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(122nd General Assembly)(Amended Substitute Senate Bill Number 154)
AN ACT
To amend sections 1751.38, 3901.021, 3905.02, 3905.06, 3905.07, 3905.08,
3905.18, 3905.20, 3905.27, 3905.30, 3905.40, 3905.48,
3905.481, 3905.482, 3905.49, 3905.99, 3913.40,
3921.33, 3923.121, 3931.101,
3931.11,
3941.02, 3953.21, 3953.23, 3960.11, and 4745.01; to amend,
for the purpose of
adopting a new section number
as indicated in parentheses, section
3905.02 (3905.03); to enact new sections
3905.01, 3905.011,
and 3905.02 and sections 3905.012, 3905.013, 3905.491, 3905.492,
3905.54, and 3905.55; and to repeal sections
3905.01, 3905.011, 3905.03,
and 3905.05 of the Revised
Code to revise the Insurance Agents Law; to
specify that a fraternal benefit
society organized under the laws of
another state and admitted to transact business
in Ohio may become a domestic
insurer; to provide that an insurer
is not prohibited from transferring
its domicile
to Ohio because its charter
or bylaws contain characteristics of both a mutual
and
stock insurance
company; and, if Am. Sub. H.B. 248 of the 122nd
General Assembly is enacted, to supersede sections
3905.49 and 3905.491
of the
Revised Code as they result from that act.
Be it enacted by the General Assembly of the State of Ohio:
SECTION 1 . That sections 1751.38, 3901.021, 3905.02, 3905.06,
3905.07, 3905.08, 3905.18, 3905.20, 3905.27, 3905.30, 3905.40, 3905.48,
3905.481, 3905.482, 3905.49, 3905.99, 3913.40, 3921.33, 3923.121, 3931.101,
3931.11,
3941.02,
3953.21, 3953.23, 3960.11, and 4745.01 be amended; section
3905.02 (3905.03) be amended for the purpose of adopting a new
section number as indicated in parentheses; and new sections
3905.01, 3905.011, and 3905.02 and sections 3905.012, 3905.013,
3905.491, 3905.492, 3905.54, and 3905.55 of the Revised Code be enacted
to read as follows:
Sec. 1751.38. (A) As
used in this section, "agent" means a person appointed by a
health insuring corporation to engage in the solicitation or
enrollment of subscribers or enrollees. (B) Agents of health
insuring corporations shall be licensed pursuant to section
3905.01 3905.02 or 3905.18 of the
Revised
Code. (C) Sections 3905.01,
3905.03, 3905.05 3905.02, 3905.16 to 3905.18, 3905.181, 3905.19,
3905.23, 3905.40, 3905.41, 3905.42, 3905.46 to 3905.48,
3905.481, 3905.482, 3905.486, 3905.49, 3905.491, 3905.492, 3905.50,
3905.71 to
3905.79, and 3905.99 of the Revised Code shall apply to health
insuring corporations and the agents of health insuring
corporations in the same manner in which these sections apply to
insurers and agents of insurers. Sec. 3901.021. Two-thirds Three-fourths of all appointment
and other fees collected under
section 3905.01, division (E) of section SECTIONS 3905.02, 3905.03,
3905.07, AND 3905.18, and
division
(A)(6) of section 3905.26 of the
Revised Code shall be paid into
the state treasury to the credit of the department of insurance
operating fund, which is hereby created. The remaining one-third
one-fourth
shall be credited to the general revenue fund. If the
superintendent of insurance is authorized by the controlling
board to increase the fees pursuant to section 3905.011
of the
Revised Code, the board may also direct that an amount equal to
the increase, up to three-fourths of all fees collected after the
increase pursuant to section 3905.011 of the Revised
Code, shall
be credited to the department of insurance operating fund, with
the remaining portion to be credited to the general revenue fund.
All operating expenses of the department of insurance except
those expenses defined under section 3901.07 of the Revised Code
shall be paid from the department of insurance operating fund. Sec. 3905.01. (A) No
person shall procure an application or quote premiums for, discuss coverages
of, or solicit, negotiate,
effect, procure, place, write, deliver, renew, or bind, a policy of insurance
through any medium for risks residing, located, or to be
performed in this state, unless the person is licensed by
the superintendent of insurance in accordance with this
chapter. (B) Division
(A) of this section does not
apply to any of the following persons: (1) An insurer as defined in section 3901.32 Of the Revised Code; (2) Any person who furnishes information regarding group
insurance, enrolls individuals in group insurance plans, issues
certificates under such plans, or otherwise assists in
administering such plans, if no commission or other form of
compensation related to premium or sales volume is paid for such
services; (3) Any employee of a creditor with respect to insurance products made
available only
in connection with a credit transaction, including credit life insurance,
credit disability or accident and health insurance, credit property insurance,
mortgage life insurance, mortgage accident and health insurance, involuntary
unemployment insurance, individual life insurance, and individual
disability or accident and health insurance, if the entire premium is financed
as part of the credit transaction and the following conditions are met: (a) If the insurance product is an individual life insurance
policy, a licensed agent is responsible for the insurance transaction. (b) If the employee of the creditor is paid by the insurance
agent or by the insurance company, the employee holds a limited authority
license. For purposes of division (B)(3) of this section, "credit property
insurance" means insurance covering risks of loss, damage, and
destruction of property used as security for a credit transaction, which
insurance may also
cover other property that is merely incidental to the property used as
security for
the credit transaction. (4) Any employer, or
officer or employee of an employer,
to the extent that the employer, officer, or employee is engaged
in the administration or operation of any employee benefits
program involving the use of insurance for the employer's
employees or the employees of a subsidiary or affiliate of the
employer, provided that the employer, officer, or employee is
not compensated, either directly or indirectly, in any manner by
an insurance agent or by the insurance company issuing the
insurance; (5) An adjuster employed by or
representing an insurer in the adjustment of claims or a public
insurance adjuster holding a certificate of authority issued
under Chapter 3951. of the
Revised
Code when performing the duties
of a public insurance adjuster. (C) Division
(A) of this section does not
apply to any of the following activities when performed by an
employee of, and at the direction of, an insurer or licensed insurance
agent: (1) The acceptance of premiums other than the initial
premium; (2) The gathering of information, such as names, addresses,
expiration dates of current insurance, and names of current
insurers; (3) The setting of appointments for insurance agents,
provided that the person setting the appointment does not
communicate any information about insurance; (4) The servicing of existing insurance
policies issued by or through the employee's employer, provided the servicing
is not part of a solicitation; (5) The performance of clerical or ministerial
duties. (D) The superintendent
may adopt rules in accordance with
Chapter 119. of the
Revised
Code to set forth the specific acts that comprise any of the
activities described in this section, the performance of which either requires
or
does not require licensure as an agent. Sec. 3905.011. (A) As
used in this section and sections 3905.012 and 3905.013 of the
Revised
Code, "insurer" has the same
meaning as in section 3901.32 of the
Revised
Code. (B) Any person that is
licensed as an agent under section 3905.02 or 3905.18 of the
Revised
Code is eligible to be
appointed by one or more insurers authorized to do business in
this state. (C)(1) Prior to
appointing an agent, an insurer shall certify to the
superintendent of insurance, in accordance with rules adopted by
the superintendent under section 3905.013 of the
Revised
Code, that the person is competent, financially responsible, and
suitable to represent the insurer. (2) No agent shall represent to the public that the agent
has authority to represent a particular insurer until the
insurer has acknowledged that authority by appointment of the
agent in accordance with division
(C)(1) of this section. (D)(1) No insurer shall pay
a commission, fee, or other type of consideration, or give any
other thing of value, to a person that is required to be licensed by
the superintendent under this chapter for the sale
of, or for any direct or indirect connection with the sale of,
any insurance sold by or on behalf of the insurer, but is not so licensed. (2) Nothing in this section prohibits an insurer from entering into a
compensation agreement with a creditor with respect to insurance products made
available
only in connection with a credit transaction, including credit life insurance,
credit disability or accident and health insurance, credit property insurance,
mortgage life insurance, mortgage accident and health insurance,
involuntary unemployment insurance, individual life insurance, and individual
disability or accident and health insurance, if the entire
premium is financed as part of the credit transaction. For purposes of
division (D)(2) of this section, "credit property insurance" has the
same meaning as in division (B)(3) of section 3905.01 Of the Revised Code. Sec. 3905.012. (A)(1)
Except as provided in division
(A)(2) of this section, any
person licensed as an agent under section 3905.02 or 3905.18 of
the Revised
Code, or appointed as a
solicitor under section 3905.03 of the
Revised
Code, may at any time surrender
any or all licenses held by the person. (2) No agent shall surrender the agent's licenses
if the superintendent of insurance is investigating any
allegation of wrongdoing by the agent or has initiated proceedings under
Chapter 119. Of the Revised Code and notice of an opportunity for a hearing has
been issued to the agent, and any attempt to so surrender is invalid. (B)(1) If an insurer or
agent cancels the appointment of an agent or solicitor due to suspected
fraud, misrepresentation, theft, conversion, or any other
culpable misappropriation, the insurer or agent shall promptly
notify the superintendent. The notice shall
include a complete statement of the facts and the reasons for
the cancellation. (2) In the absence of fraud or actual malice, an insurer or
agent is immune from any civil liability that otherwise might be
incurred or imposed as a result of any action taken by the
insurer or agent to comply with division
(B)(1) of this section. (C) If an agent's license is surrendered, revoked, or
suspended, all appointments held by the agent are void. If a
new license is issued to that person or if that person's
previous license is reinstated, any appointment of the person to
represent an insurer or agent must be made in accordance with
the requirements of this chapter. (D)(1) Any agent, other than a corporation, partnership, or
limited liability company, who is no longer engaged in the
business of insurance in any capacity for which an agent's
license is required may apply to the superintendent for inactive
status. The superintendent may grant such status only if the
superintendent is satisfied that the person is not engaged in
and does not intend to engage in any of the activities set forth
in section 3905.01 of the
Revised
Code that requires an agent's
license. (2) A person who has been granted inactive status is
exempt from any continuing education requirements imposed under
this chapter. (3) The superintendent may adopt rules in
accordance with Chapter 119. of
the Revised
Code to establish procedures
for applying for inactive status, criteria used to determine
eligibility for such status, and standards and procedures for
transferring from inactive to active status. (E) The superintendent
may suspend or revoke a license, or take any
other disciplinary action authorized by this chapter, regardless
of whether the person is appointed or otherwise authorized to
represent an insurer or agent. Sec. 3905.013. (A) The
superintendent of insurance may adopt rules in accordance with
Chapter 119. of the
Revised
Code for purposes of
implementing sections 3905.01 to 3905.03 and 3905.18 of the
Revised
Code, including rules that do
the following: (1) Set forth requirements and procedures for the
issuance of an agent's license; (2) Provide for the issuance of a limited
authority license for a specific line of insurance and for the appointment of
such a licensee, and set forth any
prelicensing education, examination, or continuing education requirements the
superintendent considers appropriate for the license; (3) Set forth the circumstances under which
the superintendent or the superintendent's designee may refuse to issue an
agent's license to an applicant.
