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Am. Sub. H. B. No. 278 As Enrolled
(129th General Assembly)
(Amended Substitute House Bill Number 278)
AN ACT
To amend sections 3901.21, 3937.18, 3937.30, 3937.31,
3937.32, 3937.33, 3937.34, 3937.35, 4505.11,
4509.01, 4509.20, 4509.41, and 4509.51 and to
enact section 3937.46 of the Revised Code to make
changes to the law governing automobile insurance
policies, to increase the minimum amounts required
for valid proof of financial responsibility, to
make it an unfair and deceptive act or practice in
the business of insurance to charge excessive,
inadequate, or unfairly discriminatory premium
rates in private passenger automobile insurance
based solely on the insured's residence location,
to reduce from two years to one year the minimum
policy period for automobile insurance policies,
to prohibit an automobile insurer from enforcing
certain intrafamily exclusions, and to permit
insurance companies to obtain a salvage
certificate of title for a motor vehicle in
certain circumstances when the insurance company
does not have possession of the certificate of
title.
Be it enacted by the General Assembly of the State of Ohio:
SECTION 1. That sections 3901.21, 3937.18, 3937.30, 3937.31,
3937.32, 3937.33, 3937.34, 3937.35, 4505.11, 4509.01, 4509.20,
4509.41, and 4509.51 be amended and section 3937.46 of the Revised
Code be enacted to read as follows:
Sec. 3901.21. The following are hereby defined as unfair and
deceptive acts or practices in the business of insurance:
(A) Making, issuing, circulating, or causing or permitting to
be made, issued, or circulated, or preparing with intent to so
use, any estimate, illustration, circular, or statement
misrepresenting the terms of any policy issued or to be issued or
the benefits or advantages promised thereby or the dividends or
share of the surplus to be received thereon, or making any false
or misleading statements as to the dividends or share of surplus
previously paid on similar policies, or making any misleading
representation or any misrepresentation as to the financial
condition of any insurer as shown by the last preceding verified
statement made by it to the insurance department of this state, or
as to the legal reserve system upon which any life insurer
operates, or using any name or title of any policy or class of
policies misrepresenting the true nature thereof, or making any
misrepresentation or incomplete comparison to any person for the
purpose of inducing or tending to induce such person to purchase,
amend, lapse, forfeit, change, or surrender insurance.
Any written statement concerning the premiums for a policy
which refers to the net cost after credit for an assumed dividend,
without an accurate written statement of the gross premiums, cash
values, and dividends based on the insurer's current dividend
scale, which are used to compute the net cost for such policy, and
a prominent warning that the rate of dividend is not guaranteed,
is a misrepresentation for the purposes of this division.
(B) Making, publishing, disseminating, circulating, or
placing before the public or causing, directly or indirectly, to
be made, published, disseminated, circulated, or placed before the
public, in a newspaper, magazine, or other publication, or in the
form of a notice, circular, pamphlet, letter, or poster, or over
any radio station, or in any other way, or preparing with intent
to so use, an advertisement, announcement, or statement containing
any assertion, representation, or statement, with respect to the
business of insurance or with respect to any person in the conduct
of the person's insurance business, which is untrue, deceptive, or
misleading.
(C) Making, publishing, disseminating, or circulating,
directly or indirectly, or aiding, abetting, or encouraging the
making, publishing, disseminating, or circulating, or preparing
with intent to so use, any statement, pamphlet, circular, article,
or literature, which is false as to the financial condition of an
insurer and which is calculated to injure any person engaged in
the business of insurance.
(D) Filing with any supervisory or other public official, or
making, publishing, disseminating, circulating, or delivering to
any person, or placing before the public, or causing directly or
indirectly to be made, published, disseminated, circulated,
delivered to any person, or placed before the public, any false
statement of financial condition of an insurer.
Making any false entry in any book, report, or statement of
any insurer with intent to deceive any agent or examiner lawfully
appointed to examine into its condition or into any of its
affairs, or any public official to whom such insurer is required
by law to report, or who has authority by law to examine into its
condition or into any of its affairs, or, with like intent,
willfully omitting to make a true entry of any material fact
pertaining to the business of such insurer in any book, report, or
statement of such insurer, or mutilating, destroying, suppressing,
withholding, or concealing any of its records.
