As Reported by the Senate Insurance, Commerce and Labor Committee

129th General Assembly Regular Session 2011-2012

Sub. H. B. No. 278

Representatives Stebelton, Okey 

Cosponsors: Representatives Adams, R., Bubp, Combs, Foley, Grossman, Hollington, Huffman, Letson, Maag, McGregor, McKenney, Murray, Antonio, Ashford, Beck, Blessing, Carney, Celebrezze, Damschroder, Fende, Garland, Hackett, Hagan, R., Hayes, Heard, Henne, Hottinger, Lynch, Mallory, McClain, Newbold, Pillich, Sears, Sprague, Stinziano, Szollosi, Yuko Speaker Batchelder 

Senator Bacon 

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A BILL

To amend sections 3901.21, 3937.18, 3937.30, 3937.31,

1

3937.32, 3937.33, 3937.34, 3937.35, 4505.11,

2

4509.01, 4509.20, 4509.41, and 4509.51 and to

3

enact section 3937.46 of the Revised Code to make

4

changes to the law governing automobile insurance

5

policies, to increase the minimum amounts required

6

for valid proof of financial responsibility, to

7

make it an unfair and deceptive act or practice in

8

the business of insurance to charge excessive,

9

inadequate, or unfairly discriminatory premium

10

rates in private passenger automobile insurance

11

based solely on the insured's residence location,

12

to reduce from two years to one year the minimum

13

policy period for automobile insurance policies,

14

to prohibit an automobile insurer from enforcing

15

certain intrafamily exclusions, and to permit

16

insurance companies to obtain a salvage

17

certificate of title for a motor vehicle in

18

certain circumstances when the insurance company

19

does not have possession of the certificate of

20

title.

21

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

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

Sec. 3901.21.  The following are hereby defined as unfair and	26
deceptive acts or practices in the business of insurance:	27

(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

(E) Issuing or delivering or permitting agents, officers, or	86
employees to issue or deliver agency company stock or other	87
capital stock or benefit certificates or shares in any common-law	88
corporation or securities or any special or advisory board	89
contracts or other contracts of any kind promising returns and	90
profits as an inducement to insurance.	91

(F) Making or permitting any unfair discrimination among	92
individuals of the same class and equal expectation of life in the	93
rates charged for any contract of life insurance or of life	94
annuity or in the dividends or other benefits payable thereon, or	95
in any other of the terms and conditions of such contract.	96

(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

(I) Making, issuing, circulating, or causing or permitting to	138
be made, issued or circulated, or preparing with intent to so	139
issue, any statement to the effect that payments to a policyholder	140
of the principal amounts of a pure endowment are other than	141
payments of a specific benefit for which specific premiums have	142
been paid.	143

(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

(K) Aiding or abetting another to violate this section.

153

(L) Refusing to issue any policy of insurance, or canceling	154
or declining to renew such policy because of the sex or marital	155
status of the applicant, prospective insured, insured, or	156
policyholder.	157

(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

(N) Refusing to make available disability income insurance	165
solely because the applicant's principal occupation is that of	166
managing a household.	167

(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

For purposes of division (O) of this section, "federally	181
eligible individual" means an eligible individual as defined in 45	182
C.F.R. 148.103.	183

(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

(2) Except in the case of a violation of division (G) of this	226
section, division (R)(1) of this section does not apply to either	227
of the following:	228

(a) Acts or practices of an insurer, its agents,	229
representatives, or employees in connection with the grant of a	230
guaranteed student loan to its insured or the insured's spouse or	231
dependent children where such acts or practices take place more	232
than ninety days after the effective date of the insurance;	233

(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

(S) Denying coverage, under any health insurance or health	241
care policy, contract, or plan providing family coverage, to any	242
natural or adopted child of the named insured or subscriber solely	243
on the basis that the child does not reside in the household of	244
the named insured or subscriber.	245

(T)(1) Using any underwriting standard or engaging in any	246
other act or practice that, directly or indirectly, due solely to	247
any health status-related factor in relation to one or more	248
individuals, does either of the following:	249

