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S. B. No. 129As IntroducedAs Introduced
124th General Assembly | Regular Session | 2001-2002 |
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SENATOR Nein
A BILL
To amend sections 1514.02, 1751.38, 2927.27,
3901.021, 3901.51, 3901.62, 3903.81, 3905.012,
3905.09, 3905.11, 3905.12, 3905.13, 3905.14,
3905.181, 3905.24, 3905.25, 3905.26, 3905.27,
3905.28, 3905.29, 3905.30, 3905.31, 3905.36,
3905.41, 3905.47, 3905.481, 3905.482, 3905.483,
3905.484, 3905.486, 3905.49, 3905.491, 3905.50,
3905.52, 3905.55, 3905.72, 3905.83, 3905.84,
3905.841, 3905.85, 3905.851, 3905.86, 3905.861,
3905.862, 3905.87, 3905.88, 3905.89, 3905.90,
3905.91, 3905.92, 3905.921, 3905.93, 3905.931,
3905.932, 3905.933, 3905.934, 3905.94, 3905.941,
3905.99, 3907.19, 3909.06, 3911.011, 3923.121,
3929.30, 3931.101, 3931.11, 3953.21, 3953.23,
3957.14, 3960.11, and 5703.052; to amend, for the
purpose of adopting new section numbers as
indicated in parentheses, sections
3905.012(3905.16), 3905.09(3901.78),
3905.11(3901.781), 3905.12(3901.782),
3905.13(3901.783), 3905.14(3901.784),
3905.181(3905.182), 3905.24(3901.74),
3905.25(3901.75), 3905.26(3905.40),
3905.27(3905.41), 3905.28(3901.76),
3905.29(3901.77), 3905.41(3901.86),
3905.47(3905.49), 3905.49(3905.14),
3905.491(3905.15), and 3905.52(3905.401); to enact
new sections 3905.01, 3905.02, 3905.03, 3905.04,
3905.06, 3905.07, 3905.08, 3905.09, 3905.12,
3905.18, 3905.181, 3905.20, 3905.21, 3905.22,
3905.24, 3905.26, and 3905.28 and sections
3905.041, 3905.05, 3905.061, 3905.071, 3905.072,
3905.10, 3905.211, and 3905.212; and to repeal
sections 3905.01, 3905.011, 3905.013, 3905.02,
3905.03, 3905.04, 3905.06, 3905.07, 3905.08,
3905.15, 3905.16, 3905.17, 3905.18, 3905.19,
3905.20, 3905.21, 3905.22, 3905.23, 3905.32,
3905.35, 3905.40, 3905.48, 3905.492, 3905.51, and
3905.54 of the Revised Code to adopt the Insurance
Producer's Licensing Act.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 1514.02, 1751.38, 2927.27, 3901.021,
3901.51, 3901.62, 3903.81, 3905.012, 3905.09, 3905.11, 3905.12,
3905.13, 3905.14, 3905.181, 3905.24, 3905.25, 3905.26, 3905.27,
3905.28, 3905.29, 3905.30, 3905.31, 3905.36, 3905.41, 3905.47,
3905.481, 3905.482, 3905.483, 3905.484, 3905.486, 3905.49,
3905.491, 3905.50, 3905.52, 3905.55, 3905.72, 3905.83, 3905.84,
3905.841, 3905.85, 3905.851, 3905.86, 3905.861, 3905.862, 3905.87,
3905.88, 3905.89, 3905.90, 3905.91, 3905.92, 3905.921, 3905.93,
3905.931, 3905.932, 3905.933, 3905.934, 3905.94, 3905.941,
3905.99, 3907.19, 3909.06, 3911.011, 3923.121, 3929.30, 3931.101,
3931.11, 3953.21, 3953.23, 3957.14, 3960.11, and 5703.052 be
amended; sections 3905.012(3905.16), 3905.09(3901.78),
3905.11(3901.781), 3905.12(3901.782), 3905.13(3901.783),
3905.14(3901.784), 3905.181(3905.182), 3905.24(3901.74),
3905.25(3901.75), 3905.26(3905.40), 3905.27(3905.41),
3905.28(3901.76), 3905.29(3901.77), 3905.41(3901.86),
3905.47(3905.49), 3905.49(3905.14), 3905.491(3905.15), and
3905.52(3905.401) be amended for the purpose of adopting new
section numbers as indicated in parentheses; and new sections
3905.01, 3905.02, 3905.03, 3905.04, 3905.06, 3905.07, 3905.08,
3905.09, 3905.12, 3905.18, 3905.181, 3905.20, 3905.21, 3905.22,
3905.24, 3905.26, and 3905.28 and sections 3905.041, 3905.05,
3905.061, 3905.071, 3905.072, 3905.10, 3905.211, and 3905.212 of
the Revised Code be enacted to read as follows:
Sec. 1514.02. (A) After the dates the chief of the division
of mineral resources management
prescribes by
rule pursuant to
section 1514.08 of the Revised Code, but not
later than July 1,
1977, nor earlier than July 1, 1975, no
operator shall engage in
surface mining or conduct a surface
mining operation without a
permit issued by the chief. An application for a permit shall be upon the form that the
chief prescribes and provides and shall contain all of the
following: (1) The name and address of the applicant, of all partners
if the applicant is a partnership, or of all officers and
directors if the applicant is a corporation, and any other person
who has a right to control or in fact controls the management of
the applicant or the selection of officers, directors, or
managers
of the applicant; (2) A list of the minerals and coal, if any coal, sought
to
be extracted, an estimate of the annual production rates for
each
mineral and coal, and a description of the land upon which
the
applicant proposes to engage in a surface mining operation,
which
description shall set forth the name of the counties,
townships,
and municipal corporations, if any, in which the land
is located;
the location of its boundaries; and a description of
the land of
sufficient certainty that it may be located and
distinguished from
other lands; (3) An estimate of the number of acres of land that will
comprise the total area of land to be affected and an estimate of
the number of acres of land to be affected during the first year
of operation under the permit; (4) The name and address of the owner of surface rights in
the land upon which the applicant proposes to engage in surface
mining; (5) A copy of the deed, lease, or other instrument that
authorizes entry upon the land by the applicant or the
applicant's
agents
if surface rights in the land are not owned by the
applicant; (6) A statement of whether any surface mining permits or
coal mining and reclamation permits are now held by the applicant
in this state and, if so, the numbers of the permits; (7) A statement of whether the applicant, any partner if
the
applicant is a partnership, any officer or director if the
applicant is a corporation, or any other person who has a right
to
control or in fact controls the management of the applicant or
the
selection of officers, directors, or managers of the
applicant has
ever had a surface mining permit or coal mining and
reclamation
permit issued by this or any other state suspended or
revoked or
has ever forfeited a surface mining or coal mining and
reclamation
bond or cash, an irrevocable letter of credit, or a security
deposited in lieu of a bond; (8) A report of the results of test borings that the
operator has conducted on the area or otherwise has readily
available, including, to the extent that the information is
readily available to the operator, the nature and depth of
overburden and material underlying each mineral or coal deposit,
and the thickness and extent of each mineral or coal deposit.
All
information relating to test boring results submitted to the
chief
pursuant to this section shall be kept confidential and not
made a
matter of public record, except that the information
may be
disclosed by the chief in any legal action in which the
truthfulness of the information is material. (9) A complete plan for mining and reclamation of the area
to be affected, which shall include a statement of the intended
future uses of the area and show the approximate sequence in
which
mining and reclamation measures are to occur, the
approximate
intervals following mining during which the
reclamation of all
various parts of the area affected will be
completed, and the
measures the operator will perform to prevent
damage to adjoining
property and to achieve all of the following
general performance
standards for mining and reclamation: (a) Prepare the site adequately for its intended future
uses
upon completion of mining; (b) Where a plan of zoning or other comprehensive plan has
been adopted that governs land uses or the construction of
public
improvements and utilities for an area that includes the
area
sought to be mined, ensure that future land uses within the
site
will not conflict with the plan; (c) Grade, contour, or terrace final slopes, wherever
needed, sufficient to achieve soil stability and control
landslides, erosion, and sedimentation. Highwalls will be
permitted if they are compatible with the future uses specified
in
the plan and measures will be taken to ensure public safety.
Where ponds, impoundments, or other resulting bodies of water are
intended for recreational use, establish banks and slopes that
will ensure safe access to those bodies of water. Where such
bodies of water are not intended for recreation, include measures
to ensure public safety, but access need not be provided. (d) Resoil the area of land affected, wherever needed,
with
topsoil or suitable subsoil, fertilizer, lime, or soil
amendments,
as appropriate, in sufficient quantity and depth to
raise and
maintain a diverse growth of vegetation adequate to
bind the soil
and control soil erosion and sedimentation; (e) Establish a diverse vegetative cover of grass and
legumes or trees, grasses, and legumes capable of
self-regeneration and plant succession wherever required by the
plan; (f) Remove or bury any metal, lumber, equipment, or other
refuse resulting from mining, and remove or bury any unwanted or
useless structures; (g) Reestablish boundary, section corner, government, and
other survey monuments that were removed by the operator; (h) During mining and reclamation, ensure that
contamination, resulting from mining, of underground water
supplies is prevented. Upon completion of reclamation, ensure
that any lake or pond located within the site boundaries is free
of substances resulting from mining in amounts or concentrations
that are harmful to persons, fish, waterfowl, or other beneficial
species of aquatic life. (i) During mining and reclamation, control drainage so as
to
prevent the causing of flooding, landslides, and flood hazards
to
adjoining lands resulting from the mining operation. Leave
any
ponds in such condition as to avoid their constituting a
hazard to
adjoining lands. (j) Ensure that mining and reclamation are carried out in
the sequence and manner set forth in the plan and that
reclamation
measures are performed in a timely manner. All
reclamation of an
area of land affected shall be completed no
later than three years
following the mining of the area unless
the operator makes a
showing satisfactory to the chief that the
future use of the area
requires a longer period for completing
reclamation. (k) During mining, store topsoil or fill in quantities
sufficient to complete the backfilling, grading, contouring,
terracing, and resoiling that is specified in the plan.
Stabilize
the slopes of and plant each spoil bank to control soil
erosion
and sedimentation wherever substantial damage to
adjoining
property might occur. (l) During mining, promptly remove, store, or cover any
coal, pyritic shale, or other acid producing materials in a
manner
that will minimize acid drainage and the accumulation of
acid
water; (m) During mining, detonate explosives in a manner that
will
prevent damage to adjoining property. (10) For any applicant who intends to extract less than
ten
thousand tons of minerals per year and no incidental coal, a
current tax map, in triplicate and notarized, and the appropriate
United States geological survey seven and one-half minute
topographic map. Each copy shall bear the applicant's name and
shall identify the area of land to be affected corresponding to
the application. (11) For any applicant who intends to extract ten thousand
tons of minerals or more per year or who intends to extract any
incidental coal irrespective of the tonnage of minerals intended
to be mined, a map, in triplicate, on a scale of not more than
four hundred feet to the inch, or three copies of an enlarged
United States geological survey topographic map on a scale of not
more than four hundred feet to the inch. The map shall comply with all of the following: (a) Be prepared and certified by a professional
engineer or
surveyor registered under Chapter 4733. of the Revised Code; (b) Identify the area of land to be affected corresponding
to the application; (c) Show the probable limits of subjacent and adjacent
deep,
strip, or surface mining operations, whether active,
inactive, or
mined out; (d) Show the boundaries of the area of land to be affected
during the period of the permit and the area of land estimated to
be affected during the first year of operation, and name the
surface
and mineral owners of record of the area and the owners of
record of adjoining surface properties; (e) Show the names and locations of all streams, creeks,
or
other bodies of water, roads, railroads, utility lines,
buildings,
cemeteries, and oil and gas wells on the area of land
to be
affected and within five hundred feet of the perimeter of
the
area; (f) Show the counties, municipal corporations, townships,
and sections in which the area of land to be affected is located; (g) Show the drainage plan on, above, below, and away from
the area of land to be affected, indicating the directional flow
of water, constructed drainways, natural waterways used for
drainage, and the streams or tributaries receiving or to receive
this discharge; (h) Show the location of available test boring holes that
the operator has conducted on the area of land to be affected or
otherwise has readily available; (i) Show the date on which the map was prepared, the north
direction and the quadrangle sketch, and the exact location of
the
operation; (j) Show the type, kind, location, and references of all
existing boundary, section corner, government, and other survey
monuments within the area to be affected and within five hundred
feet of the perimeter of the area. The certification of the maps shall read: "I, the
undersigned, hereby certify that this map is correct, and shows
to
the best of my knowledge and belief all of the information
required by the surface mining laws of the state." The
certification shall be signed and attested before a notary
public.
The chief may reject any map as incomplete if its
accuracy is not
so certified and attested. (12) A certificate of public liability insurance issued by
an insurance company authorized to do business in this state or
obtained pursuant to sections 3905.30 to
3905.35
3905.34 of the
Revised
Code covering all surface mining operations of the
applicant in
this state and affording bodily injury and property
damage
protection in amounts not less than the following: (a) One hundred thousand dollars for all damages because
of
bodily injury sustained by one person as the result of any one
occurrence, and three hundred thousand dollars for all damages
because of bodily injury sustained by two or more persons as the
result of any one occurrence; (b) One hundred thousand dollars for all claims arising
out
of damage to property as the result of any one occurrence,
with an
aggregate limit of three hundred thousand dollars for all
property
damage to which the policy applies. (B) No permit application or amendment shall be approved
by
the chief if the chief finds that the reclamation
described in the
application will not be performed in full compliance with this
chapter or that there is not reasonable cause to believe that
reclamation as required by this chapter will be accomplished. The chief shall issue an order denying an application for
an
operating permit or an amendment if the chief determines
that the
measures set forth in the plan are likely to be inadequate to
prevent damage to adjoining property or to achieve one or more of
the performance standards required in division (A)(9) of this
section. No permit application or amendment shall be approved to
surface mine land adjacent to a public road in violation of
section 1563.11 of the Revised Code. To ensure adequate lateral support, no permit application
or
amendment shall be approved to engage in surface mining on
land
that is closer than fifty feet of horizontal distance to any
adjacent land or waters in which the operator making application
does not own the surface or mineral rights unless the owners of
the surface and mineral rights in and under the adjacent land or
waters consent in writing to surface mining closer than fifty
feet
of horizontal distance. The consent, or a certified copy
thereof,
shall be attached to the application as a part of the
permanent
record of the application for a surface mining permit. The chief shall issue an order granting a permit upon the
chief's
approval of an application, as required by this section,
filing of the performance bond required
by section 1514.04 of the
Revised Code, and payment of a permit
fee in the amount of two
hundred fifty dollars and an acreage fee
in the amount of thirty
dollars multiplied by the number of acres
estimated in the
application that will comprise the area of land
to be affected
within the first year of operation under the
permit, but which
acreage fee shall not exceed one thousand
dollars per year. The chief may issue an order denying a permit if the chief
finds
that the applicant, any partner if the applicant is a
partnership, any officer or director if the applicant is a
corporation, or any other person who has a right to control or in
fact controls the management of the applicant or the selection of
officers, directors, or managers of the applicant has
substantially or materially failed to comply or continues to fail
to comply with this chapter, which failure may consist of one or
more violations thereof, a rule adopted thereunder, or an order
of
the chief or failure to perform reclamation as required by
this
chapter. The chief may deny or revoke the permit of any
person
who so violates or fails to comply or who purposely
misrepresents
or omits any material fact in the application for
the permit or an
amendment to a permit. If the chief denies the permit, the chief shall state the
reasons
for denial in the order denying the permit. Each permit shall be issued upon condition that the
operator
will comply with this chapter and
perform the measures set forth
in the operator's plan of
mining and
reclamation in a timely
manner and upon the right of the chief,
mineral resources
inspectors, or other authorized
representatives of the
chief to
enter upon the premises of the operator at reasonable
times for
the purposes of determining whether or not there is
compliance
with this chapter. (C) If the chief approves the application, the order
granting the permit shall authorize the person to whom the permit
is issued to engage as the operator of a surface mining operation
upon the land described in the permit during a period that shall
expire ten years after the date of issuance of the permit, or
upon
the date when the chief, after inspection, orders the
release of
any remaining performance bond deposited to
assure satisfactory
performance of the reclamation measures
required pursuant to this
chapter, whichever occurs earlier. (D) Before an operator engages in a surface mining
operation
on land not described in the operator's permit,
but that is
contiguous to the land described in the operator's permit,
the
operator shall file
with the chief an application for an amendment
to the
operator's permit.
Before approving an amendment, the
chief shall require the
information, maps, fees, and performance
bond as
required for an original application under this section
and
shall apply the same prohibitions and restrictions applicable
to
land described in an original application for a permit. If the
chief disapproves the amendment, the chief shall state the
reasons
for
disapproval in the order disapproving the amendment. Upon the
approval of an amendment by the chief, the operator shall be
authorized to engage in surface mining on the land described in
the operator's original permit plus the land described in
the
amendment
until the date when the permit expires, or when the
chief, after
inspection, orders the release of any remaining
performance bond
deposited to assure satisfactory performance of
the
reclamation measures required pursuant to this chapter,
whichever
occurs earlier. (E) An operator, at any time and upon application therefor
and approval by the chief, may amend the plan of mining and
reclamation filed with the application for a permit in order to
change the reclamation measures to be performed, modify the
interval after mining within which reclamation measures will be
performed, change the sequence in which mining or reclamation
will
occur at specific locations within the area affected, mine
acreage
previously mined or reclaimed, or for any other purpose,
provided
that the plan, as amended, includes measures that the
chief
determines will be adequate to prevent damage to adjoining
property and to achieve the performance standards set forth in
division (A)(9) of this section. The chief may propose one or more amendments to the plan in
writing, within ninety days after the fifth anniversary of the
date of issuance of the permit and upon a finding of any of the
following conditions after a complete review of the plan and
inspection of the area of land affected, and the plan shall be so
amended upon written concurrence in the findings and approval of
the amendments by the operator: (1) An alternate measure, in lieu of one previously
approved
in the plan, will more economically or effectively
achieve one or
more of the performance standards. (2) Developments in reclamation technology make an
alternate
measure to achieve one or more of the performance
standards more
economical, feasible, practical, or effective. (3) Changes in the use or development of adjoining lands
require changes in the intended future uses of the area of land
affected in order to prevent damage to adjoining property. (F) The chief shall issue an order granting or denying an
operating permit or amendment to a permit or approving or denying
an amendment to the operator's plan of mining and reclamation
within ninety days after the filing of an application therefor.
