As Introduced

129th General Assembly Regular Session 2011-2012

S. B. No. 246

Senator Bacon 

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A BILL

To amend sections 3905.01, 3905.06, and 3905.40 and

1

to enact section 3905.062 of the Revised Code to

2

establish requirements and procedures for issuing

3

portable electronics insurance.

4

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

Section 1.  That sections 3905.01, 3905.06, and 3905.40 be	5
amended and section 3905.062 of the Revised Code be enacted to	6
read as follows:	7

Sec. 3905.01.  As used in this chapter:

8

(A) "Business entity" means a corporation, association,	9
partnership, limited liability company, limited liability	10
partnership, or other legal entity.	11

(B) "Home state" means the state or territory of the United	12
States, including the District of Columbia, in which an insurance	13
agent maintains the insurance agent's principal place of residence	14
or principal place of business and is licensed to act as an	15
insurance agent.	16

(C) "Insurance" means any of the lines of authority set forth	17
in Chapter 1739., 1751., or 1761. or Title XXXIX of the Revised	18
Code, or as additionally determined by the superintendent of	19
insurance.	20

(D) "Insurance agent" or "agent" means any person that, in	21
order to sell, solicit, or negotiate insurance, is required to be	22
licensed under the laws of this state, including limited lines	23
insurance agents and surplus line brokers.	24

(E) "Insurer" has the same meaning as in section 3901.32 of	25
the Revised Code.	26

(F) "License" means the authority issued by the	27
superintendent to a person to act as an insurance agent for the	28
lines of authority specified, but that does not create any actual,	29
apparent, or inherent authority in the person to represent or	30
commit an insurer.	31

(G) "Limited line credit insurance" means credit life, credit	32
disability, credit property, credit unemployment, involuntary	33
unemployment, mortgage life, mortgage guaranty, mortgage	34
disability, guaranteed automobile protection insurance, or any	35
other form of insurance offered in connection with an extension of	36
credit that is limited to partially or wholly extinguishing that	37
credit obligation and that is designated by the superintendent as	38
limited line credit insurance.	39

(H) "Limited line credit insurance agent" means a person that	40
sells, solicits, or negotiates one or more forms of limited line	41
credit insurance to individuals through a master, corporate,	42
group, or individual policy.	43

(I) "Limited lines insurance" means those lines of authority	44
set forth in divisions (B)(7) to (10)(11) of section 3905.06 of	45
the Revised Code or in rules adopted by the superintendent, or any	46
lines of authority the superintendent considers necessary to	47
recognize for purposes of complying with section 3905.072 of the	48
Revised Code.	49

(J) "Limited lines insurance agent" means a person authorized	50
by the superintendent to sell, solicit, or negotiate limited lines	51
insurance.	52

(K) "NAIC" means the national association of insurance	53
commissioners.	54

(L) "Negotiate" means to confer directly with, or offer	55
advice directly to, a purchaser or prospective purchaser of a	56
particular contract of insurance with respect to the substantive	57
benefits, terms, or conditions of the contract, provided the	58
person that is conferring or offering advice either sells	59
insurance or obtains insurance from insurers for purchasers.	60

(M) "Person" means an individual or a business entity.

61

(N) "Sell" means to exchange a contract of insurance by any	62
means, for money or its equivalent, on behalf of an insurer.	63

(O) "Solicit" means to attempt to sell insurance, or to ask	64
or urge a person to apply for a particular kind of insurance from	65
a particular insurer.	66

(P) "Superintendent" or "superintendent of insurance" means	67
the superintendent of insurance of this state.	68

(Q) "Terminate" means to cancel the relationship between an	69
insurance agent and the insurer or to terminate an insurance	70
agent's authority to transact insurance.	71

(R) "Uniform application" means the NAIC uniform application	72
for resident and nonresident agent licensing, as amended by the	73
NAIC from time to time.	74

(S) "Uniform business entity application" means the NAIC	75
uniform business entity application for resident and nonresident	76
business entities, as amended by the NAIC from time to time.	77

Sec. 3905.06. (A)(1) The superintendent of insurance shall	78
issue a resident insurance agent license to an individual	79
applicant whose home state is Ohio upon submission of a completed	80
application and payment of any applicable fee required under this	81
chapter, if the superintendent finds all of the following:	82

(a) The applicant is at least eighteen years of age.