(a) Terminates or fails to renew an existing individual	250
policy, contract, or plan of health benefits, or a health benefit	251
plan issued to an employer, for which an individual would	252
otherwise be eligible;	253

(b) With respect to a health benefit plan issued to an	254
employer, excludes or causes the exclusion of an individual from	255
coverage under an existing employer-provided policy, contract, or	256
plan of health benefits.	257

(2) The superintendent of insurance may adopt rules in	258
accordance with Chapter 119. of the Revised Code for purposes of	259
implementing division (T)(1) of this section.	260

(3) For purposes of division (T)(1) of this section, "health	261
status-related factor" means any of the following:	262

(a) Health status;

263

(b) Medical condition, including both physical and mental	264
illnesses;	265

(c) Claims experience;

266

(d) Receipt of health care;

267

(e) Medical history;

268

(f) Genetic information;

269

(g) Evidence of insurability, including conditions arising	270
out of acts of domestic violence;	271

(h) Disability.

272

(U) With respect to a health benefit plan issued to a small	273
employer, as those terms are defined in section 3924.01 of the	274
Revised Code, negligently or willfully placing coverage for	275
adverse risks with a certain carrier, as defined in section	276
3924.01 of the Revised Code.	277

(V) Using any program, scheme, device, or other unfair act or	278
practice that, directly or indirectly, causes or results in the	279
placing of coverage for adverse risks with another carrier, as	280
defined in section 3924.01 of the Revised Code.	281

(W) Failing to comply with section 3923.23, 3923.231,	282
3923.232, 3923.233, or 3923.234 of the Revised Code by engaging in	283
any unfair, discriminatory reimbursement practice.	284

(X) Intentionally establishing an unfair premium for, or	285
misrepresenting the cost of, any insurance policy financed under a	286
premium finance agreement of an insurance premium finance company.	287

(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

(b) Adding a surcharge or rating factor to a premium of any	294
individual policy or contract of life or health insurance for the	295
reason that the insured or applicant for insurance is or has been	296
a victim of domestic violence;	297

(c) Denying coverage under, or limiting coverage under, any	298
policy or contract of life or health insurance, for the reason	299
that a claim under the policy or contract arises from an incident	300
of domestic violence;	301

(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

(2) Nothing in division (Y)(1) of this section shall be	309
construed to prohibit an insurer from inquiring as to, or from	310
underwriting or rating a risk on the basis of, a person's physical	311
or mental condition, even if the condition has been caused by	312
domestic violence, provided that all of the following apply:	313

(a) The insurer routinely considers the condition in	314
underwriting or in rating risks, and does so in the same manner	315
for a victim of domestic violence as for an insured or applicant	316
who is not a victim of domestic violence;	317

(b) The insurer does not refuse to issue any policy or	318
contract of life or health insurance or cancel or refuse to renew	319
any policy or contract of life insurance, solely on the basis of	320
the condition, except where such refusal to issue, cancellation,	321
or refusal to renew is based on sound actuarial principles or is	322
related to actual or reasonably anticipated experience;	323

(c) The insurer does not consider a person's status as being	324
or as having been a victim of domestic violence, in itself, to be	325
a physical or mental condition;	326

(d) The underwriting or rating of a risk on the basis of the	327
condition is not used to evade the intent of division (Y)(1) of	328
this section, or of any other provision of the Revised Code.	329

(3)(a) Nothing in division (Y)(1) of this section shall be	330
construed to prohibit an insurer from refusing to issue a policy	331
or contract of life insurance insuring the life of a person who is	332
or has been a victim of domestic violence if the person who	333
committed the act of domestic violence is the applicant for the	334
insurance or would be the owner of the insurance policy or	335
contract.	336

(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

(4) An insurer is immune from any civil or criminal liability	345
that otherwise might be incurred or imposed as a result of any	346
action taken by the insurer to comply with division (Y) of this	347
section.	348

(5) As used in division (Y) of this section, "domestic	349
violence" means any of the following acts:	350

