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Am. H. B. No. 300 As Reported by the House Insurance CommitteeAs Reported by the House Insurance Committee
128th General Assembly | Regular Session | 2009-2010 |
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Representatives Dyer, Hottinger
Cosponsors:
Representatives Heard, Combs, Luckie, Murray, Williams, B., Okey, Fende, Brown
A BILL
To amend sections 3901.021, 3905.04, 3905.041,
3905.05, 3905.06, 3905.061, 3905.07, 3905.071,
3905.12, 3905.14, 3905.16, 3905.20, 3905.30,
3905.35, 3905.36, 3905.40, 3905.41, 3905.481,
3905.483, 3905.484, 3905.841, 3905.85, 3905.86,
3905.862, 3905.87, 3905.88, 3905.89, 3905.932, and
3960.03, to enact section 3905.051, and to repeal
sections 3905.10 and 3905.482 of the Revised Code
to make changes to the law governing the licensure
and regulation of insurance agents and certain
insurance-related taxes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 3901.021, 3905.04, 3905.041,
3905.05, 3905.06, 3905.061, 3905.07, 3905.071, 3905.12, 3905.14,
3905.16, 3905.20, 3905.30, 3905.35, 3905.36, 3905.40, 3905.41,
3905.481, 3905.483, 3905.484, 3905.841, 3905.85, 3905.86,
3905.862, 3905.87, 3905.88, 3905.89, 3905.932, and 3960.03 be
amended and section 3905.051 of the Revised Code be enacted to
read as follows:
Sec. 3901.021. (A) Three-fourths of all appointment
and
other
fees collected under
section 3905.10 and division (B) of
section
3905.20 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. Other revenues collected by
the superintendent of insurance, such as registration fees for
sponsored seminars or conferences and grants from private
entities, shall be paid into the state treasury to the credit of
the department of insurance operating fund.
(B) Seven-tenths of all fees collected under divisions
(A)(2), (A)(3), and (A)(6) of section 3905.40 of the Revised Code
shall be paid into the state treasury to the credit of the
department of insurance operating fund. The remaining three-tenths
shall be credited to the general revenue fund.
(C) All operating
expenses of the department of insurance
except
those expenses
defined under section 3901.07 of the Revised
Code
shall be paid
from the department of insurance operating
fund.
Sec. 3905.04. (A) Except as otherwise provided in this
section or 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 and pass a written
examination prior to application for
licensure. The examination shall test the knowledge of the
individual with respect to the lines of authority for which
application is will be 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 examination fee required under division (C) 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)(5) 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 applies:
(1) The individual has earned a bachelor's or associate's
degree in insurance from an accredited institution.
(2) The individual has earned a professional designation
approved by the superintendent.
(3) 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
the
individual has paid all applicable fees required under this
chapter and 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 status 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 documentation 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 and paying any applicable fees required under this chapter.
A person who applies for a resident insurance agent license
with a variable life-variable annuity line of authority shall
include in the person's application the person's individual
central registration depository number.
The applicant shall also request consent to 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 pursuant to
section 3905.051 of the Revised Code.
(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 and paying any applicable fees required under this
chapter.
(C) The superintendent may require an applicant to submit
any
document reasonably necessary to verify the information
contained
in an application.
Sec. 3905.051. As used in this section:
(A) "Applicant" means a natural person applying for either of
the following:
(1) A resident license as an insurance agent or surety bail
bond agent;
(2) An additional line of authority under an existing
resident
insurance agent license if a criminal record
check has
not been obtained within the last twelve months for
insurance
license purposes.
(B) "Fingerprint" means an impression of the lines on the
finger taken for the purpose of identification. The impression may
be electronic or converted to an electronic format.
(C) Each applicant shall consent to a criminal record
check
in accordance with this section and shall submit a full set
of
fingerprints to the superintendent of insurance for that
purpose.
(D) The superintendent of insurance shall request the
superintendent of
the bureau of criminal identification and
investigation to conduct
a criminal records check based on the
applicant's
fingerprints. The superintendent of insurance shall
request that
criminal record information from the federal bureau
of
investigation be obtained as part of the criminal records
check.
(E) The superintendent of insurance may contract for the
collection and transmission of fingerprints authorized under this
section. The superintendent may order the fee for collecting and
transmitting fingerprints to be payable directly to the contractor
by the applicant. The superintendent may agree to a reasonable
fingerprinting fee to be charged by the contractor. Any fee
required under this section shall be paid by the applicant.
(F) The superintendent may receive criminal record
information directly in lieu of the bureau of criminal
identification and investigation that submitted the fingerprints
to the federal bureau of investigation.
(G) The superintendent shall treat and maintain an
applicant's fingerprints and any criminal record
information
obtained under this section as confidential and shall
apply
security measures consistent with the criminal justice
information services division of the federal bureau of
investigation standards for the electronic storage of fingerprints
and necessary identifying information and limit the use of records
solely to the purposes authorized by this section. The
fingerprints and any criminal record information are not
subject
to subpoena other than one issued pursuant to a criminal
investigation, are confidential by law and privileged, are not
subject to discovery, and are not admissible in any private civil
action.
(H) This section does not apply to an agent applying for
renewal of an existing resident or nonresident license in this
state.
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 upon submission of a completed
application and payment of any applicable
fee required under this
chapter, 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) Any applicant applying for variable life-variable annuity
line of authority is registered with the financial industry
regulatory authority (FINRA) as a registered representative after
having passed at least one of the following examinations
administered by the FINRA: the series 6 examination, the series 7
examination,
the series 63 examination, the series 66
examination, or any other FINRA
examination approved by the
superintendent.