(E) Issuing or delivering or permitting agents, officers, or
employees to issue or deliver agency company stock or other
capital stock or benefit certificates or shares in any common-law
corporation or securities or any special or advisory board
contracts or other contracts of any kind promising returns and
profits as an inducement to insurance.
(F) Making or permitting any unfair discrimination among
individuals of the same class and equal expectation of life in the
rates charged for any contract of life insurance or of life
annuity or in the dividends or other benefits payable thereon, or
in any other of the terms and conditions of such contract.
(G)(1) Except as otherwise expressly provided by law,
knowingly permitting or offering to make or making any contract of
life insurance, life annuity or accident and health insurance, or
agreement as to such contract other than as plainly expressed in
the contract issued thereon, or paying or allowing, or giving or
offering to pay, allow, or give, directly or indirectly, as
inducement to such insurance, or annuity, any rebate of premiums
payable on the contract, or any special favor or advantage in the
dividends or other benefits thereon, or any valuable consideration
or inducement whatever not specified in the contract; or giving,
or selling, or purchasing, or offering to give, sell, or purchase,
as inducement to such insurance or annuity or in connection
therewith, any stocks, bonds, or other securities, or other
obligations of any insurance company or other corporation,
association, or partnership, or any dividends or profits accrued
thereon, or anything of value whatsoever not specified in the
contract.
(2) Nothing in division (F) or division (G)(1) of this
section shall be construed as prohibiting any of the following
practices: (a) in the case of any contract of life insurance or
life annuity, paying bonuses to policyholders or otherwise abating
their premiums in whole or in part out of surplus accumulated from
nonparticipating insurance, provided that any such bonuses or
abatement of premiums shall be fair and equitable to policyholders
and for the best interests of the company and its policyholders;
(b) in the case of life insurance policies issued on the
industrial debit plan, making allowance to policyholders who have
continuously for a specified period made premium payments directly
to an office of the insurer in an amount which fairly represents
the saving in collection expenses; (c) readjustment of the rate of
premium for a group insurance policy based on the loss or expense
experience thereunder, at the end of the first or any subsequent
policy year of insurance thereunder, which may be made retroactive
only for such policy year.
(H) Making, issuing, circulating, or causing or permitting to
be made, issued, or circulated, or preparing with intent to so
use, any statement to the effect that a policy of life insurance
is, is the equivalent of, or represents shares of capital stock or
any rights or options to subscribe for or otherwise acquire any
such shares in the life insurance company issuing that policy or
any other company.
(I) Making, issuing, circulating, or causing or permitting to
be made, issued or circulated, or preparing with intent to so
issue, any statement to the effect that payments to a policyholder
of the principal amounts of a pure endowment are other than
payments of a specific benefit for which specific premiums have
been paid.
(J) Making, issuing, circulating, or causing or permitting to
be made, issued, or circulated, or preparing with intent to so
use, any statement to the effect that any insurance company was
required to change a policy form or related material to comply
with Title XXXIX of the Revised Code or any regulation of the
superintendent of insurance, for the purpose of inducing or
intending to induce any policyholder or prospective policyholder
to purchase, amend, lapse, forfeit, change, or surrender
insurance.
(K) Aiding or abetting another to violate this section.
(L) Refusing to issue any policy of insurance, or canceling
or declining to renew such policy because of the sex or marital
status of the applicant, prospective insured, insured, or
policyholder.
(M) Making or permitting any unfair discrimination between
individuals of the same class and of essentially the same hazard
in the amount of premium, policy fees, or rates charged for any
policy or contract of insurance, other than life insurance, or in
the benefits payable thereunder, or in underwriting standards and
practices or eligibility requirements, or in any of the terms or
conditions of such contract, or in any other manner whatever.
(N) Refusing to make available disability income insurance
solely because the applicant's principal occupation is that of
managing a household.
