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Sub. S. B. No. 129As Reported by the House Insurance CommitteeAs Reported by the House Insurance Committee
124th General Assembly | Regular Session | 2001-2002 |
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SENATORS Nein, Austria
REPRESENTATIVES Stapleton, Salerno, G. Smith, Olman, Calvert, Flannery, Flowers, Krupinski, Britton, Evans, Cirelli, Jolivette, Schaffer, Wolpert, Sferra, Blasdel
A BILL
To amend sections 1751.38, 3901.021, 3901.19,
3901.22, 3901.51, 3901.62, 3903.81, 3905.012,
3905.03, 3905.06, 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, 3905.34, 3905.36,
3905.41,
3905.47,
3905.482, 3905.483,
3905.484,
3905.486,
3905.49,
3905.491, 3905.492, 3905.50,
3905.52,
3905.72,
3905.85, 3905.861,
3905.89, 3905.94,
3905.99,
3907.19, 3909.06, 3911.011, 3923.121,
3929.30,
3931.101, 3931.11, 3933.04,
3953.21, 3953.23,
3957.14, 3960.03, and
3960.11; to
amend, for the
purpose of
adopting new section
numbers as
indicated in
parentheses, sections
3905.012
(3905.16), 3905.03 (3905.10), 3905.06
(3905.29),
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), 3905.492 (3905.24),
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, 3905.11, 3905.12,
3905.18, 3905.181,
3905.20, 3905.21, 3905.22,
3905.26, and
3905.28 and
sections 3901.211,
3905.041, 3905.05, 3905.061,
3905.071, 3905.072,
3905.081, 3905.201, 3905.211,
and
3905.212; and to
repeal
sections 3905.01,
3905.011,
3905.013,
3905.02,
3905.04,
3905.07,
3905.08,
3905.15,
3905.16, 3905.17,
3905.18,
3905.19,
3905.20,
3905.21, 3905.22,
3905.23,
3905.40, 3905.48,
3905.51, and 3905.54 of the
Revised Code
to adopt the Insurance
Producer's
Licensing Act and
to prohibit certain unfair trade
practices by
persons that lend money or extend
credit.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 1751.38, 3901.021,
3901.19, 3901.22,
3901.51, 3901.62, 3903.81, 3905.012, 3905.03, 3905.06, 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, 3905.34,
3905.36, 3905.41, 3905.47,
3905.482, 3905.483, 3905.484,
3905.486,
3905.49,
3905.491, 3905.492, 3905.50, 3905.52, 3905.72,
3905.85,
3905.861, 3905.89, 3905.94, 3905.99, 3907.19, 3909.06,
3911.011,
3923.121, 3929.30, 3931.101,
3931.11, 3933.04,
3953.21, 3953.23,
3957.14, 3960.03, and 3960.11 be
amended;
sections 3905.012
(3905.16), 3905.03 (3905.10), 3905.06 (3905.29),
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), 3905.492 (3905.24), 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, 3905.11, 3905.12, 3905.18,
3905.181, 3905.20, 3905.21, 3905.22,
3905.26, and 3905.28 and
sections 3901.211, 3905.041, 3905.05,
3905.061, 3905.071,
3905.072, 3905.081, 3905.201, 3905.211, and 3905.212 of
the
Revised Code be enacted to read as follows:
Sec. 1751.38. (A) As
used in this section, "agent" means a
person appointed by a
health insuring corporation to engage in the
solicitation or
enrollment of subscribers or enrollees. (B) Agents of health insuring corporations shall be licensed
pursuant to
section 3905.02 or 3905.18
as insurance agents 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.
Sec. 3901.021. Three-fourths of all appointment
and other
fees collected under
sections 3905.02, 3905.03, 3905.07, and
3905.18,
section 3905.10, 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. 3901.19. As used in sections 3901.19 to 3901.26 of
the
Revised Code: (A) "Person" means any individual, corporation,
association,
partnership, reciprocal exchange, inter-insurer,
fraternal benefit
society, title guarantee and trust company,
health insuring
corporation, and any other legal
entity. (B) "Residents" includes any individual, partnership, or
corporation. (C) "Maternity benefits" means those benefits calculated
to
indemnify the insured for hospital and medical expenses fairly
and
reasonably associated with a pregnancy and childbirth. (D) "Insurance" includes, but is not limited to, any
policy
or contract offered, issued, sold, or marketed by an
insurer,
corporation, association, organization, or entity
regulated by the
superintendent of insurance or doing business in
this state.
Nothing in any other section of the Revised Code
shall be
construed to exclude single premium deferred annuities
from the
regulation of the superintendent under sections 3901.19
to 3901.26
of the Revised Code.
(E) "Affiliate" means any company that controls, is
controlled by, or is under common control with, another company. (F) "Customer" means an individual who purchases, applies to
purchase, or is solicited to purchase insurance products primarily
for personal, family, or household purposes. (G) "Depository institution" means a bank, savings
bank,
savings and loan association, or credit union that is subject to
regulation or supervision by the United States or any state.
"Depository institution" does not include an insurance company.
(H) "Insurance agent" or "agent" has the same meaning as in
section 3905.01 of the Revised Code.
(I) "Insurer" has the same meaning as in section 3901.32 of
the Revised Code.
(J) "Policy" or "certificate" means a contract of
insurance, indemnity, medical, health or hospital service,
suretyship, or annuity issued, proposed for issuance, or intended
for issuance by any insurer.
Sec. 3901.211. (A)(1) No person may require as a condition
precedent to the lending of money or the extension of credit, or
any renewal thereof, that the person to whom such money or credit
is extended or whose obligation a creditor is to acquire or
finance, negotiate any policy or renewal thereof through a
particular insurer or group of insurers or agent or group of
agents. (2) No person may reject an insurance
policy solely because
the policy has been issued or underwritten
by a person that is not
associated with the person, or an
affiliate of the person,
rejecting the policy.
(B) No person that lends money or extends credit may do any
of the following:
(1) As a condition for extending credit or offering any
product or service that is equivalent to an extension of credit,
require that a customer obtain insurance from a depository
institution or an affiliate of a depository institution, or from a
particular insurer, agent, or other person. However, this
provision does not prohibit a person from informing a customer or
prospective customer that insurance is required in order to obtain
a loan or credit, that loan or credit approval is contingent
upon
the procurement by the customer of acceptable insurance, or
that
insurance is available from the person or an affiliate of
that
person.
(2) Unreasonably reject a policy furnished by the customer
or borrower for the protection of the property securing the credit
or lien. A rejection shall not be deemed unreasonable if it is
based on reasonable standards, uniformly applied. Such standards
may include, but are not limited to, standards relating to the
extent of coverage required and the financial soundness and
services of an insurer. Such standards shall not discriminate
against any particular type of insurer, nor shall such standards
call for the rejection of a policy because it contains coverage in
addition to that required in the credit transaction.