Notwithstanding Chapter 119.
of the Revised
Code, an opportunity for a
hearing shall not be granted to such an applicant until the
superintendent has conducted an investigation of the
matter. (4) Establish procedures for certifying an insurer's
appointment of an agent; (5) Establish procedures for the surrender of
licenses or appointments. (B) The superintendent
may direct licensees to pay any fees to any contracted vendor. Sec. 3905.02. (A) An
applicant for a license as an other than life insurance agent
shall submit an application for such a license to the superintendent of
insurance.
The application shall be on a form furnished by the
superintendent and be accompanied by a statement under oath by
the applicant which gives the applicant's name, age, residence,
present occupation, occupation for the five years next preceding
the date of the application, and such other information as the
superintendent may require. The applicant shall also request a criminal records check conducted by the
superintendent of the bureau
of criminal identification and investigation in accordance with section
109.572 Of the Revised Code, and direct that
the bureau's written response to that request
be transmitted to the superintendent of insurance, or to the superintendent's
designee, as specified on the form prescribed pursuant to that section. If
the superintendent of insurance or the superintendent's designee fails to
receive the bureau's response to the
applicant's request for a criminal records check, the superintendent may
refuse to issue a license under this section. The
applicant shall pay any fee required by the bureau for
conducting the criminal records check. An applicant for a license shall submit
to an examination as to the qualifications set forth
in division (B) of this
section. (B) The superintendent of insurance
shall issue to an applicant a license that states in substance
that the person is authorized to do the business of an other
than life insurance agent in this state, if the superintendent
is satisfied that the applicant is a suitable person and intends
to hold self out in good faith as an agent; that the applicant
is honest, trustworthy, and understands the duties and
obligations of an agent, and is familiar with the insurance laws
of this state and with the terms and provisions of the policies
and contracts of insurance the applicant proposes to effect;
that in applying for the license it is not the applicant's
purpose or intention principally to solicit or place insurance
on the applicant's own property or that of relatives, employers,
or employees or that for which they or the applicant is agent,
custodian, vendor, bailee, trustee, or payee; and that the
applicant has completed the educational requirements set forth
in section 3905.48 of the Revised Code. The superintendent may suspend or revoke such a license as provided in
section 3905.482 Of the Revised Code, and may
suspend, revoke,
refuse to continue, or refuse to issue such a license
as provided in section 3905.49 of the
Revised Code. Unless revoked or
suspended by the superintendent or surrendered by the agent, such a license
continues in force for the life of the agent, in the case of an individual, or
until the corporation, partnership, or limited liability company ceases to
exist. If the superintendent refuses to issue such a license
based in whole or in part upon the bureau's written response to
a criminal records check requested pursuant to division
(A) of this section, the
superintendent shall send a copy of the response that the bureau
transmitted to the superintendent or to the superintendent's
designee, to the applicant at the applicant's home address upon
the applicant's submission of a written request to the
superintendent. (C)(1) Each insurance
company shall certify to the superintendent of insurance before the thirtieth
day of June each year the names
and addresses of the agents for whom it requests appointments or
the continuance of appointments. All domestic, foreign,
and alien companies shall pay to the superintendent a fee of
twenty dollars for every such appointment when issued and for
each continuance thereafter. Such an appointment, unless
canceled by the insurance company, may be continued in force
past the thirtieth day of June
next after its issue and after the thirtieth day of
June of each succeeding year
provided that the appointee is licensed and is eligible for
the appointment. (2) An insurance company shall be bound by the acts of
the person named in the appointment within that person's
apparent authority as its agent. (3) Division (C) of this
section does not apply to life insurance companies, including
fraternals, nor to domestic mutual protective assessment fire
associations as defined in section 3939.01 of the
Revised
Code. (D) The superintendent of insurance
may prescribe the forms to be used as evidence of the issuance
of licenses and appointments under this section and may issue
one or more certificates, in a form suitable for office display,
to cover any number of insurance companies with which an agent
has appointments. (E)(1) The
superintendent of insurance shall not issue or continue the license of a
corporation, partnership, or limited liability company organized
under the laws of this or any other state unless the
corporation, partnership, or limited liability company is
qualified to do business in this state under the applicable
provisions of Title
XVII of the
Revised
Code. (2) The failure of a corporation, partnership, or
limited liability company to be in good standing with the
secretary of state or to maintain a valid appointment of
statutory agent is grounds for suspension or revocation of its
license. (3) By applying for a license as an agent under this
section, an individual, corporation, partnership, or limited
liability company consents to the jurisdiction of the courts of
this state. Sec. 3905.02 3905.03. (A) Any agent authorized and licensed
as
provided in section 3905.01 3905.02 of the Revised Code, and
representing appointed to represent
one or more insurance corporations within this state, may employ
appoint
as many solicitors as the agent desires to represent the agent and the agent's
agency, but such the solicitors shall not represent themselves,
by
advertisement or otherwise, as agents of insurance companies for
which their employer may be the authorized agent, and such the
solicitors shall in all instances represent themselves only as
solicitors for said the agent. Upon Each agent that
employs a person as a solicitor shall certify to the superintendent of
insurance that the person is competent, financially responsible, and suitable
to represent the agent. Upon written notice by any such
agent
that the agent has employed such a person as a solicitor, the
superintendent of insurance shall issue to the solicitor a
license an appointment in the form prepared by the superintendent,
if the
superintendent is
satisfied that: (1) The applicant solicitor is a suitable person and intends to
hold
self out in good faith as a solicitor;. (2) The applicant solicitor is honest and
trustworthy;. (3) The applicant solicitor has training or instruction in the
business and understands the duties and obligations of a
solicitor;. (4) The applicant solicitor is licensed under section 3905.02
Of the Revised Code, is
familiar with the insurance laws, and
is familiar with the provisions of the policies and contracts of
insurance
the applicant solicitor proposes to solicit;. (5) In applying for such license it It is not
appointee's the solicitor's
purpose or intention principally to solicit or place insurance on
appointee's the solicitor's own property or that of relatives,
employers, or
employees or that for which they or the appointee solicitor is
agent,
custodian, vendor, bailee, trustee, or payee. Notice (6) On and after
July 1, 1987, the solicitor has
completed the prelicensing educational requirements set forth
in section 3905.48 of the
Revised
Code. Notice
shall be
upon a form furnished by the superintendent and shall be
accompanied by a statement under oath by the solicitor which
shall give gives the applicant's solicitor's name,
age, residence,
present occupation, the
applicant's solicitor's occupation for the five years next
preceding the date of the
notice, the kinds of insurance for which the applicant
solicitor wishes
license to solicit, and such other information as the superintendent
requires, upon a blank furnished by the superintendent. (6) On and after July 1, 1987, the applicant has completed
the pre-licensing educational requirements set forth in section
3905.48 of the Revised Code.
(B) If such appointee the solicitor within the preceding two
years has
not been appointed as a licensed in this state as an insurance
solicitor or has not
had an appointment as a licensed insurance solicitor
continued by an insurance agent licensed in this state for other
than life insurance under section 3905.02 Of the Revised Code, the appointee
solicitor shall
submit to a hearing and an examination as to the qualifications
set
forth in divisions (A)(1) to (5) of this section. (C) For the purpose of licensing solicitors, insurance
shall be considered as of three classes: fire insurance,
including marine and inland transportation; casualty insurance;
and surety insurance. A solicitor who did not hold a license as
solicitor prior to January 1, 1967, may be licensed appointed
only if the
solicitor is
qualified for the same class or classes of insurance for which
the agent employing the solicitor is licensed. Each
solicitor's license
shall state the class or classes a solicitor may solicit only those
lines of insurance for which issued and no both the
solicitor shall be licensed for and the same kind of
insurance by
more than one appointing agent are licensed. Unless such
license
No solicitor shall be appointed by more than one
agent. Unless the solicitor's license is revoked or suspended
by the superintendent or unless the agent by written notice to
the superintendent cancels the solicitor's authority as such
solicitor, or unless such license is canceled by the
superintendent upon written notice from the solicitor that the
solicitor's authority has been canceled by the agent, such
license and any other license issued to a solicitor appointment
may, in the
discretion of the superintendent, and at the request of the agent
who employs the solicitor and the payment of the required fee, be
continued past the thirtieth day of June next after its issue and
after the thirtieth day of June each succeeding year. Each agent
shall certify, to the superintendent of insurance, before the
thirtieth day of June each year, the names and addresses of the
solicitors the agent has employed during the preceding year,
indicating those for whom the agent wishes licenses appointments
to be continued. The agent giving written notice shall pay to the
superintendent a fee of twenty dollars for every such license
appointment and
for each continuance thereof. The issuance of a solicitor's
license appointment shall be limited to a natural person who
is
a resident of
this state or to a natural person who is employed by a licensed resident
agent and is conducting business only from within this state. The superintendent may suspend or revoke such a license as provided in
section 3905.482 of the Revised Code, and may
suspend, revoke, refuse to continue or renew, or refuse to issue
such a license as provided in section 3905.49 of the Revised Code.
Sec. 3905.06. Sections 3905.01 to 3905.06 of the Revised Code do not apply to
companies or associations transacting the business of life insurance or
their
agent or to associations organized and operating under sections 3939.01 to
3939.09 of the Revised Code. Sec. 3905.07. No person shall act in this state as special
representative, state agent, field representative, state, district, or local
manager, or in any similar capacity by whatever title designated,
unless the person is licensed by the superintendent of
insurance. Upon written notice by an insurance company authorized to transact
business in this state of its employment of a person to act as
such representative and that the person's duties are to appoint,
supervise, or dismiss agents, to aid them in soliciting,
negotiating, and receiving applications of and handling orders
for insurance, and to aid the employer generally in the
transaction of its business in this state, but not to solicit
insurance on that person's own behalf, the superintendent
shall issue a license as special representative to such the
person. Such The license
shall state in substance that the company is authorized to do
business in this state and that the person named therein in the
license is a
constituted special representative of the company in this state
in the transaction of such business within the person's apparent authority
as the company is authorized to transact therein. If such the
special
representative signs policies for the company,
the special representative must qualify as
an agent under section 3905.01 3905.02 of the Revised Code.
Unless the company, by written notice to the superintendent,
cancels the special representative's authority to act for it,
such license may, in the discretion of the superintendent and at
the request of the company and payment of the required fee, be
continued past the thirtieth day of June next after issue and the
thirtieth day of June of each succeeding year. Each company
shall pay a fee of five dollars for each such license and each
continuance thereof. A person licensed as a special representative under
this section is not subject to section 3905.481 of the
Revised
Code unless the person is also
licensed as an agent under section 3905.02 of the
Revised
Code. Sec. 3905.08. If it appears from the written notice given to the
superintendent of insurance pursuant to sections 3905.01,
3905.02, and 3905.18
of the Revised Code that the appointment application of any
person to act as an agent, or
the employment of any person to act as a solicitor, is only for the
purpose
of
having such agent or such solicitor procure procuring,
receive receiving, or forward forwarding
applications
for insurance against accidents to or sickness of persons, or on the health of
individuals and against personal injury, disablement, or death resulting from
traveling or general accidents by land and water, then the scope of any
hearing or examination, or questions in any application for license, as
provided for in any of said those sections, shall be limited to
that type of
insurance only. If any such person appointed as agent or employed as a
solicitor is otherwise qualified under said those sections,
the superintendent shall
issue to such the person an appropriate agent's or
solicitor's license bearing an
imprint across its face "accident and health insurance license." Such license
only entitles the holder to procure applications for such insurance and
forward the same to the company or agent that he the
holder is
licensed appointed to represent.