(f) If required under section 3905.051 of the Revised Code,
the applicant has consented to a criminal records check and the
results of the
applicant's criminal records check are determined
to be
satisfactory by the superintendent.
(g) The applicant is a United States citizen or has provided
proof of having legal authorization to work in the United States.
(h) 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 upon submission of a
completed application and payment of any
applicable fees required
under this chapter 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.
(d) The applicant has submitted any other documents requested
by the superintendent.
(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;
(6) Variable life and variable annuity products, which is
insurance coverage provided under variable life insurance
contracts and variable annuities;
(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 (1) An individual seeking to renew a resident insurance
agent license shall be perpetual
unless surrendered by the
licensee or suspended or revoked by the
superintendent apply
biennially for a renewal of the license on or before the last day
of the licensee's birth month. A business entity seeking to renew
a resident insurance agent license shall apply biennially for a
renewal of the license on or before the date determined by the
superintendent. The superintendent shall send a renewal notice to
all licensees at least one month prior to the renewal date.
Applications shall be submitted to the superintendent on
forms prescribed by the superintendent. Each
application shall be
accompanied by a biennial renewal fee. The
superintendent also
may require an applicant to submit any
document reasonably
necessary to verify the information contained
in the renewal
application.
(2) To be eligible for renewal, an individual applicant shall
complete the continuing education requirements pursuant to section
3905.481 of the Revised Code prior to the renewal date.
(3) If an applicant submits a completed renewal application,
qualifies for renewal pursuant to divisions (C)(1) and (2) of this
section, and has not committed any act that is a ground for the
refusal to issue, suspension of, or revocation of a license under
section 3905.14 of the Revised Code, the superintendent shall
renew the applicant's resident insurance agent
license.
(D) If an individual or business entity does not apply for
the renewal of the
individual or business entity's license on or
before the license renewal date
specified in division (C)(1) of
this section, the individual or business entity may
submit a late
renewal application along with all applicable fees required under
this chapter prior to the first day of the
second month following
the license renewal date.
(E)
A license issued under this section that is not renewed
on or before its renewal date pursuant to division (C) of this
section or its late renewal date pursuant to division (D) of this
section automatically is suspended for nonrenewal on the
first
day of the second
month following the renewal date. If a
license
is suspended for nonrenewal
pursuant to this division, the
individual or
business entity is
eligible to apply for
reinstatement of the license within the
twelve-month period
following
the date by which the license should have been renewed
by complying with the reinstatement
procedure established by
the
superintendent and paying all
applicable fees required under
this chapter.
(F) A license that is suspended for nonrenewal that is not
reinstated pursuant to division (E) of this section automatically
is canceled unless the superintendent is investigating any
allegations of wrongdoing by the agent or has initiated
proceedings under Chapter 119. of the Revised Code. In that case,
the license automatically is canceled after the completion of the
investigation or proceedings unless the superintendent revokes the
license.
(G) An individual licensed as a resident insurance agent who
is unable to comply with the license renewal procedures
established under this section and who is unable to engage in the
business of insurance due to military service, a long-term medical
disability, or some other extenuating circumstance may request an
extension of the renewal date of the individual's license. To be
eligible for such an extension, the individual shall submit a
written request with supporting documentation to the
superintendent. At the superintendent's discretion, the
superintendent may not consider a written request made after the
renewal date of the license.
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 or the superintendent's designee.
(B)(1) If a person licensed as an insurance agent under
section 3905.06 of the Revised Code changes the person's home
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 home state
of residence.
(2) If an a resident insurance agent complies with division
(B)(1)
of
this section and the agent is in good standing with the
superintendent, the agent's license shall be changed to that
of a
nonresident license and no fee or license application shall
be
required. A change in the residency status of an insurance agent
license under this section does not change the license renewal
date established by the initial licensure under section 3905.06 of
the Revised Code.
Sec. 3905.07. (A) The superintendent of insurance shall
issue
a nonresident insurance agent license to an applicant
that
is a
nonresident person upon payment of all applicable fees required
under this chapter 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 is licensed in the applicant's
home state for the lines of authority requested in this state.
(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
applicable
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.
(7) If the applicant is a business entity, the applicant has
designated an insurance agent licensed as an agent in this
state
to be responsible for the applicant's compliance with the
insurance laws of this state.
(8) The applicant has submitted any other documents requested
by the superintendent.
(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 (1) An individual seeking to renew a nonresident
insurance agent license shall be perpetual
unless surrendered by
the licensee or suspended or revoked by the
superintendent apply
biennially for a renewal of the license on or before the last day
of the licensee's birth month. A business entity seeking to renew
a nonresident insurance agent license shall apply biennially for a
renewal of the license on or before the date determined by the
superintendent.
Applications shall be submitted to the superintendent on
forms prescribed by the superintendent. Each
application shall be
accompanied by a biennial renewal fee. The
superintendent also
may require an applicant to submit any
document reasonably
necessary to verify the information contained
in the renewal
application.
(2) To be eligible for renewal, an applicant shall maintain a
resident license in the applicant's home state for the lines of
authority held in this state.
(3) If an applicant submits a completed renewal application,
qualifies for renewal pursuant to divisions (C)(1) and (2) of this
section, and has not committed any act that is a ground for the
refusal to issue, suspension of, or revocation of a license under
section 3905.14 of the Revised Code, the superintendent shall
renew the applicant's nonresident insurance agent
license.