(3) Require that any customer, borrower, mortgagor,
purchaser, insurer, broker, or agent pay a separate charge in
connection with the handling of any policy required as security
for a loan on real estate or pay a separate charge to substitute
the policy of one insurer for that of another. Division (B)(3) of
this section does not apply to the interest that may be charged on
premium loans or premium advancements in accordance with the terms
of the loan or credit document. Division (B)(3) of this section
does not apply to required charges when the person or an affiliate
of that person is the licensed agent providing the insurance.
(4) Require any procedures or conditions of duly licensed
agents or insurers not customarily required of the agents or
insurers affiliated, or in any way connected, with the person that
lends money or extends credit;
(5) Use an advertisement or other insurance promotional
material that would cause a reasonable person to mistakenly
believe that the federal government or the state is responsible
for the insurance sales activity of, or stands behind the credit
of, the person, depository institution, or an affiliate of the
person or depository institution;
(6) Use an advertisement or other insurance promotional
material that would cause a reasonable person to mistakenly
believe that the federal government or the state guarantees any
return on insurance products or is a source of payment on any
insurance obligation of or sold by the person or an affiliate of
the person;
(7) Pay or receive any commission, brokerage fee, or other
compensation as an agent, unless the person holds a valid agent's
license for the applicable class of insurance. However, an
unlicensed person may make a referral to a licensed agent,
provided that the person does not discuss specific insurance
policy terms and conditions. The unlicensed person may be
compensated for the referral; however, in the case of a referral
of a customer, the unlicensed person may be compensated only if
the
compensation is a fixed dollar amount for each referral that
does
not depend on whether the customer purchases the insurance
product
from the licensed agent. Further, any person that accepts
deposits from the public in an area where such transactions are
routinely conducted in the depository institution may receive for
each customer referral no more than a one-time, nominal fee of a
fixed dollar amount that does not depend on whether the referral
results in a transaction.
(8) Solicit or sell insurance, other than credit insurance
or flood insurance, unless the solicitation or sale is completed
through documents separate from any credit transactions;
(9) Include the expense of insurance premiums, other than
credit insurance premiums or flood insurance premiums, in the
primary credit transaction without the express written consent of
the customer.
(C)(1) If an application for a loan or extension of credit
is pending before a person that lends money or extends credit and
that also solicits insurance primarily for personal, family, or
household purposes in
connection with that loan or extension of
credit, that person shall disclose to the customer, in writing,
that
the insurance related to the credit extension may be
purchased
from an insurer or agent of the customer's choice,
subject only to
the lender's right to reject a given insurer or
agent as provided
in division (B)(2) of this section. Further,
the disclosure shall
inform the customer that the customer's
choice of an insurer or
agent will not affect the credit decision
or credit terms in any
way, except that the person lending money
or extending credit may
impose reasonable requirements as provided
in division (B)(2) of
this section.
(2) If an application for a loan or extension of credit is
pending before a person that lends money or extends credit and
that also solicits insurance primarily for personal, family, or
household purposes in connection with
that loan or extension of
credit, that person shall obtain a written acknowledgement of the
receipt of the disclosure at the time the customer receives the
disclosure or at the time of the initial purchase of the insurance
policy. If the solicitation is conducted by telephone, the person
shall obtain an oral acknowledgement of receipt of the disclosure,
maintain sufficient documentation to show that the acknowledgement
was given by the customer, and make reasonable efforts to obtain a
written acknowledgement from the customer. If a customer
affirmatively consents to receiving the disclosures electronically
and the disclosures are provided in a format that the customer may
retain or obtain later, the person may provide the disclosure and
obtain acknowledgement of the receipt of the disclosure from the
customer using electronic media.
(3) This division does not apply to the offering or sale of
limited line credit insurance as defined in section 3905.01 of the
Revised Code.
(D)(1) A depository institution that solicits, sells,
advertises, or offers insurance, and any person that solicits,
sells, advertises, or offers insurance on behalf of a depository
institution or on the premises of a depository institution, shall
disclose to the customer in writing, where practicable and in a
clear and conspicuous manner, prior to a sale, that the insurance:
(b) Is not insured by the federal deposit insurance
corporation or any other federal government agency;
(c) Is not guaranteed by the depository institution, and,
when applicable, that the insurance is not guaranteed by an
affiliate of the depository institution or by any person that is
soliciting, selling, advertising, or offering insurance;
(d) Involves investment risk including the possible loss of
value, where this disclosure is appropriate.
(2) A depository institution that solicits, sells,
advertises, or offers insurance, and any person that solicits,
sells, advertises, or offers insurance on behalf of a depository
institution or on the premises of a depository institution, shall
obtain written acknowledgement of the receipt of the disclosure
from the customer at the time the customer receives the disclosure
or at the time of the initial purchase of the insurance policy.
If
the solicitation is conducted by telephone, the person or
depository institution shall obtain an oral acknowledgement of
receipt of the disclosure, maintain sufficient documentation to
show that the acknowledgement was given by the customer, and make
reasonable efforts to obtain a written acknowledgement from the
customer. If a customer affirmatively consents to receiving the
disclosures electronically and the disclosures are provided in a
format that the customer may retain or obtain later, the person or
depository institution may provide the disclosure and obtain
acknowledgement of the receipt of the disclosure from the customer
using electronic media.
(3) For purposes of divisions (D)(1) and (2) of this
section, an affiliate of a depository institution is subject to
these requirements only to the extent that it sells, solicits,
advertises, or offers insurance products or annuities at an office
of a depository institution or on behalf of a depository
institution. These requirements apply only when an individual
purchases, applies to purchase, or is solicited to purchase
insurance products or annuities primarily for personal, family, or
household purposes and only to the extent that a disclosure would
be accurate.
(4) For purposes of division (D)(1) of this section, a
person is selling, soliciting, advertising, or offering insurance
on behalf of a depository institution, whether at an office of the
depository institution or another location, if at least one of the
following applies:
(a) The person represents to the customer that the sale,
solicitation, advertisement, or offer of insurance is by or on
behalf of the depository institution;
(b) The depository institution refers a customer to the
person that sells insurance and the depository institution has a
contractual arrangement to receive commissions or fees derived
from the sale of insurance resulting from the referral;
(c) Documents evidencing the sale, solicitation,
advertisement, or offer of insurance identify or refer to the
depository institution.
(E) Nothing in this section shall prevent a person that
lends money or extends credit from placing insurance on real or
personal property in the event the mortgagor, borrower, or
purchaser has failed to provide required insurance in accordance
with the terms of the loan or credit document.
(F)(1) A violation of this section is an unfair and
deceptive act or practice in the business of insurance under
sections 3901.19 to 3901.26 of the Revised Code.
(2) Any person subject to this section shall, upon
reasonable notice, make available to the superintendent of
insurance all books and records relating to insurance
transactions.