(a) Knowingly causing or attempting to cause physical harm to	351
a family or household member;	352

(b) Recklessly causing serious physical harm to a family or	353
household member;	354

(c) Knowingly causing, by threat of force, a family or	355
household member to believe that the person will cause imminent	356
physical harm to the family or household member.	357

For the purpose of division (Y)(5) of this section, "family	358
or household member" has the same meaning as in section 2919.25 of	359
the Revised Code.	360

Nothing in division (Y)(5) of this section shall be construed	361
to require, as a condition to the application of division (Y) of	362
this section, that the act described in division (Y)(5) of this	363
section be the basis of a criminal prosecution.	364

(Z) Disclosing a coroner's records by an insurer in violation	365
of section 313.10 of the Revised Code.	366

(AA) Making, issuing, circulating, or causing or permitting	367
to be made, issued, or circulated any statement or representation	368
that a life insurance policy or annuity is a contract for the	369
purchase of funeral goods or services.	370

(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

The enumeration in sections 3901.19 to 3901.26 of the Revised	378
Code of specific unfair or deceptive acts or practices in the	379
business of insurance is not exclusive or restrictive or intended	380
to limit the powers of the superintendent of insurance to adopt	381
rules to implement this section, or to take action under other	382
sections of the Revised Code.	383

This section does not prohibit the sale of shares of any	384
investment company registered under the "Investment Company Act of	385
1940," 54 Stat. 789, 15 U.S.C.A. 80a-1, as amended, or any	386
policies, annuities, or other contracts described in section	387
3907.15 of the Revised Code.	388

As used in this section, "estimate," "statement,"	389
"representation," "misrepresentation," "advertisement," or	390
"announcement" includes oral or written occurrences.	391

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

(B) For purposes of any uninsured motorist coverage included	416
in a policy of insurance, an "uninsured motorist" is the owner or	417
operator of a motor vehicle if any of the following conditions	418
applies:	419

(1) There exists no bodily injury liability bond or insurance	420
policy covering the owner's or operator's liability to the	421
insured.	422

(2) The liability insurer denies coverage to the owner or	423
operator, or is or becomes the subject of insolvency proceedings	424
in any state.	425

(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

(4) The owner or operator has diplomatic immunity.

435

(5) The owner or operator has immunity under Chapter 2744. of	436
the Revised Code.	437

An "uninsured motorist" does not include the owner or	438
operator of a motor vehicle that is self-insured within the	439
meaning of the financial responsibility law of the state in which	440
the motor vehicle is registered.	441

(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

For purposes of underinsured motorist coverage, an	460
"underinsured motorist" does not include the owner or operator of	461
a motor vehicle that has applicable liability coverage in the	462
policy under which the underinsured motorist coverage is provided.	463

(D) With respect to the uninsured motorist coverage,	464
underinsured motorist coverage, or both uninsured and underinsured	465
motorist coverages included in a policy of insurance, an insured	466
shall be required to prove all elements of the insured's claim	467
that are necessary to recover from the owner or operator of the	468
uninsured or underinsured motor vehicle.	469

(E) The uninsured motorist coverage, underinsured motorist	470
coverage, or both uninsured and underinsured motorist coverages	471
included in a policy of insurance shall not be subject to an	472
exclusion or reduction in amount because of any workers'	473
compensation benefits payable as a result of the same injury or	474
death.	475

(F) Any policy of insurance that includes uninsured motorist	476
coverage, underinsured motorist coverage, or both uninsured and	477
underinsured motorist coverages may, without regard to any	478
premiums involved, include terms and conditions that preclude any	479
and all stacking of such coverages, including but not limited to:	480

(1) Interfamily stacking, which is the aggregating of the	481
limits of such coverages by the same person or two or more	482
persons, whether family members or not, who are not members of the	483
same household;	484

(2) Intrafamily stacking, which is the aggregating of the	485
limits of such coverages purchased by the same person or two or	486
more family members of the same household.	487