(D) If an individual or business entity does not apply for
the renewal of the
individual or business entity's license on or
before the license renewal date
specified in division (C)(1) of
this section, the individual or business entity may
submit a late
renewal application along with all applicable fees required under
this chapter prior to the first day of the
second month following
the license renewal date.
(E)
A license issued under this section that is not renewed
on or before its renewal date pursuant to division (C) of this
section or its late renewal date pursuant to division (D) of this
section automatically is suspended for nonrenewal on the first day
of the second
month following the renewal date. If a
license is
suspended for nonrenewal
pursuant to this division, the
individual or
business entity is
eligible to apply for a
reinstatement of the license within the
twelve-month period
following
the date by which the license should have been renewed
by complying with the reinstatement
procedure established by
the
superintendent and paying all
applicable fees required under
this chapter.
(F) A license that is suspended for nonrenewal that is not
reinstated pursuant to division (E) of this section automatically
is canceled unless the superintendent is investigating any
allegations of wrongdoing by the agent or has initiated
proceedings under Chapter 119. of the Revised Code. In that case,
the license automatically is canceled after the completion of the
investigation or proceedings unless the superintendent revokes the
license.
(G) An individual licensed as a nonresident insurance agent
who is unable to comply with the license renewal procedures
established under this section and who is unable to engage in the
business of insurance due to military service, a long-term medical
disability, or some other extenuating circumstance may request an
extension of the renewal date of the individual's license. To be
eligible for such an extension, the individual shall submit a
written request with supporting documentation to the
superintendent. At the superintendent's discretion, the
superintendent may not consider a written request made after the
renewal date of the license.
(D)(H) 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 or the superintendent's designee.
(2) If a nonresident person licensed as a
nonresident
insurance agent under section 3905.07 of the
Revised Code changes
the person's home 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 home
state in
which the principal place of business is located.
(B) If a nonresident insurance agent complies with
division
(A) of this section and the agent is in good standing with the
superintendent, no fee or license application shall
be
required.
A
change in the residency status of an agent's license under this
section does not change the license renewal date established by
the initial license under section 3905.07 of the Revised Code.
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, late
renewal,
extension, reactivation, and reinstatement of
insurance
agent
licenses;
(2) Provide for the issuance and renewal of limited authority
licenses,
and establish any prelicensing education, examination,
or
continuing education requirements the superintendent considers
appropriate for such a license;
(3) Establish a schedule of fees to be paid to the
superintendent for extensions, late renewals, reinstatements, and
reactivations
of a license under this chapter and for credit card
payments,
electronic processing service, and manual processing
service. Fees
collected under this section shall be credited to
the department
of insurance operating fund created under section
3901.021 of the
Revised Code.
(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. 3905.14. (A) As used in
sections
3905.14 to 3905.16
of
the Revised Code:
(1) "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
of an
insurance agent,
assess a civil
penalty, or
impose any other
sanction
or sanctions
authorized
under this chapter, for one
or
more of the following
reasons:
(1)
Providing incorrect,
misleading, incomplete, or
materially
untrue
information in
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)
Obtaining, maintaining, or attempting to obtain or
maintain a
license through
misrepresentation or fraud;
(4) Improperly withholding, misappropriating,
or
converting
any
money or
property received
in the
course of
doing insurance
business;
(5)
Intentionally misrepresenting the
terms,
benefits,
value,
cost, or effective dates of
any actual or
proposed
insurance
contract
or
application for
insurance;
(6)
Having been convicted of or pleaded guilty or no contest
to
a felony regardless of whether a judgment of conviction has
been
entered by the court;
(7)
Having been convicted of or pleaded guilty or no contest
to
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,
that is
based on any act or omission
relating to the
business of
insurance, securities, or financial
services, or that
involves
moral turpitude regardless of whether a
judgment has been entered by the court;
(8)
Having admitted to committing, or having
been found to
have committed, any insurance unfair trade
act or
practice
or
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;
(11) Forging
or causing the
forgery of
an
application for
insurance or any
document related to
or used
in
an
insurance
transaction;
(12) Improperly using
notes or, any
other reference
material,
equipment, or devices of any kind
to complete an examination
for
an
insurance agent
license;
(13) Knowingly accepting insurance business from an
individual who is not licensed;
(14) Failing to comply with any
administrative or court
order
official invoice, notice, assessment, or order directing payment
of federal, state, or local income
tax, state or local sales tax,
or workers' compensation premiums;
(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
by the
insurer;
(17) Having any professional license or financial industry
regulatory authority registration suspended or
revoked as
a result
of a or having been barred from participation in any industry;
(18) Having been subject to a cease and desist order or
permanent injunction related to mishandling of funds
or breach of
fiduciary
responsibilities
or having been subject to a cease and
desist
order or permanent injunction for unlicensed or
unregistered activities;
(18)(19) Causing or permitting a policyholder or applicant
for
insurance to designate the
insurance agent or the
insurance
agent's spouse,
parent,
child, or sibling as
the beneficiary of a
policy or
annuity sold
by the
insurance agent or of a policy or
annuity for which the agent, at any time, was designated as the
agent of record, unless the
insurance agent or a
relative
of
the
insurance agent is
the
insured or
applicant;
(19)(20) Causing or permitting a policyholder or applicant
for insurance to designate the insurance agent or the insurance
agent's spouse, parent, child, or sibling as the owner or
beneficiary of a trust funded, in whole or in part, by a policy or
annuity sold by the insurance agent or by a policy or annuity for
which the agent, at any time, was designated as the agent of
record, unless the insurance agent or a relative of the insurance
agent is the insured or applicant;
(21) Failing to provide a written response to the
department
of insurance within
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
or the superintendent's designee;
(20)(22) Failing to appear to answer questions before the
superintendent after being notified in writing by the
superintendent of a scheduled interview, unless a reasonable
extension of time has been requested of, and granted by, the
superintendent or the superintendent's designee;
(23) 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;
(21)(24) 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 or
licensee known to be
involved in procuring,
placing, or
continuing
the insurance for
the policyholder or
applicant, upon
the binding of
the
coverage;
(22)(25) In the case of an
agent that is
a
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
business
entity;
(23)(26) 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 a writing that was forged
signature of
another
person as defined in section
2913.01 of the
Revised Code;
(24)(27) Misrepresenting the person's qualifications, status
or relationship to another person, agency, or entity, or
using in
any way a professional designation that has not been
conferred
upon the person by the appropriate accrediting
organization;
(25)(28) Obtaining a premium loan or policy surrender or
causing a premium
loan or policy surrender
to
be made to or in the
name of an insured or policyholder without that
person's
knowledge
and written authorization;
(26)(29) 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;
(27)(30) 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;
(28)(31) Soliciting, marketing, or selling, or negotiating
any product or
service that offers benefits similar to insurance
but is not
regulated by the superintendent, without fully
disclosing, orally and in writing, to the
prospective purchaser
that the product or service is not
insurance
and is not regulated
by the superintendent;
(29)(32) Failing to fulfill a refund obligation
to a
policyholder or applicant in a timely
manner.