Sec. 3901.22. (A) The superintendent of insurance may
conduct hearings to determine whether violations of section
3901.20 of the Revised Code have occurred. Any person aggrieved
with respect to any act that the person believes to be an unfair
or deceptive act or practice in the business of insurance, as
defined in section 3901.21
or 3901.211 of the Revised Code or in
any rule of
the superintendent
of insurance, may make written
application to
the superintendent for a hearing to determine if
there has been a
violation of section 3901.20 of the Revised Code.
The
application shall specify the grounds to be relied upon by the
applicant. If the superintendent finds that the application is
made in good faith, that the applicant would be so aggrieved if
his
the applicant's grounds are established, and that such
grounds
otherwise
justify holding such a hearing,
he
the superintendent
shall hold
a hearing to
determine whether the act specified in the
application is a
violation of section 3901.20 of the Revised Code.
Notice of any
hearing held under the authority of this section,
the conduct of
the hearing, the orders issued pursuant to it, the
review of the
orders and all other matters relating to the holding
of the
hearing shall be governed by Chapter 119. of the Revised
Code. (B) Upon good cause shown, the superintendent shall permit
any person to intervene, appear, and be heard at the hearing,
either in person or by counsel. (C) The superintendent shall send a copy of the order to
those persons intervening in the hearing. (D) If the superintendent,
by written order, finds
in
his
written order that any person has violated section 3901.20 of the
Revised Code,
he
the superintendent shall issue an order
requiring
that person to cease and desist
from engaging in the violation.
In
addition, the superintendent may impose
any or all of the
following administrative remedies
upon the person: (1)
He
The superintendent may suspend or revoke
his
the
person's license to engage in the
business of insurance; (2)
He
The superintendent may order that an insurance company
or insurance
agency not employ the person or permit the person to
serve as a
director, consultant, or in any other capacity for such
time as
the superintendent determines would serve the public
interest.
No application for termination of such an order for an
indefinite
time shall be filed within two years of its effective
date;. (3)
He
The superintendent may order
such
the person to return
any
payments
received by
such
the person as a result of the
violation; (4) If the superintendent issues an order pursuant to
division (D)(3) of this section,
he
the superintendent shall
order
such
the person to pay statutory interest on such payments. If the superintendent does not issue orders pursuant to
divisions (D)(3) and (4) of this section,
he
the superintendent
shall expressly state in the cease-and-desist order
his
the
reasons for not issuing such orders. (5)
He
The superintendent may order
such
the person to pay to
the
state treasury
for credit to the department's operating fund
an amount, not in
excess of one hundred thousand dollars, equal to
one-half of the
expenses reasonably incurred by the superintendent
to retain
attorneys, actuaries, accountants, and other experts not
otherwise a part of the superintendent's staff to assist directly
in the conduct of any investigations and hearings conducted with
respect to violations committed by
such
the person. (E) If the superintendent has reasonable cause to believe
that an order issued pursuant to division (D) of this section has
been violated in whole or in part,
he
the superintendent may,
unless such order is stayed by a court of competent jurisdiction,
request the
attorney general to commence and prosecute any
appropriate action or
proceeding in the name of the state against
such
the person. Such action may include, but need not be limited to, the
commencement of a class action under Civil Rule 23 on behalf of
policyholders, subscribers, applicants for policies or contracts,
or other insurance consumers for damages caused by or unjust
enrichment received as a result of the violation. (F) In addition to any penalties imposed pursuant to this
chapter, the court may, in an action brought pursuant to division
(E) of this section, impose any of the following: (1) For each act or practice found to be in violation of
section 3901.20 of the Revised Code, a civil penalty of not more
than three thousand five hundred dollars for each violation but
not to exceed an aggregate penalty of thirty-five thousand
dollars
in any six-month period, provided that a series of
similar acts or
practices prohibited by section 3901.20 of the
Revised Code and
committed by the same person but not in separate
insurance sales
transactions shall be considered a single
violation; (2) For each violation of a cease and desist order issued
by
the superintendent pursuant to this section, a civil penalty
of
not more than ten thousand dollars; (3) In addition to any other appropriate relief, the court
may order any or all of the remedies specified in division (D) of
this section. (G) The superintendent, under a settlement agreement to
which a person has consented in writing for the purpose of
assuring the person's correction of a series of offenses and
future compliance with the laws of this state relating to the
business of insurance, may impose a single penalty in whatever
amount the parties determine to be justified under the
circumstances. (H) A court of common pleas, in a civil action commenced
by
the attorney general on behalf of the superintendent under
Civil
Rule 65, may grant a temporary restraining order,
preliminary
injunction, or permanent injunction to restrain or
prevent a
violation or threatened violation of any provision of
section
3901.20 of the Revised Code, if the court finds that the
defendant
has violated, is violating, or is threatening to
violate such
provision, that immediate and irreparable injury,
loss, or damage
will result if such relief is not granted, and
that no adequate
remedy at law exists to prevent such irreparable
injury, loss, or
damage. (I) If the superintendent's position in initiating a
matter
in controversy pursuant to this section and section
3901.221 of
the Revised Code was not substantially justified,
upon motion of
the person who prevailed in the hearing or in the
appropriate
court, if an adjudication order was appealed or a
civil action was
commenced, the superintendent or the court shall
order the
department of insurance to pay such person an amount,
not in
excess of one hundred thousand dollars, equal to one-half
of the
expenses reasonably incurred by
such
the person in connection
with
the related proceedings. An award pursuant to this division
may
be reduced or denied if special circumstances make an award
unjust
or if
such
the person engaged in conduct that unduly and
unreasonably protracted the final resolution of the matter in
controversy. If the department does not pay such award or no
such
funds are available, the award shall be treated as if it
were a
judgment under Chapter 2743. of the Revised Code and be
payable in
accordance with the procedures specified in section
2743.19 of the
Revised Code, except that interest shall not be
paid in relation
to the award.
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
agent maintains the insurance agent's principal place of
residence
or principal place of business and is licensed to act as
an
insurance agent. (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 agent" or "agent" 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
insurance agents and surplus line brokers.
(E) "Insurer" has the same meaning as in section 3901.32 of
the Revised Code. (F) "License" means the authority issued by the
superintendent
to a person to act as an insurance agent for the
lines of authority specified, but that does not
create any actual,
apparent, or inherent authority in the person
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 agent" 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 divisions (B)(7) to (10) 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 section
3905.072 of the
Revised Code.
(J) "Limited lines insurance agent" 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 agent and the insurer or to terminate an insurance
agent's authority to transact insurance.
(R) "Uniform application" means the NAIC uniform application
for resident and nonresident agent 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. (A) Section 3905.02 of the Revised Code does
not
apply to any of the following:
(1) Any insurer. For purposes of this division, "insurer"
does not include an insurer's officers, directors, employees,
subsidiaries, or affiliates.
(2) Any officer, director, or employee of an insurer or of
an insurance agent, 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:
(a) 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.
(b) 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.
(c) 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
agents and do not include the sale, solicitation, or
negotiation
of insurance.
(3) Any person who secures and furnishes information for
purposes of group life insurance, group property and casualty
insurance, group annuities, or group or blanket accident and
health 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;
(4) 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:
(a) The employee benefits program involves the use of
insurance contracts issued by an insurer.