(O) Refusing, when offering maternity benefits under any
individual or group sickness and accident insurance policy, to
make maternity benefits available to the policyholder for the
individual or individuals to be covered under any comparable
policy to be issued for delivery in this state, including family
members if the policy otherwise provides coverage for family
members. Nothing in this division shall be construed to prohibit
an insurer from imposing a reasonable waiting period for such
benefits under an individual sickness and accident insurance
policy issued to an individual who is not a federally eligible
individual or a nonemployer-related group sickness and accident
insurance policy, but in no event shall such waiting period exceed
two hundred seventy days.
For purposes of division (O) of this section, "federally
eligible individual" means an eligible individual as defined in 45
C.F.R. 148.103.
(P) Using, or permitting to be used, a pattern settlement as
the basis of any offer of settlement. As used in this division,
"pattern settlement" means a method by which liability is
routinely imputed to a claimant without an investigation of the
particular occurrence upon which the claim is based and by using a
predetermined formula for the assignment of liability arising out
of occurrences of a similar nature. Nothing in this division shall
be construed to prohibit an insurer from determining a claimant's
liability by applying formulas or guidelines to the facts and
circumstances disclosed by the insurer's investigation of the
particular occurrence upon which a claim is based.
(Q) Refusing to insure, or refusing to continue to insure, or
limiting the amount, extent, or kind of life or sickness and
accident insurance or annuity coverage available to an individual,
or charging an individual a different rate for the same coverage
solely because of blindness or partial blindness. With respect to
all other conditions, including the underlying cause of blindness
or partial blindness, persons who are blind or partially blind
shall be subject to the same standards of sound actuarial
principles or actual or reasonably anticipated actuarial
experience as are sighted persons. Refusal to insure includes, but
is not limited to, denial by an insurer of disability insurance
coverage on the grounds that the policy defines "disability" as
being presumed in the event that the eyesight of the insured is
lost. However, an insurer may exclude from coverage disabilities
consisting solely of blindness or partial blindness when such
conditions existed at the time the policy was issued. To the
extent that the provisions of this division may appear to conflict
with any provision of section 3999.16 of the Revised Code, this
division applies.
(R)(1) Directly or indirectly offering to sell, selling, or
delivering, issuing for delivery, renewing, or using or otherwise
marketing any policy of insurance or insurance product in
connection with or in any way related to the grant of a student
loan guaranteed in whole or in part by an agency or commission of
this state or the United States, except insurance that is required
under federal or state law as a condition for obtaining such a
loan and the premium for which is included in the fees and charges
applicable to the loan; or, in the case of an insurer or insurance
agent, knowingly permitting any lender making such loans to engage
in such acts or practices in connection with the insurer's or
agent's insurance business.
(2) Except in the case of a violation of division (G) of this
section, division (R)(1) of this section does not apply to either
of the following:
(a) Acts or practices of an insurer, its agents,
representatives, or employees in connection with the grant of a
guaranteed student loan to its insured or the insured's spouse or
dependent children where such acts or practices take place more
than ninety days after the effective date of the insurance;
(b) Acts or practices of an insurer, its agents,
representatives, or employees in connection with the solicitation,
processing, or issuance of an insurance policy or product covering
the student loan borrower or the borrower's spouse or dependent
children, where such acts or practices take place more than one
hundred eighty days after the date on which the borrower is
notified that the student loan was approved.
(S) Denying coverage, under any health insurance or health
care policy, contract, or plan providing family coverage, to any
natural or adopted child of the named insured or subscriber solely
on the basis that the child does not reside in the household of
the named insured or subscriber.
(T)(1) Using any underwriting standard or engaging in any
other act or practice that, directly or indirectly, due solely to
any health status-related factor in relation to one or more
individuals, does either of the following:
(a) Terminates or fails to renew an existing individual
policy, contract, or plan of health benefits, or a health benefit
plan issued to an employer, for which an individual would
otherwise be eligible;
(b) With respect to a health benefit plan issued to an
employer, excludes or causes the exclusion of an individual from
coverage under an existing employer-provided policy, contract, or
plan of health benefits.
(2) The superintendent of insurance may adopt rules in
accordance with Chapter 119. of the Revised Code for purposes of
implementing division (T)(1) of this section.