For purposes of
division
(B)(29)(32) 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.
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)(33) With respect to a surety bail bond
agent
license,
rebating
or offering to rebate, or unlawfully dividing or
offering
to divide, any
commission, premium, or fee;
(31)(34) 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)(35) 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)(36) Offering, selling, soliciting, or negotiating
policies, contracts, agreements, or
applications for insurance, or
annuities providing fixed,
variable, or fixed and variable
benefits, or contractual payments,
for or on behalf
of any insurer
or multiple employer welfare arrangement 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 insurer or multiple employer welfare
arrangement;
(37) In the case of a resident business entity, failing to be
qualified to do business in this state under Title XVII of the
Revised Code, failing to be in good standing with the secretary
of state, or failing to maintain a valid appointment of statutory
agent with
the secretary of state;
(38) In the case of a nonresident agent, failing to maintain
licensure as an insurance agent in the agent's home state for the
lines of authority held in this state;
(39) Knowingly aiding and abetting another person or entity
in the violation of any insurance law of this state or the rules
adopted under it.
(C) Before denying, revoking, suspending, or refusing to
issue any license or imposing any penalty under this
section, 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
is
contained in the licensing records of the
department.
(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
take one or more
of the following
actions:
(1) Assess a civil
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
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
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),
(32), or (33), (34), (35), and (36)
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)(15) or
(19)(21)
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.
(3) If the superintendent determines that a violation
described in division (B)(33)(36) of this section has occurred,
the superintendent shall impose a minimum of a two-year suspension
on all of the person's licenses for all lines of insurance.
(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)
Nothing in this
section shall be construed to create or
imply a
private cause of
action against an
agent or
insurer.
Sec. 3905.16. (A)(1) Except as provided in
division
(A)(2)
of this section, any
person licensed as an
agent
under
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
agent's license is
surrendered, revoked, or
suspended, canceled, or inactivated by request, 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 or
renewed,
any appointment of the person to
represent
an insurer
must be made in accordance with
the
requirements of
this chapter.
(2) If an agent's license is surrendered, revoked,
or
canceled and the person wishes to apply for a new
license, the
person shall apply as a new agent and shall satisfy
all
requirements for a new agent license including, if applicable,
submitting to a
criminal records check under section 3905.051 of
the Revised Code.
(C)(1) Any
agent, other than a
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
3905.02 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.
(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. 3905.20. (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 pursuant to division (A) of section 3905.40 of the Revised
Code 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. 3905.30. 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
to
a
business entity that
is organized
under the laws of this or any
other state.
To be
eligible for
a resident surplus line broker's
license, a person
must have
both a property license and a casualty
license. A To be
eligible for a nonresident surplus line broker's license, a person
must hold an active surplus line broker license in the person's
home state. A nonresident surplus line broker shall obtain a
nonresident license with a property and casualty line of authority
in this state if the broker is or will be personally performing
the due diligence requirements under section 3905.33 of the
Revised Code.
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
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. 3905.35. Before receiving an applicant receives a
resident license under section 3905.30 of the Revised
Code, the
person named in the license shall execute and
deliver to the
superintendent
of insurance a bond in the sum of twenty-five
thousand dollars, payable to the
state and
conditioned that the
person will faithfully comply with
sections 3905.30 to
3905.35 of
the Revised Code. The bond
required by this section shall be
issued by an insurance company authorized to transact
surety
business in this state, be on a form prescribed by the
superintendent, and be
deposited with the superintendent and kept
in the superintendent's office.
Sec. 3905.36. (A) Except as provided in divisions (B) and
(C) of this section, 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's, 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's, for which insurance there is a
gross
premium,
membership fee, assessment, dues, or other
consideration
charged
or collected, shall annually, on or before
the
thirty-first day
of
January March, 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 calendar year 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.
