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Am. H. B. No. 137 As Reported by the House Insurance CommitteeAs Reported by the House Insurance Committee
125th General Assembly | Regular Session | 2003-2004 |
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Representatives G. Smith, Book, Hughes, Setzer, Gibbs, Olman, Wolpert, D. Evans, T. Patton, Fessler, Brown
A BILL
To amend sections 3909.09 and 3909.15, to enact new
sections 3909.05 and 3927.03, and to repeal
sections 3909.05 and 3927.03 of the Revised Code
relative to the appointment of agents by foreign
insurance companies doing business in Ohio.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 3909.09 and 3909.15 be amended and
new sections 3909.05 and 3927.03 of the Revised Code be enacted to
read as follows:
Sec. 3909.05. (A) Any life insurance company organized by
act of congress or under the laws of another state of the United
States that transacts any business of insurance in this state
shall have and maintain an agent, sometimes referred to as the
"statutory agent," upon whom any process, notice, or demand
required or permitted by law to be served upon a company may be
served. The agent may be a natural person residing in this state
or may be a corporation holding a license under the laws of this
state that is authorized by its articles of incorporation to act
as an agent and that maintains a business address in this state.
A
statutory agent need not be a licensed insurance agent.
(B) The written appointment of an agent shall be in the
form the superintendent of insurance prescribes, which may include
a consent to service of process. The appointment shall set forth
the name and complete address of the agent. The agent shall
reside or maintain a business address within this state.
The superintendent shall keep a record of the foreign life
insurance companies transacting business in this state and the
name and address of their respective agents.
(C) If any agent dies, moves out of the state, or resigns,
the company immediately shall appoint another agent and file with
the superintendent a written appointment as described in division
(B) of this section.
(D) If an agent changes the agent's address, the company or
agent immediately shall notify the superintendent of the change,
and shall set forth the agent's new address, on a form prescribed
by superintendent.
(E) An agent may resign by filing with the superintendent a
written notice signed by the agent. The agent shall send a copy
of the notice to the company at the current or last known address
of the company's principal office prior to the date the notice is
filed with the superintendent. The notice shall set forth the
company's name, the current or last known address of the company,
the name and address of the agent, the resignation of the agent,
and a statement that a copy of the notice has been sent to the
company and the date the copy was sent. The agent's authority
shall terminate thirty days after the notice is filed with the
superintendent.
(F) A company may revoke the appointment of an agent by
filing with the superintendent a written appointment of another
agent and a statement that the appointment of the former agent is
revoked. The authority of the agent whose appointment has been revoked shall terminate thirty days after
the notice is filed with the superintendent.
(G) Any process, notice, or demand required or permitted by
law to be served upon a company may be served by delivering a copy
of the process, notice, or demand to the agent of record at the
address appearing in the superintendent's records. If the
agent cannot be found, the agent no longer has that
address, or the company has failed to maintain an agent as
required by this section, the party desiring that the process,
notice, or demand be served, or its agent, may file with the
superintendent an affidavit stating that one of the foregoing
conditions exists and stating the most recent address of the
company that the party, after diligent search, has been able to
ascertain. Upon the filing of the affidavit, service of process,
notice, or demand may be initiated upon the superintendent as the
company's agent by delivering two copies of the process, notice,
or demand to the superintendent.
The superintendent shall give notice to the company at its
principal office as shown in the superintendent's records or at
the address set forth in the affidavit. The superintendent shall
give notice by regular mail with a copy of the process, notice,
or demand enclosed. After the superintendent has mailed the
appropriate documents, service upon the company is deemed
complete.
(H) The superintendent shall keep a record of each process,
notice, and demand delivered to the superintendent under this
section or any other law of this state that authorizes service
upon the superintendent.
(I) This section does not limit or affect the right to
serve any process, notice, or demand upon a company in any other
manner permitted by law. (J) A company shall include a fee of five dollars with any
change of agent appointment or change of address. This division
does not apply to an agent appointment filed with an original
application for a certificate of authority.