(b) 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.
(5) 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 agents, and is not
individually engaged in the sale, solicitation, or negotiation of
insurance;
(6) 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;
(7) 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 agent
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;
(8) 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 employee does not sell or solicit insurance or
receive a commission; (9) Any employee of an insurer or of an insurance agent who,
at the direction of the insurer or agent, performs any of the
following activities:
(a) The acceptance of premiums other than the initial
premium;
(b) The gathering of information, such as names,
addresses, expiration dates of current insurance, and names of
current insurers;
(c) The setting of appointments for insurance agents,
provided that the individual setting the appointment does not
communicate any information about insurance;
(d) The servicing of existing insurance policies issued by
or through the employee's employer, provided the servicing is not
part of a solicitation;
(e) The performance of clerical or ministerial duties.
(10) Any employee of a creditor with respect to limited line
credit insurance products, as long as the employee of the creditor
is not paid by, and does not receive a fee, commission, or any
other form of compensation from, an insurance
agent or insurance
company. (B) The superintendent of insurance may adopt rules in
accordance with Chapter 119. of the Revised Code to set forth the
specific acts the performance of which either require or do not
require licensure as an insurance agent.
Sec. 3905.04. (A) Except as otherwise provided in section
3905.041 of the Revised Code, a resident individual applying for
an insurance agent 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 agent, 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 both of the following apply: (1) The individual has earned a bachelor's or associate's
degree in insurance from 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, in consultation with the insurance agent education
advisory council, under criteria established by the
superintendent. Division (C) of this section does not apply
with
respect to title insurance or any other line of authority
designated by the superintendent.
(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 may, in accordance with Chapter
119. of the Revised Code, adopt any rule necessary for the
implementation of this section. (2) The superintendent may 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)(1) An individual who applies for a
resident
insurance agent license in this state within ninety days
after establishing a principal place of residence or principal
place of business in this state shall not be
required
under
section 3905.04 of the Revised Code to complete a
program of
insurance education or to pass a written examination if
either
of
the following applies: (a) The individual is currently licensed in another state
and is in good standing for the line
or lines of authority
requested. (b) The individual was previously licensed in another state,
the individual's application for a resident insurance agent
license in this state is received within ninety days after the
cancellation of the individual's previous license, and, at the
time
of license cancellation, the individual was in good standing
for
the line or lines of authority requested. (2) To determine an applicant's licensure and standing
status in another state, the superintendent of insurance may
utilize the producer database maintained by the NAIC or its
affiliates or subsidiaries. If that information is not available
on the producer database, the superintendent may require a
certification letter from the prior home state. (B) An individual who applies for a temporary insurance
agent
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. (C) 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 agent 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, or other governmental agencies, or
other sources, as required and designated by the superintendent of
insurance, and direct that the responses to that request be
transmitted to the superintendent of
insurance, or to the
superintendent's designee. 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 agent
shall
apply for a resident insurance agent 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 a resident insurance agent license to an individual
applicant whose home state is Ohio, 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 program of insurance education for
each line of authority for which the applicant 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 applicant has applied. (e) The applicant is of good reputation and character, is
honest and trustworthy, and is otherwise suitable to be licensed.
(2) The superintendent shall issue a resident insurance
agent
license to a business entity applicant if the
superintendent
finds all of the following:
(a) The applicant either is domiciled in Ohio or maintains
its principal place of business in Ohio. (b) The applicant has designated a licensed insurance
agent
who will be responsible for the applicant's compliance
with the
insurance laws of this state.
(c) 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 agent 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
liability, 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) A resident insurance agent license shall be perpetual
unless surrendered by the licensee or suspended or revoked by the
superintendent.
Sec. 3905.061. (A) If a person licensed as an insurance
agent 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 agent 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 agent complies with division (B)(1)
of
this section, the agent'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 agent 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 is of good reputation and character, is
honest and trustworthy, and is otherwise suitable to be licensed. (6) The applicant's home state issues nonresident insurance
agent licenses to residents of this state on the same basis as
set
forth in division (A) of this section.
(B) To determine an applicant's licensure and standing status
in another state, the superintendent may utilize the producer
database maintained by the NAIC or its affiliates or subsidiaries.
If that information is not available on the producer database, the
superintendent may require a certification letter from the
applicant's
home state. (C) A nonresident insurance agent license shall be perpetual
unless surrendered by the licensee or suspended or revoked by the
superintendent.
(D) Notwithstanding any other provision of this chapter, a
nonresident person licensed as a surplus lines producer in the
applicant's home state shall receive a nonresident surplus lines
broker license pursuant to division (A) of this section. Nothing
in this section otherwise affects or supersedes any provision of
sections 3905.30 to 3905.37 of the Revised Code.
Sec. 3905.071. (A)(1) If a nonresident person licensed as a
nonresident insurance agent under section 3905.07 of the Revised
Code changes the person's address within 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. (2) If a nonresident person licensed as a
nonresident
insurance agent under section 3905.07 of the
Revised Code changes
the person's state of residence or the state in which the person's
principal place of business is located, 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 or the new state in
which the principal place of business is located. (B) If a nonresident insurance agent complies with
division
(A) of this section, no fee or license application shall
be
required.
Sec. 3905.072. Notwithstanding any other provision of this
chapter, the
superintendent of insurance shall issue to a
nonresident person licensed as a
limited line credit insurance
agent or other type of limited
lines insurance agent in the
person's home state a nonresident
limited lines insurance agent
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 section shall
not create any new line
of authority.
For purposes of this section, "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
applicant with a valid license from the applicant's home state,
except the requirements set forth in
sections 3905.07 to 3905.072
of the Revised Code, if the applicant's
home state awards
nonresident agent licenses to residents of
this
state on the same
basis.
(B) A nonresident insurance agent's satisfaction of the
continuing education requirements for insurance agents of the
agent's home state shall constitute satisfaction of the
continuing
education requirements for insurance agents of this
state as set
forth in section 3905.481 of the Revised Code.
Sec. 3905.081. Notwithstanding any other provision of this
chapter, the superintendent of insurance may waive any licensing
requirement for nonresident persons that the superintendent
determines is in violation of the reciprocity requirements set
forth in section 321 of the "Financial Services Modernization Act
of 1999," 113 Stat. 1338, 15 U.S.C.A. 6751.
Sec. 3905.09. (A) The superintendent of insurance may
issue a temporary insurance agent 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 agent who dies or
becomes
mentally or physically disabled, to allow adequate time
for the
sale of the insurance business owned by the agent or
for the
recovery or return of the agent to the business, or to
provide
for the training and licensing of new personnel to
operate
the
agent's business;
(2) A member or employee of a business entity licensed as
an insurance agent, upon the death or disability of the sole or
remaining licensed insurance agent; (3) The designee of a licensed insurance agent 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 agent 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) Chapter 119. of the Revised Code shall not apply to the
issuance, restriction, or rescission of a temporary license under
this section.