83

(b) The applicant has not committed any act that is a ground	84
for the denial, suspension, or revocation of a license under	85
section 3905.14 of the Revised Code.	86

(c) If required under section 3905.04 of the Revised Code,	87
the applicant has completed a program of insurance education for	88
each line of authority for which the applicant has applied.	89

(d) If required under section 3905.04 of the Revised Code,	90
the applicant has passed an examination for each line of authority	91
for which the applicant has applied.	92

(e) Any applicant applying for variable life-variable annuity	93
line of authority is registered with the financial industry	94
regulatory authority (FINRA) as a registered representative after	95
having passed at least one of the following examinations	96
administered by the FINRA: the series 6 examination, the series 7	97
examination, the series 63 examination, the series 66 examination,	98
or any other FINRA examination approved by the superintendent.	99

(f) If required under section 3905.051 of the Revised Code,	100
the applicant has consented to a criminal records check and the	101
results of the applicant's criminal records check are determined	102
to be satisfactory by the superintendent.	103

(g) The applicant is a United States citizen or has provided	104
proof of having legal authorization to work in the United States.	105

(h) The applicant is of good reputation and character, is	106
honest and trustworthy, and is otherwise suitable to be licensed.	107

(2) The superintendent shall issue a resident insurance agent	108
license to a business entity applicant upon submission of a	109
completed application and payment of any applicable fees required	110
under this chapter if the superintendent finds all of the	111
following:	112

(a) TheExcept as provided under division (C)(2) of section	113
3905.062 of the Revised Code, the applicant either is domiciled in	114
Ohio or maintains its principal place of business in Ohio.	115

(b) The applicant has designated a licensed insurance agent	116
who will be responsible for the applicant's compliance with the	117
insurance laws of this state.	118

(c) The applicant has not committed any act that is a ground	119
for the denial, suspension, or revocation of a license under	120
section 3905.14 of the Revised Code.	121

(d) Any applicant applying for a portable electronics	122
insurance license line of authority satisfies the requirements of	123
division (C)(1) of section 3905.062 of the Revised Code.	124

(e) The applicant has submitted any other documents requested	125
by the superintendent.	126

(B) An insurance agent license issued pursuant to division	127
(A) of this section shall state the licensee's name, the license	128
number, the date of issuance, the date the license expires, the	129
line or lines of authority for which the licensee is qualified,	130
and any other information the superintendent deems necessary.	131

A licensee may be qualified for any of the following lines of	132
authority:	133

(1) Life, which is insurance coverage on human lives,	134
including benefits of endowment and annuities, and may include	135
benefits in the event of death or dismemberment by accident and	136
benefits for disability income;	137

(2) Accident and health, which is insurance coverage for	138
sickness, bodily injury, or accidental death, and may include	139
benefits for disability income;	140

(3) Property, which is insurance coverage for the direct or	141
consequential loss or damage to property of any kind;	142

(4) Casualty, which is insurance coverage against legal	143
liability, including coverage for death, injury, or disability or	144
damage to real or personal property;	145

(5) Personal lines, which is property and casualty insurance	146
coverage sold to individuals and families for noncommercial	147
purposes;	148

(6) Variable life and variable annuity products, which is	149
insurance coverage provided under variable life insurance	150
contracts and variable annuities;	151

(7) Credit, which is limited line credit insurance;

152

(8) Title, which is insurance coverage against loss or damage	153
suffered by reason of liens against, encumbrances upon, defects	154
in, or the unmarketability of, real property;	155

(9) Surety bail bond, which is the authority set forth in	156
sections 3905.83 to 3905.95 of the Revised Code;	157

(10) Portable electronics insurance, which is a limited line	158
described in section 3905.062 of the Revised Code;	159

(11) Any other line of authority designated by the	160
superintendent.	161

(C)(1) An individual seeking to renew a resident insurance	162
agent license shall apply biennially for a renewal of the license	163
on or before the last day of the licensee's birth month. A	164
business entity seeking to renew a resident insurance agent	165
license shall apply biennially for a renewal of the license on or	166
before the date determined by the superintendent. The	167
superintendent shall send a renewal notice to all licensees at	168
least one month prior to the renewal date.	169