(3) For purposes of division (T)(1) of this section, "health
status-related factor" means any of the following:
(a) Health status;
(b) Medical condition, including both physical and mental
illnesses;
(c) Claims experience;
(d) Receipt of health care;
(e) Medical history;
(f) Genetic information;
(g) Evidence of insurability, including conditions arising
out of acts of domestic violence;
(h) Disability.
(U) With respect to a health benefit plan issued to a small
employer, as those terms are defined in section 3924.01 of the
Revised Code, negligently or willfully placing coverage for
adverse risks with a certain carrier, as defined in section
3924.01 of the Revised Code.
(V) Using any program, scheme, device, or other unfair act or
practice that, directly or indirectly, causes or results in the
placing of coverage for adverse risks with another carrier, as
defined in section 3924.01 of the Revised Code.
(W) Failing to comply with section 3923.23, 3923.231,
3923.232, 3923.233, or 3923.234 of the Revised Code by engaging in
any unfair, discriminatory reimbursement practice.
(X) Intentionally establishing an unfair premium for, or
misrepresenting the cost of, any insurance policy financed under a
premium finance agreement of an insurance premium finance company.
(Y)(1)(a) Limiting coverage under, refusing to issue,
canceling, or refusing to renew, any individual policy or contract
of life insurance, or limiting coverage under or refusing to issue
any individual policy or contract of health insurance, for the
reason that the insured or applicant for insurance is or has been
a victim of domestic violence;
(b) Adding a surcharge or rating factor to a premium of any
individual policy or contract of life or health insurance for the
reason that the insured or applicant for insurance is or has been
a victim of domestic violence;
(c) Denying coverage under, or limiting coverage under, any
policy or contract of life or health insurance, for the reason
that a claim under the policy or contract arises from an incident
of domestic violence;
(d) Inquiring, directly or indirectly, of an insured under,
or of an applicant for, a policy or contract of life or health
insurance, as to whether the insured or applicant is or has been a
victim of domestic violence, or inquiring as to whether the
insured or applicant has sought shelter or protection from
domestic violence or has sought medical or psychological treatment
as a victim of domestic violence.
(2) Nothing in division (Y)(1) of this section shall be
construed to prohibit an insurer from inquiring as to, or from
underwriting or rating a risk on the basis of, a person's physical
or mental condition, even if the condition has been caused by
domestic violence, provided that all of the following apply:
(a) The insurer routinely considers the condition in
underwriting or in rating risks, and does so in the same manner
for a victim of domestic violence as for an insured or applicant
who is not a victim of domestic violence;
(b) The insurer does not refuse to issue any policy or
contract of life or health insurance or cancel or refuse to renew
any policy or contract of life insurance, solely on the basis of
the condition, except where such refusal to issue, cancellation,
or refusal to renew is based on sound actuarial principles or is
related to actual or reasonably anticipated experience;
(c) The insurer does not consider a person's status as being
or as having been a victim of domestic violence, in itself, to be
a physical or mental condition;
(d) The underwriting or rating of a risk on the basis of the
condition is not used to evade the intent of division (Y)(1) of
this section, or of any other provision of the Revised Code.
(3)(a) Nothing in division (Y)(1) of this section shall be
construed to prohibit an insurer from refusing to issue a policy
or contract of life insurance insuring the life of a person who is
or has been a victim of domestic violence if the person who
committed the act of domestic violence is the applicant for the
insurance or would be the owner of the insurance policy or
contract.
(b) Nothing in division (Y)(2) of this section shall be
construed to permit an insurer to cancel or refuse to renew any
policy or contract of health insurance in violation of the "Health
Insurance Portability and Accountability Act of 1996," 110 Stat.
1955, 42 U.S.C.A. 300gg-41(b), as amended, or in a manner that
violates or is inconsistent with any provision of the Revised Code
that implements the "Health Insurance Portability and
Accountability Act of 1996."
(4) An insurer is immune from any civil or criminal liability
that otherwise might be incurred or imposed as a result of any
action taken by the insurer to comply with division (Y) of this
section.