(K) If a company fails to appoint or maintain an agent or
to notify the superintendent of an agent's change of address, the
superintendent shall fine the company not less than twenty-five
nor more than two hundred dollars per violation, after the
superintendent has provided notice by certified mail and upon the
expiration of thirty days from the date of mailing or such further
time as the superintendent allows. The superintendent may also charge a company a fifty-dollar fee for each time the superintendent is required to give notice to the company in accordance with division (G) of this section.
(L) The superintendent shall pay all moneys collected by
the superintendent in accordance with this section into the state
treasury to the credit of the department of insurance operating
fund.
Sec. 3909.09. No person shall act in this state as agent, or
otherwise, in
receiving or procuring applications for life
insurance, nor in any manner aid
in transacting the business of
any company, partnership, or association
incorporated by or
organized under the laws of any foreign government, until
such
company, partnership, or association completes the following acts: (A) Deposits with the superintendent of insurance, for the
benefit of
policyholders of the company, partnership, or
association, who are citizens or
residents of the United States,
securities to the amount of one hundred
thousand dollars, of the
kind required for similar companies of this state; (B)
Executes a waiver as provided in
Appoints a statutory
agent in accordance with section 3909.05 of the Revised Code; (C)
Appoints an agent or attorney in each county in this
state in which the
company established an agency, on whom process
of law can be served; (D) Files with the superintendent a certified copy of its
charter, or deed of
settlement, and a duplicate original copy of
the letter or power of attorney
of the company, partnership, or
association, appointing the attorney thereof,
which appointment
shall continue until another attorney is substituted.
Sec. 3909.15. If a
company, partnership, or
association, organized under the
laws of any other state or
government, ceases to do transact the business of life insurance in this state
according to law,
it shall appoint, in the manner provided in sections 3909.01
to
3909.17, inclusive, of the Revised Code, in every county in which
an
agency
existed at the date of such discontinuance, one or more
agents for the purpose
of receiving service of process in all
actions upon policies of insurance
issued to the citizens of this
state while it was lawfully transacting the
business of insurance
in this state. Service of process upon such agents, in
such
actions, is as valid as actual service upon the company,
partnership, or
association. In every case in which no such agent is appointed, the agent
last designated
and acting for the company, partnership, or
association shall be deemed
authorized by it to receive service of
process. The officer who serves such
process shall also send a
copy of the process served on the agent, by mail, to
the address
of such company, partnership, or association at the place of its
principal or home office at the time it ceased to do business in
this state,
and his return must distinctly show that at
least
thirty days have elapsed
since the mailing of such copy
before any
judgment is rendered in such action.
If any such company, partnership, or association ceases to
transact business
in this state according to law, the
agents
statutory agent last designated by or acting for it
are
is deemed
to continue as
agents
agent for it,
unless a new statutory agent
is appointed, for the purpose of serving process,
and for
commencing actions upon any policy or liability issued or
contracted
while it transacted business in this state, and service
of process upon any
such agent, for such causes, is a valid
service upon the company, partnership,
or association.
This section does not limit or affect the right to serve any
process, notice, or demand upon a company, partnership, or
association in any other manner permitted by law.
Sec. 3927.03. (A) Any foreign insurance company that
transacts any business in this state shall have and maintain an
agent, sometimes referred to as the "statutory agent," upon whom
any process, notice, or demand required or permitted by law to be
served upon a company may be served. The agent may be a natural
person residing in this state or may be a corporation holding a
license under the laws of this state that is authorized by its
articles of incorporation to act as an agent and that maintains a
business address in this state. A statutory agent need not be a
licensed insurance agent.
(B) The written appointment of an agent shall be in the
form the superintendent of insurance prescribes, which may include
a consent to service of process. The appointment shall set forth
the name and complete address of the agent. The agent shall
reside or maintain a business address within this state.
The superintendent shall keep a record of the foreign
insurance companies transacting business in this state and the
name and address of their respective agents.
