do one of the | 932 |
following: | 933 |
(1) Mark the face of the certificate of title to the motor | 934 |
vehicle "FOR DESTRUCTION" and surrender the certificate of title | 935 |
to a clerk of a court of common pleas for cancellation as | 936 |
described in division (A) of this section. The self-insured | 937 |
organization, rental or leasing company, or secured creditor then | 938 |
shall deliver the motor vehicle, together with a photocopy of the | 939 |
certificate of title, to a salvage dealer or scrap metal | 940 |
processing facility and shall cause the motor vehicle to be | 941 |
dismantled, flattened, crushed, or destroyed. | 942 |
(2) Obtain a salvage certificate of title to the motor | 943 |
vehicle in the name of the self-insured organization, rental or | 944 |
leasing company, or secured creditor, as provided in division | 945 |
(C)(1) of this section, and then sell or otherwise dispose of the | 946 |
motor vehicle. If the motor vehicle is sold, the self-insured | 947 |
organization, rental or leasing company, or secured creditor shall | 948 |
obtain a salvage certificate of title to the motor vehicle in the | 949 |
name of the purchaser from a clerk of a court of common pleas. | 950 |
(E) If a motor vehicle titled with a salvage certificate of | 951 |
title is restored for operation upon the highways, application | 952 |
shall be made to a clerk of a court of common pleas for a | 953 |
certificate of title. Upon inspection by the state highway patrol, | 954 |
which shall include establishing proof of ownership and an | 955 |
inspection of the motor number and vehicle identification number | 956 |
of the motor vehicle and of documentation or receipts for the | 957 |
materials used in restoration by the owner of the motor vehicle | 958 |
being inspected, which documentation or receipts shall be | 959 |
presented at the time of inspection, the clerk, upon surrender of | 960 |
the salvage certificate of title, shall issue a certificate of | 961 |
title for a fee prescribed by the registrar. The certificate of | 962 |
title shall be in the same form as the original certificate of | 963 |
title and shall bear the words "REBUILT SALVAGE" in black boldface | 964 |
letters on its face. Every subsequent certificate of title, | 965 |
memorandum certificate of title, or duplicate certificate of title | 966 |
issued for the motor vehicle also shall bear the words "REBUILT | 967 |
SALVAGE" in black boldface letters on its face. The exact location | 968 |
on the face of the certificate of title of the words "REBUILT | 969 |
SALVAGE" shall be determined by the registrar, who shall develop | 970 |
an automated procedure within the automated title processing | 971 |
system to comply with this division. The clerk shall use | 972 |
reasonable care in performing the duties imposed on the clerk by | 973 |
this division in issuing a certificate of title pursuant to this | 974 |
division, but the clerk is not liable for any of the clerk's | 975 |
errors or omissions or those of the clerk's deputies, or the | 976 |
automated title processing system in the performance of those | 977 |
duties. A fee of fifty dollars shall be assessed by the state | 978 |
highway patrol for each inspection made pursuant to this division | 979 |
and shall be deposited into the state highway safety fund | 980 |
established by section 4501.06 of the Revised Code. | 981 |
(H)(1) Except as otherwise provided in this division, an | 990 |
owner of a manufactured or mobile home that will be taxed as real | 991 |
property pursuant to division (B) of section 4503.06 of the | 992 |
Revised Code shall surrender the certificate of title to the | 993 |
auditor of the county containing the taxing district in which the | 994 |
home is located. An owner whose home qualifies for real property | 995 |
taxation under divisions (B)(1)(a) and (b) of section 4503.06 of | 996 |
the Revised Code shall surrender the certificate within fifteen | 997 |
days after the home meets the conditions specified in those | 998 |
divisions. The auditor shall deliver the certificate of title to | 999 |
the clerk of the court of common pleas who issued it. | 1000 |
(2) If the certificate of title for a manufactured or mobile | 1001 |
home that is to be taxed as real property is held by a lienholder, | 1002 |
the lienholder shall surrender the certificate of title to the | 1003 |
auditor of the county containing the taxing district in which the | 1004 |
home is located, and the auditor shall deliver the certificate of | 1005 |
title to the clerk of the court of common pleas who issued it. The | 1006 |
lienholder shall surrender the certificate within thirty days | 1007 |
after both of the following have occurred: | 1008 |
(4) Upon application by the owner of a manufactured or mobile | 1022 |