Sec. 3905.03
3905.10. (A) Any
property, casualty, personal,
or title agent
authorized
qualified and licensed
as provided in
section
3905.02
of the Revised Code
this chapter, and
appointed to
represent
one or more insurance corporations within
this state,
may
appoint
as many solicitors as the agent desires to
represent
the agent and the agent's
agency, but the solicitors
shall not
represent themselves,
by advertisement or otherwise, as
agents of
insurance companies for
which their employer may be the
authorized
agent, and the
solicitors shall in all instances
represent
themselves only as
solicitors for the agent.
Each agent that
employs a person as
(1) To be eligible for
appointment, a solicitor
shall certify
to the superintendent of
insurance that the person is competent,
financially responsible,
and suitable
to represent the agent.
Upon
written notice by any
such
agent
that the agent has employed
a
person as a solicitor,
the
superintendent shall issue to the
solicitor an appointment in
the form
prepared by the
superintendent,
if the
superintendent is
satisfied that:
(1) The solicitor is a suitable person and intends to
hold
self out in good faith as a solicitor.
(2) The solicitor is honest and
trustworthy.
(3) The solicitor has training or instruction in the
business and understands the duties and obligations of a
solicitor.
(4) The solicitor is
shall be qualified and licensed
as a
property,
casualty, personal, or title agent under
section
3905.02
of the Revised Code, is
familiar with the insurance
laws,
this
chapter and
is
be familiar with the provisions of the policies and
contracts of
insurance
the solicitor proposes to solicit.
(5) It is not
the solicitor's
purpose or intention
principally to solicit or place insurance on
the solicitor's own
property or that of relatives,
employers, or
employees or that for
which they or the solicitor is
agent,
custodian, vendor, bailee,
trustee, or payee.
(6) On and after
July 1, 1987, the solicitor has
completed
the prelicensing educational requirements set forth
in section
3905.48 of the
Revised
Code.
Notice shall be
upon a form furnished by the superintendent
and shall be
accompanied by a statement under oath by the
solicitor which
gives the solicitor's name,
age, residence,
present occupation, the
solicitor's occupation for the five years
next
preceding the date of the
notice, the kinds of insurance the
solicitor wishes
to solicit, and such other information as the
superintendent
requires, upon a blank furnished by the
superintendent.
(2) An agent qualified and licensed to sell accident and
health insurance may appoint a solicitor to solicit accident and
health insurance only if both of the following apply:
(a) The solicitor is qualified and licensed as an accident
and health insurance agent.
(b) The solicitor solicits only accident and health
insurance products that are issued and underwritten by an insurer
that is authorized to write accident and health insurance and that
holds a certificate of authority granted under section 3929.01 of
the Revised Code.
(B)
If the solicitor within the preceding two
years has
not
been licensed in this state as an insurance
agent for other
than
life insurance under section 3905.02 of the Revised Code, the
solicitor shall
submit to an examination as to the qualifications
set
forth in divisions (A)(1) to (5) of this section. (C) A solicitor who did not hold a license as
solicitor
prior to January 1, 1967, may be appointed
only if the
solicitor
is
qualified for the same class or classes of insurance for which
the agent employing the solicitor is licensed. A solicitor may
solicit only
those
lines of insurance for which both the
solicitor
and the appointing agent are licensed.
No solicitor shall be
appointed by more than one
agent.
Unless the solicitor's license is revoked or suspended
by the
superintendent
of insurance, such
appointment
may, in the
discretion of the
superintendent, and at the request of the agent
who employs the
solicitor and the payment of the required fee, be
continued past
the thirtieth day of June next after its issue and
after the
thirtieth day of June each succeeding year. Each agent
shall
certify to the superintendent, before the
thirtieth day of
June
each year, the names and addresses of the
solicitors the
agent has
employed during the preceding year,
indicating those for
whom the
agent wishes appointments
to be continued. The agent giving written notice shall pay to the
superintendent a fee of twenty dollars for every such
appointment
and
for each continuance thereof. The issuance of a solicitor's
appointment shall be limited to a natural person.
Sec. 3905.11. An insurance agent that intends to do
business in this state under any name other than the agent'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 agent 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 agent licensing, including the
collection of fees, that the superintendent considers to be
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 agent" includes a limited lines
insurance agent, surety bail bond agent, 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
or the
renewal of such a
license. (3) "Revocation" means the permanent termination of
all
authority to hold any license as an
agent
in
this state. (4) "Surrender for cause" means the voluntary
termination of
all authority to hold any license
as an
agent
in this state, in
lieu of a revocation or
suspension order. (5) "Suspension" means the termination of all
authority to
hold any license as an
agent
in this state, for
either a specified
period of time
or an indefinite period of time
and under any terms
or
conditions determined by the
superintendent. (B)
The superintendent may
suspend, revoke, or refuse to
issue
or renew any license
as
of an
insurance agent,
surety bail
bond agent,
surplus line broker, or limited insurance
representative
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
Having been 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, or that
involves moral turpitude; (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; (9)
Using fraudulent, coercive, or dishonest practices, or
demonstrating incompetence, untrustworthiness, or financial
irresponsibility, in the conduct of business in this state or
elsewhere; (10) Having an insurance
agent license, or its equivalent,
denied,
suspended, or revoked in
any
other state, province,
district, or territory; (10)(11) Forging
or causing the
forgery of
another's name to
an
application for
insurance or any
document related to
or used
in
an
insurance transaction;
(11)
Possessing or
(12) 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 agent
license;
(12)(13) Knowingly accepting insurance business from an
individual who is not licensed;
(14) Failing 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 agent 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
or having been subject to a cease and
desist order or permanent injunction for unlicensed activities;
(14)(18) Causing or permitting a policyholder or applicant
for
insurance to designate the
person
insurance agent or the
person's
insurance agent's spouse,
parent,
child, or sibling as
the beneficiary of a policy or
annuity sold
by the
person
insurance agent, unless the
person
insurance agent or a
relative
of
the
person
insurance agent is
the insured or
applicant;
(15)(19) Failing to provide a written response to the
department
of insurance within
thirty
twenty-one calendar days
after
receipt of
any written
inquiry from the department, unless
a
reasonable extension of time has been requested of, and granted
by, the superintendent;
(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, or
licensee known to be involved in procuring,
placing, or
continuing
the insurance for the policyholder or
applicant, upon
the binding of
the
coverage;
(20)(22) In the case of an
agent 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)(25) 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)(26) 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)(27) 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)(28) 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)(29) Failing to fulfill a refund obligation
to a
policyholder or applicant in a timely
manner.
For purposes of
division
(B)(31)(29) of this section, a
rebuttable presumption
exists that a refund obligation is not
fulfilled in a
timely
manner unless it is fulfilled within one of
the following time
periods:
(a) Thirty days after the date the
policyholder, applicant,
or insurer takes or requests action
resulting in a refund; (b) Thirty days after the date of the insurer's
refund
check, if the
agent is expected to issue a
portion of the
total
refund; (c) Forty-five days after the date of the
agent's statement
of account on which the refund first
appears. (32) The presumption may be rebutted by proof that the
policyholder or applicant consented to the delay or agreed to
permit the agent to apply the refund to amounts due for other
coverages.