If the chief fails to act within that period with respect to a
surface mining operation that existed prior to the initial date by
which the chief requires a permit to be obtained, the operator
may
continue the operation until the chief issues an order
denying a
permit for the operation, and if the operator elects to
appeal the
order pursuant to section 1513.13 of the Revised
Code, until the
reclamation commission affirms
the order of
the chief denying the
permit, and if the operator elects to
appeal the order of the
commission pursuant to section
1513.14 of the
Revised Code, until
the court of common pleas affirms the order.
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 3905.02 or 3905.18
as insurance producers in
accordance with Chapter 3905. of the Revised Code. (C)
Sections 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
Chapter 3905. 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
insurance producers.
Sec. 2927.27. (A) No person, other than a law enforcement
officer,
shall apprehend, detain, or arrest a principal on bond,
wherever issued, unless that person meets all of the following
criteria: (1) The person is any of the following: (a) Qualified, licensed, and appointed as a surety bail bond
agent
producer under sections 3905.83 to 3905.95 of the Revised
Code; (b) Licensed as a surety bail bond
agent
producer by the
state where
the
bond was written; (c) Licensed as a private investigator under
chapter
Chapter
4749. of
the Revised Code; (d) Licensed as a private investigator by the state where the
bond was written; (e) An off-duty peace officer, as defined in section 2921.51
of
the Revised Code.
(2) The person, prior to apprehending, detaining, or
arresting
the principal, has entered into a written contract with
the surety or with a
licensed surety bail bond
agent
producer
appointed by
the
surety, which contract sets forth the name of the
principal
who is
to be apprehended, detained, or arrested. For purposes of division (A)(2) of this section, "surety" has
the
same meaning as
in section 3905.83 of the Revised Code. (3) The person, prior to apprehending, detaining, or
arresting
the principal, has notified the local law enforcement
agency
having jurisdiction over the area in which such activities
will be
performed and has provided any form of identification or
other
information requested by the law enforcement agency. (B) No person shall represent the person's self to be a bail
enforcement agent or bounty hunter, or claim any similar title, in
this
state. (C)(1) Whoever violates this section is guilty of illegal
bail
bond
agent
producer practices.
(2) A violation of division (A) of this section is a
misdemeanor
of the first degree or, if the offender previously has
been convicted of or
pleaded guilty to two or more violations of
division (A) of this
section, a felony of the third degree.
(3) A violation of division (B) of this section is a
misdemeanor
of the first degree or, if the offender previously has
been convicted of or
pleaded guilty to two or more violations of
division (B) of this
section, a felony of the third degree.
Sec. 3901.021. Three-fourths of all appointment
and other
fees collected under
sections 3905.02, 3905.03, 3905.07, and
3905.18,
division (B) of section 3905.20 and division
(A)(6) of
section
3905.26
3905.40 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-fourth
shall 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. 3901.51. As used in sections 3901.51 to 3901.55 of
the
Revised Code: (A) "Clearing corporation" has the same meaning as in
section 1308.01 of the Revised Code, except that
with respect to
securities issued by institutions organized or
existing under the
laws of any foreign country or securities used
to meet the deposit
requirements pursuant to the laws of a
foreign country as a
condition of doing business in that country,
"clearing
corporation" includes a corporation that is organized
or existing
under the laws of any foreign country and is legally
qualified
under those laws to effect transactions in securities
by
computerized book-entry. (B) "Direct participant" means a bank, trust company, or
other entity that maintains an account in its name in a clearing
corporation and through which an insurance company participates
in
a clearing corporation. (C) "Federal reserve book-entry system" means the
computerized systems sponsored by the United States department of
the treasury and agencies and instrumentalities of the United
States for holding and transferring securities of the United
States government and agencies and instrumentalities in federal
reserve banks through banks that are members of the federal
reserve system or that otherwise have access to these
computerized
systems. (D) "Member bank" means a national or state bank or a
trust
company that is a member of the federal reserve system and
through
which an insurance company participates in the federal
reserve
book-entry system. (E) "Provisions of the insurance laws of this state" means
provisions of Title XXXIX of the Revised Code related to the
deposit of securities for the benefit and security of
policyholders, and includes, but is not limited to, sections
3901.18,
3901.74, 3901.75, 3901.86, 3903.73,
3905.24, 3905.25,
3905.41, 3907.07, 3909.03,
3909.09, 3909.17, 3913.01, 3913.04,
3919.13, 3919.36, 3919.37,
3919.41, 3925.07, 3927.02, 3927.06,
3929.01, 3929.07, 3929.08,
3929.09, 3929.10, 3929.11, 3941.30,
3941.31, 3941.32, 3941.33,
3941.34, 3941.42, 3953.06, 3953.11, and
3957.03 of the Revised Code. (F) "Securities" has the same meaning as in section 1308.01
of the Revised
Code.
Sec. 3901.62. (A) Except as provided in sections 3901.63
and 3901.64 of the
Revised Code, a domestic ceding insurer that is
authorized to do any insurance
business in this state may take
credit for any reinsurance ceded as either an
asset or a reduction
of liability only if one of the following applies: (1) The reinsurance is ceded to an assuming insurer that
is
authorized to do any insurance or reinsurance business in this
state. (2) The reinsurance is ceded to an assuming insurer that
is
not authorized to do any insurance or reinsurance business in this
state,
provided the reinsurance is ceded to a reinsurance pool or
other risk-sharing
entity in which participation is required by
law, rule, or regulation of the
jurisdiction in which the pool or
entity is located. (3) The reinsurance is ceded to an assuming insurer
that
maintains a trust fund in a qualified United States financial
institution, as defined in division (B)(2)
of section 3901.63 of
the Revised Code, for the payment of
the valid claims of its
United States policyholders and
ceding insurers, and their assigns
and successors in interest. (B) A trust maintained by an assuming insurer under division
(A)(3) of this section shall
meet the following requirements: (1) In the case of a single assuming
insurer, the trust
shall consist of a trusteed account
representing the assuming
insurer's liabilities attributable to
business underwritten in the
United States. A trusteed surplus of not less
than twenty million
dollars shall be maintained by the
assuming insurer. (2) In the case of a group of assuming
insurers, including
incorporated and individual unincorporated
underwriters, the trust
shall consist of a trusteed account
representing the group's
liabilities attributable to business
written in the United States.
A trusteed surplus shall be maintained by the
group, of which
surplus one hundred million dollars shall be held jointly for
the
benefit of the United States ceding insurers of any member of the
group.
The following requirements apply to the group of assuming
insurers: (a) The incorporated members of the
group shall not engage
in any business other than underwriting
as a member of the group,
and shall be subject to the same level
of solvency regulation and
control by the group's domiciliary
regulator as are the
unincorporated members. (b) The group shall make available
to the superintendent of
insurance an annual certification of
the solvency of each
underwriter in the group. The
certification shall be provided by
the group's domiciliary
regulator and its independent public
accountants. (3) In the case of a group of incorporated insurers
under
common administration with aggregate policyholders'
surplus of ten
billion dollars that has continuously transacted
an insurance
business outside the United States for at least three years
immediately prior to assuming reinsurance, the trust shall be in
an amount equal to the group's several liabilities attributable to
business
ceded by United States ceding insurers to any member of
the group pursuant to
reinsurance contracts issued in the name of
the group. A joint trusteed
surplus shall be maintained by the
group, of which surplus one hundred million
dollars shall be held
jointly for the benefit of United States ceding insurers
of any
member of the group as additional security for any such
liabilities.
The following requirements apply to the group of
incorporated insurers: (a) The group shall comply with all
filing requirements
contained in this section. (b) The books and records of the
group shall be subject to
examination by the superintendent in
the same manner as the books
and records of insurers are subject
to examination by the
superintendent in accordance with section
3901.07 of the Revised
Code. The group shall bear the
expenses of these examinations in
the manner provided by that
section. (c) Each member of the group shall
make available to the
superintendent an annual certification of
the member's solvency by
the member's domiciliary regulator and
an independent public
accountant. (C) A trust maintained by an assuming insurer under division
(A)(3) of this
section shall remain in effect for as long as the
assuming insurer has
outstanding obligations due under the
reinsurance agreements
subject to the trust. The trust shall be
in a form approved by
the superintendent and shall include the
following: (1) The trust instrument shall provide that contested
claims
are valid and enforceable upon the final order of any
court of
competent jurisdiction in the United States. (2) The trust shall vest legal title to its assets in the
trustees of the
trust for its United States policyholders and
ceding insurers, and their
assigns and successors in interest. (3) The trust, and the assuming insurer maintaining the
trust, shall allow the superintendent to conduct examinations in
the same manner as the superintendent conducts examinations of
insurers under section 3901.07 of the Revised Code. (D) No later than the last day of February of each year, the
trustees of a
trust maintained by an assuming insurer under
division (A)(3) of this section
shall provide the superintendent
with a written report setting forth the
balance of the trust and
listing the trust's investments as of the preceding
thirty-first
day of December. The trustees shall certify the date of the
termination of the trust, if termination of the trust is planned,
or shall
certify that the trust does not expire prior to the
following thirty-first day
of December. (E) To enable the superintendent to determine the
sufficiency of a trust
maintained by an assuming insurer under
division
(A)(3) of this section, the assuming insurer shall
annually report information
on the trust to the superintendent
that is substantially the same as that
information licensed
insurers are required to report under sections 3907.19,
3909.06,
and 3929.30 of the Revised Code on forms adopted under section
3905.29
3901.77 of the Revised Code. (F) An assuming insurer shall file a written
instrument
appointing an attorney as its agent in this state
upon whom all
service of process may be served. Service of
process upon this
agent shall bring the assuming insurer within the
jurisdiction of
the courts of this state as if served upon an
agent pursuant to
section 3927.03 of the Revised Code.
Sec. 3905.24
3901.74. When a life insurance company doing
business in this state
decides to discontinue its business, the
superintendent of insurance upon the
application of
such
the
company or association shall give notice, at its expense,
of such
intention at least once a week for six weeks in a newspaper
published
and of general circulation in the county in which
such
the company or its general
agency is located. After such
publication, the superintendent shall deliver
to
such
the company
or association its securities held by
him
the
superintendent, if
he
the superintendent is satisfied
on an exhibition of its books
and papers, and on an examination made by
himself
the
superintendent or by some competent, disinterested
person
appointed by
him
the superintendent, and upon
the oath of the
president or principal officer and the secretary or actuary of
such
the company, that all debts and liabilities due or to become
due upon any
contract or agreement made with any citizen or
resident of the United States
are paid and extinguished. The
superintendent may deliver to
such
the company or
association or
its assigns any portion of
such
the securities on being satisfied
that an equal proportion of the debts and liabilities due or to
become due
upon
any such contract or agreement have been
satisfied, if the amount of
securities retained by
him
the
superintendent is not less than
twice the amount of the remaining
liabilities.
Sec. 3905.25
3901.75. When any insurance company or
corporation other than life,
which
company or corporation has made
a deposit with the superintendent of insurance, intends to
discontinue its business in this state, the superintendent, upon
the
application of
such
the company or corporation, shall give
notice at its expense
of such intention at least once a week for
six weeks in three newspapers of
general circulation in the state. After such publication, the superintendent shall deliver to
such
the company or
association its securities held by
him
the
superintendent, if
he
the superintendent is satisfied by the
affidavits
of the principal officers of the company, and on an
examination made by
him
the superintendent or
by some competent,
disinterested person appointed by
him
the
superintendent if
he
the
superintendent deems it
necessary, that all liabilities and
obligations which
said
the deposit has been
made to secure have
been paid and extinguished. The superintendent may
deliver to
such
the company or its assigns, under like condition, any portion
of
such
the securities on being satisfied that an equal proportion
of
said
the
liabilities and obligations have been satisfied, if
the amount of securities
retained by
him
the superintendent is not
less than twice the
amount of the remaining liabilities
and
obligations.
Sec. 3905.28 3901.76. As used in this section, "securities"
means
the stocks, bonds, debentures, and other assets subject from
time
to time to valuation by the committee on valuation of
securities
of the national association of insurance commissioners. For the purpose of enabling the superintendent of insurance
to secure the analyses, reports, and information developed by the
committee on valuation of securities of the national association
of insurance commissioners and to pay for such information by
cooperating with other states in defraying the expenses of
such
the
committee in the investigation, analysis, and valuation of
securities and the determination of amortizability of bonds owned
by life insurance companies for the purpose of furnishing to the
several states on a uniform basis the information needed in the
supervision of insurance companies licensed to transact business
in the several states, there is hereby created in the state
treasury the security valuation expense fund. The superintendent may collect and disburse, in cooperation
with supervisory officials of other states, the moneys obtained
through assessments as provided in this section. All moneys
which
are paid into the fund shall be used only for the purpose
of this
section. The superintendent may contract with the committee to make
available to the department of insurance the analyses, reports,
and information developed by the committee and, after taking into
consideration similar payments
which
that may be made by other
states,
may make payment to
such
the committee to the extent
authorized by
this section, on account of the expenses of the
committee, from
the fund. The superintendent shall periodically obtain from the
committee a verified budget estimate of the receipts and of the
expenses to be incurred by the committee for a stated period, not
exceeding one year, with appropriate explanations of the
estimates
therein contained. If the superintendent is satisfied as to the reasonableness
of
such
the budget estimate,
he
the superintendent shall determine
the portion of the
moneys required by
such
the budget estimate, to
be assessed as
provided in this section, by deducting from
such
the budget estimate
or from the sum of two hundred fifty thousand
dollars, whichever
is less, any amounts received or receivable by
the committee from
states with laws that do not substantially
conform to the method
of assessment provided in this section and
applying to the
remainder the proportion
which
that the total
investments in
securities of domestic life insurers bear to the
total
investments in securities of life insurers domiciled in this
and
other states with laws that authorize and require assessments
on
substantially the same basis as provided in this section. The
superintendent shall thereafter, as soon as convenient, by notice
stating the method of computation thereof, assess the amount to
be
paid on account of such expenses, pro rata upon all domestic
life
insurers in the proportion
which
that the total investments in
securities of each domestic life insurer bear to the total
investments in securities of all domestic life insurers. The
total investments in securities of any life insurer for purposes
of this section shall be the total admitted value of the
securities reported as such in its annual statement last filed
prior to such assessment with the department or with the
supervisory officials of its state of domicile. Upon receipt of
such
the notice each domestic life insurance company shall within
thirty days thereafter pay the amount of the assessment to the
superintendent, who shall deposit the amount in the state
treasury
to the credit of the fund. The superintendent shall
make such
disbursements from the fund in amounts and at the times
determined
by the superintendent under
his
the superintendent's contract with
the
committee. The superintendent shall require annually, and at such
other
times as
he
the superintendent considers
it necessary or
advisable, a duly
certified audit of receipts and disbursements
and statement of
assets and liabilities, showing the details of
the financial
operations of the committee.
Sec. 3905.29
3901.77. (A) The superintendent of insurance
shall
adopt the forms, instructions, and manuals prescribed by the
national association of insurance commissioners, for the
preparation and filing of statutory financial statements and
other
financial information. However, the superintendent may by
rule
adopt modifications to
such
the prescribed forms, instructions,
and manuals as
he
the superintendent considers necessary. (B) For circumstances not addressed by the forms,
instructions, and manuals prescribed by the national association
of insurance commissioners, the superintendent may determine
accounting practices and methods for purposes of preparing
statutory financial statements and other financial information. (C) The superintendent shall furnish each domestic
insurance
company a printed copy of the forms for the filing of
statutory
financial statements and other financial information
required to
be made by it.
Sec. 3905.09
3901.78. Upon the filing of each of its annual
statements, or as soon
thereafter as practicable, the
superintendent of insurance shall issue to each
insurance company
or association authorized to do business in this state a
certificate that it has complied with the laws of this state.
Such
certificate of compliance shall also contain a statement of
the
amounts of the
paid-up capital stock, assets, liabilities,
income,
and expenditures of the
company or association for the
preceding
year, as shown by its annual
statement for that year.
The
superintendent shall issue to each
newly-applying company or
association
which he
that the
superintendent finds should be
authorized to
do business in this state, a certificate that it has
complied with the laws of
this state, which certificate shall
contain a statement of the amounts of its
paid-up capital stock,
assets, liabilities, income, and expenditures as shown
by a
financial statement submitted by it, under the oath of its
officers.