Applications shall be submitted to the superintendent on	170
forms prescribed by the superintendent. Each application shall be	171
accompanied by a biennial renewal fee. The superintendent also may	172
require an applicant to submit any document reasonably necessary	173
to verify the information contained in the renewal application.	174

(2) To be eligible for renewal, an individual applicant shall	175
complete the continuing education requirements pursuant to section	176
3905.481 of the Revised Code prior to the renewal date.	177

(3) If an applicant submits a completed renewal application,	178
qualifies for renewal pursuant to divisions (C)(1) and (2) of this	179
section, and has not committed any act that is a ground for the	180
refusal to issue, suspension of, or revocation of a license under	181
section 3905.14 of the Revised Code, the superintendent shall	182
renew the applicant's resident insurance agent license.	183

(D) If an individual or business entity does not apply for	184
the renewal of the individual or business entity's license on or	185
before the license renewal date specified in division (C)(1) of	186
this section, the individual or business entity may submit a late	187
renewal application along with all applicable fees required under	188
this chapter prior to the first day of the second month following	189
the license renewal date.	190

(E) A license issued under this section that is not renewed	191
on or before its renewal date pursuant to division (C) of this	192
section or its late renewal date pursuant to division (D) of this	193
section automatically is suspended for nonrenewal on the first day	194
of the second month following the renewal date. If a license is	195
suspended for nonrenewal pursuant to this division, the individual	196
or business entity is eligible to apply for reinstatement of the	197
license within the twelve-month period following the date by which	198
the license should have been renewed by complying with the	199
reinstatement procedure established by the superintendent and	200
paying all applicable fees required under this chapter.	201

(F) A license that is suspended for nonrenewal that is not	202
reinstated pursuant to division (E) of this section automatically	203
is canceled unless the superintendent is investigating any	204
allegations of wrongdoing by the agent or has initiated	205
proceedings under Chapter 119. of the Revised Code. In that case,	206
the license automatically is canceled after the completion of the	207
investigation or proceedings unless the superintendent revokes the	208
license.	209

(G) An individual licensed as a resident insurance agent who	210
is unable to comply with the license renewal procedures	211
established under this section and who is unable to engage in the	212
business of insurance due to military service, a long-term medical	213
disability, or some other extenuating circumstance may request an	214
extension of the renewal date of the individual's license. To be	215
eligible for such an extension, the individual shall submit a	216
written request with supporting documentation to the	217
superintendent. At the superintendent's discretion, the	218
superintendent may not consider a written request made after the	219
renewal date of the license.	220

Sec. 3905.062.  (A) As used in this section:

221

(1) "Customer" means a person who purchases portable	222
electronics or services.	223

(2) "Enrolled customer" means a customer who elects coverage	224
under a portable electronics insurance policy issued to a vendor	225
of portable electronics by an insurer.	226

(3) "Endorsee" means an employee or authorized representative	227
of a vendor authorized to sell or offer portable electronics	228
insurance.	229

(4) "Location" means any physical location in this state or	230
any web site, call center site, or similar location directed to	231
residents of this state.	232

(5) "Portable electronics" means a personal, self-contained,	233
battery-operated electronic communication, viewing, listening,	234
recording, gaming, computing, or global positioning device that is	235
easily carried by an individual, including a cellular or satellite	236
telephone; pager; personal global positioning satellite unit;	237
portable computer; portable audio listening, video viewing or	238
recording device; digital camera; video camcorder; portable gaming	239
system; docking station; automatic answering device; and any other	240
similar device, and any accessory related to the use of the	241
device.	242

(6) "Portable electronics insurance" means insurance	243
providing coverage for the repair or replacement of portable	244
electronics, which may be offered on a month-to-month or other	245
periodic basis as a group or master commercial inland marine	246
policy issued to a vendor by an insurer, and may cover portable	247
electronics against loss, theft, inoperability due to mechanical	248
failure, malfunction, damage, or other applicable perils.	249
"Portable electronics insurance" does not mean any of the	250
following:	251

(a) A consumer goods service contract governed by section	252
3905.423 of the Revised Code;	253

(b) A policy of insurance covering a seller's or a	254
manufacturer's obligations under a warranty;	255

(c) A homeowner's, renter's, private passenger automobile,	256
commercial multi-peril, or similar insurance policy.	257