(B) This section does not
apply
to:
(1) 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;
(2) Attorneys-at-law acting on behalf of their clients in
the
adjustment of claims or losses;
(3) Transactions involving policies issued by a captive
insurer. For this purpose, a "captive insurer" means any of the
following:
(a) An insurer owned by one or more individuals or
organizations, whose exclusive purpose is to insure risks of one
or more of the parent organizations or individual owners and risks
of one or more affiliates of the parent organizations or
individual owners;
(b) In the case of groups and associations, insurers owned by
the group or association whose exclusive purpose is to insure
risks of members of the group or association and affiliates of the
members;
(c) Other types of insurers, licensed and operated in
accordance with the captive insurance laws of their jurisdictions
of domicile and operated in a manner so as to self-insure risks of
their owners and insureds.
(4) Professional or medical liability insurance procured by a
hospital organized under Chapter 3701. of the Revised Code;
(5) Insurance with an initial policy period of more than
three years and that is procured to cover known events related to
environmental remediation that occurred prior to the effective
date of that insurance;
(6) Insurance procured on behalf of an entity that
manufactures, packages, and sells, as more than fifty per cent of
the entity's business, pharmaceutical products for human use where
the production, packaging, and sale of such products are subject
to regulation by an agency of the United States.
(C) In transactions that are subject to sections 3905.30 to
3905.35 of the Revised Code, 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 March 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. 3905.40. 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, one hundred seventy-five
dollars;
(3) For each certificate of authority or license, one hundred
seventy-five, and for each
certified copy thereof, five dollars;
(4) For each copy of a paper filed in
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, sixty dollars;
(7) For affixing the seal of office and certifying
documents,
other than those enumerated herein, two dollars;
(8) For each agent appointment and each annual renewal of an
agent appointment, twenty dollars;
(9) For each termination of an agent appointment, five
dollars.
(B) Each domestic 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
applicant for licensure as an individual
insurance
agent except applicants for licensure as limited lines insurance
surety bail bond
agents and surplus line brokers
shall
pay ten
dollars for each
line of authority requested. Fees collected
under this division
shall be credited to the department of
insurance operating fund
created in section 3901.021 of the
Revised Code.
(D) 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.
(E) Each insurance agent doing business in this state shall
pay a biennial license renewal fee of twenty-five dollars, except
the following insurance agents are not required to pay the license
renewal fee:
(1) Individual resident agents who have met their continuing
education requirements under section 3905.481 of the Revised Code;
(2) Surety bail bond agents;
(3) Surplus line brokers.
(F) All fees collected by the superintendent under this
section except any fees collected under divisions (A)(2), (3), and
(6) of this section shall be credited to the department of
insurance operating
fund created under section 3901.021 of the
Revised Code.
Sec. 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
3905.10, 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
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
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
section 3905.14 of the
Revised Code.
Sec. 3905.481. (A)(1) Except as provided in division (B)
of
this section, each person Each individual who is issued a resident
insurance agent license as an agent
on
or after
the
effective date
of this amendment
shall complete in
accordance with division
(A)(1) of this section at least
twenty twenty-four
hours of
continuing education in each license renewal period. The
continuing education shall be offered in a
course or
program of
study approved by the superintendent of insurance in
consultation
with the insurance agent education advisory
council and shall
include at least three hours of approved ethics training. The
person
shall complete the initial twenty
hours of continuing
education
during a period not to exceed twenty-four
months
commencing on the
first day of January of the year
immediately
following the year of
the issuance of the license and
ending on
the thirty-first day of
December of the second year
following the
year of the issuance of
the license. Thereafter,
the person shall
complete at least
twenty hours of
continuing
education in every
subsequent
twenty-four-month
period commencing on the first day of
January
and ending on the
thirty-first day of December of the
following
year.
(2) Except as provided in division (B) of this section,
each
person who, on
the effective date of this
amendment, holds a
license as an agent issued prior to that date shall
complete
during that person's applicable twenty-four month
reporting
period, at least twenty hours of
continuing education
offered in a
course or program of study approved by
the superintendent in
consultation with the council. Thereafter, the person
shall
complete at least twenty hours of
continuing education in every
subsequent
twenty-four-month period commencing on the first day of
January
and ending on the thirty-first day of
December of the
following year.
(B) Division (A) of this This section does not apply to any
person or class of persons, as determined by the
superintendent
in
consultation with the council.
(C) A person may comply with division (A) of this section
by
demonstrating
to the council that the
person has
completed the
minimum
number of hours required by that division in a
substantially
similar course or program of study offered in
another state.
Sec. 3905.483. (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
3905.04 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
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 national association of
life
underwriters insurance and financial advisors-Ohio;
(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;
(9) One representative of an insurance company admitted
to
transact business in this state;
(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
Am. 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
Am. 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
3905.481 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
3905.481 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
3905.481 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. 3905.841. The following persons or classes of persons
shall not act as surety bail bond agents or employees of a surety
bail bond
agent or bail bond business and
shall not
directly or
indirectly receive any benefits from the execution of a bail bond,
except as a principal:
(A) Jailers or other persons employed in a detention
facility, as
defined
in section 2921.01 of the Revised Code;
(B) Prisoners incarcerated in any jail, prison, or any other
place used for the incarceration of persons;
(C) Peace officers as defined in section 2921.51 of the
Revised Code, including volunteer or honorary peace officers, or
other
employees of a law enforcement agency;
(C)(D) Committing magistrates, judges, employees of a court,
or
employees of
the clerk of any court;
(D)(E) Attorneys or any person employed at an attorney's
office;
(E)(F) Any other persons having the power to arrest, or
persons
who
have authority over or control of, federal, state,
county, or
municipal
corporation prisoners.