Sec. 3905.11
3901.781. Annually, and before the time of
making its
report to the superintendent of insurance as required
by section
3905.12
3901.782 of the Revised Code, each insurance
company and
association not incorporated under the laws of this
state shall
publish its certificate of compliance in every county
where it
has an agency, in a newspaper published and of general
circulation in such county. No newspaper shall be deemed a newspaper of general
circulation unless it has been established for at least one year,
is printed in the English language, and has a circulation in the
county in which it is published as follows: (A) In a county having at the last preceding federal
census
a population of not more than thirty thousand, a
circulation of
six hundred; (B) In a county having a population of over thirty
thousand
and not more than fifty thousand, a circulation of eight
hundred; (C) In a county having a population of over fifty thousand
and not more than one hundred thousand, a circulation of twelve
hundred; (D) In a county having a population of over one hundred
thousand and not more than one hundred fifty thousand, a
circulation of two thousand; (E) In counties having a population of more than one
hundred
fifty thousand, a circulation of three thousand. Before publication of any certificate of compliance, the
manager, editor, or proprietor of a newspaper shall certify under
oath on a prepared blank, furnished
him
the manager, editor, or
proprietor on application by the
superintendent
of insurance, the
information prescribed in this
section for determining whether it
is a newspaper of general
circulation, and if such affidavit shows
that the newspaper is
one of general circulation, the
superintendent shall deliver to
him
the manager, editor, or
proprietor a certificate that such
newspaper is one of general
circulation.
Sec. 3905.12
3901.782. On or before the first day of October
of each year, each
insurance company and association doing
business in this state, which
company or association is not
incorporated under the laws thereof, shall file with the
superintendent of
insurance, upon blanks prepared and upon
application furnished by
him
the superintendent, a
report in
writing under oath of its president and secretary showing the
counties in which publication of its certificate of authority to
do business
was made, the counties in which it had agencies at the
time of such
publication, and the names of the newspapers in which
the publication was
made, with a copy of the certificate so
published attached thereto.
Sec. 3905.13
3901.783. If any insurance company or
association mentioned in section
3905.12
3901.782 of the Revised
Code fails to comply with the laws relating to the
publication of
the certificate mentioned in
such
that section, the superintendent
of insurance shall suspend its authority to do business in any
county
where
such
in which the publication has not been made,
until
such
the publication is made, but if it
appears that
such
the publication has not been made in any county through mistake
or
oversight, such authority shall not be suspended in the county if
such
the
publication is made within a time designated by the
superintendent.
Sec. 3905.14
3901.784. Publication of a certificate of
compliance in a newspaper shall
not be approved by the
superintendent of insurance unless prior to
such
the
publication
he
the superintendent has certified that
such
the
newspaper is one
published and of
general circulation in the county, but if
publication has been made in any
such newspaper without
such
the
certification and a report filed as required by
section
3905.12
3901.782 of the Revised Code, and
such
the certificate of the
superintendent is procured within the time
he
the superintendent
designates, publication in
such
the
newspaper shall be approved.
The superintendent shall keep a book in which
shall be recorded
the names of the newspapers so certified as newspapers of
general
circulation, which book shall be open to inspection, and every
such
certificate of circulation shall remain in force until
revoked, provided that
the superintendent may demand further
certificates as to the circulation of
any such newspaper.
Sec. 3905.41
3901.86. (A) When the laws of any other state,
district, territory, or nation impose any taxes, fines,
penalties,
license fees, deposits of money, securities, or other
obligations
or prohibitions on insurance companies of this state
doing
business in
such
that state, district, territory, or nation, or
upon
their agents therein, the same obligations and prohibitions
shall
be imposed upon insurance companies of
such
the other state,
district,
or nation doing business in this state and upon their
agents. When the laws of any other state, district, territory, or
nation impose a requirement for countersignature and payment of a
fee or commission upon agents of this state for placing any
coverage in that state, district, territory, or nation, then the
same requirements of countersignature and fee or commission shall
be imposed upon agents of that state, district, territory, or
nation for placing any coverage in this state. (B) Beginning on
the effective date of this amendment
July
1, 1993,
twenty per cent of the amount that is collected under
division
(A)
of this section from foreign insurance companies that
sell
fire
insurance to residents of this state shall be paid into
the
state
fire marshal's fund created under section 3737.71 of the
Revised
Code. The director of commerce, with the approval of the
director
of budget and management, may increase the percentage
described in
this division so that it will yield an amount that
the director of
commerce determines necessary to assist in the
maintenance and
administration of the office of the fire marshal
and in defraying
the costs of operating the Ohio fire academy
established by
section 3737.33 of the Revised Code.
Sec. 3903.81. As used in sections 3903.81 to 3903.93 of
the
Revised Code: (A) "Adjusted RBC report" means an RBC report that has been
adjusted by the superintendent of insurance in accordance with
division (C) of
section 3903.82 of the Revised Code. (B) "Authorized control level RBC" means the number
determined under
the risk-based capital formula in accordance with
the RBC
instructions. (C) "Company action level RBC" means the product of 2.0
and
an insurer's authorized control level
RBC. (D) "Corrective order" means an order issued by the
superintendent of
insurance in accordance with division (B)(3) of
section 3903.84 of the Revised
Code specifying corrective actions
that the superintendent has determined are
required. (E) "Domestic insurer" means any insurance company organized
under Chapter
3907. or 3925. of the Revised Code. (F) "Foreign insurer" means any insurance company licensed
under section
3909.01 or
3927.01 of the Revised Code. (G) "Life or health insurer" means any insurance company
licensed under
section 3907.08 or 3909.01 of the Revised Code, or
a company possessing a
certificate of authority pursuant to
section 3929.01 of the Revised Code that
writes only accident and
health insurance. (H) "Mandatory control level RBC" means the product of .70
and an
insurer's authorized control level RBC. (I) "NAIC" means the national association of insurance
commissioners. (J) "Negative trend" means a negative trend over a period of
time for a life
or health insurer as determined in accordance with
the trend test calculation
included in the RBC instructions. (K) "Property and casualty insurer" means any insurance
company that has a
certificate of authority pursuant to section
3929.01 of the Revised Code.
"Property and casualty insurer" does
not include monoline mortgage guarantee
insurers, financial
guarantee insurers, or title insurers. (L) "RBC" means risk based capital. (M) "RBC" instructions" means the RBC report,
including
risk-based capital instructions, as adopted by the NAIC and as
amended by the NAIC from time to time in
accordance with the
procedures adopted by the
NAIC. However, no NAIC amendment to the
RBC
instructions shall become effective until the superintendent
has adopted by
rule the RBC instructions as so amended. "RBC
instructions"
shall also include any modifications adopted by the
superintendent, as the
superintendent considers to be necessary. (N) "RBC level" means an insurer's company action level
RBC,
regulatory action level RBC, authorized control level
RBC, or
mandatory control level RBC.
(O) "RBC plan" means a comprehensive financial plan
containing the
elements specified in division (B) of section
3903.83 of the Revised Code. (P) "Revised RBC plan" means an RBC plan rejected by the
superintendent of insurance and then revised by an insurer with or
without
incorporating the superintendent of insurance's
recommendation. (Q) "RBC report" means the report
required by section
3903.82 of the Revised Code. (R) "Regulatory action level RBC" means the product of 1.5
and an
insurer's authorized control level RBC. (S) "Total adjusted capital" means the sum of both of the
following: (1) An insurer's statutory capital and surplus as determined
in accordance
with the statutory accounting
applicable to the
annual statements prepared on a form adopted
under section
3905.29
3901.77 of the
Revised Code, as required to be filed by sections
3907.19, 3909.06, and
3929.30 of the Revised Code; (2) Such other items, if any, as the RBC instructions may
provide.
Sec. 3905.01. As used in this chapter:
(A) "Business entity" means a corporation, association,
partnership, limited liability company, limited liability
partnership, or other legal entity.
(B) "Home state" means the state or territory of the United
States, including the District of Columbia, in which an insurance
producer maintains the insurance producer's principal place of
residence or principal place of business and is licensed to act as
an insurance producer. (C) "Insurance" means any of the lines of authority set
forth in Chapter 1739., 1751., or 1761. or Title XXXIX of the
Revised Code, or as additionally determined by the superintendent
of insurance.
(D) "Insurance producer" or "producer" means any person
that, in order to sell, solicit, or negotiate insurance, is
required to be licensed under the laws of this state, including
limited lines producers and surplus lines brokers. Whenever
"insurance agent" is referred to in any statute or rule of this
state, the reference shall be considered to have the same meaning
as "insurance producer."
(E) "Insurer" has the same meaning as in section 3901.32 of
the Revised Code. (F) "License" means a document issued by the superintendent
that authorizes a person to act as an insurance producer for the
lines of authority specified in the document, but that does not
create any actual, apparent, or inherent authority in the holder
to represent or commit an insurer.
(G) "Limited line credit insurance" means credit life,
credit disability, credit property, credit unemployment,
involuntary unemployment, mortgage life, mortgage guaranty,
mortgage disability, guaranteed automobile protection insurance,
or any other form of insurance offered in connection with an
extension of credit that is limited to partially or wholly
extinguishing that credit obligation and that is designated by the
superintendent as limited line credit insurance.
(H) "Limited line credit insurance producer" means a person
that sells, solicits, or negotiates one or more forms of limited
line credit insurance to individuals through a master, corporate,
group, or individual policy.
(I) "Limited lines insurance" means those lines of
authority set forth in division (B) of section 3905.06 of the
Revised Code or in rules adopted by the superintendent, or any
lines of authority the superintendent considers necessary to
recognize for purposes of complying with division (B) of section
3905.072 of the Revised Code.
(J) "Limited lines insurance producer" means a person
authorized by the superintendent to sell, solicit, or negotiate
limited lines insurance.
(K) "NAIC" means the national association of insurance
commissioners.
(L) "Negotiate" means to confer directly with, or offer
advice directly to, a purchaser or prospective purchaser of a
particular contract of insurance with respect to the substantive
benefits, terms, or conditions of the contract, provided the
person that is conferring or offering advice either sells
insurance or obtains insurance from insurers for purchasers. (M) "Person" means an individual or a business entity. (N) "Sell" means to exchange a contract of insurance by any
means, for money or its equivalent, on behalf of an insurer.
(O) "Solicit" means to attempt to sell insurance, or to ask
or urge a person to apply for a particular kind of insurance from
a particular insurer.
(P) "Superintendent" or "superintendent of insurance" means
the superintendent of insurance of this state.
(Q) "Terminate" means to cancel the relationship between an
insurance producer and the insurer or to terminate an insurance
producer's authority to transact insurance.
(R) "Uniform application" means the NAIC uniform application
for resident and nonresident producer licensing, as amended by the
NAIC from time to time.
(S) "Uniform business entity application" means the NAIC
uniform business entity application for resident and nonresident
business entities, as amended by the NAIC from time to time.
Sec. 3905.02. No person shall sell, solicit, or negotiate
insurance in this state unless the person is licensed for that
line of authority in accordance with this chapter.
Sec. 3905.03. Section 3905.02 of the Revised Code does not
apply to any of the following:
(A) Any insurer. For purposes of this division, "insurer"
does not include an insurer's officers, directors, employees,
subsidiaries, or affiliates.
(B) Any officer, director, or employee of an insurer or of
an insurance producer, provided the officer, director, or employee
does not receive any commission on policies written or sold to
insure risks residing, located, or to be performed in this state
and any of the following applies:
(1) The activities of the officer, director, or employee
are executive, administrative, managerial, clerical, or any
combination thereof, and are only indirectly related to the sale,
solicitation, or negotiation of insurance;
(2) The function of the officer, director, or employee
relates to underwriting, loss control, inspection, or the
processing, adjusting, investigation, or settling of a claim on a
contract of insurance;
(3) The officer, director, or employee is acting in the
capacity of a special agent or agency supervisor, provided the
activities of the officer, director, or employee are limited to
providing technical advice and assistance to licensed insurance
producers and do not include the sale, solicitation, or
negotiation of insurance.
(C) Any person who secures and furnishes information for
purposes of group life insurance, group property and casualty
insurance, group annuities, or group or blanket sickness and
accident insurance, or for purposes of enrolling individuals under
plans, issuing certificates under plans, or otherwise assisting in
administering plans, or who performs administrative services
related to mass marketed property and casualty insurance, provided
that no commission is paid to the person for any of the services
described in this division;
(D) Any employer or association, any officer, director, or
employee of an employer or association, or any trustee of an
employee trust plan, to the extent that any such person is engaged
in the administration or operation of an employee benefits program
for the employer's or association's own employees or for the
employees of its subsidiaries or affiliates, if both of the
following apply:
(1) The employee benefits program involves the use of
insurance contracts issued by an insurer.
(2) The employer, association, officer, director, employee,
or trustee is not in any manner compensated, either directly or
indirectly, by the insurer issuing the insurance contracts.
(E) Any employee of an insurer or of an organization
employed by an insurer, if the employee is engaged in the
inspection, rating, or classification of risks or in the
supervision of the training of insurance producers, and is not
individually engaged in the sale, solicitation, or negotiation of
insurance;
(F) Any person whose activities in this state are limited
to advertising through communications in printed publications or
in the electronic mass media, the distribution of which is not
limited to residents of this state, if the person does not sell,
solicit, or negotiate insurance covering risks residing, located,
or to be performed in this state;
(G) Any person who is not a resident of this state and
who sells, solicits, or negotiates a contract of insurance
covering commercial property and casualty risks located in more
than one state, if the person is licensed as an insurance producer
to sell, solicit, or negotiate that insurance contract in the
state where the insured maintains its principal place of business
and the contract insures risks located in that state;
(H) Any salaried full-time employee who counsels or advises
the employee's employer with respect to the insurance interests of
the employer or of the employer's subsidiaries or business
affiliates, if the employer does not sell or solicit insurance or
receive a commission.
Sec. 3905.04. (A) Except as otherwise provided in section
3905.041 of the Revised Code, a resident individual applying for
an insurance producer license for any of the lines of authority
described in division (B) of this section shall take a written
examination. The examination shall test the knowledge of the
individual with respect to the lines of authority for which
application is made, the duties and responsibilities of an
insurance producer, and the insurance laws of this state. Before
admission to the examination, each individual shall pay the
nonrefundable fee required under division (D) of section 3905.40
of the Revised Code.
(B) The examination described in division (A) of this
section shall be required for the following lines of authority:
(1) Any of the lines of authority set forth in divisions
(B)(1) to (6) of section 3905.06 of the Revised Code;
(3) Surety bail bonds as provided in sections 3905.83 to
3905.95 of the Revised Code;
(4) Any other line of authority designated by the
superintendent of insurance.
(C) An individual shall not be permitted to take the
examination described in division (A) of this section unless one
or more of the following applies: (1) The individual has earned a bachelor's or associate's
degree in insurance in an accredited institution.
(2) The individual has completed, for each line of
authority for which the individual has applied, twenty hours of
study in a program of insurance education approved by the
superintendent.
(3) The individual has a valid and current designation as a
chartered property and casualty underwriter and has applied for
any of the following lines of authority:
(4) The individual has a valid and current designation as a
chartered life underwriter and has applied for any of the
following liens of authority:
(c) Variable life and variable annuity products.
(D) An individual who fails to appear for an examination as
scheduled, or fails to pass an examination, may reapply for the
examination if the individual pays the required fee and submits
any necessary forms prior to being rescheduled for the
examination.
(E)(1) The superintendent shall, in accordance with Chapter
119. of the Revised Code, adopt any rule necessary for the
implementation of this section. (2) The superintendent shall make any necessary
arrangements, including contracting with an outside testing
service, for the administration of the examinations and the
collection of the fees required by this section.
Sec. 3905.041. (A) An individual who applies for an
insurance producer license in this state shall not be required
under section 3905.04 of the Revised Code to complete any
prelicensing education or to pass a written examination if either
of the following applies: (1) The individual is currently licensed for the same line
or lines of authority in another state and the producer database
maintained by the NAIC or its affiliates or subsidiaries indicates
that the individual is licensed and in good standing for the line
or lines of authority requested.
(2) The individual was previously licensed for the same
line or lines of authority in another state, the person's
application for an insurance producer license in this state is
received within ninety days after the cancellation of the person's
previous license, and either of the following requirements are
met: (a) The prior home state issues a certification stating
that, at the time of license cancellation, the person was in good
standing in that state.
(b) The producer database maintained by the NAIC or its
affiliates or subsidiaries indicates that the person was licensed
and in good standing in that state for the line or lines of
authority requested.
(B) Unless otherwise determined by the superintendent of
insurance by rule, a person that applies for an insurance producer
license in this state shall not be required under section 3905.04
of the Revised Code to complete any prelicensing education or to
pass a written examination if both of the following applies:
(1) The person was licensed as an insurance producer in
another state.
(2) The person applies for a resident insurance producer
license for the same line or lines of authority held in the prior
state within ninety days after establishing legal residence in
this state. (C) An individual who applies for a temporary insurance
producer license in this state shall not be required under section
3905.04 of the Revised Code to pass a written examination. (D) The superintendent may exempt any limited lines
insurance from the examination requirement of section 3905.04 of
the Revised Code.
Sec. 3905.05. (A) A natural person shall apply for a
resident insurance producer license by submitting to the
superintendent of insurance the uniform application or any other
application prescribed by the superintendent, any additional
information required by the superintendent, and a declaration made
under penalty of refusal, suspension, or revocation of the
license, that the statements made in the application are true,
correct, and complete to the best of the applicant's knowledge and
belief.
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. The superintendent
of insurance, in the superintendent's discretion, may designate
other governmental agencies or other sources to conduct the
criminal records check. If the superintendent of insurance or the
superintendent's designee fails to receive a response to a
requested criminal records check, or if the applicant fails to
request the criminal records check, the superintendent may refuse
to issue a license under this section. The applicant shall pay
any fee required for conducting the criminal records check.
(B) A business entity acting as an insurance producer
shall apply for a resident insurance producer license by
submitting to the superintendent of insurance the uniform business
entity application or any other application prescribed by the
superintendent. (C) The superintendent may require an applicant to submit
any document reasonably necessary to verify the information
contained in an application.
Sec. 3905.06. (A)(1) The superintendent of insurance shall
issue an insurance producer license to an applicant who is a
resident individual if the superintendent finds all of the
following:
(a) The applicant is at least eighteen years of age.
(b) The applicant has not committed any act that is a
ground for the denial, suspension, or revocation of a license
under section 3905.14 of the Revised Code.