(7) "Portable electronics transaction" means the sale or	258
lease of portable electronics by a vendor to a customer or the	259
sale of a service related to the use of portable electronics by a	260
vendor to a customer.	261

(8) "Supervising entity" means an insurer or a business	262
entity licensed as an insurance agent under section 3905.06 of the	263
Revised Code that is appointed by an insurer to supervise the	264
administration of a portable electronics insurance program.	265

(9) "Vendor" means a person in the business of engaging in	266
portable electronics transactions directly or indirectly.	267

(B)(1) Except as provided in division (B)(2) of this section,	268
no vendor or vendor's employee shall offer, sell, solicit, or	269
place portable electronics insurance unless the vendor is licensed	270
under section 3905.06 or 3905.07 of the Revised Code with a	271
portable electronics insurance line of authority.	272

(2) Any vendor offering or selling portable electronics	273
insurance on or before the effective date of this section that	274
wishes to continue offering or selling that insurance shall apply	275
for a license within ninety days after the superintendent of	276
insurance makes the application available.	277

(C)(1) The superintendent shall issue a resident business	278
entity license to a vendor under section 3905.06 of the Revised	279
Code if the vendor satisfies the requirements of sections 3905.05	280
and 3905.06 of the Revised Code, except that the application for a	281
portable electronics insurance license shall satisfy the following	282
additional requirements:	283

(a) The application shall include the location of the	284
vendor's home office.	285

(b) If the application requires the vendor to designate an	286
individual or entity as a responsible insurance agent, that agent	287
shall not be required to be an employee of the applicant and may	288
be the supervising entity or an individual agent who is an	289
employee of the supervising entity.	290

(c) If the vendor derives less than fifty per cent of the	291
vendor's revenue from the sale of portable electronics insurance,	292
the application for a portable electronics insurance license may	293
require the vendor to provide the name, residence address, and	294
other information required by the superintendent for one employee	295
or officer of the vendor who is designated by the vendor as the	296
person responsible for the vendor's compliance with the	297
requirements of this chapter.	298

(d) If the vendor derives fifty per cent or more of the	299
vendor's revenue from the sale of portable electronics insurance,	300
the application may require the information listed under division	301
(C)(1)(c) of this section for all owners with at least ten per	302
cent interest or voting interest, partners, officers, and	303
directors of the vendor, or members or managers of a vendor that	304
is a limited liability company.	305

(2) The superintendent shall issue a nonresident business	306
entity license to a vendor if the vendor satisfies the	307
requirements of section 3905.07 of the Revised Code. However, if	308
the nonresident vendor's home state does not issue a limited lines	309
license for portable electronics insurance, the nonresident vendor	310
may apply for a resident license under section 3905.06 of the	311
Revised Code in the same manner and with the same rights and	312
privileges as if the vendor were a resident of this state.	313

(D) The holder of a limited lines license may not sell,	314
solicit, or negotiate insurance on behalf of any insurer unless	315
appointed to represent that insurer under section 3905.20 of the	316
Revised Code.	317

(E) Division (B)(34) of section 3905.14 of the Revised Code	318
shall not apply to portable electronics vendors or the vendors'	319
endorsees.	320

(F)(1) A vendor may authorize any endorsee of the vendor to	321
sell or offer portable electronics insurance to a customer at any	322
location at which the vendor engages in portable electronics	323
transactions.	324

(2) An endorsee is not required to be licensed as an	325
insurance agent under this chapter if the vendor is licensed under	326
this section and the insurer issuing the portable electronics	327
insurance either directly supervises or appoints a supervising	328
entity to supervise the administration of the portable electronics	329
insurance program including development of a training program for	330
endorsees in accordance with division (G) of this section.	331

(3) No endorsee shall do any of the following:

332

(a) Advertise, represent, or otherwise represent the	333
endorsee's self as an insurance agent licensed under section	334
3905.06 of the Revised Code;	335

(b) Offer, sell, or solicit the purchase of portable	336
electronics insurance except in conjunction with and incidental to	337
the sale or lease of portable electronics;	338

(c) Make any statement or engage in any conduct, express or	339
implied, that would lead a customer to believe any of the	340
following:	341

(i) That the insurance policies offered by the endorsee	342
provide coverage not already provided by a customer's homeowner's	343
insurance policy, renter's insurance policy, or by another source	344
of coverage;	345