Sec. 3905.85. (A) An
applicant (1) An individual who applies
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 (2) An applicant for an individual resident license shall
also request submit to 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 pursuant to section 3905.051
of the Revised Code.
An applicant for a license shall submit to an examination as
to the
qualifications set forth in division (B) of this section.
(B)(1) The superintendent of insurance
shall issue to an
applicant a an individual resident 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)(a)
The applicant
is
eighteen
years of age or older.
(2)(b) The applicant's home state is Ohio.
(c) The applicant is a person of high character and
integrity.
(3)(d) The applicant has not committed any act that is
grounds for the refusal to issue, suspension of, or revocation of
a
license under section 3905.14 of the Revised Code.
(e) The applicant is a United States citizen or has provided
proof of having legal authorization to work in the United States.
(f) The applicant has successfully completed the
educational
requirements set forth in
section
3905.04 of the Revised
Code
and
passed the examination required by that section.
(2) The superintendent shall issue to an applicant an
individual nonresident 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:
(a) The applicant is eighteen years of age or older.
(b) The applicant is currently licensed as a resident in
another state and is in good standing in the applicant's home
state for surety bail bond or is qualified for the same authority.
(c) The applicant is a person of high character and
integrity.
(d) The applicant has not committed any act that is grounds
for the refusal to issue, suspension of, or revocation of a
license
under section 3905.14 of the Revised Code.
(3) The superintendent shall issue an applicant a resident
business entity 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:
(a) The applicant has submitted an application for the
license in a manner prescribed by the superintendent and the
one-hundred-fifty-dollar application fee.
(b) The applicant either is domiciled in this state or
maintains its principal place of business in this state.
(c) The applicant has designated an individual licensed
surety bail bond agent who will be responsible for the applicant's
compliance with the insurance laws of this state.
(d) The applicant has not committed any act that is grounds
for the refusal to issue, suspension of, or revocation of a
license under
section 3905.14 of the Revised Code.
(e) The applicant is authorized to do business in this state
by the secretary of state if so required under the applicable
provisions of Title XVII of the Revised Code.
(f) The applicant has submitted any other documents requested
by the superintendent.
(4) The superintendent shall issue an applicant a nonresident
business entity 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:
(a) The applicant has submitted an application for the
license in a manner prescribed by the superintendent and the
one-hundred-fifty-dollar application fee.
(b) The applicant is currently licensed and is in good
standing in the applicant's home state with surety bail bond
authority.
(c) The applicant has designated an individual licensed
surety bail bond agent who will be responsible for the applicant's
compliance with the insurance laws of this state.
(d) The applicant has not committed any act that is grounds
for the refusal to issue, suspension of, or revocation of a
license under
section 3905.14 of the Revised Code.
(e) The applicant has submitted any other documents requested
by the superintendent.
(C) A resident and nonresident 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 or any license issued under
divisions (B)(3) and (4) of this section.
(D) The superintendent of insurance may suspend or revoke
refuse to renew
a
surety bail bond
agent's license as provided in
division (B) of section
3905.482 3905.88
of the
Revised Code, and
may suspend, revoke, or refuse
to issue
or renew such a license as
provided in section
3905.14 of
the
Revised Code.
If the superintendent refuses to issue such a license based
in
whole or in part upon the
written response to a
criminal
records
check requested completed pursuant to division (A) of this
section,
the
superintendent shall send a copy of the response that
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
3905.16
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
renewed effective
the
first day of
March
next after
its issue and after the
first
day of
March
in each
succeeding year (1) A person seeking to renew
a surety bail bond agent license shall apply annually for a
renewal of the license on or before the last day of February.
Applications shall be submitted to the superintendent on forms
prescribed by the
superintendent. Each application shall
be
accompanied by a one-hundred-fifty-dollar renewal fee.
(2) To be eligible for renewal, an individual applicant shall
complete
the continuing education requirements pursuant to
section 3905.88
of the Revised Code prior to the renewal date.
(3) If an applicant submits a completed renewal application,
qualifies for renewal pursuant to divisions (F)(1) and (2) of this
section, and has not committed any act that is a ground for the
refusal to issue, suspension of, or revocation of a license under
section 3905.14 or sections 3905.83 to 3905.99 of the Revised
Code, the superintendent shall
renew the applicant's surety bail
bond insurance agent
license.
(4) If an individual or business entity does not apply for
the renewal of the
individual or business entity's license on or
before the license renewal date
specified in division (F)(1) of
this section, the individual or business entity may
submit a late
renewal application along with all applicable fees required under
this chapter prior to the last day of March
following the renewal
date. The superintendent shall renew the
license of an applicant
that submits a late renewal application if
the applicant
satisfies all of the following
conditions:
(a) The applicant submits a completed renewal application.
(b) The applicant pays the one-hundred-fifty-dollar renewal
fee.
(c) The applicant pays the late renewal fee established by
the
superintendent.
(d) The applicant provides proof of compliance with the
continuing education requirements pursuant to section 3905.88 of
the Revised Code.
(e) The applicant has not committed any act that is grounds
for the refusal to issue, suspension of, or revocation of a
license under section 3905.14 or sections 3905.83 to 3905.99 of
the Revised Code.
(5) A license issued under this
section that is not renewed
on or before its late renewal date specified in division (F)(4) of
this section is
automatically suspended for nonrenewal effective
the first day of April.
(6) If a license is suspended for nonrenewal pursuant to
division (F)(5) of this section, the individual or business entity
is eligible to apply for reinstatement of the license within the
twelve-month period following the date by which the license should
have been renewed by complying with the reinstatement procedure
established by the superintendent and paying all applicable fees
required under this chapter.