(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

(2) While the insured is operating or occupying a motor	531
vehicle without a reasonable belief that the insured is entitled	532
to do so, provided that under no circumstances will an insured	533
whose license has been suspended, revoked, or never issued, be	534
held to have a reasonable belief that the insured is entitled to	535
operate a motor vehicle;	536

(3) When the bodily injury or death is caused by a motor	537
vehicle operated by any person who is specifically excluded from	538
coverage for bodily injury liability in the policy under which the	539
uninsured motorist coverage, underinsured motorist coverage, or	540
both uninsured and underinsured motorist coverages are provided;	541

(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

(5) When the person actually suffering the bodily injury,	551
sickness, disease, or death is not an insured under the policy.	552

(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

(K) Nothing in this section shall prohibit the inclusion of	568
underinsured motorist coverage in any uninsured motorist coverage	569
included in a policy of insurance.	570

(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

The superintendent shall submit a copy of each status report	581
to the governor, the speaker of the house of representatives, the	582
president of the senate, and the chairpersons of the committees of	583
the general assembly having primary jurisdiction over issues	584
relating to automobile insurance.	585

Sec. 3937.30. (A) As used in sections 3937.30 to 3937.39 of	586
the Revised Code, "automobile insurance policy" means an insurance	587
policy delivered or issued in this state or covering a motor	588
vehicle required to be registered in this state which:	589

(A)(1) Provides automobile bodily injury or property damage	590
liability, or related coverage, or any combination thereof;	591

(B)(2) Insures as named insured, any of the following:

592

(1)(a) Any one person;

593

(2)(b) A husband and wife resident in the same household;

594

(3)(c) Either a husband or a wife who reside in the same	595
household if an endorsement on the policy excludes the other	596
spouse from coverage under the policy and the spouse excluded	597
signs the endorsement. Nothing in this division (B)(3)(A)(2)(c) of	598
this section shall prevent the issuance of separate policies to	599
each spouse or affect the compliance of the policy with Chapter	600
4509. of the Revised Code as to the named insured or any	601
additional insured.	602

(C) Insures only private passenger motor vehicles or other	603
four-wheeled motor vehicles which are classified or rated as	604
private passenger vehicles and are not used as public or private	605
livery, or rental conveyances;	606

(D) Does not insure more than four motor vehicles;

607

(E)(3) Does not cover garage, automobile sales agency, repair	608
shop, service station, or public parking operation hazards;	609

(F)(4) Is not issued under an assigned risk plan pursuant to	610
section 4509.70 of the Revised Code.	611

(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

(1) MisrepresentationFraud, concealment, or	633
misrepresentation by the insured to the insurer of any material	634
fact in the procurement or renewal of the insurance or in the	635
submission of claims thereunder;	636

(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

(3) Nonpayment of premium, which means failure of the named	645
insured to discharge when due any of the named insured's	646
obligations in connection with the payment of premiums on a	647
policy, or any installment of such premiums, whether the premium	648
is payable directly to the insurer or its agent or indirectly	649
under any premium finance plan or extension of credit;	650

(4) The place of residence of the insured or the state of	651
registration or license of the insured automobile is changed to a	652
state or country in which the insurer is not authorized to write	653
automobile coverage.	654

This section does not apply in the case of a cancellation if	655
the insurer has indicated its willingness to issue a new policy	656
within the same insurer or within another insurer under the same	657
ownership or management as that of the insurer that has issued the	658
cancellation.	659

(B) Sections 3937.30 to 3937.39 of the Revised Code do not	660
prohibit:	661

(1) Changes in coverage or policy limits, cancellation, or	662
nonrenewal for any reason at the request or with the consent of	663
the insured;	664

(2) Lawful surcharges, adjustments, or other changes in	665
premium;	666

(3) Policy modification to all policies issued to a	667
classification of risk which do not effect a withdrawal or	668
reduction in the initial coverage or policy limits;	669

(4) An insurer's refusing for any reason to renew a policy	670
upon its expiration at the end of any mandatory period, provided	671
such nonrenewal complies with the procedure set forth in section	672
3937.34 of the Revised Code.	673