(ii) That the purchase by the customer of portable	346
electronics insurance is required in order to purchase or lease	347
portable electronics or services from the portable electronics	348
vendor;	349

(iii) That the portable electronics vendor or its endorsees	350
are qualified to evaluate the adequacy of the customer's existing	351
insurance coverage.	352

(G) Each vendor, or the supervising entity to that vendor,	353
shall provide a training and education program for all endorsees	354
who sell or offer portable electronics insurance. The program may	355
be provided as a web-based training module or in any other	356
electronic or recorded video form. The training and education	357
program shall meet all of the following minimum standards:	358

(1) The training shall be delivered to each endorsee of each	359
vendor who sells or offers portable electronics insurance and the	360
endorsee shall complete the training.	361

(2) If the training is conducted in an electronic form, the	362
supervising entity shall implement a supplemental education	363
program regarding portable electronics insurance that is conducted	364
and overseen by employees of the supervising entity who are	365
licensed as insurance agents under section 3905.06 of the Revised	366
Code.	367

(3) The training and education program shall include basic	368
information about portable electronics insurance and information	369
concerning all of the following prohibited actions of endorsees:	370

(a) No endorsee shall advertise, represent, or otherwise	371
represent the endorsee's self as a licensed insurance agent.	372

(b) No endorsee shall offer, sell, or solicit the purchase of	373
portable electronics insurance except in conjunction with and	374
incidental to the sale or lease of portable electronics.	375

(c) No endorsee shall make any statement or engage in any	376
conduct, express or implied, that would lead a customer to believe	377
any of the following:	378

(i) That the insurance policies offered by the endorsee	379
provide coverage not already provided by a customer's homeowner's	380
insurance policy, renter's insurance policy, or by another source	381
of coverage;	382

(ii) That the purchase by the customer of portable	383
electronics insurance is required in order to purchase or lease	384
portable electronics or services from the portable electronics	385
vendor;	386

(iii) That the portable electronics vendor or its endorsees	387
are qualified to evaluate the adequacy of the customer's existing	388
insurance coverage.	389

(H) A supervising entity appointed to supervise the	390
administration of a portable electronics insurance program under	391
division (F)(2) of this section shall maintain a registry of	392
locations supervised by that entity that are authorized to sell or	393
solicit portable electronics insurance in this state. The	394
supervising entity shall make the registry available to the	395
superintendent upon request by the superintendent if the	396
superintendent provides ten days' notice to the vendor or	397
supervising entity.	398

(I) At every location where a vendor offers portable	399
electronics insurance to customers, the vendor shall provide	400
brochures or other written materials to prospective customers that	401
include all of the following:	402

(1) A summary of the material terms of the insurance	403
coverage, including all of the following:	404

(a) The identity of the insurer;

405

(b) The identity of the supervising entity;

406

(c) The amount of any applicable deductible and how it is to	407
be paid;	408

(d) Benefits of the coverage;

409

(e) Key terms and conditions of coverage such as whether	410
portable electronics may be replaced with a similar make and	411
model, replaced with a reconditioned device, or repaired with	412
nonoriginal manufacturer parts or equipment.	413

(2) A summary of the process for filing a claim, including a	414
description of how to return portable electronics equipment and	415
the maximum fee applicable if a customer fails to comply with any	416
equipment return requirements;	417

(3) A disclosure that portable electronics insurance may	418
provide a duplication of coverage already provided by a customer's	419
homeowner's insurance policy, renter's insurance policy, or other	420
source of coverage;	421

(4) A disclosure that the enrollment by the customer in a	422
portable electronics insurance program is not required to purchase	423
or lease portable electronics or services;	424

(5) A disclosure that neither the endorsee nor the vendor is	425
qualified to evaluate the adequacy of the customer's existing	426
insurance coverage;	427

(6) A disclosure that the customer may cancel enrollment for	428
coverage under a portable electronics insurance policy at any time	429
and receive a refund of any applicable premium.	430

(J)(1) The charges for portable electronics insurance may be	431
billed and collected by the vendor of portable electronics, and	432
the vendor may receive compensation for performing billing and	433
collection services, if either of the following conditions are	434
met:	435

(a) If the charge to the customer for coverage is not	436
included in the cost associated with the purchase or lease of	437
portable electronics or related services, the charge for coverage	438
is separately itemized on the customer's bill.	439