(5) As used in division (Y) of this section, "domestic
violence" means any of the following acts:
(a) Knowingly causing or attempting to cause physical harm to
a family or household member;
(b) Recklessly causing serious physical harm to a family or
household member;
(c) Knowingly causing, by threat of force, a family or
household member to believe that the person will cause imminent
physical harm to the family or household member.
For the purpose of division (Y)(5) of this section, "family
or household member" has the same meaning as in section 2919.25 of
the Revised Code.
Nothing in division (Y)(5) of this section shall be construed
to require, as a condition to the application of division (Y) of
this section, that the act described in division (Y)(5) of this
section be the basis of a criminal prosecution.
(Z) Disclosing a coroner's records by an insurer in violation
of section 313.10 of the Revised Code.
(AA) Making, issuing, circulating, or causing or permitting
to be made, issued, or circulated any statement or representation
that a life insurance policy or annuity is a contract for the
purchase of funeral goods or services.
(BB) With respect to private passenger automobile insurance,
no insurer shall charge different charging premium rates to
persons residing within the limits of any municipal corporation
that are excessive, inadequate, or unfairly discriminatory,
pursuant to division (D) of section 3937.02 of the Revised Code,
based solely on the location of the residence of the insured
within those limits.
The enumeration in sections 3901.19 to 3901.26 of the Revised
Code of specific unfair or deceptive acts or practices in the
business of insurance is not exclusive or restrictive or intended
to limit the powers of the superintendent of insurance to adopt
rules to implement this section, or to take action under other
sections of the Revised Code.
This section does not prohibit the sale of shares of any
investment company registered under the "Investment Company Act of
1940," 54 Stat. 789, 15 U.S.C.A. 80a-1, as amended, or any
policies, annuities, or other contracts described in section
3907.15 of the Revised Code.
As used in this section, "estimate," "statement,"
"representation," "misrepresentation," "advertisement," or
"announcement" includes oral or written occurrences.
Sec. 3937.18. (A) Any policy of insurance delivered or
issued for delivery in this state with respect to any motor
vehicle registered or principally garaged in this state that
insures against loss resulting from liability imposed by law for
bodily injury or death suffered by any person arising out of the
ownership, maintenance, or use of a motor vehicle, may, but is not
required to, include uninsured motorist coverage, underinsured
motorist coverage, or both uninsured and underinsured motorist
coverages.
Unless otherwise defined in the policy or any endorsement to
the policy, "motor vehicle," for purposes of the uninsured
motorist coverage, underinsured motorist coverage, or both
uninsured and underinsured motorist coverages, means a
self-propelled vehicle designed for use and principally used on
public roads, including an automobile, truck, semi-tractor,
motorcycle, and bus. "Motor vehicle" also includes a motor home,
provided the motor home is not stationary and is not being used as
a temporary or permanent residence or office. "Motor vehicle" does
not include a trolley, streetcar, trailer, railroad engine,
railroad car, motorized bicycle, golf cart, off-road recreational
vehicle, snowmobile, fork lift, aircraft, watercraft, construction
equipment, farm tractor or other vehicle designed and principally
used for agricultural purposes, mobile home, vehicle traveling on
treads or rails, or any similar vehicle.
(B) For purposes of any uninsured motorist coverage included
in a policy of insurance, an "uninsured motorist" is the owner or
operator of a motor vehicle if any of the following conditions
applies:
(1) There exists no bodily injury liability bond or insurance
policy covering the owner's or operator's liability to the
insured.
(2) The liability insurer denies coverage to the owner or
operator, or is or becomes the subject of insolvency proceedings
in any state.
(3) The identity of the owner or operator cannot be
determined, but independent corroborative evidence exists to prove
that the bodily injury, sickness, disease, or death of the insured
was proximately caused by the negligence or intentional actions of
the unidentified operator of the motor vehicle. For purposes of
division (B)(3) of this section, the testimony of any insured
seeking recovery from the insurer shall not constitute independent
corroborative evidence, unless the testimony is supported by
additional evidence.
(4) The owner or operator has diplomatic immunity.
(5) The owner or operator has immunity under Chapter 2744. of
the Revised Code.