(C) Sections 3937.30 to 3937.39 of the Revised Code do not	674
apply to any policy or coverage that has been in effect less than	675
ninety days at the time notice of cancellation is mailed by the	676
insurer, unless it is a renewal policy.	677

(D) Renewal of a policy does not constitute a waiver or	678
estoppel with respect to grounds for cancellation that existed	679
before the effective date of such renewal.	680

(E) Nothing in this section prohibits an insurer from	681
incorporating into a policy any changes that are permitted or	682
required by this section or other sections of the Revised Code at	683
the beginning of any policy period within the two-yearone-year	684
period set forth in division (A) of this section.	685

Sec. 3937.32.  No cancellation of an automobile insurance	686
policy is effective, unless it is pursuant to written notice to	687
the insured of cancellation. Such notice shall contain:	688

(A) The policy number;

689

(B) The date of the notice;

690

(C) The effective date of cancellation of the policy, which	691
shall not be earlier than thirty days following the date of the	692
notice;	693

(D) An explanation of the reason for cancellation and the	694
information upon which it is based, or a statement that such	695
explanation will be furnished to the insured in writing within	696
five days after receipt of histhe insured's written request	697
therefor to the insurer;	698

(E) Where cancellation is for nonpayment of premium at least	699
ten days notice from the date of mailing of cancellation	700
accompanied by the reason thereforetherefor shall be given;	701

(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. 3937.34.  An insurer may refuse to renew an automobile	735
insurance policy by mailing to the insured, at histhe insured's	736
last known address appearing on the insurer's records, and at	737
least thirty days prior to the date of expiration of the policy, a	738
notice of the insurer's intention not to renew the policy. Such	739
notice shall contain:	740

(A) The policy number;

741

(B) The date of the notice;

742

(C) The effective date of expiration;

743

(D) An explanation of the reason for nonrenewal and the	744
information upon which it is based, or a statement that such	745
explanation will be furnished to the insured in writing within	746
five days after receipt of histhe insured's written request	747
therefor to the insurer.	748

Upon compliance by the insurer with all requirements of this	749
section, such motor vehicleautomobile insurance policy expires on	750
the expiration date stated in the policy and notice of intention	751
not to renew.	752

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

Sec. 3937.46.  (A) An intrafamily liability exclusion shall	790
not apply or be enforced by an insurer against the owner or	791
operator of a motor vehicle in a claim or in a suit for damages	792
made against the owner or operator under Chapter 2125. of the	793
Revised Code.	794

(B) The prohibition included in division (A) of this section	795
does not apply if both of the following conditions are met:	796

(1) The policy providing the liability coverage in question	797
includes uninsured-underinsured motorist coverage pursuant to	798
section 3937.18 of the Revised Code;	799

(2) Such an intrafamily claim is not precluded by an	800
intrafamily exclusion in the uninsured-underinsured motorist	801
coverage in question.	802

(C) As used in this section:

803

(1) "Intrafamily liability exclusion" means any provision	804
included in an automobile insurance policy that excludes liability	805
insurance coverage for the owner or operator of a motor vehicle	806
against a claim for injury or death suffered by a family member of	807
that owner or operator.	808

(2) "Automobile insurance policy" has the same meaning as in	809
section 3937.30 of the Revised Code.	810

Sec. 4505.11. This section shall also apply to all-purpose	811
vehicles and off-highway motorcycles as defined in section 4519.01	812
of the Revised Code.	813

(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

Upon the cancellation of a certificate of title in the manner	825
prescribed by this section, any clerk and the registrar of motor	826
vehicles may cancel and destroy all certificates and all	827
memorandum certificates in that chain of title.	828

(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

(2) At the time any salvage motor vehicle is sold at auction	843
or through a pool, the salvage motor vehicle auction or salvage	844
motor vehicle pool shall give a copy of the certificate of salvage	845
title or a copy of the certificate of title marked "FOR	846
DESTRUCTION" to the purchaser.	847