(30) With respect to a surety bail bond
agent
license,
rebating
or offering to rebate, or unlawfully dividing or
offering
to divide, any
commission;
(31) 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;
(32) In the case of an insurance agent 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;
(33) 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
of a licensee or applicant, or the
principal-place-of-business address of a business entity, that
appears
is contained 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), or (33)
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, or a failure to comply with section
3905.061, 3905.071, or 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
license: (1) Upon the suspension or revocation of a license, or the
eligibility of a surety bail bond
agent to hold a
license, the
superintendent likewise may suspend or revoke the
license or
eligibility of any surety bail bond
agent who
is employed by or
associated with that
agent 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 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, 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; (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
3905.14 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
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 shall surrender the
agent's licenses
if the
superintendent of insurance
is investigating any
allegation of
wrongdoing by the
agent or has initiated proceedings under
Chapter
119.
of the Revised Code and notice of an opportunity for a
hearing has
been issued to the
agent, and any attempt to so
surrender is invalid. (B)(1) If an insurer or
agent cancels the appointment of an
agent or solicitor due to suspected
fraud, misrepresentation,
theft, conversion, or any other
culpable misappropriation, the
insurer or agent shall promptly
notify the superintendent. The
notice shall
include a complete statement of the facts and the
reasons for
the cancellation. (2) In the absence of fraud or actual malice, an insurer or
agent is immune from any civil liability that otherwise might be
incurred or imposed as a result of any action taken by the
insurer
or agent to comply with division
(B)(1) of this section.
(C) If an
agent's license is
surrendered, revoked, or
suspended, all appointments held by the
agent are void. If a
new
license is issued to
that person or if that person's
previous
license is reinstated,
any appointment of the person to
represent
an insurer
or agent
must be made in accordance with
the
requirements of this chapter.
(D)(C)(1) Any
agent, 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
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
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
agent 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
agent for selling, soliciting, or negotiating insurance in this
state, if the insurance agent is required to be appointed by
the
insurer but is not so appointed.
(C) An insurer or insurance agent 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 division (B)(7) of section
3901.211 or by section 3911.20, 3933.01,
or 3999.22 of the Revised
Code.
(D) No insurer or insurance agent shall pay a commission,
referral fee, or other compensation to an unlicensed person for
any referral unless the compensation is a fixed dollar amount for
each referral and does not depend on whether the person referred
purchases an insurance product.
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
of the Revised Code
this chapter,
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
or agency for
which
he
the person is
licensed
appointed 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 agent shall not act as
an
agent of an insurer unless the insurance agent is appointed
as an
agent of the insurer. An insurance agent 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 agent acts as
an
agent of an insurer when the insurance agent sells,
solicits, or
negotiates any product of the insurer and is
compensated directly
by the insurer.
(B)(1) To appoint an insurance agent as its agent, an
insurer shall file a notice of appointment with the superintendent
of insurance not 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, unless a different date is determined by the
superintendent.
A separate appointment and fee are required for a variable
life and variable annuity products line of authority.
(2) By appointing an insurance agent, 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) 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 agents to some or all of the insurers
within an insurer's holding company system or group.
Sec. 3905.201. (A) Each insurer that sells, solicits, or
negotiates any
form of limited line credit insurance shall provide
a program of
instruction to each insurance agent whose duties
will
include
selling, soliciting, or negotiating limited line
credit
insurance.
The program of instruction shall be provided to
the
insurance
agent prior to the agent's appointment by the
insurer. (B) The superintendent may require prior review and
approval
of any program of instruction provided under division
(A)
of this
section.
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 agent 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
agent that the superintendent requests in writing.
(B) If the termination of an insurance agent 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
agent at the agent's last known address. If the insurance
agent
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 agent, 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
agent files
such comments with the superintendent, the agent
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 agent and shall
accompany
every copy of any report distributed or disclosed for
any reason
about the agent.
Sec. 3905.211. (A) In the absence of actual malice, an
insurer, the authorized representative of an insurer, an insurance
agent, 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 agent to an insurer or agent, or any statement of
an
insurance agent to an insurer or agent, 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 agent 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 agent shall provide
notice
to the superintendent of insurance of any administrative
action
taken against the agent in another jurisdiction or by
another
governmental agency having professional, occupational, or
financial licensing authority 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 agent shall provide notice to the
superintendent of any criminal prosecution of the agent by any
jurisdiction, other than misdemeanor traffic, within
thirty days
after the agent's initial appearance before a judge or magistrate.
The notice
shall include a certified copy of the charging
document. Within thirty days after the disposition of the
criminal prosecution, the agent shall provide to the
superintendent a certified copy of the court's entry or order that
reflects the final disposition of the prosecution, and any
other
relevant legal
documents.
Sec. 3905.492
3905.24. (A)(1) All records and other
information
obtained by the superintendent of insurance or the
superintendent's deputies, examiners, assistants, or other
employees, or
agents relating to an investigation of an applicant
for licensure under
this chapter, or of an agent, solicitor,
broker, or other person
licensed
or appointed under this chapter
or Chapter 3951., 3957., or 3959. of the Revised
Code,
are
confidential and are not public records as defined in section
149.43 of
the Revised Code
until the applicant
or, licensee, or
appointee is provided notice and opportunity for hearing
pursuant
to Chapter 119. of the Revised Code with respect to such records
or
information. If no administrative action is initiated with
respect to a
particular matter about which the superintendent
obtained records or other
information as part of an investigation,
all such records and information
relating to that matter shall
remain confidential for three years after the
file on the matter
is
closed. (2) Division (A)(1)
of this section applies only to
investigations that could result
in administrative action under
Title
XVII or
XXXIX or
Chapter 119. of the
Revised
Code. (B) The records and other information
described in division
(A) of
this section shall remain confidential for all
purposes
except when it is appropriate for the superintendent and
the
superintendent's deputies, examiners, assistants, or other
employees, or
agents
to take official action regarding the affairs
of the applicant
or, licensee, or appointee or in connection with
actual or potential criminal
proceedings. (C) Employees or agents of the
department of insurance shall
not be required by any court in
this state to testify in a civil
action, if such testimony
concerns any matter related to records
or any other information considered
confidential under this
section of which they have
knowledge. (D) This section does not apply to any complaint or action
under
relating to a violation described in division (B)(31) or
(32)
of section
3905.04
3905.14 of the Revised Code.
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 agent license
registry in which insurance agent licenses and appointments are
centrally or simultaneously effected for all states that require
an insurance agent 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 agent
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. 3905.06
3905.29. Sections 3905.01 to
3905.06
3905.28 of
the Revised Code do not apply to
associations organized and
operating under sections 3939.01 to
3939.09 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
from
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
property and casualty 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,
of the Revised Code.