(b) If the charge to the customer for coverage is included in	440
the cost associated with the purchase or lease of portable	441
electronics or related services, the vendor clearly and	442
conspicuously discloses to the customer that the charge for	443
portable electronics insurance coverage is included with the	444
charge for portable electronics or related services.	445

(2) All funds received by a vendor from a customer for the	446
sale of portable electronics insurance shall be considered funds	447
held in trust by the vendor in a fiduciary capacity for the	448
benefit of the insurer. Vendors that bill and collect such charges	449
are not required to maintain those funds in a segregated account	450
if the vendor is authorized by the insurer to hold those funds in	451
an alternate manner and the vendor remits the amount of the	452
charges to the supervising entity within sixty days after	453
receiving the charges.	454

(K)(1) Except as otherwise provided in divisions (K)(2) and	455
(3) of this section, an insurer may terminate or otherwise change	456
the terms and conditions of a policy of portable electronics	457
insurance only upon providing the vendor policyholder and enrolled	458
customers with at least sixty days' prior notice. If the insurer	459
changes the terms and conditions, the insurer shall promptly	460
provide the vendor policyholder with a revised policy or	461
endorsement and each enrolled customer with a revised certificate,	462
endorsement, updated brochure, or other evidence indicating that a	463
change in the terms and conditions has occurred and a summary of	464
material changes.	465

(2) An insurer may terminate an enrolled customer's	466
enrollment under a portable electronics insurance policy upon	467
fifteen days' prior notice for discovery of fraud or material	468
misrepresentation in obtaining coverage or in the presentation of	469
a claim under the policy.	470

(3) An insurer may immediately terminate an enrolled	471
customer's enrollment under a portable electronics insurance	472
policy for any of the following reasons:	473

(a) The enrolled customer fails to pay the required premium.

474

(b) The enrolled customer ceases to have an active service	475
plan, if applicable, with the vendor of portable electronics.	476

(c) The enrolled customer exhausts the aggregate limit of	477
liability, if any, under the terms of the portable electronics	478
insurance policy and the insurer sends notice of termination to	479
the customer within thirty calendar days after exhaustion of the	480
limit. However, if the insurer does not send the notice within the	481
thirty-day time frame, enrollment shall continue notwithstanding	482
the aggregate limit of liability until the insurer sends notice of	483
termination to the enrolled customer.	484

(4) If a portable electronics insurance policy is terminated	485
by a vendor policyholder, the vendor policyholder shall provide	486
notice to each enrolled customer advising the customer of the	487
termination of the policy and the effective date of the	488
termination. The written notice shall be mailed or delivered to	489
the customer at least thirty days prior to the termination.	490

(5) Notice required pursuant to this section shall be	491
provided in writing, either via mail or by electronic means.	492

(a) If notice is provided via mail, it shall be mailed or	493
delivered to the vendor at the vendor's mailing address and to all	494
affected enrolled customers at the last known mailing addresses of	495
those customers on file with the insurer. The insurer or vendor of	496
portable electronics shall maintain proof of mailing in a form	497
authorized or accepted by the United States postal service or	498
other commercial mail delivery service.	499

(b) If notice is provided electronically, it shall be	500
transmitted via facsimile or electronic mail to the vendor at the	501
vendor's facsimile number or electronic mail address and to all	502
affected enrolled customers at the last known facsimile numbers or	503
electronic mail addresses of those customers on file with the	504
insurer. The insurer or vendor shall maintain proof that the	505
notice was sent.	506

(L) An enrolled customer may cancel the enrolled customer's	507
coverage under a portable electronics insurance policy at any	508
time. Upon cancellation, the insurer shall refund any applicable	509
unearned premium.	510

(M) A license issued pursuant to this section shall authorize	511
the vendor and its endorsees to engage only in those activities	512
that are expressly permitted by this section.	513

(N)(1) If a vendor or a vendor's endorsee violates any	514
provision of this section, the superintendent may revoke or	515
suspend the license issued or impose any other sanctions provided	516
under section 3905.14 of the Revised Code.	517

(2) If any provision of this section is violated by a vendor	518
or a vendor's endorsee at a particular location, the	519
superintendent may issue a cease and desist order to a particular	520
location, or take any other administrative action authorized in	521
section 3901.22 and division (D) of section 3905.14 of the Revised	522
Code.	523