(C) If any agent dies, moves out of the state, or resigns,
the company immediately shall appoint another agent and file with
the superintendent a written appointment as described in division
(B) of this section.
(D) If an agent changes the agent's address, the company or
agent immediately shall notify the superintendent of the change,
and shall set forth the agent's new address, on a form prescribed
by the superintendent. (E) An agent may resign by filing with the superintendent a
written notice signed by the agent. The agent shall send a copy
of the notice to the company at the current or last known address
of the company's principal office prior to the date the notice is
filed with the superintendent. The notice shall set forth the
company's name, the current or last known address of the company,
the name and address of the agent, the resignation of the agent,
and a statement that a copy of the notice has been sent to the
company and the date the copy was sent. The agent's authority
shall terminate thirty days after the notice is filed with the
superintendent.
(F) A company may revoke the appointment of an agent by
filing with the superintendent a written appointment of another
agent and a statement that the appointment of the former agent is
revoked. The authority of the agent whose appointment has been revoked shall terminate thirty days after
the notice is filed with the superintendent. (G) Any process, notice, or demand required or permitted by
law to be served upon a company may be served by delivering a copy
of the process, notice, or demand to the agent of record at the
address appearing in the superintendent's records. If the
agent cannot be found, the agent no longer has that
address, or the company has failed to maintain an agent as
required by this section, the party desiring that the process,
notice, or demand be served, or its agent, may file with the
superintendent an affidavit stating that one of the foregoing
conditions exists and stating the most recent address of the
company that the party, after diligent search, has been able to
ascertain. Upon the filing of the affidavit, service of process,
notice, or demand may be initiated upon the superintendent as the
company's agent by delivering two copies of the process, notice,
or demand to the superintendent. The superintendent shall give notice to the company at its
principal office as shown in the superintendent's records or at
the address set forth in the affidavit. The superintendent shall
give notice by regular mail with a copy of the process, notice, or
demand enclosed. After the superintendent has mailed the
appropriate documents, service upon the company is deemed
complete.
(H) The superintendent shall keep a record of each process,
notice, and demand delivered to the superintendent under this
section or any other law of this state that authorizes service
upon the superintendent.
(I) This section does not limit or affect the right to serve
any process, notice, or demand upon a company in any other manner
permitted by law.
(J) A company shall include a fee of five dollars with any
change of agent appointment or change of address. This division
does not apply to an agent appointment filed with an original
application for a certificate of authority.
(K) If a company fails to appoint or maintain an agent or
to notify the superintendent of an agent's change of address, the
superintendent shall fine the company not less than twenty-five
nor more than two hundred dollars per violation, after the
superintendent has provided notice by certified mail and upon the
expiration of thirty days from the date of mailing or such further
time as the superintendent allows. The superintendent may also charge a company a fifty-dollar fee for each time the superintendent is required to give notice to the company in accordance with division (G) of this section. (L) The superintendent shall pay all moneys collected by the
superintendent in accordance with this section into the state
treasury to the credit of the department of insurance operating
fund.
(M) Any foreign insurance company transacting business in
this state by an agent consents that suit may be brought against
it in the county where the property insured was situated, or was
insured, or the application for insurance taken. (N) If a foreign insurance company ceases to do business in
this state according to law, the statutory agent last designated
by or acting for it is deemed to continue as agent for it, unless
a new statutory agent is appointed, for the purpose of serving
process, and for commencing actions upon any policy or liability
issued or contracted while it transacted business in this state,
and service of process upon any such agent, for such causes, is a
valid service upon the company.
Section 2. That existing sections 3909.09 and 3909.15 and
sections Sec. 3909.05. and Sec. 3927.03. of the Revised Code are hereby
repealed.
Section 3. An insurance company organized under the laws of
any other state that was authorized to transact any business of
insurance in this state prior to the effective date of this
section shall appoint a "statutory agent," as required by this
act, no later than the later of the effective date of this section
or sixty days after the Superintendent of Insurance issues a
bulletin specifying the method by which the insurance company is
to appoint a statutory agent.
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