home that is taxed as real property pursuant to division (B) of | 1023 |
section 4503.06 of the Revised Code and that no longer satisfies | 1024 |
divisions (B)(1)(a) and (b) or divisions (B)(2)(a) and (b) of that | 1025 |
section, the clerk shall reactivate the record of the certificate | 1026 |
of title that was inactivated under division (H)(3) of this | 1027 |
section and shall issue a new certificate of title, but only if | 1028 |
the application contains or has attached to it all of the | 1029 |
following: | 1030 |
(D) "Owner" means a person who holds the legal title of a | 1061 |
motor vehicle. If a motor vehicle is the subject of a lease with | 1062 |
an immediate right of possession vested in the lessee, the lessee | 1063 |
is the owner. A person listed as the owner on a certificate of | 1064 |
title on which there is a notation of a security interest is the | 1065 |
owner. A buyer or other transferee of a motor vehicle who receives | 1066 |
the certificate of title from the seller or transferor listing the | 1067 |
seller or transferor thereon as the owner with an assignment of | 1068 |
title to the buyer or transferee nonetheless is the owner even | 1069 |
though a subsequent certificate of title has not been issued | 1070 |
listing the buyer or transferee as the owner. | 1071 |
(I) "Motor vehicle" means every vehicle propelled by power | 1087 |
other than muscular power or power collected from overhead | 1088 |
electric trolley wires, except motorized bicycles, road rollers, | 1089 |
traction engines, power shovels, power cranes and other equipment | 1090 |
used in construction work and not designed for or employed in | 1091 |
general highway transportation, hole-digging machinery, | 1092 |
well-drilling machinery, ditch-digging machinery, farm machinery, | 1093 |
threshing machinery, hay baling machinery, and agricultural | 1094 |
tractors and machinery used in the production of horticultural, | 1095 |
floricultural, agricultural, and vegetable products. | 1096 |
(K) "Proof of financial responsibility" means proof of | 1101 |
ability to respond in damages for liability, on account of | 1102 |
accidents occurring subsequent to the effective date of such | 1103 |
proof, arising out of the ownership, maintenance, or use of a | 1104 |
motor vehicle in the amount of twelvetwenty-five thousand five | 1105 |
hundred dollars because of bodily injury to or death of one person | 1106 |
in any one accident, in the amount of twenty-fivefifty thousand | 1107 |
dollars because of bodily injury to or death of two or more | 1108 |
persons in any one accident, and in the amount of seven | 1109 |
twenty-five thousand five hundred dollars because of injury to | 1110 |
property of others in any one accident. | 1111 |
(L) "Motor-vehicle liability policy" means an "owner's | 1112 |
policy" or an "operator's policy" of liability insurance, | 1113 |
certified as provided in section 4509.46 or 4509.47 of the Revised | 1114 |
Code as proof of financial responsibility, and issued, except as | 1115 |
provided in section 4509.47 of the Revised Code, by an insurance | 1116 |
carrier authorized to do business in this state, to or for the | 1117 |
benefit of the person named therein as insured. | 1118 |
Sec. 4509.20. (A) A policy or bond does not comply with | 1119 |
divisions (A)(5), (A)(6), and (A)(7) of section 4509.19 of the | 1120 |
Revised Code unless issued by an insurance company or surety | 1121 |
company authorized to do business in this state, except as | 1122 |
provided in division (B) of this section, or unless such policy or | 1123 |
bond is subject, if the accident has resulted in bodily injury or | 1124 |
death, to a limit, exclusive of interest and costs, of not less | 1125 |
than twelvetwenty-five thousand five hundred dollars because of | 1126 |
bodily injury to or death of one person in any one accident, and, | 1127 |
subject to said limit for one person, to a limit of not less than | 1128 |
twenty-fivefifty thousand dollars because of bodily injury to or | 1129 |
death of two or more persons in one accident, and, if the accident | 1130 |
has resulted in injury to, or destruction of property, to a limit | 1131 |
of not less than
seventwenty-five thousand five hundred dollars | 1132 |
because of injury to or destruction of property of others in any | 1133 |
one accident. | 1134 |
(B) A policy or bond does not comply with divisions (A) (5), | 1135 |
(A) (6), and (A) (7) of section 4509.19 of the Revised Code with | 1136 |
respect to any motor vehicle which was not registered in this | 1137 |
state or was a motor vehicle which was registered elsewhere than | 1138 |
in this state at the effective date of the policy or bond or the | 1139 |
most recent renewal thereof, unless the insurance company or | 1140 |