(3) If any person violates division (B) or (F)(3) of this	524
section, the superintendent may issue a cease and desist order in	525
addition to taking any other administrative action provided for in	526
sections 3901.22 and division (D) of section 3905.14 of the	527
Revised Code.	528

(4) If the superintendent determines that a violation of this	529
section or section 3905.14 of the Revised Code has occurred, the	530
superintendent may assess a civil penalty in amount not exceeding	531
twenty-five thousand dollars per violation and an administrative	532
fee to cover the expenses incurred by the department in the	533
administrative action, including costs incurred in the	534
investigation and hearing process.	535

(O) The superintendent may adopt rules implementing this	536
section.	537

Sec. 3905.40.  There shall be paid to the superintendent of	538
insurance the following fees:	539

(A) Each insurance company doing business in this state shall	540
pay:	541

(1) For filing a copy of its charter or deed of settlement,	542
two hundred fifty dollars;	543

(2) For filing each statement, one hundred seventy-five	544
dollars;	545

(3) For each certificate of authority or license, one hundred	546
seventy-five, and for each certified copy thereof, five dollars;	547

(4) For each copy of a paper filed in the superintendent's	548
office, twenty cents per page;	549

(5) For issuing certificates of deposits or certified copies	550
thereof, five dollars for the first certificate or copy and one	551
dollar for each additional certificate or copy;	552

(6) For issuing certificates of compliance or certified	553
copies thereof, sixty dollars;	554

(7) For affixing the seal of office and certifying documents,	555
other than those enumerated herein, two dollars;	556

(8) For each agent appointment and each annual renewal of an	557
agent appointment, twenty dollars;	558

(9) For each termination of an agent appointment, five	559
dollars.	560

(B) Each domestic life insurance company doing business in	561
this state shall pay for annual valuation of its policies, one	562
cent on every one thousand dollars of insurance.	563

(C) Each applicant for licensure as an insurance agent except	564
applicants for licensure as surety bail bond agents and, surplus	565
line brokers, and portable electronics insurance vendors shall pay	566
ten dollars for each line of authority requested. Fees collected	567
under this division shall be credited to the department of	568
insurance operating fund created in section 3901.021 of the	569
Revised Code.	570

(D) Each domestic mutual life insurance company shall pay for	571
verifying that any amendment to its articles of incorporation was	572
regularly adopted, two hundred fifty dollars with each application	573
for verification. Any such amendment shall be considered to have	574
been regularly adopted when approved by the affirmative vote of	575
two-thirds of the policyholders present in person or by proxy at	576
any annual meeting of policyholders or at a special meeting of	577
policyholders called for that purpose.	578

(E) Each insurance agent doing business in this state shall	579
pay a biennial license renewal fee of twenty-five dollars, except	580
the following insurance agents are not required to pay thethat	581
license renewal fee:	582

(1) Individual resident agents who have met their continuing	583
education requirements under section 3905.481 of the Revised Code;	584

(2) Surety bail bond agents;

585

(3) Surplus line brokers;

586

(4) Portable electronics insurance vendors.

587

(F) Each applicant for licensure as a portable electronics	588
insurance vendor with a portable electronics insurance limited	589
lines license and each licensed vendor doing business in this	590
state shall pay the following fees prescribed by the	591
superintendent:	592

(1) For vendors engaged in portable electronic transactions	593
at more than ten locations in this state, an application fee not	594
to exceed five thousand dollars for an initial license and a	595
biennial license renewal fee not to exceed two thousand five	596
hundred dollars for each renewal thereafter;	597

(2) For vendors engaged in portable electronic transactions	598
at ten or fewer locations in this state, an application fee not to	599
exceed three thousand dollars for an initial license and a	600
biennial license renewal fee not to exceed one thousand dollars	601
for each renewal thereafter.	602

(G) All fees collected by the superintendent under this	603
section except any fees collected under divisions (A)(2), (3), and	604
(6) of this section shall be credited to the department of	605
insurance operating fund created under section 3901.021 of the	606
Revised Code.	607

Section 2.  That existing sections 3905.01, 3905.06, and	608
3905.40 of the Revised Code are hereby repealed.	609