(c) If required under section 3905.04 of the Revised Code,
the applicant has completed a prelicensing course of study for
each line of authority for which the person has applied.
(d) If required under section 3905.04 of the Revised Code,
the applicant has passed an examination for each line of authority
for which the person has applied.
(2) The superintendent shall issue an insurance producer
license to an applicant that is a resident business entity if the
superintendent finds both of the following:
(a) The applicant has designated a licensed insurance
producer who will be responsible for the applicant's compliance
with the insurance laws of this state.
(b) The applicant has not committed any act that is a
ground for the denial, suspension, or revocation of a license
under section 3905.14 of the Revised Code.
(B) An insurance producer license issued pursuant to
division (A) of this section shall state the licensee's name, the
license number, the date of issuance, the date the license
expires, the line or lines of authority for which the licensee is
qualified, and any other information the superintendent deems
necessary.
A licensee may be qualified for any of the following lines
of authority: (1) Life, which is insurance coverage on human lives,
including benefits of endowment and annuities, and may include
benefits in the event of death or dismemberment by accident and
benefits for disability income; (2) Accident and health, which is insurance coverage for
sickness, bodily injury, or accidental death, and may include
benefits for disability income;
(3) Property, which is insurance coverage for the direct or
consequential loss or damage to property of any kind;
(4) Casualty, which is insurance coverage against legal
disability, including coverage for death, injury, or disability or
damage to real or personal property;
(5) Variable life and variable annuity products, which is
insurance coverage provided under variable life insurance
contracts and variable annuities;
(6) Personal lines, which is property and casualty
insurance coverage sold to individuals and families for
noncommercial purposes; (7) Credit, which is limited line credit insurance; (8) Title, which is insurance coverage against loss or
damage suffered by reason of liens against, encumbrances upon,
defects in, or the unmarketability of, real property;
(9) Surety bail bond, which is the authority set forth in
sections 3905.83 to 3905.95 of the Revised Code; (10) Any other line of authority designated by the
superintendent.
(C) Unless revoked or suspended by the superintendent, or
surrendered by the licensee, an insurance producer license
continues in force for the life of the licensee, subject to
compliance with the continuing education requirements for resident
individual producers.
Sec. 3905.061. (A) If a person licensed as an insurance
producer under section 3905.06 of the Revised Code changes the
person's address within the state, the person shall, within thirty
days after making that change, file a change of address with the
superintendent of insurance. (B)(1) If a person licensed as an insurance producer under
section 3905.06 of the Revised Code changes the person's state of
residence, the person shall, within thirty days after making that
change, file a change of address with the superintendent and
provide the superintendent with certification from the new state
of residence.
(2) If an insurance producer complies with division (B)(1)
of this section, the producer's license shall be changed to that
of a nonresident license and no fee or license application shall
be required.
Sec. 3905.07. (A) The superintendent of insurance shall
issue a nonresident insurance producer license to an applicant
that is a nonresident person if the superintendent finds all of
the following:
(1) The applicant is currently licensed as a resident and
is in good standing in the applicant's home state.
(2) The applicant has submitted the request for licensure
prescribed by the superintendent. (3) The applicant has submitted or has had transmitted to
the superintendent the application for licensure that the
applicant submitted to the applicant's home state or a completed
uniform application or uniform business entity application, as
applicable. (4) The applicant has not committed any act that is a ground
for the denial, suspension, or revocation of a license under
section 3905.14 of the Revised Code.
(5) The applicant's home state issues nonresident insurance
producer licenses to residents of this state on the same basis as
set forth in division (A) of this section.
(B) The superintendent may verify the producer's licensing
status through the producer database maintained by the NAIC or its
affiliates or subsidiaries, or may request any other proof of good
standing.
Sec. 3905.071. (A) If a nonresident person licensed as a
nonresident insurance producer under section 3905.07 of the
Revised Code changes the person's state of residence, the person
shall, within thirty days after making that change, file a change
of address with the superintendent of insurance and provide the
superintendent with certification from the new state of residence. (B) If a nonresident insurance producer complies with
division (A) of this section, no fee or license application shall
be required.
Sec. 3905.072. (A)(1) Notwithstanding any other provision
of this chapter, the superintendent of insurance shall issue to a
nonresident person licensed as a surplus lines producer in the
person's home state a nonresident surplus lines producer license
in accordance with division (A) of section 3905.07 of the Revised
Code.
(2) Nothing in section 3905.07, other than division (A) of
that section, otherwise affects or supersedes any provision of
sections 3905.30 to 3905.34 of the Revised Code.
(B) Notwithstanding any other provision of this chapter, the
superintendent shall issue to a nonresident person licensed as a
limited line credit insurance producer or other type of limited
lines insurance producer in the person's home state a nonresident
limited lines insurance producer license in accordance with
division (A) of section 3905.07 of the Revised Code, with the same
scope of authority as the person has under the license issued by
the person's home state. However, the recognition of a limited
lines authority under this division shall not create any new line
of authority.
For purposes of this division, "limited lines insurance"
means any authority granted by the home state that is less than
the total authority provided in the associated major lines set
forth in divisions (B)(1) to (6) of section 3905.06 of the Revised
Code.
Sec. 3905.08. (A) The superintendent of insurance shall
waive all requirements under this chapter for a nonresident
insurance producer license, except the requirements set forth in
sections 3905.07 to 3905.072 of the Revised Code, for every
applicant that is currently licensed as a resident producer and is
in good standing in the applicant's home state, if the applicant's
home state awards nonresident producer licenses to residents of
this state on the same basis.
(B) A nonresident insurance producer's satisfaction of the
continuing education requirements for insurance producers of the
producer's home state shall constitute satisfaction of the
continuing education requirements for insurance producers of this
state.
Sec. 3905.09. (A) The superintendent of insurance may
issue a temporary insurance producer license to any of the
following persons, if the superintendent determines that the
license is necessary for the servicing of insurance business:
(1) The surviving spouse or court-appointed personal
representative of a licensed insurance producer who dies or
becomes mentally or physically disabled, to allow adequate time
for the sale of the insurance business owned by the producer or
for the recovery or return of the producer to the business, or to
provide for the training and licensing of new personnel to
operate
the producer's business;
(2) A member or employee of a business entity licensed as
an insurance producer, upon the death or disability of the sole or
remaining licensed insurance producer; (3) The designee of a licensed insurance producer entering
active service in the United States armed forces; (4) Any other person if the superintendent determines that
the public interest will best be served by the issuance of the
license. (B) A temporary license issued under division (A) of this
section shall remain in force for a period not to exceed one
hundred eighty days. However, a temporary license may not
continue in force under any of the circumstances described in
division (A) of this section after the owner of the business or
the owner's personal representative disposes of the business.
(C) The superintendent may, by order, limit the authority of
any temporary license in any way deemed necessary to protect
insureds and the public. The superintendent may also, by order,
rescind a temporary license if the interests of insureds or the
public are endangered.
(D) A temporary licensee shall be sponsored by a licensed
insurance producer or insurer, which sponsor shall be responsible
for all acts of the licensee. The superintendent may impose any
other requirement on temporary licensees that the superintendent
considers necessary to protect insureds and the public. (E) An applicant for a temporary license shall not be
required to pass an examination. (F) Chapter 119. of the Revised Code shall not apply to the
issuance, restriction, or rescission of a temporary license under
this section.
Sec. 3905.10. An insurance producer that intends to do
business in this state under any name other than the producer's
legal name shall notify the superintendent of insurance prior to
using the assumed name.
Sec. 3905.12. (A) The superintendent of insurance may
adopt rules in accordance with Chapter 119. of the Revised Code to
do the following:
(1) Establish procedures for the issuance and renewal of
insurance producer licenses;
(2) Provide for the issuance of limited authority licenses,
and establish any prelicensing education, examination, or
continuing education requirements the superintendent considers
appropriate for such a license.
(B) To assist the superintendent in carrying out the
superintendent's duties under this chapter, the superintendent may
contract with any nongovernmental entity, including the NAIC and
its affiliates or subsidiaries, to perform any ministerial
function related to insurance producer licensing, including the
collection of fees, that the superintendent and the entity
consider appropriate.
Sec. 3905.49
3905.14. (A) As used in
this section
sections
3905.14 to 3905.16 of the Revised Code: (1) "Insurer" has the same meaning as in section
3901.32 of
the Revised Code
Insurance producer" includes a limited lines
insurance producer, surety bail bond producer, and surplus line
broker. (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
insurance producer
or the
renewal of such a
license. (3) "Revocation" means the permanent termination of
all
authority to hold any license as an
agent
insurance producer in
this state. (4) "Surrender for cause" means the voluntary
termination of
all authority to hold any license
as an
agent
insurance producer
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
insurance producer
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 may
suspend, revoke, or refuse to
issue
or renew any license as an
agent, surety bail bond agent,
surplus line broker, or limited insurance
representative
producer,
assess a civil penalty, or
impose any other sanction
or sanctions
authorized
under this chapter, for one
or more of the following
reasons: (1)
Obtaining or attempting to obtain any license or
appointment through misrepresentation
Providing incorrect,
misleading, incomplete, or
fraud, including making
any materially
untrue
statement
information in
an application for a
license or
appointment
application; (2) Violating or
failing to comply with any
insurance law,
rule, subpoena, consent
agreement, or order of the superintendent
or of the insurance authority of another state; (3)
Misappropriating
Obtaining or attempting to obtain a
license through misrepresentation or fraud;
(4) Improperly withholding, misappropriating,
or
converting
to the person's own use
any
moneys belonging to
policyholders, prospective policyholders,
beneficiaries, insurance
companies, sureties, principals,
money or
others
property received
in the
course of
the person's
doing 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.
(5)
Knowingly
Intentionally misrepresenting the
terms,
benefits, value,
cost, or effective dates of
any actual or
proposed insurance
policy, contract,
or
bond
application for
insurance; (6)
Being
Having been convicted of a felony; (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
Having admitted to committing, or having
been found to have committed, any insurance unfair trade
act or
practice
under any
section of Title XXXIX of the
Revised Code or
any rule adopted
thereunder
insurance fraud;
(8) Using fraudulent, coercive, or dishonest practices, or
demonstrating incompetence, untrustworthiness, or financial
irresponsibility, in the conduct of business in this state or
elsewhere; (9) Having an insurance
producer license, or its equivalent,
denied,
suspended, or revoked in
any
other state, province,
district, or territory; (10) Forging
or causing the
forgery of
another's name to
an
application for
insurance or to any
document related to
or used
in
an
insurance transaction; (11)
Possessing or
Improperly using
notes or any
unauthorized
materials during a
licensing or continuing education examination
or cheating
on a
licensing or continuing education
other reference
material to complete an examination
for an insurance producer
license; (12)
Knowingly accepting insurance business from an
individual who is not licensed;
(13) Failing to comply with an administrative or court
order imposing a child support obligation;
(14) Failing to pay state income tax or to comply with any
administrative or court order directing payment of state income
tax;
(15) Failing to timely submit an application for
insurance. For purposes of division (B)(15) 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 insurance producer accepts a premium or an order to bind
coverage from a policyholder or applicant for insurance, whichever
is later.
(16) 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)(17) Having any professional license suspended or
revoked as
a result of a mishandling of funds
or breach of
fiduciary
responsibilities;
(14)(18) Causing or permitting a policyholder or applicant
for
insurance to designate the
person
insurance producer or the
person's
insurance producer's spouse,
parent,
child, or sibling as
the beneficiary of a policy or
annuity sold
by the
person
insurance producer, unless the
person
insurancer producer or a
relative of
the
person
insurance producer is
the insured or
applicant;
(15)(19) Failing to provide a written response to the
department
of insurance within
thirty
fifteen calendar 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)(20) 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, dishonest, or coercive
practice in connection with the business of insurance;
(19)(21) 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,
producer or
licensee known to be involved in procuring,
placing, or
continuing
the insurance for the policyholder or
applicant, upon
the
taking of the application or the binding of
the
coverage, whichever is earlier;
(20)(22) In the case of an
agent
insurance producer that is
a
corporation,
limited
liability company, or partnership
business
entity, 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
business entity;
(21)(23) 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)(24) 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)(26) 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)(27) 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)(28) Failing to fulfill a refund obligation in a timely
manner.
For purposes of division
(B)(31)(28) 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
insurance producer is expected to issue a
portion of the
total
refund; (c) Forty-five days after the date of the
agent's
insurance
producer's statement
of account on which the refund first
appears. (32)(29) With respect to a surety bail bond
agent
producer
license,
rebating
or offering to rebate, or unlawfully dividing or
offering
to divide, any
commission;
(30) Using a license for the principal purpose of
procuring, receiving, or forwarding applications for insurance of
any kind, other than life, or soliciting, placing, or effecting
such insurance directly or indirectly upon or in connection with
the property of the licensee or that of relatives, employers,
employees, or that for which they or the licensee is an agent,
custodian, vendor, bailee, trustee, or payee;
(31) In the case of an insurance producer that is a
business entity, using a life license for the principal purpose of
soliciting or placing insurance on the lives of the business
entity's officers, employees, or shareholders, or on the lives of
relatives of such officers, employees, or shareholders, or on the
lives of persons for whom they, their relatives, or the business
entity is agent, custodian, vendor, bailee, trustee, or payee;
(32) Offering within this state, in person or by
advertisement, poster, letter, circular, or otherwise, to sell,
procure, or obtain policies, contracts, agreements, or
applications for life insurance or annuities providing fixed,
variable, or fixed and variable benefits, or contractual payments,
or any form of sickness and accident insurance, for or on behalf
of any life insurance corporation, association, or organization,
or mutual protective or mutual benefit association or
organization, not authorized to transact business in this state,
or for or on behalf of any spurious, fictitious, nonexistent,
dissolved, inactive, liquidated or liquidating, or bankrupt life
insurance corporation, association, or organization, or mutual
protective or mutual benefit association or organization. (C) Before denying, revoking, suspending, or refusing to
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 as provided in Chapter 119. of
the Revised Code,
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
residential
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) If the superintendent determines that a violation
described in this section has occurred, the
superintendent may
do
any
take one or more
of the following
actions: (1) Assess a civil
forfeiture
penalty in an amount not
exceeding
twenty-five thousand dollars per violation; (2) 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) 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) 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, surety bail bond
business, 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
penalties,
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
shall be in lieu
of revocation or suspension and may
also include a
corrective
action order as provided in division
(D)(8) of this
section. (E) The superintendent may consider the following
factors in
denying a license, imposing suspensions,
revocations, fines, or
other penalties, and issuing orders
under this section: (1) Whether the person acted in good faith; (2) Whether the person made restitution for any
pecuniary
losses suffered by other persons as a result of the
person's
actions; (3) The actual harm or potential for harm to others; (4) The degree of trust placed in the person by, and the
vulnerability of,
persons who were or could have been adversely
affected by the person's
actions; (5) Whether the person was the subject of any
previous
administrative actions by the superintendent; (6) The number of individuals adversely affected
by the
person's 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),
(4),
(5), (6), (7), (8), (9), (10), (11), (12), (13), (14),
(16),
(17),
(18),
(19), (20), (21), (22), (23),
(24), (25),
(26), (27),
(28), (29), (30),
(31), or (32)
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)(19)
of this section, a failure to comply with any rule
adopted by the superintendent under division (A) of section
3905.12 of the Revised Code, or a failure to comply with section
3905.22 of the Revised Code, 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; (4) Any other appropriate relief. (I) With respect to a surety bail bond
agent
producer
license: (1) Upon the suspension or revocation of a license, or the
eligibility of a surety bail bond
agent
producer to hold a
license, the
superintendent likewise may suspend or revoke the
license or
eligibility of any surety bail bond
agent
producer who
is employed by or
associated with that
agent
producer and who
knowingly was
a party to the
act that resulted in the suspension
or revocation. (2) The superintendent may revoke a license as a surety bail
bond
agent
producer if the licensee is adjudged bankrupt.
(J)
This section applies to both resident and
nonresident
agents who are licensed
under this chapter. (K) Nothing in this
section shall be construed to create or
imply a
private cause of
action against an
agent, solicitor,
insurance producer or
insurer.
Sec. 3905.491
3905.15. (A) Upon written application of a
person whose license was
denied,
suspended, revoked, or
surrendered for cause under section
3905.49
3905.14 of the Revised
Code, the superintendent of
insurance shall hold a hearing to
determine whether the
administrative action imposing
such
the
denial, 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
3905.14 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
producer; (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. 3905.012
3905.16. (A)(1) Except as provided in
division
(A)(2)
of this section, any
person licensed as an
agent
insurance producer or surplus lines broker under
section
3905.02
or 3905.18 of
the Revised Code, or appointed as a
solicitor under
section 3905.03 of the
Revised Code,
this chapter may at any
time
surrender
any or all licenses held by the person. (2) No
agent
insurance producer shall surrender the
agent's
insurance producer's licenses
if the
superintendent of insurance
is investigating any
allegation of
wrongdoing by the
agent
insurance producer 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
insurance producer, 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
insurance producer's license is
surrendered, revoked, or
suspended, all appointments held by the
agent
insurance producer 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)(C)(1) Any
agent
insurance producer, other than a
corporation, partnership, or
limited liability company
business
entity, who is no longer engaged in the
business of insurance in
any capacity for which an
agent's
insurance producer'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
3905.02 of the
Revised
Code that requires an
agent's
insurance
producer'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)(D) 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. 3905.18. (A) Neither an insurer nor an insurance
producer shall pay a commission, service fee, brokerage fee, or
other type of consideration to a person for selling, soliciting,
or negotiating insurance in this state, if the person is required
to be licensed by the superintendent of insurance under this
chapter but is not so licensed. However, renewal or other
deferred commissions may be paid to such a person for selling,
soliciting, or negotiating insurance in this state if the person
was required to be licensed under this chapter at the time of the
sale, solicitation, or negotiation and was so licensed at that
time.