(C)(1) When an insurance company declares it economically	848
impractical to repair such a motor vehicle and has paid an agreed	849
price for the purchase of the motor vehicle to any insured or	850
claimant owner, the insurance company shall receive the	851
certificate of title and the motor vehicle and proceed as follows.	852
Within:	853

(a) If an insurance company receives the certificate of title	854
and the motor vehicle, within thirty business days, the insurance	855
company shall deliver the certificate of title to a clerk of a	856
court of common pleas and shall make application for a salvage	857
certificate of title. The	858

(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

(F) No person shall operate upon the highways in this state a	982
motor vehicle, title to which is evidenced by a salvage	983
certificate of title, except to deliver the motor vehicle pursuant	984
to an appointment for an inspection under this section.	985

(G) No motor vehicle the certificate of title to which has	986
been marked "FOR DESTRUCTION" and surrendered to a clerk of a	987
court of common pleas shall be used for anything except parts and	988
scrap metal.	989

(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

(a) The homeowner has provided written notice to the	1009
lienholder requesting that the certificate of title be surrendered	1010
to the auditor of the county containing the taxing district in	1011
which the home is located.	1012

(b) The homeowner has either paid the lienholder the	1013
remaining balance owed to the lienholder, or, with the	1014
lienholder's consent, executed and delivered to the lienholder a	1015
mortgage on the home and land on which the home is sited in the	1016
amount of the remaining balance owed to the lienholder.	1017

(3) Upon the delivery of a certificate of title by the county	1018
auditor to the clerk, the clerk shall inactivate it and maintain	1019
it in the automated title processing system for a period of thirty	1020
years.	1021

(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

(a) An endorsement of the county treasurer that all real	1031
property taxes charged against the home under Title LVII of the	1032
Revised Code and division (B) of section 4503.06 of the Revised	1033
Code for all preceding tax years have been paid;	1034

(b) An endorsement of the county auditor that the home will	1035
be removed from the real property tax list;	1036

(c) Proof that there are no outstanding mortgages or other	1037
liens on the home or, if there are such mortgages or other liens,	1038
that the mortgagee or lienholder has consented to the reactivation	1039
of the certificate of title.	1040

(I)(1) Whoever violates division (F) of this section shall be	1041
fined not more than two thousand dollars, imprisoned not more than	1042
one year, or both.	1043

(2) Whoever violates division (G) of this section shall be	1044
fined not more than one thousand dollars, imprisoned not more than	1045
six months, or both.	1046

Sec. 4509.01.  As used in sections 4509.01 to 4509.78 of the	1047
Revised Code:	1048

(A) "Person" includes every natural person, firm,	1049
partnership, association, or corporation.	1050

(B) "Driver" means every person who drives or is in actual	1051
physical control of a motor vehicle.	1052

(C) "License" includes any license, permit, or privilege to	1053
operate a motor vehicle issued under the laws of this state	1054
including:	1055

(1) Any temporary instruction permit or examiner's driving	1056
permit;	1057

(2) The privilege of any person to drive a motor vehicle	1058
whether or not such person holds a valid license;	1059

(3) Any nonresident's operating privilege.

1060

(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

(E) "Registration" means registration certificates and	1072
registration plates issued under the laws of this state pertaining	1073
to the registration of motor vehicles.	1074

(F) "Nonresident" means every person who is not a resident of	1075
this state.	1076

(G) "Nonresident's operating privilege" means the privilege	1077
conferred upon a nonresident by the laws of this state pertaining	1078
to the operation by such person of a motor vehicle, or the use of	1079
a motor vehicle owned by such person, in this state.	1080

(H) "Vehicle" means every device by which any person or	1081
property may be transported upon a highway, except electric	1082
personal assistive mobility devices, devices moved by power	1083
collected from overhead electric trolley wires, or used	1084
exclusively upon stationary rails or tracks, and except devices	1085
other than bicycles moved by human power.	1086