Such sections apply to any person appointed as an agent or employed as a
solicitor, except to the extent that they are modified and amended by this
section. No agent or solicitor licensed under this section shall
procure,
receive, or forward applications for any kind of insurance except the kinds
enumerated in this section. Any violation of this section, by
any an agent or
solicitor licensed under this section is cause for the revocation of
said the
license and any other licenses issued by the superintendent to said
the agent or
solicitor. The acceptance by any insurance company from any an agent
licensed under this
section, or the acceptance by any insurance agent, whether licensed under
this
or any other section of the Revised Code, from any solicitor licensed under
this section, of an application for any kind of insurance except the kinds
enumerated in this section, is cause for the revocation of the license of
said the
company or agent and for the revocation of any other licenses issued by
the
superintendent to said the company or agent. Sec. 3905.18. (A) Upon written notice by An applicant for a
license as a life insurance
company authorized to transact business in this state of its
appointment of a person to act as its agent in this state, and
upon issuance of the certificate verified by an executive officer
or managing agent thereof, that such company has investigated the
character and record of such person and satisfied itself that he
is trustworthy and qualified to act as its agent, and that he
has
completed the educational requirements set forth in section
3905.48 of the Revised Code, shall submit to the superintendent of
insurance
shall, on receipt of such certification, furnish to the agent an
application for an agent's license, which shall contain such
questions touching the applicant's fitness to be licensed as an
agent as the superintendent determines. If such appointee
within
the preceding two years has not been appointed as a licensed
life
insurance agent or has not had his appointment as a licensed
life
insurance agent continued by an insurance company authorized to
transact business in this state, the appointee The application shall
be
accompanied by a statement under
oath by the applicant that gives the applicant's name, age,
residence, present occupation, occupation for the five years
next preceding the date of the application, and such other
information as the superintendent may require. The applicant shall also request a criminal records check conducted by the
superintendent of the bureau
of criminal identification and investigation in accordance with section
109.572 Of the Revised Code, and direct that
the bureau's written response to that request
be transmitted to the superintendent of insurance, or to the superintendent's
designee, as specified on the form prescribed pursuant to that section. If
the superintendent of insurance or the superintendent's designee fails to
receive the bureau's response to the
applicant's request for a criminal records check, the superintendent may
refuse to issue a license under this section. The
applicant shall pay any fee required by the bureau for
conducting the criminal records check. An
applicant for a license
shall submit to an
examination as to his the applicant's knowledge of life and
sickness and accident
insurance and the laws of this state governing his activities as
a life insurance agent. Unless (B) Unless it appears
that the appointee
applicant is
not of good reputation and character, is not a trustworthy
person, is not suitable to be licensed, or has not completed such
the
educational requirements set forth in section 3905.48 Of the Revised Code, the
superintendent of insurance shall issue to him the
applicant a
license which shall state, in substance, that the company person
is
authorized to do the business of a life insurance agent in this
state, and that the person
named therein is a constituted agent of the company in this state
for the transaction of such business. Each notice and
certificate shall be upon forms furnished by the superintendent
and shall be accompanied by a statement under oath by the
appointee which shall give his name, age,
residence, present
occupation, occupation for the five years next preceding the date
of the notice, and such other information as the superintendent
requires, upon a blank furnished by him. (B) The superintendent may suspend or revoke such a
license as provided in section 3905.482 of the Revised Code, and
may suspend, revoke, refuse to continue or renew, or refuse to
issue such a license as provided in section 3905.49 of the
Revised Code. Every such Unless revoked or suspended by the
superintendent or surrendered by the agent, such a license continues in force
for the life of the agent, in the case of an individual, or until the
corporation, partnership, or limited liability company ceases to exist.
If the superintendent refuses to issue such a license
based in whole or in part upon the bureau's written response to
a criminal records check requested pursuant to division
(A) of this section, the
superintendent shall send a copy of the response that the bureau
transmitted to the superintendent or to the superintendent's
designee, to the applicant at the applicant's home address upon
the applicant's submission of a written request to the
superintendent. Each insurance company shall, upon the
termination of the employment appointment of any such agent,
forthwith file
with the superintendent a statement of the termination of such
employment the appointment. (C) Upon written notice by a life insurance company
authorized to transact business in this state of its appointment
of a corporation, partnership, or limited liability company to
act as its agent in this state, the
superintendent of insurance shall furnish such the
corporation, partnership, or limited liability company with
an application for agent's license which shall contain such
questions as will enable the superintendent to determine that
such the corporation, partnership, or limited
liability company was organized for the purpose of acting as an
insurance agent,; that each employee of such the
corporation, partnership, or limited liability company who will
negotiate for, place, or renew policies or agreements of life
insurance on behalf of such the corporation,
partnership, or limited liability company has been issued a life
insurance agent's license pursuant to division (A) of this
section; that the voting shares of such corporation are
beneficially owned by natural persons who are residents of this
state; that such the corporation, partnership, or
limited liability company and such the life insurance
company have
executed a written agreement whereby the rights and duties of
each are set forth; and that in applying for such the license it
is
not the appointee's purpose or intention principally to solicit
or place insurance on the lives of the appointee's officers,
employees, or shareholders, or the lives of relatives of such
officers, employees, or shareholders, or upon the lives of
persons for whom they, their relatives, or the appointee is
agent, custodian, vendor, bailee, trustee, or payee. Unless it
appears that such the corporation, partnership, or
limited liability company was not organized for such purpose
or that each such employee has not been so licensed or that the
voting shares of such corporation are not so beneficially owned
or that such a written agreement has not been executed, the
superintendent shall issue to such the corporation,
partnership, or limited liability company a license which
shall state states, in substance, that such the
corporation, partnership, or limited liability company is a life
insurance agent. (D) If the superintendent of insurance, at any time
subsequent to the issuance of a life insurance agent's license to
a corporation, partnership, or limited liability company, finds
that such the corporation, partnership, or limited
liability company has ceased to have as
its purpose acting as an insurance agent or that each employee of
such the corporation, partnership, or limited
liability company who negotiates for, places, or renews
policies
or agreements of life insurance on behalf of such the
corporation, partnership, or limited liability company has
not been issued a life insurance agent's license or that the
voting shares of such corporation are not beneficially owned by
natural persons who are residents of this state or that the
principal use of such the license has been to solicit,
place, or
effect insurance on the lives of the appointee's officers,
employees, or shareholders, or on the lives of the relatives of
such officers, employees, or shareholders, or upon the lives of
persons for whom they, or their relatives, or the appointee is
agent, custodian, vendor, bailee, trustee, or payee, or for any
other cause shown he, the superintendent may after
hearing revoke
the life insurance
agent's license issued to such the corporation,
partnership, or limited liability company or suspend such
the license until such condition as he the superintendent
finds
existing ceases to
exist. The finding of the superintendent, either in refusing to
grant a license or in revoking a license, shall be in writing,
and shall state the facts upon which his the action is based.
The
action of the superintendent in granting, revoking, continuing,
or refusing to grant, revoke, or continue such the license,
shall be
subject to review in accordance with Chapter 119. of the Revised
Code. (E) Unless the agent's license is revoked or suspended by the
superintendent of insurance, or unless the
company by written notice to the superintendent cancels the
agent's authority to act for it, a life insurance agent's
license, and any other license issued to an agent appointment
may, in the
discretion of the superintendent and at the request of the
company and payment of the required fee, be continued past the
thirtieth day of June next after its issue and after the
thirtieth day of June in each succeeding year. Except as
provided in section 3905.011 of the Revised Code, all All
domestic,
foreign, and alien companies shall pay a fee of twenty dollars
for every such license appointment and for each continuance
thereafter.
While such license an appointment remains in force, a
foreign
company shall be
bound by the acts of the person named therein in the
appointment, within his the
person's apparent
authority as its acknowledged agent. (F) The superintendent of insurance may prescribe the forms to be used
as evidence of the issuance of licenses and appointments under this
section and
may issue one or more certificates, in a form suitable for office
display, to cover any number of insurance companies with which an
agent is licensed has appointments. (G)(1) The superintendent of insurance shall
not issue or continue the license of a corporation, partnership,
or limited liability company organized under the laws of this or
any other state unless the corporation, partnership, or limited
liability company is qualified to do business in this state
under the applicable provisions of
Title
XVII of the
Revised
Code. (2) The failure of a corporation, partnership, or
limited liability company to be in good standing with the
secretary of state or to maintain a valid appointment of
statutory agent is grounds for suspension or revocation of its
license. (3) By applying for a license as an agent under this
section, an individual, corporation, partnership, or limited
liability company consents to the jurisdiction of the courts of
this state. Sec. 3905.20. (A) Any person licensed as a life insurance
agent for a life insurance company authorized to deliver or issue
for delivery in this state
shall, upon satisfactory completion of an examination as
to the person's knowledge of
policies, annuities, or and other
contracts providing variable or fixed and variable benefits or
contractual payments issued by life insurance companies pursuant to
section 3911.011 of the Revised
Code shall, upon written application of such company,
satisfactory completion of an examination as to his
knowledge of
such policies, annuities, and contracts and the nature thereof,
payment of the required fee, and compliance with the
pre-licensing prelicensing educational requirements of section
3905.48 of the
Revised Code, be licensed by the superintendent of insurance as a
variable contract agent. (B) The superintendent may suspend or revoke such a
license as provided in section 3905.482 of the Revised Code, and
may suspend, revoke, refuse to continue or renew, or refuse to
issue such a license as provided in section 3905.49 of the
Revised Code. Revocation of such the person's license as a life
insurance agent or failure to renew such license is cause for
revoking such the person's license as a variable contract agent.
Every such Unless revoked or suspended by the superintendent or
surrendered by the agent, a variable contract agent's license continues in
force for the life of the agent. Each life insurance company shall, upon termination of the
employment appointment of any such person as a variable contract
agent,
forthwith file with the superintendent a statement of the
termination of such employment the appointment. (C) Any corporation, partnership, or limited liability company
licensed as a life insurance agent for
and appointed by a life insurance company authorized to deliver or
issue
for
delivery in this state policies, annuities, or other contracts
providing variable or fixed and variable benefits or contractual
payments pursuant to section 3911.011 of the Revised Code, may,
upon written application of such company and upon a proper
showing that all of such the corporation's,
partnership's, or limited liability company's employees who will
negotiate for, place, or renew any such policies, annuities, or
contracts on behalf of such the corporation,
partnership, or limited liability company have been issued
licenses
as variable contract agents pursuant to division (A) of this
section, be licensed by the superintendent of insurance as a
variable contract agent. (D) The superintendent of insurance may, for cause shown
and after hearing, revoke the variable contract agent's license
issued to such corporation, partnership, or limited liability
company, or suspend such the license until
such
condition as he the superintendent finds existing ceases to
exist. The revocation
or suspension of such the corporation's,
partnership's, or limited liability company's license as a life
insurance
agent or failure to renew such license shall be cause for
revoking or suspending, as the case may be, such the
corporation's, partnership's, or limited liability company's
license as a variable contract agent. The finding of the
superintendent, either in refusing to grant a license or in
revoking a license, shall be in writing and state the facts upon
which his the superintendent's action is based. The action of
the superintendent in
granting, revoking, continuing, or refusing to grant, revoke, or
continue such license, shall be subject to review in accordance
with Chapter 119. of the Revised Code. (E) Unless revoked or suspended by the superintendent or surrendered by
the corporation, partnership, or limited liability company, or
unless the company by written notice to the superintendent
cancels the agent's authority to act for it, a variable contract
agent's license, and any other license issued to an agent may, in
the discretion of the superintendent and at the request of the
company and payment of the required fee, beContinues in force until the corporation, partnership, or limited liability
company ceases to exist. (F) Each life
insurance company shall certify to the superintendent before the
thirtieth day of June each year
the names and addresses of the variable contract agents for whom
it requests appointments or the continuance of appointments.