(B) An insurer shall not pay a commission, service fee,
brokerage fee, or other type of consideration to an insurance
producer for selling, soliciting, or negotiating insurance in this
state, if the insurance producer is required to be appointed by
the insurer but is not so appointed.
(C) An insurer or insurance producer may pay or assign a
commission, service fee, brokerage fee, or other type of
consideration to an insurance agency or to any person who does not
sell, solicit, or negotiate insurance in this state, unless the
payment or assignment is prohibited by section 3911.20, 3933.01,
or 3999.22 of the Revised Code.
Sec. 3905.181. A person shall not accept a commission,
service fee, brokerage fee, or other type of consideration for
selling, soliciting, or negotiating insurance in this state if
that person is required to be licensed under this chapter and is
not so licensed.
Sec. 3905.181
3905.182. No person licensed to sell life
insurance
under section
3905.18
3905.06 of the Revised Code,
although also licensed
to sell securities under section 1707.32 of
the Revised Code,
shall sell, or receive any compensation in
regard to the sale of,
any shares of capital stock of any life
insurance company for
which
he
the person is licensed to sell life
insurance, or of
any
issuer
which
that owns or controls more than
one fourth of the shares of any
of such companies, or any rights
or options to acquire any of
such shares. This section does not
prohibit the sale of shares
of any investment company registered
under the "Investment
Company Act of 1940," 54 Stat. 789, 15
U.S.C.A. 80a-l, as
amended, or any policies, annuities, or other
contracts described
in section 3907.15 of the Revised Code.
Sec. 3905.20. (A) An insurance producer shall not act as
an agent of an insurer unless the insurance producer is appointed
as an agent of the insurer. An insurance producer who does not
act as an agent of an insurer shall not be required to be
appointed as an agent of the insurer.
For purposes of this division, an insurance producer acts as
an agent of an insurer when the insurance producer sells,
solicits, or negotiates any product of the insurer or is
compensated directly by the insurer.
(B)(1) To appoint an insurance producer as its agent, an
insurer shall file a notice of appointment with the superintendent
of insurance no later than thirty days after the date the agency
contract is executed or the first insurance application is
submitted, whichever is earlier. The notice of appointment shall
be provided in the manner prescribed by the superintendent.
Each insurer 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 insurer, 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.
(2) By appointing an insurance producer, an insurer
certifies to the superintendent that the person is competent,
financially responsible, and suitable to represent the insurer.
(3) While an appointment remains in force, an insurer shall
be bound by the acts of the person named in the appointment within
that person's actual and apparent authority as its agent.
(C)(1) Each insurer that sells, solicits, or negotiates any
form of limited line credit insurance shall provide a program of
instruction to each insurance producer whose duties will include
selling, soliciting, or negotiating limited line credit insurance.
The program of instruction shall be provided to the insurance
producer prior to the producer's appointment by the insurer.
(2) The superintendent may require prior review and
approval of any program of instruction provided under division
(C)(1) of this section.
(D) The superintendent may, in accordance with Chapter 119.
of the Revised Code, adopt rules to establish appointment
procedures, including cancellations and renewals, to clarify the
circumstances that require an appointment, and to provide for the
appointment of insurance producers to some or all of the insurers
within an insurer's holding company system or group.
Sec. 3905.21. (A) An insurer or authorized representative
of an insurer that terminates the appointment, employment,
contract, or other insurance business relationship with an
insurance producer shall notify the superintendent of insurance,
in the manner prescribed by the superintendent, within thirty days
after the effective date of the termination. The insurer shall
provide any additional information, documents, records, or other
data relating to the termination or activity of the insurance
producer that the superintendent requests in writing.
(B) If the termination of an insurance producer is for any
of the reasons set forth in division (B) of section 3905.14 of the
Revised Code, the insurer or authorized representative of the
insurer shall promptly notify the superintendent, in the manner
prescribed by the superintendent, of any additional information
the insurer discovers upon further review or investigation, which
information would have been provided to the superintendent in
accordance with division (A) of this section had the insurer known
of its existence.
(C)(1) An insurer, within fifteen days after notifying the
superintendent in accordance with division (A) or (B) of this
section, shall mail a copy of the notification to the insurance
producer at the producer's last known address. If the insurance
producer was terminated for any of the reasons set forth in
division (B) of section 3905.14 of the Revised Code, the
notification shall be sent by certified mail, return receipt
requested, postage prepaid or by overnight delivery using a
nationally recognized carrier.
(2) An insurance producer, within thirty days after
receiving a copy of a notification pursuant to division (C)(1) of
this section, may file written comments concerning the substance
of the notification with the superintendent. If an insurance
producer files such comments with the superintendent, the producer
shall, at the same time, provide a copy of the comments to the
insurer. Comments filed with the superintendent shall become part
of the superintendent's file on the insurance producer and shall
accompany every copy of any report distributed or disclosed for
any reason about the producer.
Sec. 3905.211. (A) In the absence of actual malice, an
insurer, the authorized representative of an insurer, an insurance
producer, the superintendent of insurance, or any organization of
which the superintendent is a member, which organization compiles
the information provided pursuant to section 3905.21 of the
Revised Code and makes it available to other insurance
commissioners or to regulatory or law enforcement agencies, is
immune from any civil liability that otherwise might be incurred
or imposed as a result of either of the following:
(1) Any statement required by section 3905.21 of the
Revised Code or any information relating to any such statement,
which information may be requested in writing by the
superintendent;
(2) Any statement of an insurer that has terminated an
insurance producer to an insurer or producer, or any statement of
an insurance producer to an insurer or producer, which statement
is limited solely to whether a termination for any of the reasons
set forth in division (B) of section 3905.14 of the Revised Code
was reported to the superintendent, provided the propriety of any
such termination is certified in writing by an officer or
authorized representative of the insurer or producer terminating
the relationship. (B) In any action brought against a person that may have
immunity under division (A) of this section for making any
statement required by section 3905.21 of the Revised Code or
providing any information relating to any such statement, which
information may have been requested in writing by the
superintendent, the party bringing the action shall plead
specifically in any allegation that division (A) of this section
does not apply because the person making the statement or
providing the information did so with malice.
(C) Nothing in this section shall abrogate or modify any
statutory or common law privilege or immunity that otherwise
applies.
Sec. 3905.212. The superintendent of insurance may, in
accordance with Chapter 119. of the Revised Code, suspend or
revoke the certificate of authority or license of any person that
fails to comply with section 3905.21 of the Revised Code or that
has been found by a court of competent jurisdiction to have made
the statements or provided the information required under that
section with actual malice. Any such person is also subject to
the civil penalty authorized under section 3905.14 of the Revised
Code.
Sec. 3905.22. (A) An insurance producer shall provide
notice to the superintendent of insurance of any administrative
action taken against the producer in another jurisdiction or by
another governmental agency of this state within thirty days after
the final disposition of the matter. The notice shall include a
copy of the order, consent to order, or any other relevant legal
document.
(B) An insurance producer shall provide notice to the
superintendent of any criminal prosecution of the producer by any
jurisdiction within thirty days after the initial pretrial hearing
date. The notice shall include a copy of the initial complaint
that was filed, the order that resulted from the hearing, and any
other relevant legal document.
Sec. 3905.24. (A) All documents, materials, and other
information in the control or possession of the department of
insurance that is furnished by an insurer, insurance producer, or
employee or agent of an insurer or producer acting on behalf of
the insurer or producer, or that is obtained by the superintendent
of insurance in an investigation conducted under section 3905.21
of the Revised Code, are confidential and privileged and are not
public records as defined in section 149.43 of the Revised Code.
Such information shall not be subject to subpoena or discovery and
shall not be admissible in evidence in any private civil action.
However, the superintendent may use the information in the
furtherance of any regulatory or legal action brought as part of
the superintendent's duties. (B) In order to assist in the performance of the
superintendent's duties under this chapter, the superintendent may
do any of the following: (1) Share documents, materials, or other information,
including information considered confidential and privileged under
division (A) of this section, with other state, federal, and
international regulatory agencies, with the NAIC and its
affiliates or subsidiaries, and with state, federal, and
international law enforcement authorities, provided the recipient
agrees to maintain the confidentiality and privileged status of
the document, material, or other information;
(2) Receive documents, materials, or other information,
including otherwise confidential and privileged information, from
the NAIC and its affiliates or subsidiaries or from regulatory and
law enforcement officials of other domestic or foreign
jurisdictions, provided the superintendent maintains as
confidential and privileged any document, material, or other
information that is received with notice or the understanding that
the information is confidential and privileged under the laws of
the jurisdiction from which the information originated;
(3) Enter into any agreement governing the sharing and use
of information that is consistent with this section.
(C) Neither the superintendent nor any person who receives
documents, materials, or other information while acting under the
authority of the superintendent, shall be permitted or required to
testify in any private civil action concerning any documents,
materials, or other information considered confidential under
division (A) of this section.
(D) No waiver of any applicable privilege or claim of
confidentiality in any documents, materials, or other information
shall occur as a result of disclosure to the superintendent under
section 3905.21 of the Revised Code or as a result of sharing of
the information as authorized under division (B) of this section.
(E) Nothing in this chapter prohibits the superintendent
from releasing final, adjudicated actions open to public
inspection pursuant to section 149.43 of the Revise Code,
including terminations of insurance producers for any of the
reasons set forth in division (B) of section 3905.14 of the
Revised Code, to any database or other clearinghouse service
maintained by the NAIC or any of its affiliates or subsidiaries.
Sec. 3905.26. (A) The superintendent of insurance may
participate, in whole or in part, with the NAIC or any of its
affiliates or subsidiaries, in a centralized producer license
registry in which insurance producer licenses and appointments are
centrally or simultaneously effected for all states that require
an insurance producer license and that participate in the
registry. (B) The superintendent may adopt rules in accordance with
Chapter 119. of the Revised Code to adopt any uniform standard or
procedure necessary for participation in the centralized producer
license registry. Such rules may provide for the central
collection of all fees for licenses or appointments processed
through the registry.
Sec. 3905.28. The superintendent of insurance may adopt
rules in accordance with Chapter 119. of the Revised Code to carry
out the purposes of sections 3905.01 to 3905.28 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
resident
of this or any other state or
a province of Canada, or to
any corporation, partnership, or limited liability company
a
business entity 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
To be eligible for
at
least two
years prior to making application for
the
a surplus line broker's
license, a person must have both a property license and a casualty
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. 3905.31. No person not licensed under section 3905.30
of the Revised
Code shall take or receive any application for such
insurance upon property or
persons in this state, or receive or
collect a premium or any part thereof for
any unauthorized
insurance company, or attempt or assist in any such act, or
perform any act in this state concerning any policy or contract of
insurance
of any unauthorized insurance company provided that any
duly licensed full
multiple line agent may place business with an
agent licensed under section
3905.30 of the Revised Code and may
accept compensation therefor, if such
insurance is written in
conformity with the insurance laws of this state.
This section
does not apply to those engaged in the act of adjusting claims or
losses in connection with any policy of insurance written under
the provisions
of sections 3905.30 to
3905.35, inclusive,
3905.34
of the Revised Code.
Sec. 3905.36. Every insured association, company,
corporation, or other person that enters, directly or
indirectly,
into any
agreements with any insurance company, association,
individual,
firm, underwriter, or Lloyd, not authorized to do
business in
this state, whereby the insured shall procure,
continue, or renew
contracts of insurance covering subjects of
insurance resident,
located, or to be performed within this state,
with such
unauthorized insurance company, association, individual,
firm,
underwriter, or Lloyd, for which insurance there is a
premium,
membership fee, assessment, dues, or other consideration
charged
or collected, shall annually, on or before the first day
of July, return
to the superintendent of insurance a
statement
under oath showing the name and address of the insured,
name and
address of the insurer, subject of the insurance,
general
description of the coverage, and amount of premium, fee,
assessment, dues, or other consideration for such insurance for
the preceding twelve-month period and shall at the same time pay
to the treasurer of state a tax of five per cent
of such premium,
fee, assessment, dues, or other consideration, as calculated on a
form prescribed by the treasurer of state. All taxes
collected
under this section by the treasurer of
state shall be paid
into
the general revenue fund. If the tax is not paid when
due,
the
tax shall be increased by a penalty of twenty-five per
cent.
An
interest charge computed as set forth
in section 5725.221 of the
Revised Code shall be made on the
entire sum of the tax plus
penalty, which interest shall be
computed from the date the tax is
due until it is paid.
For purposes of this section, payment is
considered made when it is received by the treasurer of state,
irrespective of any United
States postal service marking
or other
stamp or mark indicating the date on which the payment
may have
been mailed. This section does not apply
to: (A) Insurance obtained pursuant to sections 3905.30 to
3905.35
3905.34 of the Revised Code; (B) Transactions in this state involving a policy
solicited,
written, and delivered outside this state covering
only subjects
of insurance not resident, located, or to be
performed in this
state at the time of issuance, provided such
transactions are
subsequent to the issuance of the policy; (C) Attorneys-at-law acting on behalf of their clients in
the adjustment of claims or losses; (D) Any insurance company underwriter issuing contracts of
insurance to employer insureds or contracts
of insurance issued to
an employer insured. For purposes of this
section an "employer
insured" is an insured: (1) Who procures the insurance of any risk or risks by use
of the services of a full-time employee acting as an insurance
manager or buyer or the services of a regularly and continuously
qualified insurance consultant. As used in division
(D)(1) of
this section,
a "regularly and continuously qualified insurance
consultant" does not include any person licensed under
Chapter
3905. of the
Revised
Code. (2) Whose aggregate annual premiums for insurance on all
risks total at least twenty-five thousand dollars; and (3) Who has at least twenty-five full-time employees. Each person licensed under section 3905.30 of the
Revised
Code shall pay to the treasurer
of state, on or before the
thirty-first day of
January of each year, five per
cent of the
balance of the gross premiums charged for insurance
placed or
procured under the license after a deduction for
return premiums,
as reported on a form prescribed by the
treasurer of state. The
tax shall be collected from the insured
by the surplus line broker
who placed or procured the policy of
insurance at the time the
policy is delivered to the insured.
No license issued under
section 3905.30 of the
Revised
Code shall be renewed until
payment
is made. For purposes of this section,
payment is considered made
when it is received by the
treasurer of state, irrespective of any
United
States postal service marking
or other stamp or mark
indicating the date on which the payment
may have been mailed.
Sec. 3905.26
3905.40. There shall be paid to the
superintendent of
insurance the following fees: (A) Each insurance company doing business in this state
shall pay: (1) For filing a copy of its charter or deed of
settlement,
two hundred fifty dollars; (2) For filing each statement, twenty-five dollars; (3) For each certificate of authority or license, and
certified copy thereof, five dollars; (4) For each copy of a paper filed in
his
the
superintendent's
office, twenty
cents per page; (5) For issuing certificates of deposits or certified
copies
thereof, five dollars for the first certificate or copy
and one
dollar for each additional certificate or copy; (6) For issuing certificates of compliance or certified
copies thereof, twenty dollars; (7) For affixing the seal of office and certifying
documents, other than those enumerated herein, two dollars. (B) Each life insurance company doing business in this
state
shall pay for annual valuation of its policies, one cent on
every
one thousand dollars of insurance. (C) Each foreign insurance company doing business in this
state shall pay for making and forwarding annually, semiannually,
and quarterly the interest checks and coupons accruing upon bonds
and securities deposited, fifty dollars each year on each one
hundred thousand dollars deposited. (D) Each
appointee or applicant for licensure as an
insurance
agent, solicitor, or life insurance agent
producer shall
pay ten
dollars before admission to any examination required by
the
superintendent
of insurance. Such fee shall not be paid by
the
appointing insurance company
or agent. (E) Each domestic mutual life insurance company shall pay
for verifying that any amendment to its articles of incorporation
was regularly adopted, two hundred fifty dollars with each
application for verification. Any such amendment shall be
considered to have been regularly adopted when approved by the
affirmative vote of two-thirds of the policyholders present in
person or by proxy at any annual meeting of policyholders or at a
special meeting of policyholders called for that purpose.
Sec. 3905.52
3905.401. The valuation fee specified in
division (B) of section
3905.26
3905.40
of the Revised Code does
not apply to reinsurance ceded to affiliated
companies.
Sec. 3905.27
3905.41. 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
producer, and charge the accounts with all fees
incurred
by such companies or
agents
producers in accordance with
sections
3905.02, 3905.03, 3905.07, 3905.26
3905.20,
3905.40,
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
immediately 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
insurance producer whose account has been charged during
the month next
preceding, showing the amount of all fees charged
during
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 that time to
pay
the amount of such fees in accordance with the monthly
statement,
or, if 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
immediately 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 the company is
located.
After the
publication of the notice, no agent of
the company
shall procure
applications for insurance or issue policies. In the event of the failure of any
agent
insurance producer
within the time
fixed to pay the amount of fees charged against
the
agent's
producer's
account in
accordance with the monthly
statement rendered by the
superintendent, the
agent's
producer's
license may be revoked in the
manner
provided by
sections 3905.02
and 3905.18
section 3905.14 of the
Revised Code.
Sec. 3905.481. (A)(1) Except as provided in division (B)
of
this section, each person who is issued a license as an
agent
insurance producer
on
or after
the
effective date of this
amendment
June 30, 1998, shall complete in
accordance with
division (A)(1) of this section at least
twenty
hours of
continuing education 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 twenty
hours of continuing
education
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
twenty hours of
continuing
education 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
the effective date of this
amendment
June 30, 1998,
holds a
license as an
agent
insurance producer issued prior to
that date shall
complete
during that person's applicable
twenty-four month
reporting
period, at least twenty hours of
continuing education
offered in a
course or program of study
approved by
the superintendent in
consultation with the council.