Sec. 3905.34. Each person licensed under section 3905.30 of
the Revised Code
shall keep a separate account of the business
done under the
person's license.
Within thirty days after
On or
before the
end
thirty-first day of
each quarter
January, each
surplus line broker shall
file
that account with the
superintendent of insurance
the portion of that account that
details business done during the preceding calendar year. The
account must show the amount of such
insurance, the name of the
insured, a brief description of the type of
insurance, the
location of the property, the gross premium charged, the name
of
the insurer, the date of the policy and term thereof, and a report
in the
same detail of all such policies canceled and the gross
return premiums
thereon.
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
gross
premium,
membership fee, assessment, dues, or other consideration
charged
or collected, shall annually, on or before the
first
thirty-first day
of
July
January, 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
gross 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
gross premium,
fee, assessment, dues, or other
consideration,
after a deduction for return premium, if any, 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 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.
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.
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 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, and charge the accounts with all fees
incurred
by
such companies or
agents in accordance with
sections
3905.02,
3905.03, 3905.07, 3905.26
3905.10, 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 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
within the time
fixed to pay the amount of fees charged against
the
agent's
account in
accordance with the monthly
statement rendered by the
superintendent, the
agent's
license may be revoked in the
manner
provided by
sections 3905.02
and 3905.18
section 3905.14 of the
Revised Code.
Sec. 3905.482. (A) The superintendent of insurance shall
suspend the
agent'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 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 agent under this chapter shall
apply for a new insurance
agent'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 are 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
3905.04 and 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
twelve 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)
One representative of the Ohio land title association;
(8) Two insurance agents each of whom has been licensed
continuously during the five-year period immediately preceding
the
agent's appointment; (8)(9) One representative of an insurance company admitted
to
transact business in this state;
(9)(10) Two representatives of consumers, one of whom shall
be
at least sixty years of age.
(C)(1) Of the initial
eleven 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.
(2) The initial appointment of the twelfth member made by
the superintendent under division (B)(7) of this section, pursuant
to Sub. S.B. 129 of the 124th
general assembly, shall be for a
term ending December 31, 2003. Thereafter, the term of office
shall be for three years, 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.
The initial
appointment of the twelfth member to the council under division
(B)(7) of this section, pursuant to Sub. S.B. 129 of the 124th
general assembly, shall be made no later than December 31, 2002. (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
section 3905.04 or 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
section 3905.04 or 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
section 3905.04 or
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
3905.04 and 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"
means an insurance
agent
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 or
his
the agent's
heirs
or assigns, and whose
agency
contract with an insurer
permits the
agent to
represent
concurrently other
insurers of
his
the
agent's choice. (B) No
agent other than an independent
insurance
agent shall
represent
oneself
self, or shall be
represented, to the public as
an
independent insurance
agent 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, as defined in
division (A)
of section
3905.47 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 whose license
has been suspended or revoked by the
superintendent of insurance,
an
agent who has
demonstrated gross incompetence, or an
agent
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 contract of agency except by mutual agreement of
the
parties
or upon one hundred eighty days' written notice to the
independent
insurance
agent. (1) Such notice shall include specific reasons for the
termination of the
agent. (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 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, 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 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 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 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 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
division
(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 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 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 to the ownership of
expirations provided for
in
any contract with an insurer. (H) Any information or documentation provided to an
agent
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. 3905.72. (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. 3905.85. (A) An
applicant for a license as a surety
bail bond
agent shall submit an
application for the
license in a
manner prescribed by the superintendent of
insurance. 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,
or other governmental agencies, or
other sources, as required and designated by the superintendent of
insurance, and direct that the
bureau's
written
response
responses
to that
request be transmitted to the superintendent of
insurance,
or to the
superintendent's designee, as
specified on
the form
prescribed pursuant to that section.
If the
superintendent of
insurance or the
superintendent's designee fails
to receive
the
bureau's
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. (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, if the
superintendent is satisfied that all of the
following
apply: (1)
If the applicant is a natural person, the
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 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 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
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,
such a
license may, in
the
discretion of the superintendent and
the
payment of a one
hundred fifty dollar fee, be
continued past
renewed 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
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
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. 3905.861. An insurer that appoints a surety bail bond
agent who is a
member
of
an agency, partnership,
corporation, or
limited liability company
a business entity shall
require that all
other surety bail
bond
agents who are members of the
same
agency,
partnership,
corporation, or limited liability
company
business
entity be appointed to
represent that insurer.
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. 3905.94. 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,
the
person, during the period of suspension or
revocation,
shall not
be employed by any surety bail
bond
agent, have any
ownership
interest in any business involving
bail bonds,
or have
any
financial
interest of any type in any bail
bond business.
Sec. 3905.99. (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 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,
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
licensed under
section 3905.02
Chapter 3905. of the
Revised
Code would
constitute
statutory grounds for the revocation
of
such
the agent'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. 3933.04. No person, firm, or corporation engaged in
selling real or personal property,
engaged in the business of
financing the purchase of real or personal property, or engaged
in
the business of lending money on the security of real or
personal
property, and no trustee, director, officer, agent, or
other
employee of any such person, firm, or corporation, shall
require,
as a condition precedent to the sale
or financing the
purchase of
such property,
to lending money upon the security of
a mortgage
thereon, or as a condition prerequisite for the
renewal or
extension of any such loan or mortgage or for the
performance of
any other act in connection therewith, that the
person, firm, or
corporation purchasing
such
the property, for whom
such purchase
is to be financed, to whom the money is to be
loaned, or for whom
such extension, renewal, or other act is to
be granted, or
performed, negotiate any policy of insurance or
renewal thereof
covering
such
the property through a particular
insurance company,
agent, solicitor, or broker. This section
does not prevent the
exercise by any person, firm, or corporation
of its right to
designate minimum standards as to the company,
the terms and
provisions of the policy, and the adequacy of the
coverage with
respect to insurance on property pledged or
mortgaged to
such
the
person, firm, or corporation. The superintendent of insurance shall, in accordance with
sections 119.01 to 119.13, inclusive,
Chapter 119. of the Revised
Code, revoke
the insurance license of any person, appointee,
agent, solicitor,
or broker
who
that violates this section.
Sec. 3953.21. (A) Every title insurance company authorized
to transact
business within this state shall certify annually to
the superintendent of
insurance the names of all title insurance
agents representing it in this
state in accordance with
section
3905.02
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
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
has complied with this chapter. (B) A title insurance
agent
may engage in the
business of
handling escrows of
real property transactions
directly connected
with the business of title
insurance, provided
that the
agent
shall maintain a separate record of all
receipts and disbursements
of escrow funds and shall not commingle
any such
funds with
the
agent's
own funds or with funds
held by
the agent
in any other
capacity; and if at any
time
the superintendent of insurance
determines that
an
agent
has failed to comply with any of the
provisions
of this
section, the
superintendent may revoke the
license of the
agent
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
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
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. 3960.03. All of the following apply to risk retention
groups chartered and licensed in states other than this state,
that seek to do business as a risk retention group in this
state: (A) No risk retention group shall offer insurance in this
state unless it has submitted to the superintendent of insurance,
in a form satisfactory to the superintendent, all of the
following: (1) A statement identifying the state or states in which
it
is chartered and licensed as a liability insurance company,
the
date of chartering, its principal place of business, and any
other
information, including but not limited to, information on
its
membership, that the superintendent may require to verify
that it
is qualified under division (J) of section 3960.01 of the
Revised
Code; (2) A copy of its plan of operation or a feasibility study
and revisions of the plan or study submitted to the state in
which
the risk retention group is chartered and licensed.