Such an appointment, unless canceled by the INSURANCE company,
may be
continued in force past the
thirtieth day of June next after its issue and after the
thirtieth day of June in each succeeding year. Except as
provided in section 3905.011 of the Revised Code, all All
domestic,
foreign, and alien companies shall pay a fee of twenty dollars
for every such license appointment when issued and for each
continuance thereafter.
While such license appointment remains in force, a
foreign
company shall be
bound by the acts of the person named therein in the
appointment, within his the
person's apparent
authority as its authorized agent. Sec. 3905.27. The superintendent of insurance may open an
account in the name of each insurance company authorized to do
business in this state and in the name of any authorized
insurance agent, and charge said the accounts with all fees
incurred
by such companies or agents in accordance with sections 3905.01,
3905.02, 3905.03, 3905.07, 3905.26, 3919.26, and 3931.03 of the
Revised
Code, and other statutes imposing fees. The statutory fee for
each service requested shall be charged against the proper
account forthwith upon the rendition of the service. Not later than the tenth day of each calendar month the
superintendent shall render an itemized statement to each company
or agent whose account has been charged during the month next
preceding, showing the amount of all fees charged during said
that
month and demanding that payment thereof be made not later than
the first day of the month next following. The failure of any insurance company within said that time to
pay the amount of such fees in accordance with such the monthly
statement, or, if said the statement or account is found to be
incorrect, in accordance with a corrected monthly statement
rendered by the superintendent, is grounds for the revocation of
its certificate of authority to do business in this state. In
the event of such an order of revocation, the superintendent
shall forthwith cause a notice thereof to be published once in at
least one newspaper at the seat of the government and also, if a
domestic company, once in at least one newspaper published in the
county where its home office is located, or, if a foreign or
alien company, once in at least one newspaper published in a
county of this state where an agency of such the company is
located.
After the publication of such the notice, no agent of
such the company
shall procure applications for insurance or issue policies. In the event of the failure of any agent within the time
fixed to pay the amount of fees charged against his the agent's
account in
accordance with the monthly statement rendered by the
superintendent, such the agent's license may be revoked in the
manner
provided by sections 3905.01 3905.02 and 3905.18 of the
Revised Code. Sec. 3905.30. The superintendent of insurance may issue a
surplus line broker's license to any
natural person who is a citizen of the United States and has been a
resident
of this or any other state or a province of Canada, or to
any corporation, partnership, or limited liability company that is organized
under the laws of this or any other state or a province of Canada.
The applicant must have been licensed as a multiple line agent for at
least two years prior to making
application for
the surplus line broker's
license. The applicant shall also have met the standards
and passed the test
provided for the issuance of a multiple line agent's license. A surplus
line broker's license permits the
person named in the license to negotiate for and obtain
insurance, other than life
insurance, on property or persons in this state in insurers not authorized to
transact business in this state. Each such license expires on the
thirty-first day of January next after the year in which it is issued, and may
be then renewed. Sec. 3905.40. The superintendent of insurance shall may issue
no a license to any
person as agent of an insurance company if such person individual
who is a
resident of a another
state which, by its laws, prohibits residents of this state from acting as
agents of insurance companies in such state; if the superintendent is
satisfied that any person holding a license as such agent is a resident of
such state, he
shall revoke such license
or a province of Canada, or to any corporation, partnership, or
limited liability company that is organized under the laws of another state or
a province of Canada. For the purpose of according such an applicant
the full
privileges of an insurance agent in this state, the
superintendent shall accept the licensing obligations,
prohibitions, and requirements that are imposed upon the
applicant by the insurance authority and laws of the state or of
the province of Canada of which
the applicant is a resident, or under which the applicant is
organized, as satisfying the licensing obligations,
prohibitions, and requirements of this state, except for those
obligations, prohibitions, and requirements imposed under
section 3905.41 of the Revised
Code. For purposes of this section, the licensing
requirements that must be accepted by the superintendent include
the requirements for prelicensing and continuing education of
the other state or province. Sec. 3905.48. (A) On and after July 1, 1987, no No person,
unless the person has complied with division (B) of this
section, shall
be permitted to take an examination for a license as an agent or
solicitor to engage in the sale of any of the following types of
insurance: (1) Life insurance, annuity contracts, variable annuity
contracts, and variable life insurance; (2) Sickness and accident insurance; (3) All lines of property and casualty insurance; (4) All other lines of insurance for which an examination
is required for licensing, except title insurance. (B) No person shall be permitted to take an examination
described in division (A) of this section unless either of the
following applies: (1) The person has earned a bachelor's or associate's
degree in insurance in an accredited institution; (2) The person has been granted a diploma for successfully
completing a high school curriculum under section 3313.61 of the
Revised Code or a certificate of high school equivalence under
rule 3301-41-1 of the Administrative Code, or been granted a
comparable diploma or certificate by another state, and has
successfully completed at least forty hours of study in a program
of insurance education approved by the superintendent of
insurance in consultation with the insurance agent education
advisory council under criteria established by the
superintendent. Sec. 3905.481. (A)(1) Except as provided in division (B)
of this section, each person who is issued a license as an agent
or solicitor on and or after July 1, 1993, the
effective date of this amendment shall complete in
accordance with division (A)(1) of this section at least thirty
twenty hours of continuing education instruction offered in a
course or
program of study approved by the superintendent of insurance in
consultation with the insurance agent education advisory
council. The person shall complete the initial thirty twenty
hours of continuing
education instruction during a period not to exceed twenty-four
months commencing on the first day of January of the year
immediately following the year of the issuance of the license and
ending on the thirty-first day of December of the second year
following the year of the issuance of the license. Thereafter,
the person shall complete at least thirty twenty hours of
continuing
education instruction in every subsequent twenty-four-month
period commencing on the first day of January and ending on the
thirty-first day of December of the following year. (2) Except as provided in division (B) of this section,
each person who, on July 1, 1993 the effective date of this
amendment, holds a license as an agent or
solicitor issued prior to that date shall complete, no later than
December 31, 1995 during that person's applicable twenty-four month
reporting period, at least thirty twenty hours of
continuing education
instruction offered in a course or program of study approved by
the superintendent in consultation with the council. Thereafter, the person
shall complete at least thirty twenty hours of
such
continuing education instruction in every subsequent
twenty-four-month period commencing on the first day of January
of every even-numbered year and ending on the thirty-first day of
December of every odd-numbered year the following year. (B) Division (A) of this section does not apply to any
person or class of persons, as determined by the
superintendent
in consultation with the council. (C) A person may comply with division (A) of this section
by demonstrating
to the council that the
person has
completed the minimum
number of hours required by that division in a substantially
similar course or program of study offered in another state. Sec. 3905.482. (A) The superintendent of insurance shall
suspend the agent's or solicitor's license of any person who
fails to meet the requirements of section 3905.481 of the Revised
Code and has not been granted under division (B) of this section
an extension of time within which to complete the requirements.
The suspension shall continue until the person demonstrates to
the satisfaction of the superintendent that he the person has
complied with
the requirements of section 3905.481 of the Revised Code and all
other provisions of this chapter. However, the superintendent
shall revoke the license if the person fails to demonstrate such
compliance within six months after the conclusion of the
immediately preceding twenty-four-month compliance period and has
not been granted under division (B) of this section an extension
of time within which to complete the requirements. Any person
whose license has been revoked under this division and who
desires to hold a license as an agent or solicitor under this
chapter shall apply for a new agent's or solicitor's license in
accordance with the requirements of this chapter. (B) If a person cannot meet the requirements of section
3905.481 of the Revised Code due to a disability or inactivity
due to special circumstances, the superintendent may grant the
person a reasonable extension of time to enable the person to
comply with the requirements of section 3905.481 of the Revised
Code for the period of the disability or inactivity. (C) Before revoking or suspending any agent's or
solicitor's license under this section, the superintendent shall
provide the licensee notice and an opportunity for a hearing in
accordance with Chapter 119. of the Revised Code. Sec. 3905.49. (A)
As used in this section: (1) "Insurer" has the same meaning as in section
3901.32 of the Revised
Code. (2) "Refusal to issue or renew" means the decision of
the superintendent of insurance not to process either the
initial application for a license as an agent
or the renewal of such a license. (3) "Revocation" means the permanent termination of
all authority to hold any license as an agent in this state. (4) "Surrender for cause" means the voluntary
termination of all authority to hold any license
as an agent in this state, in lieu of a revocation or
suspension order. (5) "Suspension" means the termination of all
authority to hold any license as an agent
in this state, for either a specified period of time
or an indefinite period of time and under any terms or
conditions determined by the superintendent. (B)
The superintendent of insurance may
suspend, revoke, refuse to continue or renew, or refuse to issue
or renew any license as an agent, surplus line
broker, or solicitor limited insurance representative, or
impose any other sanction authorized
under this chapter, if the
superintendent finds any for one or more of the following
reasons: (1) The person has made a false
Obtaining or attempting to obtain any license or
appointment through misrepresentation or fraud, including making
any materially untrue
statement with respect to
a material matter in the license an application for a
license or appointment; (2) Any cause for which issuance of the license could have
been refused had it existed and been known to the superintendent
at the time of issuance; (3) The person has violated Violating or failed
failing to comply with any
insurance law or any lawful, rule, subpoena, consent
agreement, or order of the superintendent
or the commissioner of insurance of another state;
(4) The person has obtained or attempted to obtain any
such license through mispresentation or fraud;
(5) The person has improperly withheld, misappropriated,;
(3) Misappropriating
or converted converting to the person's own use any moneys
belonging to
policyholders, insurers prospective policyholders,
beneficiaries, insurance companies, or others received in the
course of the person's insurance business; (4) Failing to timely submit an application for
insurance. For purposes of division
(B)(4) of this section, a
submission is considered timely if it occurs within the time
period expressly provided for by the insurer, or within seven
days after the agent accepts a premium or an order to bind from a
policyholder or applicant, whichever is later. (6) The person has knowingly misrepresented (5)
Knowingly misrepresenting the
terms, benefits, value, cost, or effective dates of
any actual or proposed insurance policy or contract;
(7) The person has been (6) Being convicted of a
felony. If
a
person has been convicted of a felony based on evidence of acts
or omissions related to the insurance business, the
superintendent shall revoke any license issued to such person for
a period of not less than two years. If the person did not hold
a license at the time of the conviction, no license shall be
issued to the person for a period of two years after the date of
the conviction.