(7) A license that is suspended for nonrenewal that is not
reinstated pursuant to division (F)(6) of this section
automatically is canceled unless the superintendent is
investigating any allegations of wrongdoing by the agent or has
initiated proceedings under Chapter 119. of the Revised Code. In
that case, the license automatically is canceled after the
completion of the investigation or proceedings unless the
superintendent revokes the license.
(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
business entity organized under the laws
of
this
or any other
state unless
the
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
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 or
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. 3905.86. (A) Any person licensed as a surety bail bond
agent may be appointed by an insurer in accordance with this
section.
(B) Each insurer
shall certify to the superintendent of
insurance before the
thirtieth day of June each year the names and
addresses of the
surety bail bond agents for whom it requests
appointments or the continuance
of appointments To appoint a
surety bail bond agent as its agent, an insurer shall file a
notice of appointment with the superintendent of insurance in the
manner prescribed by the superintendent. All insurers
shall pay to
the superintendent a fee of twenty dollars pursuant to division
(A)(8) of section 3905.40 of the Revised Code for each
such
appointment when issued and for each continuance thereafter.
Such
an appointment, unless canceled by the insurer, may be
continued
in force past the thirtieth day of June next after its
issue and
after the thirtieth day of June of each succeeding year
provided
that the appointee is licensed and is eligible for the
appointment.
Any fee collected under this division shall be paid into
the
state treasury to the credit of the department of insurance
operating fund created by section 3901.021 of the
Revised
Code.
(C)(1) By appointing a surety bail bond agent, an insurer
certifies
to the superintendent that the person is competent,
financially responsible, and suitable to represent the insurer.
(2) An insurer shall be bound by the acts of the person
named
in
the appointment within that person's actual or apparent
authority as its
agent.
(D) A surety bail bond agent shall not represent to the
public
that the agent has authority to represent a particular
insurer until the
insurer has acknowledged that authority by
appointment of
the agent in accordance with this section.
Sec. 3905.862. Upon the expiration or cancellation of a
surety bail bond
agent's
appointment, the agent shall not
engage
or attempt to engage in any activity requiring such an
appointment.
However, an insurer that cancels the appointment of
a
surety bail bond agent
may authorize the agent to continue to
attempt the arrest and surrender
of a defendant for whom a bail
bond had been written prior to the cancellation
and to seek
discharge of forfeitures and judgments.
An insurer that cancels the appointment of a surety bail bond
agent or allows that appointment to expire shall pay to the
superintendent of insurance a fee pursuant to division (A)(9) of
section 3905.40 of the Revised Code.
Sec. 3905.87. (A) A surety bail bond agent shall not file a
bond
in any court of
this state unless both of the following
conditions are met:
(1) The the agent is licensed and appointed under sections
3905.83 to 3905.95 of the Revised Code and has registered with the
clerk of that court pursuant to division (B) of this section,
if
registration is required by the court.
(2) The agent has registered with the clerk of the court of
common pleas of the county in which the agent resides.
(B) To register with a court, a surety bail bond agent shall
file, with
the
clerk
of the court, a copy of the agent's surety
bail bond license, a copy of the agent's driver's license or state
identification card, and a certified copy of the surety bail bond
agent's appointment by
power
of attorney from each insurer that
the surety bail bond agent represents.
Registration and filing of
a certified copy of a renewed power of attorney
shall be performed
An agent shall renew the agent's registration biennially
by the
first day of August of each odd-numbered
year. The clerk
of the
court shall not accept the registration of a surety
bail
bond
agent unless the surety bail bond agent is currently licensed
and
appointed in
accordance with sections 3905.83 to 3905.95 of
the
Revised Code.
(C) The clerk of the court shall make available a list of
court-registered surety bail bond agents to the appropriate
holding facility, jail, correction facility, or other similar
entity within the court's jurisdiction annually not later than the
first day of September. If an agent registers with a court after
the last day of August, the court shall add that agent to the list
and make the updated list available to the appropriate holding
facility, jail, correction facility, or other similar entity
within the court's jurisdiction within twenty-four hours of the
court's approval of that registration.
Sec. 3905.88. (A) Each individual who is issued a license
as
a resident surety bail bond agent shall
complete, in accordance
with
section 3905.481 of the Revised Code, at least fourteen seven
hours of
continuing education in each license renewal period. The
continuing education shall be offered
in a course or program of
study
related to the bail bond business that is approved by the
superintendent of insurance in consultation with the insurance
agent
education advisory council and shall include at least one
hour of approved ethics training.
(B) The superintendent shall, in accordance with section
3905.482 of the Revised Code, suspend or revoke not renew the
license
of any
surety bail bond agent who fails to meet the
requirements of
division
(A) of this section and has not been
granted an extension
of time within which to complete the
requirements or whose application for renewal does not meet the
requirements of section 3905.85 of the Revised Code.
(C) The superintendent
shall adopt, in accordance with
Chapter 119. of the
Revised
Code, any rule necessary
to carry out
the superintendent's duties under this
section.
Sec. 3905.89. Each person licensed under sections 3905.83 to
3905.95 of the Revised Code
shall notify in
writing the
appropriate insurer or managing
general agent, and the clerk of
the court of common pleas of the county in
which the licensee
resides is registered, 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
other
provisions of
this
chapter.