Division
(A)(2) of this section does not apply to any line or
classification of liability insurance that was defined in the
federal "Product Liability Risk Retention Act of 1981," 95 Stat.
949, 15 U.S.C.A. 3901, as amended, before October 27, 1986, and
was offered before that date by any risk retention group that had
been chartered and operating for not less than three years before
that date. The risk retention group shall submit a copy of any
revision to its plan of operation or feasibility study required
by
division (A)(2) of section 3960.02 of the Revised Code at the
same
time that the revision is submitted to the
Commissioner
commissioner of
Insurance
insurance of its chartering state. (3) A statement of registration, for which a filing fee
shall be determined by the superintendent, that submits it to the
jurisdiction of the superintendent and the courts of this state.
The fee shall be paid into the state treasury to the credit of
the
department of insurance operating fund pursuant to section
3901.021 of the Revised Code. (B) A risk retention group doing business in this state
shall submit to the superintendent all of the following: (1) A copy of its financial statement submitted to the
state
in which the risk retention group is chartered and
domiciled,
which shall be certified by an independent public
accountant and
contain a statement of opinion on loss and loss
adjustment expense
reserves made by a member of the American
academy of actuaries or
a qualified loss reserve specialist under
criteria established by
the national association of insurance
commissioners; (2) A copy of each examination of the group as certified
by
the commissioner or public official conducting the
examination; (3) Upon request by the superintendent, a copy of any
information or document pertaining to any outside audit performed
with respect to the group; (4) Any information that may be required to verify, to the
superintendent's satisfaction, its continuing qualification as a
risk retention group under division (J) of section 3960.01 of the
Revised Code. (C)(1) Agents or brokers for the risk retention group
shall
report to the superintendent the premiums for direct
business for
risks resident or located within this state that
they have placed
with or on behalf of a risk retention group not
chartered in this
state. (2) The agent or broker shall keep a complete and separate
record of all policies procured from each risk retention group,
which record shall be open to examination by the superintendent.
These records shall, for each policy and each kind of insurance
provided, include the following: (a) The limit of liability; (b) The time period covered; (d) The name of the risk retention group that issued the
policy; (e) The gross premium charged; (f) The amount of return premiums. (D) Every risk retention group that is not chartered in
this
state shall do both of the following: (1) On or before the
first
thirty-first day of
July
January,
pay to
the treasurer of state five per cent
of all premiums, fees,
assessments, dues, or other
consideration
for the preceding
one-year period for risks resident or
located in this state, as
calculated on a form prescribed by the
treasurer of state. If
such 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.
All taxes
collected
under this section shall be paid into the
general
revenue fund.
For purposes of division
(D)(1) 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. (2)
Within thirty days after
On or before the
end
thirty-first day of
each quarter
January,
file a statement with
the superintendent, on a form prescribed
by the superintendent,
showing the name and address of the
insured, name and address of
the insurer, subject of the
insurance, general description of the
coverage, the amount of
gross premium, fee, assessment, dues, or
other consideration for the
insurance,
after a deduction for
return premium, if any, and any other information the
superintendent
requires. (E) The superintendent may examine the financial condition
of a risk retention group if the commissioner of insurance in the
state in which it is chartered and licensed has not initiated an
examination or does not initiate an examination within sixty days
after the superintendent has requested an examination. The
examination shall be conducted in an expeditious manner and in
accordance with the national association of insurance
commissioners' examiner handbook. (F) The superintendent may issue any order appropriate in
voluntary dissolution proceedings or commence delinquency
proceedings against a risk retention group not chartered in this
state that does business in this state if the superintendent
finds, after an examination of the group under division (E) of
this section, that its financial condition is impaired. A risk
retention group that violates any provision of this chapter is
subject to fines and penalties, including revocation of its right
to do business in this state, applicable to licensed insurers
generally. In addition to complying with the requirements of
this
section, any risk retention group operating in this state
prior to
enactment of this section shall comply with division
(A)(1) of
this section within thirty days after October 26,
1989.
Sec. 3960.11. (A) No person shall act or aid in any
manner
in soliciting, negotiating, or procuring liability
insurance in
this state from a risk retention group unless the
person is
licensed as an insurance
agent
or broker in accordance
with
section 3905.02 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
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
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.
Section 2. That existing sections 1751.38,
3901.021,
3901.19,
3901.22, 3901.51, 3901.62, 3903.81, 3905.012, 3905.03,
3905.06,
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,
3905.34, 3905.36, 3905.41,
3905.47, 3905.482,
3905.483,
3905.484, 3905.486,
3905.49, 3905.491, 3905.492,
3905.50, 3905.52,
3905.72, 3905.85, 3905.861, 3905.89, 3905.94,
3905.99, 3907.19,
3909.06, 3911.011, 3923.121, 3929.30,
3931.101,
3931.11, 3933.04,
3953.21, 3953.23, 3957.14, 3960.03, and
3960.11 and
sections
3905.01, 3905.011, 3905.013, 3905.02,
3905.04, 3905.07,
3905.08,
3905.15, 3905.16,
3905.17, 3905.18,
3905.19, 3905.20,
3905.21,
3905.22, 3905.23,
3905.40, 3905.48,
3905.51, and 3905.54
of the
Revised Code are hereby
repealed.
Section 3. Sections 1 and 2 of this act, except for sections
3905.34, 3905.36, and 3960.03 of the Revised Code, shall take
effect September 1, 2002. Section 3905.34, 3905.36, and 3960.03 of
the Revised Code, as amended by this act, shall take effect at the
earliest time permitted by law and shall first apply in accordance
with Section 4 of this act.
Section 4. Sections 3905.34, 3905.36, and 3960.03 of the
Revised Code, as amended by this act, first applies to the
filing
or reporting period that begins January 1, 2003, and
concludes
December 31, 2003. For those persons that, on the
effective date
of sections 3905.34, 3905.36, and 3960.03 of the Revised Code, as
amended by this act, are subject to a quarterly filing
requirement, the last quarterly filing period concludes
December
31, 2002. For those persons that, on the effective date
of
sections 3905.34, 3905.36, and 3960.03 of the Revised Code, as
amended by this act, are subject to an annual reporting period
that
concludes July 1, 2002, that reporting period is extended
for
six months and concludes December 31, 2002.
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