(8) The person is guilty of;
(7) Being convicted of a
misdemeanor that involves the misuse
or theft of money or property belonging to another, fraud,
forgery, dishonest acts, or breach of a fiduciary duty, or that
is based on any act or omission relating to the business of
insurance, securities, or financial services; (8) Committing
an unfair or deceptive trade
act or practice or fraud under any section of Title XXXIX of the
Revised Code or any rule adopted thereunder; (9) In the conduct of the person's affairs under a
license, the person has used fraudulent, coercive, or dishonest
practices, or is incompetent, untrustworthy, or financially
irresponsible; (10) The person's Having an insurance license has been
suspended or revoked in
any other state, province, district, or territory;
(11) The person has forged (10) Forging or causing the
forgery of
another's name to any document related to or used in an
application for insurance transaction;
(12) The person has cheated
(11) Possessing or using any unauthorized materials during a
licensing or continuing education examination or cheating
on an a licensing or continuing education examination for an
insurance license.
(B) The license of a partnership or corporation may be
suspended, revoked, or refused if the superintendent finds, after
notice and hearing under Chapter 119. of the Revised Code, that
an individual licensee's violation was known or should have been
known by one or more of the partners, officers, directors, or
managers acting on behalf of the partnership or corporation and
such violation was not reported to the department of insurance or
corrective action taken in relation to the violation;
(12) Failing to disclose to an applicant for insurance
or policyholder upon accepting a premium or an
order to bind coverage from the applicant or policyholder, that
the person has not been appointed as agent by the
insurer and is not an appointed solicitor of an appointed agent; (13) Having any professional license suspended or
revoked as a result of a mishandling of funds
or breach of fiduciary
responsibilities; (14) Causing or permitting a policyholder or applicant
for insurance to designate the person or the person's spouse,
parent, child, or sibling as the beneficiary of a policy or
annuity sold by the person, unless the person or a relative of
the person is the insured or applicant; (15) Failing to provide a written response to the
department of insurance within thirty days after receipt of
any written inquiry from the department; (16) Failing to notify the superintendent
of any change in the person's address, within thirty days after the
change
occurs, as required by section 3905.54 Of the Revised Code; (17) Transferring or placing insurance with an insurer
other than the insurer expressly chosen by the applicant for insurance or
policyholder without the consent of the applicant or
policyholder or absent extenuating circumstances; (18) Engaging in any fraudulent or coercive
practice in connection with the business of insurance; (19) Failing to inform a policyholder or applicant for insurance of
the identity of the insurer or insurers, or the identity of any
other insurance agent, general agent, surplus line broker, or
licensee known to be involved in procuring, placing, or continuing
the insurance for the policyholder or applicant, upon the binding of the
coverage; (20) In the case of an agent that is a corporation,
limited liability company, or partnership, failing to report an
individual licensee's violation to the department when the
violation was known or should have been known by one or more of
the partners, officers, managers, or members of the corporation,
limited liability company, or partnership; (21) Submitting or using a document in the conduct of
the business of insurance when the person knew or should have
known that the document contained the forged signature of
another person; (22) Misrepresenting the person's qualifications or
using in any way a professional designation that has not been
conferred upon the person by the appropriate accrediting
organization; (23) Obtaining a premium loan or causing a premium
loan to be made to or in the name of an insured without that
person's knowledge and written authorization; (24) Failing to notify the superintendent of any
disciplinary action taken by the insurance authority of another
state, within sixty days after the action
was taken, as required by section 3905.54 Of the Revised Code; (25) Failing to file any of the reports or notices
required under this chapter; (26) Submitting an application for insurance, or
causing the issuance of an insurance policy or contract, on behalf
of an applicant who did not request or authorize the
insurance. Division (B)(26) of this section does not apply to any
policy issued by an other than life insurance company. (27) Using paper, software, or any other materials of
or provided by an insurer after the insurer has terminated the
authority of the licensee, if the use of such materials would
cause a reasonable person to believe that the licensee was
acting on behalf of or otherwise representing the
insurer; (28) Providing misleading, deceptive, or untrue
information to an applicant for insurance or a policyholder
regarding a particular insurance agent, company, or
product; (29) Soliciting, procuring an application for, or
placing, either directly or indirectly, any insurance policy
when the person is not authorized under this chapter to engage
in such activity; (30) Soliciting, marketing, or selling any product or
service that offers benefits similar to insurance but is not
regulated by the superintendent, without fully disclosing to the
prospective purchaser that the product or service is not
insurance and is not regulated by the superintendent; (31) Failing to fulfill a refund obligation in a timely manner.
For purposes of division
(B)(31) of this section, a
rebuttable presumption exists that a refund obligation is not fulfilled in a
timely manner unless it is fulfilled within one of the following time
periods: (a) Thirty days after the date the
policyholder, applicant, or insurer takes or requests action
resulting in a refund; (b) Thirty days after the date of the insurer's
refund check, if the agent is expected to issue a portion of the
total refund; (c) Forty-five days after the date of the
agent's statement of account on which the refund first
appears. (C) Before denying, revoking, suspending, or refusing to
continue or renew issue any license or imposing any penalty
under this
section or section 3905.482 Of the Revised Code, the superintendent shall provide
the licensee or applicant
with notice and an
opportunity for hearing, under as provided in Chapter 119. of
the Revised Code,
to the licensee or applicant and any insurer represented by the
licensee or applicant
except as follows: (1)(a) Any notice of opportunity for hearing, the hearing
officer's findings and recommendations, or the
superintendent's order shall be served by certified mail at the
last known address of the licensee or applicant. Service shall
be evidenced by return receipt signed by any person. For purposes of this section, the "last known address" is the address that
appears in the licensing records of the department of insurance. (b) If the certified mail envelope is returned
with an endorsement showing that service was refused, or that
the envelope was unclaimed, the notice and all subsequent notices required by
Chapter 119. Of the Revised Code may be served by ordinary
mail to the last known address of the licensee or applicant.
The mailing shall be evidenced by a certificate of mailing.
Service is deemed complete as of the date of such certificate
provided that the ordinary mail envelope is not returned by the
postal authorities with an endorsement showing failure of
delivery. The time period in which to request a hearing, as
provided in Chapter 119. of the
Revised
Code, begins to run on the date
of mailing. (c) If service by ordinary mail fails, the
superintendent may cause a summary of the substantive provisions
of the notice to be published once a week for three consecutive
weeks in a newspaper of general circulation in the county where
the last known place of residence or business of the party is
located. The notice is considered served on the date of the
third publication. (d) Any notice required to be served under
Chapter 119. of the
Revised
Code shall also be served upon
the party's attorney by ordinary mail if the attorney has
entered an appearance in the matter. (e) The superintendent may, at any time,
perfect service on a party by personal delivery of the notice by
an employee of the department. (f) Notices regarding the scheduling of
hearings and all other matters not described in division
(C)(1)(a)of this section shall be sent by ordinary mail to the party and
to the party's attorney. (2) Any subpoena for the appearance of a witness or
the production of documents or other evidence at a hearing, or
for the purpose of taking testimony for use at a hearing, shall
be served by certified mail, return receipt requested, by an
attorney or by an employee of the department designated by the
superintendent. Such subpoenas shall be enforced in the manner
provided in section 119.09 of the
Revised
Code. Nothing in this section
shall be construed as limiting the superintendent's other
statutory powers to issue subpoenas. (D) The If the superintendent determines that a violation
described in this section has occurred, the superintendent may modify
any order under this
section and restore a license of or issue a license to a person
if the superintendent finds, after notice and opportunity for
hearing provided to affected parties, that the person can
demonstrate all do any of the following: (1) The person has made restitution for all pecuniary
losses caused by his assess a civil forfeiture in an amount not
exceeding twenty-five thousand dollars per violation; (2) The person's character and reputation have been
rehabilitated so that the person possesses the personal
qualifications required for the initial issuance of a license;
Assess administrative costs to cover the expenses incurred
by the department in the administrative action, including costs
incurred in the investigation and hearing processes. Any costs
collected shall be paid into the state treasury to the credit of
the department of insurance operating fund created in section
3901.021 of the Revised
Code. (3) If the order was an order of revocation based on a
conviction for felony based on evidence of acts or omissions
related to the insurance business, that two years have elapsed
since the effective date of the order, or if the order was an
order denying a license because of such a conviction, that two
years have elapsed since the date of the conviction
Suspend all of the person's licenses for all lines of
insurance for either a specified period of time or an indefinite
period of time and under such terms and conditions as the
superintendent may determine; (4) If required by the superintendent, the person passes
the examination required for an initial issuance of the license
Permanently revoke all of the person's licenses for all
lines of insurance; (5) Refuse to issue a license; (6) Refuse to renew a license; (7) Prohibit the person from being employed in any
capacity in the business of insurance and from having any
financial interest in any insurance agency, company, or
third-party administrator in this state. The superintendent
may, in the superintendent's discretion, determine the nature,
conditions, and duration of such restrictions. (8) Order corrective actions in lieu of or in addition
to the other penalties listed in division
(D) of this section. Such an
order may provide for the suspension of civil forfeitures,
license revocation, license suspension, or refusal to issue or
renew a license if the licensee complies with the terms and
conditions of the corrective action order. (9) Accept a surrender for cause offered by the
licensee, which shall be for at least five years and shall
prohibit the licensee from seeking any license authorized under
this chapter during that time period. A surrender for cause may
also include a corrective action order as provided in division
(D)(8) of this section. (E) The superintendent shall may consider the following
standards factors in denying a license, imposing suspensions,
revocations, fines, or refusals of continuations or renewals
of
licenses other penalties, and issuing orders under this section: (1) Whether the person acted in good faith and without
knowledge of his violation and makes; (2) Whether the person made restitution for any
pecuniary losses suffered by other persons as a result of his the
person's
actions. In such cases, the maximum suspension shall be ninety
days. (2) Whether, within the meanings defined in section
2901.22 of the Revised Code, the person acted purposely,
knowingly, recklessly, or negligently;
(3) Whether the amount of money or the nature of the
property involved in the violation would, if it were the subject
of a criminal offense, make a theft offense a misdemeanor or a
felony the actual harm or potential for harm to others; (4) The degree of trust placed in the person by, and the
incompetency, inexperience, or susceptibility to undue influence
or duress vulnerability of, any other person involved
persons who were or could have been adversely affected by the person's
actions; (5) The effect of the violation upon the perception by
insureds and insurance customers of the ethics and integrity of
the insurance industry whether the person was the subject of any
previous administrative actions by the superintendent; (6) The extent to which number of individuals adversely affected
by the person's conduct departed from
the customary and usual ethical standards of persons engaged in
the insurance business acts or omissions; (7) Whether the person voluntarily reported the violation, and
the extent of the person's cooperation and acceptance of
responsibility; (8) Whether the person obstructed or impeded, or
attempted to obstruct or impede, the superintendent's
investigation; (9) The person's efforts to conceal the
misconduct; (10) Remedial efforts to prevent future
violations; (11) If the person was convicted of a criminal
offense, the nature of the offense, whether the conviction was
based on acts or omissions taken under any professional license,
whether the offense involved the breach of a fiduciary duty, the
amount of time that has passed, and the person's activities
subsequent to the conviction; (12) Such other factors as the superintendent determines to
be appropriate under the circumstances. (F)(1) A violation described in
division (B)(1), (2), (3),
(5), (6), (7), (8), (9), (10), (11), (12), (13), (14), (17),
(18), (19), (20), (21), (22), (23), (25),
(26), (27), (28), (29), (30), or (31) of this section is a
class A offense for which the
superintendent may impose any penalty set forth in division
(D) of this section. (2) A violation described in division
(B)(4), (15), (16), or (24)
of this section is a class
B offense for which the
superintendent may impose any penalty set forth in division
(D)(1), (2), (8), or (9) of
this section. (G) If a violation
described in this section has caused, is causing, or is about to
cause substantial and material harm, the superintendent may
issue an order requiring that person to cease and desist from
engaging in the violation. Notice of the order shall be mailed
by certified mail, return receipt requested, or served in any
other manner provided for in this section, immediately after its
issuance to the person subject to the order and to all persons
known to be involved in the violation. The superintendent may
thereafter publicize or otherwise make known to all interested
parties that the order has been issued. The notice shall specify the particular act, omission,
practice, or transaction that is subject to the cease-and-desist
order and shall set a date, not more than fifteen days after the
date of the order, for a hearing on the continuation or
revocation of the order. The person shall comply with the order
immediately upon receipt of notice of the order. The superintendent may, upon the application of a party
and for good cause shown, continue the hearing.