Thereafter, the person
shall
complete at least twenty hours of
continuing education 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. (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
insurance producer'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
become effective upon sixty days' written
notice to the person. The notice shall be sent by ordinary mail
to the person's residential address on the licensing records of
the department of insurance. During this sixty-day period, the
person may provide proof of compliance with the requirements of
section 3905.481 of the Revised Code. If the person fails to
demonstrate such compliance in a manner and form acceptable to the
superintendent, the superintendent shall suspend the person's
license. The suspension shall continue until the person
demonstrates to
the satisfaction of the superintendent that 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
may revoke the license if the
person fails to demonstrate such
compliance within
six months
one
year 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 under this
chapter shall apply for a new agent'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.
The superintendent may
revoke the license if the person fails to demonstrate such
compliance within that time period. (C) Before revoking
or suspending any
agent's
insurance
producer'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.
Any person whose
license has been revoked under this section and who desires to
hold a license as an insurance producer under this chapter shall
apply for a new insurance producer's license in accordance with
the requirements of this chapter.
(D) The superintendent may adopt rules in accordance with
Chapter 119. of the Revised Code relative to the manner and form
of demonstrating compliance with the requirements of section
3905.481 of the Revised Code that is acceptable to the
superintendent for purposes of this section.
Sec. 3905.483. (A) There is hereby created the insurance
agent education advisory council to advise the
superintendent of
insurance in carrying out the duties imposed under
sections
3905.48
3905.481 to
3905.486 of the Revised Code. (B) The council shall be composed of the superintendent,
or
the superintendent's designee, and eleven members appointed
by the
superintendent,
as follows: (1) One representative of the association of Ohio life
insurance companies; (2) One representative of the independent insurance agents
of Ohio; (3) One representative of the Ohio association of health
underwriters; (4) One representative of the Ohio association of life
underwriters; (5) One representative of the Ohio insurance institute; (6) One representative of the professional insurance
agents
association of Ohio; (7) Two insurance agents each of whom has been licensed
continuously during the five-year period immediately preceding
the
agent's appointment; (8) One representative of an insurance company admitted to
transact business in this state; (9) Two representatives of consumers, one of whom shall be
at least sixty years of age. (C) Of the initial appointments made by the
superintendent,
three shall be for terms ending December 31,
1994, four shall be
for terms ending December 31, 1995, and four
shall be for terms
ending December 31, 1996. Thereafter, terms
of office shall be
for three years, each term ending on the
thirty-first day of
December of the third year. (D) Each member shall hold office from the date of
appointment until the end of the term for which the member
was
appointed.
Any member appointed to fill a vacancy occurring prior
to the
expiration of the term for which the member's
predecessor
was
appointed
shall hold office for the remainder of such term.
Any member
shall continue in office subsequent to the expiration
date of
the member's
term until the member's successor takes
office, or until a
period of sixty
days has elapsed, whichever
occurs first. A vacancy shall be
filled in the same manner as the
original appointment. (E) Initial appointments to the council shall be made no
later than thirty days after
April 16, 1993. (F) Any member is eligible for reappointment. The
superintendent, after notice and opportunity for a hearing, may
remove for cause any member the superintendent
appoints. (G) The superintendent or the superintendent's designee
shall serve as
chairperson of the council. Meetings shall be held
upon
the call
of the chairperson and as may be provided by
procedures adopted
by the superintendent. Seven members of the
council
constitute a
quorum. (H) Each member shall receive mileage and necessary
and
actual expenses while engaged in the business of the
council.
Sec. 3905.484. (A) The superintendent of insurance, in
consultation with the insurance agent education advisory
council,
shall establish criteria for any course or program of study that
is offered in this state under sections
3905.48
3905.481 to
3905.486 of
the Revised Code. (B) No course or program of study shall be offered in this
state under sections
3905.48
3905.481 to 3905.486 of the Revised
Code
unless it is approved by the superintendent in consultation
with
the council. (C) A course or program of study offered in this state
under
sections
3905.48
3905.481 to 3905.486 of the Revised Code shall be
developed or sponsored only by one of the following: (1) An insurance company admitted to transact business in
this state; (2) An accredited college or university; (3) An insurance trade association; (4) An independent program of instruction that is approved
by the superintendent in consultation with the council; (5) Any institution as defined in section 1713.01 of the
Revised Code that holds a certificate of authorization issued by
the Ohio board of regents under Chapter 1713. of the Revised Code
or is exempt under that chapter from the requirements for a
certificate of authorization. (D) Any person who teaches any approved course or program
of
study qualifies for the same number of classroom hours as
would be
granted to any person who takes and successfully
completes that
course or program.
Sec. 3905.486. The superintendent of insurance shall adopt
rules in
accordance with Chapter 119. of the Revised Code to carry
out the purposes of
sections
3905.48
3905.481 to 3905.486 of the
Revised Code. In adopting any rules, the
superintendent shall
consider any recommendations made by the insurance agent
education
advisory council.
Sec. 3905.47
3905.49. (A) As used in this section and
section 3905.50 of the Revised
Code, "independent insurance
agent
producer" means an insurance
agent
producer who is neither
employed nor controlled solely by an insurer, whose agency
contract with an
insurer provides that upon termination of the
contract, the ownership of the
property rights of all expiration
information vests in the
agent
producer or
his
the producer's
heirs
or assigns, and whose agency contract with an insurer
permits the
agent
producer to
represent concurrently other
insurers of
his
the
producer's choice. (B) No
agent
insurance producer other than an independent
insurance
agent
producer shall represent
oneself
self, or shall be
represented, to the public as an
independent insurance
agent
producer or agency.
Sec. 3905.50. (A)(1) Except as provided in division
(A)(2)
or (3) of this section, this section applies to every
contract of
agency between a property and casualty insurance
company and an
independent insurance
agent
producer, as defined in
division (A)
of section
3905.47
3905.49 of the Revised Code, which has
been in
effect for not less than two years. (2) This section does not apply to a contract of exclusive
employment by, or an exclusive agency contract with, a single
insurer or group of insurers under common ownership or control. (3) This section does not apply to an
agent
insurance
producer whose license
has been suspended or revoked by the
superintendent of insurance,
an
agent
insurance producer who has
demonstrated gross incompetence, or an
agent
insurance producer
whose contract has been terminated for insolvency, abandonment,
gross or willful misconduct, or failure to pay to the insurer, in
accordance with the agency contract, moneys due to the insurer
upon written demand of the insurer. (B) No insurer shall terminate an independent insurance
agent
producer contract of agency except by mutual agreement of
the
parties or upon one hundred eighty days' written notice to the
independent insurance
agent
producer. (1) Such notice shall include specific reasons for the
termination of the
agent
producer. (2) Such notice shall be sent by certified mail, return
receipt requested, to the last known address of the agency. (C) During the one hundred eighty day notice period, an
independent insurance
agent
producer shall not write or bind any
new
policies on behalf of an insurer without written approval from
the insurer. However, during such period, an independent
insurance
agent
producer, subject to the current underwriting
rules,
guidelines, commission rates, and practices of the insurer,
may
renew or effect any necessary changes or endorsements of
outstanding policies of insurance that are in force prior to the
date of receipt of the notice of termination. (D) None of the following constitutes an acceptable reason
for the termination of a contract of agency: (1) Claims experience of the
agent
insurance producer in a
single year; (2) Claims experience due to
catastrophies
catastrophes of
nature covered by a policy; (3) Claims experience under uninsured and underinsured
motorist coverages. (E) An
agent
insurance producer aggrieved by the conduct of
an insurer in its
breach or termination of a contract of agency
may file with the
superintendent a request that the superintendent
review the
action to determine whether it is in accord with this
section and
the lawful provisions of the contract of agency and
send a copy
of the request to the insurer at the address of the
office
issuing the notice of termination. Upon receipt of such a
request, an insurer shall promptly provide the independent
insurance
agent
producer and superintendent with documentation in
support
of the insurer's stated reason for termination. (F) The superintendent shall promptly investigate the
allegation. If the superintendent has reasonable cause to
believe
that this section or the lawful provisions of the
contract of
agency have been violated,
he
the superintendent
shall, within
thirty days of receipt of a request for review, conduct an
adjudication hearing subject to Chapter 119. of the Revised Code,
held upon
not less than ten days' written notice to the
agent
insurance producer and the
insurer. Pending a final order in the
adjudication hearing, the
superintendent may take such interim
action as necessary to
protect the parties or the public. During
the pendency of the
proceeding before the superintendent, the
contract of agency
subject to the proceeding continues in force
and divison (C) of
this section applies. The superintendent
shall, within thirty
days following such hearing, issue an order
approving or
disapproving the action of the insurer. All final
orders and
decisions of the superintendent are subject to judicial
review as
provided in Chapter 119. of the Revised Code. (G) An insurer shall not cancel or nonrenew any policy of
insurance written through an
agent
insurance producer upon the
sole ground of the
termination of the agency until the expiration
of the policy term
or the twelve-month period following the
effective date of the
termination of the contract of agency,
whichever is earlier.
However, during such period, an independent
insurance
agent
producer may,
subject to the current underwriting
rules, guidelines, commission
rates, and practices of the insurer,
effect any necessary changes
or endorsements to outstanding
policies of insurance that are in
force prior to the date of
termination. This section does not abridge, restrict, or supersede the
rights of an
agent
insurance producer to the ownership of
expirations provided for
in any contract with an insurer. (H) Any information or documentation provided to an
agent
insurance producer
or the superintendent by an insurer under this
section is
confidential and shall be used by the superintendent
only in the
exercise of the proper functions authorized by this
section. No
insurer is liable for furnishing information or
documentation in
compliance with this section if the insurer acts
without malice
and in the reasonable belief that such information
or
documentation is warranted by this section.
Sec. 3905.55. (A) Except as provided in division
(B) of
this section, an
agent
insurance producer
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
producer discloses to the consumer that the
fee
is
being charged by the
agent
producer and not by the
insurance company,
that
neither state law nor the insurance
company requires the
agent
producer to
charge the fee, and that
the fee is not
refundable. (6) The consumer consents to the fee. (7) The
agent
producer, 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
insurance producer may charge a fee
for
agent
producer
services in connection with a
policy issued on a
no-commission
basis, if the
agent
producer 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
insurance
producer and a
consumer regarding any disclosure
required by this
section, the
agent
producer 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. (F) This section does not apply with respect to any expense
fee
charged by a surety bail bond
agent
producer to cover the
costs
incurred by the surety
bail bond
agent
producer in executing
the bail bond.
Sec. 3905.72. (A)(1) No person shall act as a managing
general agent representing an insurer licensed in this state with
respect to risks located in this state unless the person is
licensed as a managing general agent pursuant to division (C)
or
(D) of
this section. (2) No person shall act as a managing general agent
representing an insurer organized under the laws of this state
with respect to risks located outside this state unless the
person
is licensed as a managing general agent pursuant to
division (C)
of this section. (B) Every person that seeks to act as a managing general
agent as described in division (A) of this section shall apply to
the superintendent of insurance for a license.
The
Except as
otherwise provided in division (D) of this section, the
application
shall be in writing on a form provided by the
superintendent and
shall be sworn or affirmed before a notary
public or other person
empowered to administer oaths. The
application shall be kept on
file by the superintendent and shall
include all of the
following: (1) The name and principal business address of the
applicant; (2) If the applicant is an individual,
his
the applicant's
current
occupation; (3) If the applicant is an individual,
his
the applicant's
occupation or
occupations during the five-year period prior to
applying for the
license to act as a managing general agent; (4) A copy of the contract between the applicant and the
insurer as required by, and in compliance with, section 3905.73
of
the Revised Code; (5) A copy of a certified resolution of the board of
directors of the insurer on whose behalf the applicant will act,
appointing the applicant as a managing general agent and agent of
the insurer, specifying the duties the applicant is expected to
perform on behalf of the insurer and the lines of insurance the
applicant will manage, and authorizing the insurer to enter into
a
contract with the applicant as required by section 3905.73 of
the
Revised Code; (6) A statement that the applicant submits to the
jurisdiction of the superintendent and the courts of this state; (7) Any other information required by the superintendent. (C) The superintendent shall issue
to a resident of this
state or
renew a
business entity organized under the laws of this
state a license to
act as a managing general agent representing an
insurer licensed
to do business in this state with respect to
risks located in
this state or a license to act as a managing
general agent
representing an insurer organized under the laws of
this state
with respect to risks located outside this state,
and
shall renew such a license, if the
superintendent is satisfied
that all of the following conditions
are met: (1) The applicant is a suitable person and intends to hold
himself
self out in good faith as a managing general agent. (2) The applicant is honest, trustworthy, and understands
the duties and obligations of a managing general agent. (3) The applicant has filed a completed application that
complies with division (B) of this section. (4) The applicant has paid a fee in the amount of twenty
dollars. (5) The applicant maintains a bond in the amount of not
less
than fifty thousand dollars for the protection of the
insurer. (6) The applicant maintains an errors and omissions policy
of insurance. (7) The applicant is not, and has never been, under an
order
of suspension or revocation under section 3905.77 of the
Revised
Code or under any other law of this state, or any other
state,
relating to insurance, and is otherwise in compliance with
sections 3905.71 to 3905.79 of the Revised Code and all other
laws
of this state relating to insurance. (D)
If the applicant is a resident of another state or a
business entity organized under the laws of another state, the
applicant shall submit a request for licensure, along with a fee
of twenty dollars, to the superintendent. The superintendent shall
issue a license to act as a managing general agent if the request
for licensure includes proof that the applicant is licensed and in
good standing as a managing general agent in the applicant's home
state and either a copy of the application for licensure the
applicant submitted to the applicant's home state or the
application described in division (B) of this section. If the applicant's home state does not license managing
general agents under provisions similar to those in sections
3905.71 to 3905.79 of the Revised Code, or if the applicant's home
state does not grant licenses to residents of this state on the
same reciprocal basis, the applicant shall comply with divisions
(B) and (C) of this section.
(E) Unless suspended or revoked by an order of the
superintendent pursuant to section 3905.77 of the Revised Code
and
except as provided in division
(E)(F) of this section, any
license
issued or renewed pursuant to division (C)
or (D) of this
section
shall expire on the last day of February next after its
issuance
or renewal. (E)(F) If the appointment of a managing general agent is
terminated by the insurer, the license of the managing general
agent shall expire on the date of the termination.
(F)(G) A license shall be renewed in accordance with the
standard renewal procedure specified in Chapter 4745. of the
Revised Code.
(G)(H) All license fees collected pursuant to
division
(C)(4)
of this section shall be paid into the state treasury to
the
credit of the department of insurance operating fund.
Sec. 3905.83. As used in sections 3905.83 to 3905.95 of the
Revised Code: (A) "Insurer" means any
domestic, foreign, or alien
insurance company that has been
issued a certificate of authority
by the superintendent of insurance to
transact surety business in
this state.
(B) "Managing general
agent" means any person that is
appointed or employed by an
insurer to supervise or otherwise
manage the bail bond business
written in this state by surety bail
bond
agents
producers appointed
by the insurer.
(C) "Surety" means an insurer
that agrees to be responsible
for the fulfillment of the
obligation of a principal if the
principal fails
to fulfill that obligation.
Sec. 3905.84. No person shall act in the capacity of a
surety bail bond
agent
producer, or perform any
of the functions,
duties,
or powers prescribed for surety bail bond
agents
producers
under sections
3905.83 to 3905.95 of the Revised Code, unless that
person
i
is
qualified,
licensed,
and appointed as provided in
those sections.
Sec. 3905.841. The following persons or classes of persons
shall not act as surety bail bond
agents
producers or employees of
a surety
bail bond
agent
producer or bail bond business and
shall
not
directly or
indirectly receive any benefits from the execution
of a bail bond,
except as a principal: (A) Jailers or other persons employed in a detention
facility, as
defined
in section 2921.01 of the Revised Code; (B) Peace officers as defined in section 2921.51 of the
Revised Code, or other
employees of a law enforcement agency; (C) Committing magistrates, employees of a court, or
employees of
the clerk of any court; (E) Any other persons having the power to arrest, or persons
who
have authority over or control of, federal, state, county, or
municipal
corporation prisoners.
Sec. 3905.85. (A) An
applicant for a license as a surety
bail bond
agent
producer shall submit an
application for the
license in a
manner prescribed by the superintendent of
insurance
in accordance with section 3905.05 of the Revised Code. The
application shall be
accompanied by a one hundred fifty dollar fee
and a statement
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.
The superintendent
of insurance, in the superintendent's discretion, may designate
other governmental agencies or other sources to conduct the
criminal records check. If the
superintendent of insurance or the
superintendent's designee fails
to receive
the bureau's
a response
to
the applicant's request for a
requested
criminal records check,
or if the applicant fails to request the 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,
and shall be licensed in accordance with section 3905.06 of the
Revised Code. (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 a surety
bail bond
agent
producer, if the
superintendent is satisfied that all of the
following
apply: (1) If the applicant is a natural person, the applicant is
eighteen
years of age or older. (2) The applicant is a person of high character and
integrity. (3) The applicant has successfully completed the
educational
requirements set forth in
section
3905.48
3905.04 of the Revised
Code
and passed the examination required by that section. (C) A surety bail bond
agent
producer license issued
pursuant to this
section authorizes the holder, when appointed by
an insurer, to
execute or countersign bail bonds in connection
with judicial
proceedings and to receive money or other things of
value for
those services. However, the holder shall not execute
or deliver
a bond during the first one hundred eighty days after
the license
is initially issued. This restriction does not apply
with respect
to license
renewals.
(D) The superintendent of insurance may suspend or revoke
a
surety bail bond
agent's
producer's license as provided in section
3905.482
of the
Revised Code, and may suspend, revoke, or refuse
to issue
or renew such a license as provided in section
3905.49
3905.14 of the
Revised Code.