(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

(J) "Accident" or "motor vehicle accident" means any accident	1097
involving a motor vehicle which results in bodily injury to or	1098
death of any person, or damage to the property of any person in	1099
excess of four hundred dollars.	1100

(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

The registrar may rely upon the accuracy of the information	1147
in the required report of a motor vehicle accident as to the	1148
existence of insurance or a bond unless the registrar has reason	1149
to believe that the information is erroneous.	1150

Sec. 4509.41.  (A) Judgments are satisfied for the purpose of	1151
sections 4509.01 to 4509.78, inclusive, of the Revised Code, in	1152
each of the following cases:	1153

(1) When twelvetwenty-five thousand five hundred dollars has	1154
been credited upon any judgments in excess of that amount because	1155
of bodily injury to or death of one person as a result of any one	1156
accident;	1157

(2) When the sum of twenty-fivefifty thousand dollars has	1158
been credited upon any judgments in excess of that amount because	1159
of bodily injury to or death of two or more persons as the result	1160
of any one accident;	1161

(3) When seventwenty-five thousand five hundred dollars has	1162
been credited upon any judgments rendered in excess of that amount	1163
because of injury to property of others as a result of any one	1164
accident.	1165

(B) Payments made in settlements of any claims because of	1166
bodily injury, death, or property damage arising from such	1167
accident shall be credited in reduction of the amounts provided	1168
for in this section.	1169

Sec. 4509.51.  Subject to the terms and conditions of an	1170
owner's policy, every owner's policy of liability insurance:	1171

(A) Shall designate by explicit description or by appropriate	1172
reference all motor vehicles with respect to which coverage is	1173
thereby granted;	1174

(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

(1) TwelveTwenty-five thousand five hundred dollars because	1182
of bodily injury to or death of one person in any one accident;	1183

(2) Twenty-fiveFifty thousand dollars because of bodily	1184
injury to or death of two or more persons in any one accident;	1185

(3) SevenTwenty-five thousand five hundred dollars because	1186
of injury to property of others in any one accident.	1187

Section 2.  That existing sections 3901.21, 3937.18, 3937.30,	1188
3937.31, 3937.32, 3937.33, 3937.34, 3937.35, 4505.11, 4509.01,	1189
4509.20, 4509.41, and 4509.51 of the Revised Code are hereby	1190
repealed.	1191

Section 3.  (A) The amendments to section 3937.31 of the	1192
Revised Code of Sections 1 and 2 of this act shall take effect six	1193
months after the effective date of this act.	1194

(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

(B) The study committee shall begin meeting as soon as	1242
practicable after the effective date of this section and shall	1243
consider all of the following:	1244

(1) Whether insurers should be required to report all motor	1245
vehicle liability insurance renewals, cancellations, or lapses to	1246
the Registrar and, if so, the time within which the report should	1247
be made;	1248

(2) Whether insurers should be required to report the	1249
issuance of new motor vehicle policies to the Registrar and, if	1250
so, the time within which the report should be made;	1251

(3) The impact of such required reporting on the costs	1252
incurred by the insurance industry and the potential for increased	1253
insurance premiums;	1254

(4) The form and content of any recommended reports;

1255

(5) Whether the Director of Public Safety, the Superintendent	1256
of Insurance, or the Registrar should be required or authorized to	1257
adopt rules under Chapter 111. or 119. of the Revised Code to	1258
implement any recommended reporting requirements;	1259

(6) What sanctions should be imposed for any failure by an	1260
insurer to timely file any required report;	1261

(7) What uses should be made of the reported information,	1262
including whether the information should be excluded from the	1263
public records provisions of section 149.43 of the Revised Code;	1264

(8) What notice, if any, should be provided to the person	1265
whose insurance has been reported lapsed or canceled;	1266

(9) Whether the insurer should be granted immunity from civil	1267
liability for failure to make a report;	1268

(10) Any other related issues the Registrar or the members of	1269
the study committee consider relevant.	1270

(C) The study committee shall consider provisions contained	1271
in the laws or regulations of other states regarding motor vehicle	1272
liability insurance verification.	1273

(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