Chapter 119. of the
Revised
Code applies to such hearings
to the extent that that chapter does not conflict with the
procedures set forth in this section. The superintendent shall,
within fifteen days after objections are submitted to the
hearing officer's report and recommendation, issue a final order
either confirming or revoking the cease-and-desist order. The
final order may be appealed as provided under section 119.12 of
the Revised
Code. The remedy under this division is cumulative and
concurrent with the other remedies available under this section. (H) If the
superintendent has reasonable cause to believe that an order
issued under this section has been violated in whole or in part,
the superintendent may request the attorney general to commence
and prosecute any appropriate action or proceeding in the name
of the state against such person. The court may, in an action brought pursuant to this
division, impose any of the following: (1) For each violation, a civil penalty of not more
than twenty-five thousand dollars; (2) Injunctive relief; (3) Restitution; (4) Any other appropriate relief. (I) This section
applies to both resident and nonresident agents who are licensed
under this chapter. (J) Nothing in this
section shall be construed to create or imply a private cause of
action against an agent, solicitor, or insurer. Sec. 3905.491. (A)
Upon written application of a person whose license was
suspended, revoked, or surrendered for cause under section
3905.49 of the Revised
Code, the superintendent of
insurance shall hold a hearing to determine whether the
administrative action imposing such suspension, revocation, or
surrender should be modified, provided that all of the following
conditions are met: (1) At least five years have elapsed since the date of
the administrative action sought to be modified; (2) At least two years have elapsed since any previous
request for a modification was made under this section; (3) The burden of proof is on the person requesting
the modification. (B) The modification
of an order issued or consent agreement entered into under
section 3905.49 of the Revised
Code is at the discretion of
the superintendent. The superintendent may modify such an order
or agreement if the superintendent finds all of the
following: (1) At least five years have elapsed since the date of
the administrative action; (2) The person is of good business repute and is
suitable to be an insurance agent; (3) The person has made restitution for all pecuniary
losses suffered by any person as a result of the conduct that
gave rise to the administrative action; (4) The person has not been convicted of any felony or
of any misdemeanor described in division
(B)(7) of section 3905.49 of
the Revised
Code unless the conviction was
the subject of a previous administrative action by the
superintendent; (5) The circumstances surrounding the previous
violation are such that it is unlikely the person would commit
such offenses in the future; (6) The person's character has been
rehabilitated. (C) The issuance of
any license pursuant to a modification under this section shall
be conditioned upon the successful completion of all
prelicensing education and examination requirements. Sec. 3905.492. (A)(1) All records and other information
obtained by the superintendent of insurance or the
superintendent's deputies, examiners, assistants, or other employees, or
agents relating to an investigation of an applicant for licensure under
this chapter, or of an agent, solicitor, broker, or other person
licensed under this chapter or Chapter 3951., 3957., or 3959. Of the Revised Code,
are confidential and are not public records as defined in section 149.43 Of the Revised Code
until the applicant or licensee is provided notice and opportunity for hearing
pursuant to Chapter 119. Of the Revised Code with respect to such records or
information. If no administrative action is initiated with respect to a
particular matter about which the superintendent obtained records or other
information as part of an investigation, all such records and information
relating to that matter shall remain confidential for three years after the
file on the matter is
closed. (2) Division (A)(1)
of this section applies only to investigations that could result
in administrative action under
Title
XVII or
XXXIX or
Chapter 119. of the
Revised
Code. (B) The records and other information
described in division (A) of
this section shall remain confidential for all
purposes except when it is appropriate for the superintendent and
the superintendent's deputies, examiners, assistants, or other employees, or
agents
to take official action regarding the affairs of the applicant
or licensee or in connection with actual or potential criminal
proceedings. (C) Employees or agents of the
department of insurance shall not be required by any court in
this state to testify in a civil action, if such testimony
concerns any matter related to records or any other information considered
confidential under this section of which they have
knowledge. (D) This section does not apply to any complaint or action under
section 3905.04 Of the Revised Code. Sec. 3905.54. Each agent licensed under this chapter
shall notify the superintendent of insurance in writing of all
of the following, as applicable: (A) Any change in the
agent's address, within thirty
days after the change occurs. For purposes of this division, "address"
means
residential address, business address, and any other address or
addresses the superintendent requires by rule adopted in
accordance with Chapter 119. of
the Revised
Code. (B) Any felony
conviction, or any misdemeanor conviction described in division
(B)(7) of section 3905.49 of
the Revised
Code, within thirty days after
sentencing. The notice shall include the name of the court
having jurisdiction over the matter, the case number, the
offense charged, the sentence imposed, and a copy of the
judgment entry. (C) Any disciplinary
action taken by the insurance authority of another state, within
sixty days after the action is taken. Sec. 3905.55. (A) Except as provided in division
(B) of this section, an agent
may charge a consumer a fee if all of the following conditions
are met: (1) The fee is disclosed to the consumer in a manner
that separately identifies the fee and the premium. (2) The fee is not calculated as a percentage of the
premium. (3) The fee is not refunded, forgiven, waived, offset,
or reduced by any commission earned or received for any policy
or coverage sold. (4) The amount of the fee, and the consumer's
obligation to pay the fee, are not conditioned upon the
occurrence of a future event or condition, such as the purchase,
cancellation, lapse, declination, or nonrenewal of
insurance. (5) The agent discloses to the consumer that the fee
is being charged by the agent and not by the insurance company,
that neither state law nor the insurance company requires the
agent to charge the fee, and that the fee is not
refundable. (6) The consumer consents to the fee. (7) The agent, in charging the fee, does not
discriminate on the basis of race, sex, national origin,
religion, disability, health status, age, marital status, or
geographic location, and does not unfairly discriminate between
persons of essentially the same class and of essentially the
same hazard or expectation of life. (B) A fee may not be
charged for taking or submitting an initial application for
coverage with any one insurer or different programs with the
same insurer, or processing a change to an existing policy, a
cancellation, a claim, or a renewal, in connection with any of the
following personal lines policies: (1) Private passenger automobile; (2) Homeowners, including coverage for tenants or
condominium owners, owner-occupied fire or dwelling property
coverage, personal umbrella liability, or any other personal
lines-related coverage whether sold as a separate policy or as
an endorsement to another personal lines policy; (3) Individual life insurance; (4) Individual sickness or accident insurance; (5) Disability income policies; (6) Credit insurance products. (C) Notwithstanding
any other provision of this section, an agent may charge a fee
for agent services in connection with a policy issued on a
no-commission basis, if the agent provides the consumer with
prior disclosure of the fee and of the services to be
provided. (D) In the event of a
dispute between an agent and a consumer regarding any disclosure
required by this section, the agent has the burden of proving that the
disclosure was made. (E)(1) No person
shall fail to comply with this section. (2) Whoever violates division
(E)(1) of this section is
deemed to have engaged in an unfair and deceptive act or
practice in the business of insurance under sections 3901.19 to
3901.26 of the Revised
Code. Sec. 3905.99. (A) Whoever violates sections 3905.181, 3905.21, or 3905.23 of
the Revised Code shall be fined not less than twenty-five nor more than five
hundred dollars or imprisoned not more than six months, or both. (B) Whoever violates section 3905.31 or 3905.33 of the Revised Code shall be
fined not less than twenty-five nor more than five hundred dollars or
imprisoned not more than one year, or both. (C) Whoever violates section 3905.37 or 3905.43 of the Revised Code shall be
fined not less than one hundred nor more than five hundred dollars. (D) Whoever violates section 3905.01 Of the Revised Code is guilty of a
misdemeanor of the first degree. Sec. 3913.40. (A) Any insurer, including any fraternal benefit
society, that is organized under the
laws of another state and is admitted to transact the business of
insurance in this state may become a domestic insurer by
complying with all of the requirements of law relative to the
organization and licensing of a domestic insurer of the same type
and by designating its principal place of business at a place in
this state. Such a domestic insurer shall be issued like
certificates and licenses to transact business in this state, is
subject to the jurisdiction of this state, and shall be
recognized as an insurer formed under the laws of this state as
of the date of its original incorporation in its original
domiciliary state. The superintendent of insurance shall approve
any proposed transfer of domicile under this division unless the
superintendent determines that the transfer is not in the interest of
policyholders of this state. (B) Any domestic insurer, upon the approval of the
superintendent, may transfer its domicile to any other state in
which it is admitted to transact the business of insurance. Upon
such a transfer, the insurer shall cease to be a domestic
insurer, and shall be admitted to this state if qualified as a
foreign insurer. The superintendent shall approve any proposed
transfer of domicile under this division unless the superintendent
determines that the transfer is not in the interest of policyholders of this
state. (C)(1) With respect to any insurer, including any fraternal benefit
society, that is licensed to
transact the business of insurance in this state and that
transfers its domicile to this or any other state by merger,
consolidation, or any other lawful method, both of the following
apply: (a) The certificate of authority, agents appointments and
licenses, rates, and other items as allowed by the superintendent
that are in existence at the time of the transfer shall continue
in effect upon the transfer if the insurer remains qualified to
transact the business of insurance in this state. (b) All outstanding policies shall remain in effect and
need not be endorsed as to the new name of the company or its new
location unless so ordered by the superintendent. (2) Every transferring insurer as described in division
(C)(1) of this section shall file new policy forms with the
superintendent on or before the effective date of the transfer,
but may use existing policy forms with appropriate endorsements
if allowed by, and under such conditions as are approved by, the
superintendent. Every such insurer shall notify the
superintendent of the details of the proposed transfer, and shall
file promptly any resulting amendments to corporate documents
filed or required to be filed with the superintendent. (D) Nothing in this section or any other provision Of the Revised Code prohibits an
insurer from transferring its domicile to this state because its charter,
bylaws, or any other organizational document contains characteristics of both
a mutual insurance company and a stock insurance company. (E) The superintendent, in accordance with Chapter 119. of
the Revised Code, may adopt rules to carry out the purposes of
this section. Sec. 3921.33. (A) Agents of fraternal benefit societies
shall be licensed in the manner provided for agents of insurance companies in
Chapter 3905. of the
Revised Code, and shall be required to complete the
continuing education instruction AS set forth in section 3905.481 of
the Revised
Code starting with the twenty-four-month period commencing on the first day of
January of 1999. However, no written or other examination shall be
required
of any person
whose application for the original issuance of a license to represent a
fraternal
benefit society as its agent was filed with the superintendent of insurance
prior to January 1, 1997. (B) The following persons shall not be
required to be licensed in accordance with division (A) of
this section: (1) Any regularly salaried officer, employee, or member of a licensed
society who devotes substantially all of the person's services to activities
other than the solicitation of fraternal insurance contracts from the public,
and who receives for the solicitation of any such contracts no commission or
other compensation directly dependent upon the amount of business obtained. The officers, employees, and members described in division (B)(1)
of this section also are not subject to examination by the superintendent
under Chapter 3905. of the Revised Code. (2) Any agent or representative of a society who devotes, or intends to
devote, less than fifty per cent of the person's time to the solicitation and
procurement of insurance contracts for the society. For purposes of division
(B)(2) of this section, any person who, in the
preceding calendar year, has received a commission or other compensation for
soliciting and procuring any of the following contracts on behalf of an
individual
society is presumed to have devoted, or to have intended to devote, fifty per
cent of the person's time to the solicitation and procurement of insurance
contracts: (a) Life insurance contracts that, in the aggregate, exceeded two
hundred thousand dollars of coverage for all lives insured for the preceding
calendar year; (b) A permanent life insurance contract offering
more than ten thousand dollars of coverage on an individual life; (c) A term life insurance contract offering more than fifty
thousand dollars of coverage on an individual life; (d) Any insurance contracts other than life that the society may
write and that insure the individual lives of more than twenty-five
individuals; (e) Any contract issued on a variable basis, as authorized by
division (C) of section 3921.22 of the Revised Code. Sec. 3923.121. (A) As used in this section: (1) "Association" means a voluntary unincorporated
association of insurers formed for the sole purpose of enabling
cooperative action to provide sickness and accident insurance in
accordance with this section. (2) "Insurer" means any insurance company authorized to do
the business of sickness and accident insurance in this state. (3) "Insured" means a person covered under a group policy
issued pursuant to this section. (B) Any insurer may join with one or more other insurers,
in an association, to offer, sell, and issue to a policyholder
selected by the association a policy of group insurance against
major financial loss from sickness and accident covering
residents of this state who are sixty-five years of age or older
and the spouses of such residents. The insurance shall be
offered, issued, and administered in the name of the association.