An "uninsured motorist" does not include the owner or
operator of a motor vehicle that is self-insured within the
meaning of the financial responsibility law of the state in which
the motor vehicle is registered.
(C) If underinsured motorist coverage is included in a policy
of insurance, the underinsured motorist coverage shall provide
protection for insureds thereunder for bodily injury, sickness, or
disease, including death, suffered by any insured under the
policy, where the limits of coverage available for payment to the
insured under all bodily injury liability bonds and insurance
policies covering persons liable to the insured are less than the
limits for the underinsured motorist coverage. Underinsured
motorist coverage in this state is not and shall not be excess
coverage to other applicable liability coverages, and shall only
provide the insured an amount of protection not greater than that
which would be available under the insured's uninsured motorist
coverage if the person or persons liable to the insured were
uninsured at the time of the accident. The policy limits of the
underinsured motorist coverage shall be reduced by those amounts
available for payment under all applicable bodily injury liability
bonds and insurance policies covering persons liable to the
insured.
For purposes of underinsured motorist coverage, an
"underinsured motorist" does not include the owner or operator of
a motor vehicle that has applicable liability coverage in the
policy under which the underinsured motorist coverage is provided.
(D) With respect to the uninsured motorist coverage,
underinsured motorist coverage, or both uninsured and underinsured
motorist coverages included in a policy of insurance, an insured
shall be required to prove all elements of the insured's claim
that are necessary to recover from the owner or operator of the
uninsured or underinsured motor vehicle.
(E) The uninsured motorist coverage, underinsured motorist
coverage, or both uninsured and underinsured motorist coverages
included in a policy of insurance shall not be subject to an
exclusion or reduction in amount because of any workers'
compensation benefits payable as a result of the same injury or
death.
(F) Any policy of insurance that includes uninsured motorist
coverage, underinsured motorist coverage, or both uninsured and
underinsured motorist coverages may, without regard to any
premiums involved, include terms and conditions that preclude any
and all stacking of such coverages, including but not limited to:
(1) Interfamily stacking, which is the aggregating of the
limits of such coverages by the same person or two or more
persons, whether family members or not, who are not members of the
same household;
(2) Intrafamily stacking, which is the aggregating of the
limits of such coverages purchased by the same person or two or
more family members of the same household.
(G) Any policy of insurance that includes uninsured motorist
coverage, underinsured motorist coverage, or both uninsured and
underinsured motorist coverages and that provides a limit of
coverage for payment of damages for bodily injury, including
death, sustained by any one person in any one automobile accident,
may, notwithstanding Chapter 2125. of the Revised Code, include
terms and conditions to the effect that all claims resulting from
or arising out of any one person's bodily injury, including death,
shall collectively be subject to the limit of the policy
applicable to bodily injury, including death, sustained by one
person, and, for the purpose of such policy limit shall constitute
a single claim. Any such policy limit shall be enforceable
regardless of the number of insureds, claims made, vehicles or
premiums shown in the declarations or policy, or vehicles involved
in the accident.
(H) Any policy of insurance that includes uninsured motorist
coverage, underinsured motorist coverage, or both uninsured and
underinsured motorist coverages may include terms and conditions
requiring that, so long as the insured has not prejudiced the
insurer's subrogation rights, each claim or suit for uninsured
motorist coverage, underinsured motorist coverage, or both
uninsured and underinsured motorist coverages be made or brought
within three years after the date of the accident causing the
bodily injury, sickness, disease, or death, or within one year
after the liability insurer for the owner or operator of the motor
vehicle liable to the insured has become the subject of insolvency
proceedings in any state, whichever is later.