surety company issuing such policy or bond is authorized to do | 1141 |
business in this state, or if said company is not authorized to do | 1142 |
business in this state unless it executes a power of attorney | 1143 |
authorizing the registrar of motor vehicles to accept service on | 1144 |
its behalf of notice or process in any action upon such policy or | 1145 |
bond arising out of such accident. | 1146 |
(B) Shall insure the person named therein and any other | 1175 |
person, as insured, using any such motor vehicles with the express | 1176 |
or implied permission of the insured, against loss from the | 1177 |
liability imposed by law for damages arising out of the ownership, | 1178 |
maintenance, or use of such vehicles within the United States or | 1179 |
Canada, subject to monetary limits exclusive of interest and | 1180 |
costs, with respect to each such motor vehicle, as follows: | 1181 |
(B) The amendments to sections 4509.01, 4509.20, 4509.41, and | 1195 |
4509.51 of the Revised Code by Sections 1 and 2 of this act that | 1196 |
increase the threshold amounts required for proof of financial | 1197 |
responsibility shall take effect nine months after the effective | 1198 |
date of this act and shall apply to motor-vehicle liability | 1199 |
policies, as defined in section 4509.01 of the Revised Code, that | 1200 |
are issued or renewed in Ohio nine or more months after the | 1201 |
effective date of this act. A policy in effect on the effective | 1202 |
date of these amendments shall continue to constitute proof of | 1203 |
financial responsibility for the remainder of the term of that | 1204 |
policy. | 1205 |
(C) The amendments to section 3937.18 and the enactment of | 1206 |
section 3937.46 of the Revised Code by Sections 1 and 2 of this | 1207 |
act that restrict the implementation of intrafamily exclusions in | 1208 |
motor-vehicle insurance policies shall take effect nine months | 1209 |
after the effective date of this act and shall apply to | 1210 |
motor-vehicle insurance policies issued or renewed in Ohio nine or | 1211 |
more months after the effective date of this act. A policy in | 1212 |
effect on the effective date of these amendments shall remain in | 1213 |
effect for the remainder of the term of that policy. | 1214 |
Section 4. (A) A study committee is hereby established to | 1215 |
study the feasibility of requiring insurance companies issuing | 1216 |
motor vehicle liability insurance policies in this state to report | 1217 |
certain policy information to the Registrar of Motor Vehicles. The | 1218 |
study committee shall consist of twelve members, including the | 1219 |
Director of Public Safety or the Director's designee, the | 1220 |
Superintendent of Insurance or the Superintendent's designee, six | 1221 |
members appointed by the Governor, two members appointed by the | 1222 |
Speaker of the House of Representatives, and two members appointed | 1223 |
by the President of the Senate. Of the members appointed by the | 1224 |
Governor, one shall represent an Ohio-based automobile insurance | 1225 |
company or organization, one shall be an automobile insurance | 1226 |
agent, one shall represent the Buckeye State Sheriffs' | 1227 |
Association, one shall represent the Ohio Association of Chiefs of | 1228 |
Police, one shall represent the Ohio Clerk of Courts Association, | 1229 |
and one shall be a representative of Ohio's municipal judges. Of | 1230 |
the members appointed by the Speaker of the House of | 1231 |
Representatives, both shall be members of the House of | 1232 |
Representatives and only one shall be of the same political party | 1233 |
as the Speaker. Of the members appointed by the President of the | 1234 |
Senate, both shall be members of the Senate and only one shall be | 1235 |
of the same political party as the President. The Governor, | 1236 |
Speaker, and President shall make their appointments within two | 1237 |
weeks after the effective date of this section. The Director of | 1238 |
Public Safety or the Director's designee and the Superintendent of | 1239 |
Insurance or the Superintendent's designee shall serve as | 1240 |
co-chairpersons of the study committee. | 1241 |
(D) Not later than one year after the effective date of this | 1274 |
section, the study committee shall prepare a comprehensive report, | 1275 |
including findings and recommendations, and shall submit the | 1276 |
report to the Governor, the Registrar of Motor Vehicles, the | 1277 |
Speaker of the House of Representatives, the President of the | 1278 |
Senate, and the Chairpersons of the Insurance and Transportation | 1279 |
committees of the House of Representatives and the Senate. After | 1280 |
submitting its report, the study committee shall cease to exist. | 1281 |