Membership in the association shall be open to any insurer and
each insurer which participates shall be liable for a specified
percentage of the risks. The policy may be executed on behalf of
the association by a duly authorized person and need not be
countersigned by an agent. (C) The persons eligible for coverage under the policy
shall be all residents of this state who are sixty-five years of
age or older and their spouses, subject to reasonable
underwriting restrictions to be set forth in the plan of the
association. The policy may provide basic hospital and surgical
coverage, basic medical coverage, major medical coverage, and any
combination of these; provided that it shall not be required as a
condition for obtaining major medical coverage that any basic
coverage be taken. (D) The association shall file with the superintendent of
insurance any policy, contract, certificate, or other evidence of
insurance, application, or other forms pertaining to such
insurance together with the premium rates to be charged therefor.
The superintendent may approve, disapprove, and withdraw approval
of the forms in accordance with section 3923.02 of the Revised
Code, or the premium rates if by reasonable assumptions such
rates are excessive in relation to the benefits provided. In
determining whether such rates by reasonable assumptions are
excessive in relation to the benefits provided the superintendent
shall give due consideration to past and prospective claim
experience, within and outside this state, and to fluctuations in
such claim experience, to a reasonable risk charge, to
contribution to surplus and contingency funds, to past and
prospective expenses, both within and outside this state, and to
all other relevant factors within and outside this state,
including any differing operating methods of the insurers joining
in the issuance of the policy. In reviewing the forms the
superintendent shall not be bound by the requirements of sections
3923.04 to 3923.07 of the Revised Code with respect
to standard provisions to be included in sickness and accident
policies or forms. (E) The association may enroll eligible persons for
coverage under the policy through any insurance agent licensed to
sell sickness and accident insurance pursuant to section 3905.01
3905.02,
3905.08, 3905.18, or 3941.02 of the Revised Code. (F) The association shall file annually with the
superintendent on such date and in such form as the
superintendent may prescribe, a financial summary of its operations. (G) The association may sue and be sued in its associate
name and for such purposes only shall be treated as a domestic
corporation. Service of process against such the association
made
upon a managing agent, any member thereof, or any agent
authorized by appointment to receive service of process, shall
have the same force and effect as if such the service had been
made
upon all members of the association. (H) Under any policy issued as provided in this section,
the policyholder, or such person as the policyholder shall
designate, shall alone be a member of each domestic mutual
insurance company joining in the issue of the policy and shall be
entitled to one vote by virtue of such policy at the meetings of
each such mutual insurance company. Notice of the annual
meetings of each such mutual insurance company may be given by
written notice to the policyholder or as otherwise prescribed in
said the policy. Sec. 3931.101. The provisions of sections 3905.01 to 3905.05,
inclusive, 3905.04 of
the Revised Code, relating to the appointment, licensing, qualification and
regulation of insurance agents, brokers and solicitors shall apply to all
persons authorized to solicit powers of attorney or applications for contracts
of indemnity for any reciprocal exchange, insurance exchange or attorney in
fact as provided for in Chapter 3931,. of the Revised Code,
except a traveling
full time salaried non-commission employee of an attorney whose duties as such
employee are primarily the performance of inspection underwriting, loss
prevention engineering and claim services shall be exempt from this section
and shall be regulated solely by section 3931.11 of the Revised Code. Sec. 3931.11. Every attorney shall certify to the
superintendent of insurance the names and addresses of the attorney's
traveling full time salaried non-commission employees, primarily
engaged in performing underwriting, loss prevention engineering
and claim services, authorized by the attorney to solicit powers of
attorney or applications for contracts of indemnity specified in
section 3931.01 of the Revised Code. The authority of such
persons shall continue until the first day of the next April,
unless it is cancelled by the attorney and the certificate of
such cancellation is filed with the superintendent, or unless the
license of the attorney or authority of such person is revoked or
suspended by the superintendent. Expiring certificates of
authority of such persons may be renewed in like manner to
continue until the first day of the next April. The
superintendent shall record the names and addresses of such
persons so that their names may conveniently be inspected and
shall thereupon certify and deliver to the attorney a list of the
names of all persons so recorded. If the superintendent finds that any such person has
wilfully willfully violated, or failed to comply with, sections
3931.01 to
3931.12, inclusive, of the Revised Code, or has been convicted of
a felony in the United States, or in this or any state, or has
been guilty of any act or acts which if performed by an
agent licensed under section 3905.01 3905.02 of the Revised
Code would
constitute statutory grounds for the revocation of such agent's
license, the superintendent may refuse or revoke the authority of such
the person
and cancel the person's name on the superintendent's records, and the
superintendent shall
thereupon notify such the person and the attorney of such
the revocation. Thereafter
such the person shall not act as representative of any
attorney until a new certificate of authority by the attorney
thereafter appointing such the person is filed with and approved
by the superintendent. No such person shall act for any attorney in placing
insurance or making such contracts of indemnity, unless the
attorney has the license required by section 3931.10 of the
Revised Code, nor unless the unexpired, unrevoked, and
unsuspended certificate of such person's authority is filed with
the superintendent. Any such person shall be individually liable
on any contract of indemnity made, issued, or accepted through
that person as representing any attorney who is not licensed
by the superintendent to make such contracts of indemnity. Sec. 3941.02. (A) A domestic mutual company may be
organized by not less than twenty persons, to carry on the
business of mutual insurance and to reinsure and to accept
reinsurance as authorized by law and its articles of
incorporation. Such persons shall execute articles of
incorporation which, if not inconsistent with the constitution
and laws of this state and of the United States, shall be
approved by the attorney general and the secretary of state. The
articles and the certificate of approval by the attorney general
shall be recorded by the secretary of state who shall deposit a
copy thereof with the superintendent of insurance. (B) If the articles of incorporation of a domestic,
foreign, or alien, mutual or stock insurance company empower it,
or if the power of attorney or subscribers' agreement empowers
the attorney in fact of a reciprocal or interinsurance exchange,
to transact any of the kinds of insurance described in division
(A) of section 3929.01 of the Revised Code, such company or
attorney may apply to the superintendent for the appropriate
license or certificate of authority, as provided in section
3925.11, 3927.01, 3931.10, or 3941.06 of the Revised Code, which
application shall state which of the kinds of insurance it
proposes to transact, and the superintendent shall act thereon in
the manner prescribed by that section. (C) An Ohio agent shall be licensed, upon written
notice of appointment by a domestic, foreign, or alien,
mutual or stock insurance company, to procure, receive, or
forward application for the kinds of insurance the company is
authorized to transact in this state if the agent is then
licensed to write all of the kinds of insurance described in
division (A) of section 3929.01 of the Revised Code, either for
the company or for any other company or companies authorized to
transact insurance business in this state. An Ohio
agent not so licensed shall not procure, receive, or forward
applications for any kind of insurance for the company until
qualified and licensed to procure, receive, or forward
applications for all of the kinds of insurance described in
division (A) of section 3929.01 of the Revised Code, in
accordance with the applicable provisions of Chapter 3905. of the
Revised Code and in accordance with such rules as the
superintendent may adopt in connection therewith; provided any
company, irrespective of the kinds of insurance it is authorized
to transact, may apply for and obtain the renewal of licenses of
its agents who were licensed on or before July 1, 1945, to
procure, receive, or forward applications for any of the kinds of
insurance described in division (A) of section 3929.01 of the
Revised Code, and such agents shall not be required to be
licensed for all the kinds of insurance transacted by the company
making the applications for such renewals. Nothing in this
section shall be construed to authorize an agent whose license is
renewed under these provisions to procure, receive, or forward
applications for any kind or kinds of insurance other than the
kind or kinds for which the agent was authorized to procure,
receive, or
forward applications on July 1, 1945; provided, the procuring,
receiving, or forwarding of applications by such an agent for any
kind or kinds of insurance other than the kind or kinds the
agent was
authorized to procure, receive, or forward, as of July 1, 1945,
is cause for revocation of the license of the agent by the
superintendent and the acceptance by any insurance company
licensed to do business in this state of an application for any
kind of insurance other than the kind or kinds that the agent was
authorized to procure, receive, or forward, as of July 1, 1945,
is cause for revocation of the license of the company by the
superintendent. Nothing in this section shall be construed to
alter the provisions of sections 2301.373, 3905.05, 3931.101, and
3931.11 of the Revised Code. Sec. 3953.21. (A) Every title insurance company authorized to transact
business within this state shall certify annually to the superintendent of
insurance the names of all title insurance agents representing it in this
state in accordance with section 3905.01 3905.02 of the
Revised Code. (B) No bank, trust company, bank and trust company, or other lending
institution, mortgage service, brokerage, mortgage guaranty company, escrow
company, real estate company or any subsidiaries thereof or any individuals so
engaged shall be permitted to act as an agent for a title insurance company. Sec. 3953.23. (A) Every title insurance agent shall keep his
books of
account and record and vouchers pertaining to the business of title insurance
in such manner that the title insurance company may readily ascertain from
time to time whether the agent has complied with this chapter. (B) A title insurance agent may engage in the business of handling escrows of
real property transactions directly connected with the business of title
insurance, provided that the agent shall maintain a separate record of all
receipts and disbursements of escrow funds and shall not commingle any such
funds with agent's own funds or with funds held by agent in any other
capacity; and if at any time the superintendent of insurance determines that