Sec. 3905.932. A surety bail bond agent or insurer shall not
do any of the
following:
(A) Suggest or advise the employment of, or name for
employment,
any particular attorney to represent its principal;
(B) Directly or indirectly solicit Solicit business in, or on
the
property
or grounds of, a detention facility, as defined in
section 2921.01 of the
Revised Code, or in, or on the property or
grounds of, any
court. For purposes of this division, "solicit"
includes, but is not limited to, the distribution of
business
cards, print advertising, or
any other written information
directed
to prisoners or potential
indemnitors, unless a request
is initiated by the
prisoner or
potential indemnitor. Permissible
print advertising in a
detention
facility is strictly limited to
a listing in a telephone
directory
and the posting of the surety
bail bond agent's name,
address, and
telephone
number in a
designated location within the
detention
facility.
(C) Wear or otherwise display any identification, other than
the
wallet identification card required under division (G) of
section
3905.85 of the Revised Code,
in or on the property or
grounds of a
detention facility, as defined in
section 2921.01 of
the Revised
Code, or in or on the
property or grounds of any
court;
(D) Pay a fee or rebate or give or promise anything of value
to a
jailer, law enforcement officer, committing magistrate, or
other person
who has power to arrest or to hold in custody, or to
any public official or
public employee, in order to secure a
settlement, compromise, remission, or
reduction of the amount of
any bail bond or estreatment of bail;
(E) Pay a fee or rebate or give or promise anything of value
to
an attorney in a bail bond matter, except in defense of any
action on a bond;
(F) Pay a fee or rebate or give or promise anything of value
to
the principal or to anyone in the principal's behalf;
(G) Post anything without using a bail instrument
representing an insurer, to have a defendant released on bail on
all types of set court bail, except for the following:
(1) Cash court fees or cash reparation fees;
(2) Ten per cent assignments;
(3) Other nonsurety court bonds, if the agent provides full
written disclosure and receipts and retains copies of all
documents and receipts for not less than three years.
(H) Participate in the capacity of an attorney at a trial or
hearing of a principal;
(H)(I) Accept anything of value from a principal for
providing
a
bail bond, other than the premium filed with and
approved by
the
superintendent of insurance and an expense fee,
except that the
surety
bail bond agent may, in accordance with
section 3905.92 of
the Revised Code, accept collateral security or
other indemnity
from a
principal or other person together with
documentary stamp
taxes if
applicable. No fees, expenses, or
charges of any kind
shall be deducted from
the collateral held or
any return premium
due, except as authorized by
sections 3905.83
to 3905.95 of the
Revised Code or by rule of the superintendent. A
surety
bail bond
agent,
upon written agreement with another party,
may receive a
fee or other
compensation
for returning to custody
an individual
who has fled the jurisdiction of the
court or caused
the
forfeiture of a bond.
(I)(J) Execute a bond in this state on the person's own
behalf;
(J)(K) Execute a bond in this state if a judgment has been
entered
on a bond executed by the surety bail bond agent, which
judgment has remained
unpaid for at least sixty days after all
appeals have been exhausted, unless
the full amount of the
judgment is
deposited with the clerk of the court.
As used in this section, "instrument" means a fiduciary form
showing a dollar amount for a surety bail bond.
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 of
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
thirty-first day of
January March,
pay
to
the treasurer of state five per cent
of all premiums, fees,
assessments, dues, or other
consideration
for the preceding
one-year period calendar year 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)
On or before the
thirty-first day of
January March,
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.
Section 2. That existing sections 3901.021, 3905.04,
3905.041, 3905.05, 3905.06, 3905.061, 3905.07, 3905.071, 3905.12,
3905.14, 3905.16, 3905.20, 3905.30, 3905.35, 3905.36, 3905.40,
3905.41, 3905.481, 3905.483, 3905.484, 3905.841, 3905.85, 3905.86,
3905.862, 3905.87, 3905.88, 3905.89, 3905.932, and 3960.03 and
sections 3905.10 and 3905.482 of the Revised Code are hereby
repealed.
Section 3. Notwithstanding section 3905.481 of the Revised
Code, the Superintendent of Insurance shall establish a prorated
phase-in schedule for the completion of continuing education
requirements for the first license renewal period after the
effective date of this act.
Section 4. For the time period beginning on the effective
date of this act and ending on June 1, 2010, notwithstanding
section 3905.40 of the Revised Code, each applicant for licensure
as an insurance agent except applicants for licensure as surety
bail bond agents and surplus line brokers shall pay ten dollars
for each line of authority requested. Fees collected under this
division shall be credited to the department of insurance
operating fund created in section 3901.021 of the Revised Code.
Section 5. (A) The Superintendent of Insurance may delay the
implementation and enforcement of the requirements of sections
3901.021, 3905.04, 3905.041, 3905.05,
3905.051, 3905.06,
3905.061, 3905.07, 3905.071, 3905.10, 3905.12,
3905.16, 3905.20,
3905.30, 3905.35, 3905.40, 3905.41,
3905.481,
3905.482,
3905.483, 3905.484, 3905.841, 3905.85,
3905.86,
3905.862,
3905.87, 3905.88, 3905.89, and 3905.932 of the Revised
Code as
amended, enacted, or repealed by
this act until the earlier of
January 1, 2011, or thirty days after the Superintendent of
Insurance determines that the Department of Insurance is able to
implement those requirements and places a notification of that
determination on the Department's web site.
(B) The Superintendent shall continue to enforce requirements
of the sections listed in division (A) of this Section, as they
existed immediately prior to the effective date of this act, until
the Superintendent implements requirements amended, enacted, or
repealed by this act pursuant to division (A) of this Section.
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