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
was
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. (E) Any person licensed as a surety bail bond
agent
producer
may
surrender the person's license in accordance with section
3905.012
3905.16
of the
Revised Code. (F) Unless revoked or suspended by the superintendent
of
insurance or
surrendered by the surety bail bond
agent
producer,
such a license may, in
the
discretion of the superintendent and
the payment of a one
hundred fifty dollar fee, be
continued past
reviewed effective the
last
first day of
February
March
next after
its issue and after the
last
first day of
February
March
in each
succeeding year. (G) The superintendent of insurance may prescribe the forms
to
be used as evidence of the issuance of a license under this
section. The
superintendent shall require each licensee to
acquire,
from a source designated by the superintendent, a wallet
identification card that includes the licensee's photograph and
any other information required by the superintendent. The
licensee shall keep the wallet identification card on the
licensee's person while engaging in the bail bond business. (H)(1) The superintendent of insurance shall not issue or
renew
the license of a
corporation, partnership, or limited
liability
company
business entity organized under the laws of this
or any other
state unless
the
corporation, partnership, or limited
liability
company
business entity 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
business entity to be in good standing with the
secretary of
state or to
maintain a valid appointment of statutory
agent is
grounds for suspending,
revoking, or refusing to renew
its
license. (3) By applying for a surety bail bond
agent
producer
license under
this
section, an individual, corporation,
partnership, or
limited
liability
company
business entity consents
to the jurisdiction of the courts of
this state. (I) A surety bail bond
agent
producer
licensed pursuant to
this
section is an officer of the
court. (J) Any fee collected under this section shall be paid into
the
state treasury to the credit of the department of insurance
operating
fund created by section 3901.021 of the Revised Code.
Sec. 3905.851. A surety bail bond
agent
producer qualified,
licensed,
and
appointed in accordance with sections 3905.83 to
3905.95 of
the
Revised Code shall not be
required to pay any
licensing fee
imposed by a political
subdivision of this state to
perform any of
the functions, duties, or powers
prescribed for
surety bail bond
agents
producers under those sections.
Sec. 3905.86. (A) Any person licensed as a surety bail bond
agent
producer may be appointed by an insurer in accordance with
this
section. (B) Each insurer
shall certify to the superintendent of
insurance before the
thirtieth day of June each year the names and
addresses of the
surety bail bond
agents
producers for whom it
requests
appointments or the continuance
of appointments. All
insurers
shall pay to
the superintendent a fee of twenty dollars
for each
such
appointment when issued and for each continuance
thereafter.
Such
an appointment, unless canceled by the insurer,
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. Any fee collected under this division shall be paid into
the
state treasury to the credit of the department of insurance
operating fund created by section 3901.021 of the
Revised
Code. (C)(1) By appointing a surety bail bond
agent
producer, an
insurer
certifies
to the superintendent that the person is
competent,
financially responsible, and suitable to represent the
insurer. (2) An insurer shall be bound by the acts of the person
named in
the appointment within that person's actual or apparent
authority as its
agent. (D) A surety bail bond
agent
producer shall not represent to
the
public
that the
agent
producer has authority to represent a
particular
insurer until the
insurer has acknowledged that
authority by
appointment of
the
agent
producer in accordance with
this section.
Sec. 3905.861. An insurer that appoints a surety bail bond
agent
producer who is a
member
of an agency, partnership,
corporation, or
limited liability company shall
require that all
other surety bail
bond
agents
producers who are members of the
same agency,
partnership,
corporation, or limited liability
company be appointed to
represent that insurer.
Sec. 3905.862. Upon the expiration or cancellation of a
surety bail bond
agent's
producer's
appointment, the
agent
producer shall not
engage
or attempt to engage in any activity
requiring such an
appointment.
However, an insurer that cancels
the appointment of
a
surety bail bond
agent
producer
may authorize
the
agent
producer to continue to
attempt the arrest and surrender
of a defendant for whom a bail
bond had been written prior to the
cancellation
and to seek
discharge of forfeitures and judgments.
Sec. 3905.87. (A) A surety bail bond
agent
producer shall
not file a
bond
in any court of
this state unless both of the
following
conditions are met: (1) The
agent
producer has registered with the clerk of that
court,
if
registration is required by the court.
(2) The
agent
producer has registered with the clerk of the
court of
common pleas of the county in which the
agent
producer
resides. (B) To register, a surety bail bond
agent
producer shall
file, with
the
clerk
of the court, a certified copy of the surety
bail bond
agent's
producer's appointment by
power
of attorney from
each insurer that
the surety bail bond
agent
producer represents.
Registration and filing of
a certified copy of a renewed power of
attorney
shall be performed
by the first day of August of each
odd-numbered
year. The clerk
of the court shall not accept the
registration of a surety
bail
bond
agent
producer unless the
surety bail bond
agent
producer is currently licensed
and
appointed in
accordance with sections 3905.83 to 3905.95 of
the
Revised Code.
Sec. 3905.88. (A) Each individual who is issued a license
as a surety bail bond
agent
producer shall
complete, in accordance
with
section 3905.481 of the Revised Code, at least fourteen hours
of
continuing education offered
in a course or program of study
related to the bail bond business that is approved by the
superintendent of insurance in consultation with the insurance
agent
education advisory council.
(B) The superintendent shall, in accordance with section
3905.482 of the Revised Code, suspend or revoke the license
of any
surety bail bond
agent
producer who fails to meet the requirements
of
division
(A) of this section and has not been granted an
extension
of time within which to complete the requirements.
(C) The superintendent
shall adopt, in accordance with
Chapter 119. of the
Revised
Code, any rule necessary
to carry out
the superintendent's duties under this
section.
Sec. 3905.89. Each person licensed under sections 3905.83 to
3905.95 of the Revised Code
shall notify in
writing the
appropriate insurer or managing
general agent, and the clerk of
the court of common pleas of the county in
which the licensee
resides, within thirty days after a change in
the licensee's
principal business address or telephone number. This notification requirement is in addition to the
notification
requirements set forth in
section 3905.54
other
provisions of
the
Revised Code
this chapter.
Sec. 3905.90. Each surety bail bond
agent
producer shall
maintain all
records of
surety
bonds executed or countersigned by
the surety
bail bond
agent
producer for at least
three
years after
the liability of
the surety has been terminated. Those records
shall be open, at
all times, to examination, inspection, and
photographic
reproduction by any employee or agent of the
department of
insurance, or by
any authorized representative of
the insurer or
managing general agent. The
superintendent of
insurance at any
time may require the licensee to furnish to
the
department, in the
manner and form that the superintendent
requires, any
information
concerning the surety bond business of
the licensee.
Sec. 3905.91. (A) All build-up funds posted by a surety
bail
bond
agent
producer or managing general agent, either with an
insurer
or managing general
agent representing an insurer, shall
be
maintained in an individual build-up
trust account for the
surety
bail bond
agent
producer by the insurer or the managing
general
agent. The
insurer or managing general agent shall
establish the account in a
federally insured bank or savings and
loan association in this
state jointly
in the name of the surety
bail bond
agent
producer and the
insurer or managing general
agent, or in trust for the surety bail
bond
agent
producer by the
insurer or managing
general
agent. The account
shall be open to
inspection and examination by the
department of
insurance at all
times. The insurer or managing general agent
shall maintain an
accounting of all of those funds, which
accounting
designates the
amounts collected on each bond written. (B) Build-up funds shall not exceed forty per cent of the
premium
as established by the surety bail bond
agent's
producer's
contract
agreement with the
insurer
or managing general agent.
Build-up
funds received shall be immediately
deposited to the
build-up
trust account. Interest earned on build-up trust
accounts shall
accrue to the surety bail bond
agent
producer. (C) Build-up funds are due upon termination of the surety
bail
bond
agent's
producer's contract and
discharge of liabilities
on the
bonds for which the build-up funds were
posted. The
insurer or
managing general agent shall
pay the funds to the
surety bail bond
agent
producer not later than six months after
the funds are due.
Sec. 3905.92. (A) A surety bail bond
agent
producer that
accepts
collateral security or other indemnity shall comply with
all of
the
following requirements: (1) The collateral security or other indemnity shall be
reasonable in relation to the amount of the bond.
(2) The collateral security or other indemnity shall not be
used
by the surety bail bond
agent
producer for personal benefit
or gain
and shall be
returned in the same condition as received.
(3) Acceptable forms of collateral security or indemnity
include
cash or its equivalent, a promissory note, an indemnity
agreement, a real
property mortgage in the name of the surety, and
any filing under
Chapter 1309. of the
Revised Code. If the surety
bail
bond
agent
producer accepts on a bond collateral security in
excess of
fifty
thousand dollars in cash, the cash amount shall be
made
payable to the surety in the form of a cashier's check,
United
States postal money order, certificate
of deposit, or wire
transfer. (4) The surety bail bond
agent
producer shall provide to the
person
giving the collateral security or other indemnity, a
written,
numbered
receipt that describes in a detailed manner the
collateral security or
other indemnity received, along with copies
of any documents
rendered.
(5) The collateral security or other indemnity shall be
received
and held in the surety's name by the surety bail bond
agent
producer in a
fiduciary capacity and, prior to any
forfeiture of
bail, shall be
kept separate and apart from any
other funds or
assets of the
surety bail bond
agent
producer.
However, when collateral
security in
excess of fifty thousand
dollars in cash or its
equivalent is
received on a bond, the
surety bail bond
agent
producer
promptly shall
forward the entire
amount to the surety or managing
general agent. (B) Collateral security may be placed in an interest-bearing
account in a federally insured bank or savings and loan
association in this state, to accrue to the benefit of the person
giving the collateral security. The surety bail bond
agent
producer,
surety, or managing general agent shall not make any
pecuniary
gain on the collateral security deposited. (C)(1) The surety is liable for all collateral security or
other
indemnity accepted by a surety bail bond
agent
producer.
If,
upon
final termination of
liability on a bond, the surety bail
bond
agent
producer or
managing general agent fails to return the
collateral
security to
the person that gave it, the surety shall
return the
actual
collateral to that person or, in the event that
the surety
cannot
locate the collateral, shall pay the person in
accordance
with
this section. (2) A surety's liability as described in division (C)(1) of
this
section survives the termination of the surety bail bond
agent's
producer's appointment,
with respect to those bonds that
were
executed by the surety bail bond
agent
producer
prior to the
termination of
the appointment. (D) If a forfeiture occurs, the surety bail bond
agent
producer or
surety
shall give the principal and the person that
gave the
collateral security ten
days' written notice of intent to
convert
the
collateral deposit into cash to satisfy the
forfeiture. The
notice shall be sent by certified mail, return
receipt requested,
to the last known address of the principal and
the person that
gave the collateral. The surety bail bond
agent
producer or surety shall convert
the
collateral
deposit into cash within a reasonable period of
time
and return that which
is in excess of the face value of the
bond
minus the actual and reasonable
expenses of converting
the
collateral into cash. In no event shall these expenses exceed ten
per cent of the face value of the bond. However, upon motion and
proof
that the actual and reasonable expenses exceed ten per cent,
the
court may allow recovery of the full amount of the actual and
reasonable expenses. If there is a remission of forfeiture
that
required the surety to pay the bond to the court, the surety shall
pay to the person that gave
the collateral the value of any
collateral received for the bond minus the
actual and reasonable
expenses permitted to be recovered under this division. (E) A surety bail bond
agent
producer or surety shall not
solicit or
accept a waiver of any of the provisions of this
section, or enter
into
any agreement as to the value of the
collateral. (F) No person shall fail to comply with this section.
Sec. 3905.921. (A) If collateral security or other
indemnity is
accepted on a bond, the surety bail bond
agent
producer,
managing general agent, or
surety shall make, upon
demand, a
written request to
the court for a discharge of the bond
to be
delivered to the
surety or the surety's agent.
If the obligation of the surety on the bond is released in
writing by the court and a discharge is provided to the surety or
the surety's agent, the collateral security or other indemnity,
except a promissory note or an indemnity agreement, shall be
returned, within twenty-one days after the discharge is provided,
to the person that gave the collateral security or other
indemnity, unless another disposition is provided for by legal
assignment of the right to receive the collateral to another
person. If, despite diligent inquiry by the surety or the
surety's agent to determine that the bond has been discharged, the
court fails to provide a written discharge within thirty days
after
the written request was made to the court, the bond shall be
considered canceled by operation of law, and the collateral
security or other indemnity, except a promissory note or an
indemnity agreement, shall be returned, within twenty-one days
after the written request for discharge was made to the court, to
the person that gave the collateral security or other indemnity.
(B) No fee or other charge, other than those authorized by
sections 3905.83 to 3905.95 of the Revised Code or by rule of the
superintendent of
insurance, shall be deducted from
the collateral
due. However, allowable expenses incurred in the apprehension
of
a defendant because of a forfeiture of bond or judgment
may be
deducted if
those expenses are accounted for. (C)(1) No person shall fail to return collateral security
in
accordance with this section. (2) A violation of division (C)(1) of this section shall be
punishable as follows: (a) If the collateral is of a value of less than
five
hundred dollars, a violation is a misdemeanor of the first degree; (b) If the collateral is of a value of at least five hundred
dollars but less
than five thousand dollars, a violation is a
felony of the fifth degree; (c) If the collateral is of a value of at least five
thousand
dollars but less than ten thousand dollars, a violation
is a felony of the
fourth degree; (d) If the collateral is of a value of ten thousand dollars
or
more,
a violation is a felony of the third degree.
Sec. 3905.93. A surety bail bond
agent
producer shall not
execute a
bail bond
without doing
both of the following: (A) Charging the premium rate filed with and approved by the
superintendent of insurance; (B) Disclosing the expense fee
that will be charged to cover
the costs incurred by the
agent
producer in
executing the bond.
Sec. 3905.931. (A) No insurer, managing general
agent, or
surety
bail bond
agent
producer shall furnish to any person
any
blank form,
application, stationery,
business card, or other
supplies to be
used in soliciting, negotiating, or
effecting bail
bonds unless
the person is licensed to act as a surety bail
bond
agent
producer and is
appointed by an insurer. This division does
not prohibit an
unlicensed employee, under the direct supervision
and control of a
licensed
and appointed surety bail bond
agent
producer, from possessing or
executing in the
surety
bond office,
any form, other than a power
of attorney, bond form, or
collateral
receipt, while acting within
the scope of the employee's
employment. (B) An insurer that
furnishes any of the supplies mentioned
in division (A) of this
section to any surety bail bond
agent
producer or
other person not appointed by an
insurer
and that
accepts any bail
bond business from or writes any bail bond
business
for that
surety bail bond
agent
producer or other person
is liable on the bond to
the same
extent and in the same manner
as
if the surety bail bond
agent
producer or other person had been
appointed or
authorized
by an
insurer to act in its
behalf.
Sec. 3905.932. A surety bail bond
agent
producer or insurer
shall not
do any of the
following: (A) Suggest or advise the employment of, or name for
employment,
any particular attorney to represent its principal; (B) Directly or indirectly solicit business in, or on the
property
or grounds of, a detention facility, as defined in
section 2921.01 of the
Revised Code, or in, or on the property or
grounds of, any
court. For purposes of this division, "solicit"
includes the distribution of
business cards, print advertising, or
any other written information directed
to prisoners or potential
indemnitors, unless a request is initiated by the
prisoner or
potential indemnitor. Permissible print advertising in a
detention facility is strictly limited to a listing in a telephone
directory
and the posting of the surety bail bond
agent's
producer's name,
address, and telephone
number in a designated
location within the
detention facility. (C) Wear or otherwise display any identification, other than
wallet identification card required under division (G) of section
3905.85 of the Revised Code,
in or on the property or grounds of a
detention facility, as defined in
section 2921.01 of the Revised
Code, or in or on the
property or grounds of any court; (D) Pay a fee or rebate or give or promise anything of value
to a
jailer, law enforcement officer, committing magistrate, or
other person
who has power to arrest or to hold in custody, or to
any public official or
public employee, in order to secure a
settlement, compromise, remission, or
reduction of the amount of
any bail bond or estreatment of bail; (E) Pay a fee or rebate or give or promise anything of value
to
an attorney in a bail bond matter, except in defense of any
action on a bond; (F) Pay a fee or rebate or give or promise anything of value
to
the principal or to anyone in the principal's behalf; (G) Participate in the capacity of an attorney at a trial or
hearing of a principal; (H) Accept anything of value from a principal for providing
a
bail bond, other than the premium filed with and approved by
the
superintendent of insurance and an expense fee, except that the
surety
bail bond
agent
producer may, in accordance with
section
3905.92 of
the Revised Code, accept collateral security or other
indemnity
from a
principal or other person together with
documentary stamp
taxes if
applicable. No fees, expenses, or
charges of any kind
shall be deducted from
the collateral held or
any return premium
due, except as authorized by
sections 3905.83
to 3905.95 of the
Revised Code or by rule of the superintendent.
A
surety
bail bond
agent
producer,
upon written agreement with
another party, may receive a
fee or other
compensation
for
returning to custody an individual
who has fled the jurisdiction
of the
court or caused the
forfeiture of a bond. (I) Execute a bond in this state on the person's own behalf; (J) Execute a bond in this state if a judgment has been
entered
on a bond executed by the surety bail bond
agent
producer,
which
judgment has remained
unpaid for at least sixty days after
all
appeals have been exhausted, unless
the full amount of the
judgment is
deposited with the clerk of the court.