an agent has failed to comply with any of the provisions of this section, the
superintendent may revoke the license of said the agent pursuant
to section
3905.01 3905.02 of the Revised Code, subject to review as
provided for in sections
119.01
to 119.13, inclusive, Chapter 119. of the Revised
Code. All agents shall be covered
by a fidelity bond in an amount and with a company satisfactory to the
principal. Sec. 3960.11. (A) No person shall act or aid in any
manner in soliciting, negotiating, or procuring liability
insurance in this state from a risk retention group unless the
person is licensed as an insurance agent or broker in accordance
with section 3905.01, 3905.03, 3905.02 or 3905.30 of the
Revised Code. (B) No person shall act or aid in any manner in
soliciting, negotiating, or procuring liability insurance in this
state for a purchasing group from an authorized insurer or a risk
retention group chartered in a state unless the person is
licensed as an insurance agent or broker in accordance with
section 3905.01, 3905.03, 3905.02 or 3905.30 of the Revised
Code. (C) No person shall act or aid in any manner in
soliciting, negotiating, or procuring liability insurance
coverage in this state for any member of a purchasing group under
a purchasing group's policy unless the person is licensed as an
insurance agent or broker in accordance with section 3905.01,
3905.03, 3905.02 or 3905.30 of the Revised Code. (D) No person shall act or aid in any manner in
soliciting, negotiating, or procuring liability insurance from an
insurer not authorized to do business in this state on behalf of
a purchasing group located in this state unless the person is
licensed as an insurance agent or a surplus lines
line broker in
accordance with section 3905.01, 3905.03, or 3905.30
of the
Revised Code. Sec. 4745.01. (A) "Standard renewal procedure," as used in Chapters 905.,
907., 909., 911., 913., 915., 918., 921., 923., 927., 942., 943.,
953., 1321., 3710., 3713., 3715., 3719., 3731., 3742., 3748., 3769.,
3783., 3905., 3921., 3951., 4104., 4105., 4143., 4169., 4561., 4701.,
4703., 4707., 4709., 4713., 4715., 4717., 4723., 4725., 4727.,
4728., 4729., 4731., 4733., 4734., 4735., 4739., 4741., 4747.,
4749., 4753., 4755., 4757., 4759., 4761., 4766., 4773., and 4775. of the
Revised Code, means the license renewal procedures specified in
this chapter. (B) "Licensing agency," as used in this chapter, means any
department, division, board, section of a board, or other state
governmental unit subject to the standard renewal procedure, as
defined in this section, and authorized by the Revised Code to
issue a license to engage in a specific profession, occupation,
or occupational activity, or to have charge of and operate
certain specified equipment, machinery, or premises. (C) "License," as used in this chapter, means a license,
certificate, permit, card, or other authority issued or conferred
by a licensing agency by authority of which the licensee has or
claims the privilege to engage in the profession, occupation, or
occupational activity, or to have control of and operate certain
specific equipment, machinery, or premises, over which the
licensing agency has jurisdiction. (D) "Licensee," as used in this chapter, means either the
person to whom the license is issued or renewed by a licensing
agency, or the person, partnership, or corporation at whose
request the license is issued or renewed. (E) "Renewal" and "renewed," as used in this chapter and
in the chapters of the Revised Code specified in division (A) of
this section, includes the continuing licensing procedure
provided in Chapter 3748. of the Revised Code and
rules adopted under it and in sections 1321.05, 3905.01, 3905.02,
3905.07,
3905.18, and 3921.33 of the Revised Code, and as applied to those
continuing
licenses any reference in this chapter to the date of expiration
of any license shall be construed to mean the due date of the
annual or other fee for the continuing license. SECTION 2 . That existing sections 1751.38, 3901.021, 3905.02,
3905.06, 3905.07, 3905.08, 3905.18,
3905.20, 3905.27, 3905.30, 3905.40, 3905.48, 3905.481, 3905.482, 3905.49,
3905.99, 3913.40, 3921.33, 3923.121, 3931.101, 3931.11,
3941.02, 3953.21, 3953.23, 3960.11, and 4745.01 and sections 3905.01,
3905.011, 3905.03, and 3905.05 of the Revised Code are
hereby repealed.
SECTION 3 . Sections 1 and 2 of this act, except for sections 3905.011,
3905.012, 3905.02, 3905.03, 3905.18, and 3905.20 of the Revised Code, shall
take effect at the earliest time permitted by law. Sections 3905.011,
3905.012, 3905.02, 3905.03, 3905.18, and 3905.20 of the Revised Code, as
amended, enacted, or repealed by this act, shall take effect October 1, 1998.
SECTION 4 . It is the intent of the General Assembly that the
Superintendent of Insurance take any action necessary to
administer the Insurance Agents Law, as amended by this act, and
to provide for an orderly transition for those persons licensed
or appointed under that Law as it existed prior to the effective
date of this act.
SECTION 5 . The Department of Insurance shall, no later than October 1, 1999,
issue a new license to each person who, on October 1, 1998, holds a license as
an
agent. Any license application that is pending on October 1, 1998, or that is
received by the Department on or after that date, shall be reviewed in
accordance with this act.
SECTION 6 . The Insurance Agent Education
Advisory Council operating pursuant to section 3905.483 of the
Revised Code shall create a temporary committee to conduct a
special study of the continuing education requirements for
insurance agents as set forth in the Revised Code and the
Administrative Code. The committee shall be composed of the
eleven members of the Insurance Agent Education Advisory Council
appointed by the Superintendent of Insurance pursuant to section
3905.483 of the Revised Code; a representative, appointed by the
Governor, of private entities engaged in the business of
providing continuing education to agents; a representative, appointed by the
Governor, of financial institutions;
two members of the House of Representatives, one from each party, appointed by
the Speaker of the House of
Representatives; and two members of the Senate, one from each party, appointed
by the President of the Senate. The Superintendent or the
Superintendent's designee shall serve on the committee as a
nonvoting member.
The committee shall hold an organizational meeting within thirty
days after the effective date of this section. At the
organizational meeting, the voting members of the committee
shall elect a chairperson and a vice-chairperson for the
committee. The committee shall meet at the call of the
chairperson. The committee shall study all aspects of the continuing
education requirements for insurance agents as set forth in the
Revised Code and the Administrative Code, and shall be charged
with providing findings and recommendations on how any aspect of
these requirements may be improved. The study shall include, but is not limited to, an examination
of issues related to the following questions: (A) Will a reduction in the
biennial continuing education requirement satisfy
the continuing education requirements imposed by other states on
nonresident agents? (B) What are the best methods for
assuring the quality of continuing education courses and
programs of study? (C) Is the Superintendent of Insurance's
annual approval of a continuing education course or program of
study necessary if there is no change in the course'sor program's curriculum, or could a course
or program of study be approved for a longer period of time? (D) Could the process of approval for
continuing education courses and programs of study be
streamlined, to provide for a more timely and efficient process
of approval? (E) Should an agent receive continuing education
credit for completing courses or programs of study that pertain
to subjects outside of the agent's area of practice or
licensure? (F) What is the optimal number of hours
of instruction a statutory continuing education requirement
should require agents to complete? (G) Should continuing education
requirements include a minimum number of hours of courses or
programs of study on ethics? (H) Should the completion of a
correspondence course, which course requires the successful
completion of a test on the course material, be an optional
method for an agent's fulfillment of continuing education
requirements? (I) Should minimum requirements be
established for instructors of continuing education courses,
such as minimum industry experience and a current agent's
license? (J) Should an agent be limited as to the number of
hours of continuing education credit that the agent may earn
from private providers and associations or from insurance
companies, as a percentage of the total number of hours of
continuing education credit that the agent earns, or is
permitted to earn, during a single compliance period? (K) Should an agent receive continuing education
credit for completing sales-related courses or programs of
study? (L) Should an agent's receipt of any special
designation exempt the agent from the completion of further
continuing education requirements? (M) Has the continuing education requirement improved
the quality of licensed insurance agents? (N) Would a system in which agents certified their
compliance with continuing education requirements to the
Superintendent, which system included a program of random
verification of agent compliance by the Department of Insurance,
be a feasible alternative to the current system of continuing
education compliance verification? The committee shall hold a sufficient number of public hearings
outside of Franklin County to provide interested parties
throughout the state a chance to voice their opinions and make
recommendations with regard to the continuing education
requirements for insurance agents. The committee shall issue an interim report within nine months
after the effective date of this section. The committee shall
issue its final report within eighteen months after the
effective date of this section. Copies of the interim and the
final reports shall be submitted, at the time of their issuance,
to the Speaker of the House of Representatives, to the President
of the Senate, to the Governor, to the chair of the House
committee having primary jurisdiction over insurance
legislation, to the chair of the Senate committee having primary
jurisdiction over insurance legislation, to the Superintendent
of Insurance, and to the Insurance Agent Education Advisory
Council. The committee may request staff assistance from the
Legislative Service Commission as needed for the completion of
the reports. Upon the issuance of its final report, the
committee shall cease to exist. SECTION 7 . Persons holding a license as an agent on the effective date of
section 3905.481 of the Revised Code, as amended by this act, shall retain
their current compliance periods for purposes of completing the continuing
education requirements provided under section 3905.481 of the Revised Code, as
amended by this act.
SECTION 8 . If Am. Sub. H.B. 248 is enacted by the 122nd General Assembly,
sections 3905.49 and 3905.491 of the Revised Code, as the sections result from
this act, supersede the same sections as they result from Am. Sub. H.B. 248.
SECTION 9 . Section 3941.02 of the Revised Code is presented in this act
as a composite of the section as amended by both
Sub. H.B. 167 and Am. Sub. S.B. 259 of the 121st General Assembly, with the
new language of
neither of the acts shown in capital letters. This is in
recognition of the principle stated in division (B) of section
1.52 of the Revised Code that such amendments are to be
harmonized where not substantively irreconcilable and constitutes
a legislative finding that such is the resulting version in
effect prior to the effective date of this act.
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