Sec. 3905.933. (A) A surety bail bond
agent
producer shall
not sign
or
countersign
in blank any bond, or give a power of
attorney to,
or otherwise authorize,
anyone to countersign the
surety bail bond
agent's
producer's name to a bond unless the
person
so authorized is a
licensed and appointed surety bail bond
agent
producer directly
employed
by
the surety bail bond
agent
producer giving that authority. (B) A surety bail bond
agent
producer shall not divide with
any other
person, or
share in, any commissions payable on account
of a bail
bond, except as between
other surety bail bond
agents
producers that are
licensed or otherwise qualified to
engage in
the bail bond
business in their state of domicile.
Sec. 3905.934. (A) A surety bail bond
agent
producer shall
not make,
publish, or otherwise disseminate, directly or
indirectly, any
misleading or false advertisement, or engage in
any other
deceptive trade
practice. (B) All advertising by a surety bail bond
agent
producer
shall
include
the address of record of the
agent
producer on file
with the
department of
insurance.
Sec. 3905.94. If the superintendent of insurance, in
accordance
with section
3905.49
3905.14 of the Revised Code,
suspends or
revokes a person's
license as a surety bail bond
agent
producer,
the
person, during the period of suspension or
revocation,
shall not
be employed by any surety bail
bond
agent
producer, have any ownership
interest in any business involving
bail bonds,
or have any
financial
interest of any type in any bail
bond business.
Sec. 3905.941. Upon the surrender, suspension, or revocation
of a
surety bail bond
agent's
producer's license, the appointing
insurer or
managing general
agent
immediately shall designate a
licensed and
appointed surety bail bond
agent
producer to
administer all bail bonds
previously written by the licensee.
Sec. 3905.99. (A) Whoever violates
sections 3905.181,
3905.21, or 3905.23
section 3905.182 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
3905.02, division (F)
of
section 3905.92, or division (A) of section 3905.931 of
the
Revised Code is guilty of a
misdemeanor of the first degree. (E) Whoever violates section 3905.84
of the Revised Code is
guilty of a misdemeanor of the first degree on a
first or second
offense and of a felony of the third degree on each subsequent
offense.
Sec. 3907.19. The president or vice-president, and the
secretary or actuary, or a majority of the directors of each
insurance company organized under the laws of this state,
annually
on the first day of January, or within sixty days
thereafter,
shall prepare under oath and deposit in the office of
the
superintendent of insurance, a statement showing the
condition of
the company on the thirty-first day of the December
next
preceding. The statement shall be submitted on the forms
adopted
by the superintendent pursuant to section
3905.29
3901.77 of the
Revised Code, and shall exhibit the following items: (A) The number of policies issued during the year; (B) The amount of insurance effected by such policies; (C) The amount of premiums received during the year; (D) The amount of interest and all other receipts,
specifying the items; (E) The amount paid to policyholders of the company for
losses during the year; (F) The amount of all other expenditures and disbursements
of the company, specifying such items as the superintendent calls
for; (G) The amount of losses unpaid; (H) The whole number of policies in force; (I) The amount insured by such policies; (J) The amount of reserve on all policies in force,
calculated by the American Experience Table of Mortality, with
interest at four per cent annually, or calculated by any other
higher standard that the company has adopted, and the unearned
premium on all personal accident and sickness insurance in force; (K) The amount of capital stock, specifying amount paid
and
unpaid; (L) The amount of dividends unpaid and the amount of all
other liabilities; (M) A detailed statement of all the assets of the company,
and the manner of their investment; (N) An exhibit of the policy obligations of the company,
which shall include: (1) In the first annual statement, a schedule showing the
number, date, age when insured, amount insured, term of policy,
term of premium, and amount of premium, of all policies issued,
schedules of all policies canceled, revived, changed, reduced, or
increased and a schedule of reinsurances in other companies; (2) In every succeeding annual statement, a schedule of
the
items listed in division (N)(1) of this section as to all
policies
issued during the year, and similar schedules of
policies
canceled, revived, changed, reduced, or increased during
the year,
together with schedules of reinsurances in other
companies and
schedules of additions to policies, and a list of
all other
obligations of the company requiring valuation. An exhibit of the policy obligations of the company may be
required more often than once a year.
Sec. 3909.06. Every life insurance company organized by act
of congress or
under the laws of another state of the United
States doing business in this
state, annually shall file a
statement of its condition and affairs in the
office of the
superintendent of insurance, and such statement shall be filed
on
the forms adopted by the superintendent pursuant to section
3905.29
3901.77 of the
Revised Code.
Sec. 3911.011. (A) No policy, annuity, or other contract
providing variable or fixed and variable benefits or contractual
payments shall be delivered or issued for delivery in this state
except by a life insurance company, organized under the laws of
this state, or a company, partnership, or association, organized
or incorporated, by an act of congress, or under the laws of this
or any other state of the United States, or any foreign
government, and transacting the business of life insurance in
this
state. No such company, partnership or association shall
deliver
or issue for delivery in this state any such policy,
annuity, or
contract until the superintendent of insurance has
determined that
its condition and methods of operation in
connection with the
issuance of
such
the policies, annuities, and
contracts will not
render its operation hazardous to the public
or to the holders of
its policies, annuities, and other contracts
in this state. In
making such determination, the superintendent
shall consider the
history, reputation, and financial condition
of
such
the company,
partnership, or association, and the character,
responsibility,
and general fitness of its officers, directors,
partners, or
associates. In making such determination with
respect to a
company, partnership, or association not organized
under the laws
of this state, the superintendent shall also
consider whether the
laws and regulations of its domicile provide
a degree of
protection to the public and the holders of its
policies,
annuities, and other contracts substantially equal to
that
provided by this section and any rules adopted by the
superintendent pursuant to division (C) of this section. If any
such company is a subsidiary of, or affiliated through management
or ownership with, a life insurance company authorized to do
business in this state, the superintendent may consider the
requirements of this division to have been satisfied if either
such company or its parent or affiliated company meets such
requirements. (B) No policy, annuity, or other contract described in
division (A) of this section and no certificate, application,
endorsement, or rider to be used in connection with any such
policy, annuity, or other contract shall be delivered, or issued
for delivery, in this state until a copy thereof has been filed
with the superintendent. The superintendent shall, within thirty
days after the filing of any such form, disapprove the same
if he
finds
upon finding that such form contains provisions
which
that
are
unjust, unfair, inequitable, misleading, or deceptive,
encourage
misrepresentation of the coverage, or are contrary to
the
insurance laws of this state or any rule adopted by
him
the
superintendent pursuant to division (C) of this section. When the
superintendent
notifies a company, partnership, or association
that a form has
been disapproved, it shall be unlawful thereafter
for
such
the
company, partnership, or association to issue or use
such
the form.
In
such
the notice, the superintendent shall
specify the reason for
his
the disapproval and state that a
hearing will be granted in
twenty days after request in writing.
No such policy, contract,
certificate, application, endorsement,
or rider shall be issued
or used until the expiration of thirty
days after it has been so
filed, unless the superintendent gives
written approval thereto.
The superintendent may, at any time
after a hearing held not less
than twenty days after written
notice to the insurer, withdraw
his
the approval of any such form
on any ground set forth in
this
division. The written notice of
such hearing shall state the
reason for the proposed withdrawal.
The company, partnership, or
association shall not issue
such
the
form or use it after the
effective date of
such
the withdrawal.
Any order or formal
determination of the superintendent under this
division shall be
subject to judicial review as provided in
section 119.12 of the
Revised Code. (C) The superintendent shall have the sole and exclusive
power and authority to regulate the sale, delivery, and issuance
for delivery in this state of policies, annuities, and other
contracts described in division (A) of this section and, subject
to
sections 119.01 to 119.13, inclusive,
Chapter
119. of the
Revised Code, to adopt, amend, and rescind rules
necessary to
discharge
his
the superintendent's duties and
exercise
his
the
superintendent's power and authority under
sections 3905.20 and
section 3907.15 of the Revised Code and this section, including,
but not limited to, the adoption of a definition of a subsidiary
or affiliated
corporation under section 3907.15 of the Revised
Code. (D) Except for Chapter 3915. and except as otherwise
provided in sections
3905.20, 3907.15, and 3911.011 of the
Revised
Code, all pertinent provisions of Title XXXIX of the
Revised Code
apply to all policies, annuities, and other
contracts providing
variable or fixed and variable benefits or
contractual payments
and all separate accounts established in
connection therewith.
The
reserve liability for such policies,
annuities, and contracts
shall be established in accordance with
actuarial procedures that
recognize the variable nature of the
benefits and guarantees
provided. Chapter 1707. of the Revised Code does not apply to any
policy, annuity, or other contract providing fixed, variable, or
fixed and variable benefits or contractual payments,
which
that is
issued by any company, partnership, or association authorized to
transact the business of life insurance in this state.
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
producer licensed to
sell sickness and accident insurance pursuant to
Chapter 3905. of
the Revised Code or section
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 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 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
the policy.
Sec. 3929.30. The president or the vice-president and the
secretary of each insurance company organized under the laws of
this or any other state and doing business in this state,
annually, on the first day of January or within sixty days
thereafter, shall prepare, under oath, and deposit in the office
of the superintendent of insurance a statement of the condition
of
such company on the next preceding thirty-first day of
December.
The statement shall be submitted on the forms adopted
by the
superintendent pursuant to section
3905.29
3901.77 of the Revised
Code, and shall exhibit the following facts and items: (A) The amount of the capital stock of the company,
specifying the amount paid and unpaid; (B) A detailed statement of all the assets of the company
and the manner of their investment. (C) The liabilities of the company, specifying: (1) The amount of losses due and unpaid; (2) The amount of claims for losses resisted by the
company; (3) The amount of losses incurred during the year,
including
those claimed and not due, and those reported to the
company upon
which no action has been taken; (4) The amount of dividends declared, due, and unpaid; (5) The amount of dividends, either cash or scrip,
declared
but not due; (6) The amount of money borrowed and the security given
for
its payment; (7) The amount required for reinsurance, being a pro rata
of
all premiums, received and receivable, on unexpired risks and
policies, provided that as to fire insurance business, a company
may, at its option, maintain a sum equal to fifty per cent of the
whole amount of premiums received and receivable on unexpired
risks and policies running one year and less from the date of the
policy. In the case of marine insurance, premiums on trip risks
not terminated shall be deemed unearned, and the superintendent
may require a reserve to be carried thereon equal to one hundred
per cent of the premiums on trip risks written during the month
ended as of the date of statement. (8) The amount of all other existing claims against the
company; (9) A statement, approved by the superintendent, from a
member of the American academy of actuaries certifying that the
loss and loss adjustment reserves established for medical
malpractice business, as reported in the statutory annual
statement, are computed in accordance with accepted loss
reserving
standards and are fairly stated in accordance with
sound loss
reserving principles. (D) The income of the company during the preceding year,
specifying: (1) The amount of cash premiums received; (2) The amount of notes or contingent assets received for
premiums; (3) The amount of interest money received; (4) The amount of income received from other sources. (E) The expenditure during the preceding year, specifying: (1) The amount of losses paid during the year, stating how
much of them accrued prior, and how much accrued subsequent, to
the date of the preceding statement, and the amount at which
losses were estimated in each preceding statement; (2) The amount of dividends paid during the year; (3) The amount of expenses paid during the year, including
commissions and fees to agents and officers of the company; (4) The amount paid for taxes; (5) The amount of all payments and expenditures; (6) The amount of scrip dividend declared.
Sec. 3931.101. The provisions of
sections 3905.01 to 3905.04
Chapter 3905. of
the Revised Code, relating to the appointment,
licensing, qualification and
regulation of insurance
agents,
producers and 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
willfully violated, or failed to comply with, sections
3931.01 to
3931.12 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
that if performed by an
agent
insurance
producer licensed under
section 3905.02
Chapter 3905. of the
Revised
Code would
constitute statutory grounds for the revocation
of
such agent's
the producer's
license, the superintendent may
refuse or revoke the authority of
the person
and cancel the
person's name on the superintendent's records, and the
superintendent shall
thereupon notify the person and the attorney
of
the revocation. Thereafter
the person shall not act as
representative of any
attorney until a new certificate of
authority by the attorney
thereafter appointing 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
the 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. 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
producers representing it in this
state in accordance with
section
3905.02
3905.20 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
producer
shall keep
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
producer has complied with this chapter. (B) A title insurance
agent
producer may engage in the
business of handling escrows of
real property transactions
directly connected with the business of title
insurance, provided
that the
agent
producer shall maintain a separate record of all
receipts and disbursements of escrow funds and shall not commingle
any such
funds with
agent's
the producer's own funds or with funds
held by
agent
the producer in any other
capacity; and if at any
time
the superintendent of insurance determines that
an
agent
insurance
producer has failed to comply with any of the provisions
of this
section, the
superintendent may revoke the license of the
agent
producer pursuant
to section
3905.02
3905.14 of the Revised
Code,
subject to review as
provided for in Chapter 119. of the
Revised
Code. All
agents
insurance producers shall be covered
by
a
fidelity bond in an amount and with a company satisfactory to
the
principal.
Sec. 3957.14. (A) No person shall, except for the renewal
of an existing home service contract, procure, receive, or
forward
applications for home service contracts unless the person
is
a
resident of this state who is one of the following: (1) A real estate licensee as licensed by the real estate
division of the department of commerce of this state; (2) An organization or franchisor or licensor of such a
real
estate licensee; (3) A licensed insurance
agent
producer for casualty,
property, or personal lines; (4) Any other person to whom the superintendent of
insurance
has issued a license to perform such services. The
superintendent
shall not issue such a license unless the person
has paid a fee of
twenty dollars and has been determined by the
superintendent to be
qualified. The superintendent shall issue
such a license only if
the person successfully passes a written
examination prescribed by
the superintendent. (B) No home warranty company or person acting on behalf of
such a company under division (A) of this section shall pay to
any
person who is acting as the agent, representative, attorney,
or
employee of the owner or prospective owner of residential
property
with respect to which a home service contract is to be
issued, any
commission or any other consideration, either
directly or
indirectly, as an inducement or compensation for the
issuance,
purchase, or acquisition of a home service contract. A
home
warranty company may reimburse such persons for expenses
actually
incurred in the issuance, sale, advertising, or
processing of home
service contracts or in performing an
inspection of residential
property with respect to which a home
service contract is issued.
No commission shall be paid to any
person except a person
authorized to receive such a commission
under this section. In
the event a commission is paid, no
rebates shall be permitted and
the prohibitions of section
3933.01 of the Revised Code apply.
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
producer or broker in accordance
with
section 3905.02 or 3905.30
Chapter 3905. 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
producer or broker in accordance with
section
3905.02 or 3905.30
Chapter 3905. 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
producer or broker in accordance with
section 3905.02 or 3905.30
Chapter 3905.
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 a
surplus
line broker in
accordance with section 3905.30
of the
Revised Code.
Sec. 5703.052. There is hereby created in the state
treasury
the tax refund fund, from which refunds shall be paid
for taxes
illegally or erroneously assessed or collected, or for
any other
reason overpaid, that are levied by Chapter 4301.,
4305., 5728.,
5729., 5733., 5735., 5739., 5741., 5743., 5747.,
5748., 5749., or
5753., and sections 3737.71,
3905.35, 3905.36,
4303.33, 5707.03,
5725.18, 5727.28, 5727.38,
5727.81, and 5727.811 of the
Revised
Code. Refunds for fees illegally or erroneously assessed or
collected, or for any other reason overpaid, that are levied by
sections 3734.90 to 3734.9014 of the Revised Code also shall be
paid from the fund. However, refunds for taxes levied under
section 5739.101 of the Revised Code shall not be paid from the
tax refund fund, but shall be paid as provided in section
5739.104
of the Revised Code. Upon certification by the tax commissioner to the treasurer
of state of a tax refund, fee refund, or tax credit due, or by
the
superintendent of insurance of a domestic or foreign
insurance tax
refund, the treasurer of state may place the amount
certified to
the credit of the fund. The certified amount
transferred shall be
derived from current receipts of the same
tax or the fee for which
the refund arose or, in the case of a
tax credit refund, from the
current receipts of the taxes levied
by sections 5739.02 and
5741.02 of the Revised Code. If the tax refund arises from a tax payable to the general
revenue fund, and current receipts from that source are
inadequate
to make the transfer of the amount so certified, the
treasurer of
state may transfer such certified amount from
current receipts of
the sales tax levied by section 5739.02 of
the Revised Code.
Section 2. That existing sections 1514.02, 1751.38, 2927.27,
3901.021, 3901.51, 3901.62, 3903.81, 3905.012, 3905.09, 3905.11,
3905.12, 3905.13, 3905.14, 3905.181, 3905.24, 3905.25, 3905.26,
3905.27, 3905.28, 3905.29, 3905.30, 3905.31, 3905.36, 3905.41,
3905.47, 3905.481, 3905.482, 3905.483, 3905.484, 3905.486,
3905.49, 3905.491, 3905.50, 3905.52, 3905.55, 3905.72, 3905.83,
3905.84, 3905.841, 3905.85, 3905.851, 3905.86, 3905.861, 3905.862,
3905.87, 3905.88, 3905.89, 3905.90, 3905.91, 3905.92, 3905.921,
3905.93, 3905.931, 3905.932, 3905.933, 3905.934, 3905.94,
3905.941, 3905.99, 3907.19, 3909.06, 3911.011, 3923.121, 3929.30,
3931.101, 3931.11, 3953.21, 3953.23, 3957.14, 3960.11, and
5703.052 and sections 3905.01, 3905.011, 3905.013, 3905.02,
3905.03, 3905.04, 3905.06, 3905.07, 3905.08, 3905.15, 3905.16,
3905.17, 3905.18, 3905.19, 3905.20, 3905.21, 3905.22, 3905.23,
3905.32, 3905.35, 3905.40, 3905.48, 3905.492, 3905.51, and 3905.54
of the Revised Code are hereby repealed.
Section 3. Sections 1 and 2 of this act shall take effect six
months after the effective date of this act.
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