(I) Any policy of insurance that includes uninsured motorist
coverage, underinsured motorist coverage, or both uninsured and
underinsured motorist coverages may, subject to section 3937.46 of
the Revised Code, include terms and conditions that preclude
coverage for bodily injury or death suffered by an insured under
specified circumstances, including but not limited to any of the
following circumstances:
(1) While the insured is operating or occupying a motor
vehicle owned by, furnished to, or available for the regular use
of a named insured, a spouse, or a resident relative of a named
insured, if the motor vehicle is not specifically identified in
the policy under which a claim is made, or is not a newly acquired
or replacement motor vehicle covered under the terms of the policy
under which the uninsured motorist coverage, underinsured motorist
coverage, or both uninsured and underinsured motorist coverages
are provided;
(2) While the insured is operating or occupying a motor
vehicle without a reasonable belief that the insured is entitled
to do so, provided that under no circumstances will an insured
whose license has been suspended, revoked, or never issued, be
held to have a reasonable belief that the insured is entitled to
operate a motor vehicle;
(3) When the bodily injury or death is caused by a motor
vehicle operated by any person who is specifically excluded from
coverage for bodily injury liability in the policy under which the
uninsured motorist coverage, underinsured motorist coverage, or
both uninsured and underinsured motorist coverages are provided;
(4) While any employee, officer, director, partner, trustee,
member, executor, administrator, or beneficiary of the named
insured, or any relative of any such person, is operating or
occupying a motor vehicle, unless the employee, officer, director,
partner, trustee, member, executor, administrator, beneficiary, or
relative is operating or occupying a motor vehicle for which
uninsured motorist coverage, underinsured motorist coverage, or
both uninsured and underinsured motorist coverages are provided in
the policy;
(5) When the person actually suffering the bodily injury,
sickness, disease, or death is not an insured under the policy.
(J) In the event of payment to any person under the uninsured
motorist coverage, underinsured motorist coverage, or both
uninsured and underinsured motorist coverages, and subject to the
terms and conditions of that coverage, the insurer making such
payment is entitled, to the extent of the payment, to the proceeds
of any settlement or judgment resulting from the exercise of any
rights of recovery of that person against any person or
organization legally responsible for the bodily injury or death
for which the payment is made, including any amount recoverable
from an insurer that is or becomes the subject of insolvency
proceedings, through such proceedings or in any other lawful
manner. No insurer shall attempt to recover any amount against the
insured of an insurer that is or becomes the subject of insolvency
proceedings, to the extent of those rights against the insurer
that the insured assigns to the paying insurer.
(K) Nothing in this section shall prohibit the inclusion of
underinsured motorist coverage in any uninsured motorist coverage
included in a policy of insurance.
(L) The superintendent of insurance shall study the market
availability of, and competition for, uninsured and underinsured
motorist coverages in this state and shall, from time to time,
prepare status reports containing the superintendent's findings
and any recommendations. The first status report shall be prepared
not later than two years after the effective date of this
amendment October 31, 2001. To assist in preparing these status
reports, the superintendent may require insurers and rating
organizations operating in this state to collect pertinent data
and to submit that data to the superintendent.
The superintendent shall submit a copy of each status report
to the governor, the speaker of the house of representatives, the
president of the senate, and the chairpersons of the committees of
the general assembly having primary jurisdiction over issues
relating to automobile insurance.
Sec. 3937.30. (A) As used in sections 3937.30 to 3937.39 of
the Revised Code, "automobile insurance policy" means an insurance
policy delivered or issued in this state or covering a motor
vehicle required to be registered in this state which:
(A)(1) Provides automobile bodily injury or property damage
liability, or related coverage, or any combination thereof;
(B)(2) Insures as named insured, any of the following:
(1)(a) Any one person;
(2)(b) A husband and wife resident in the same household;
(3)(c) Either a husband or a wife who reside in the same
household if an endorsement on the policy excludes the other
spouse from coverage under the policy and the spouse excluded
signs the endorsement. Nothing in this division (B)(3)(A)(2)(c) of
this section shall prevent the issuance of separate policies to
each spouse or affect the compliance of the policy with Chapter
4509. of the Revised Code as to the named insured or any
additional insured.
(C) Insures only private passenger motor vehicles or other
four-wheeled motor vehicles which are classified or rated as
private passenger vehicles and are not used as public or private
livery, or rental conveyances;
(D) Does not insure more than four motor vehicles;
(E)(3) Does not cover garage, automobile sales agency, repair
shop, service station, or public parking operation hazards;
(F)(4) Is not issued under an assigned risk plan pursuant to
section 4509.70 of the Revised Code.
(B) For purposes of this section, "motor vehicle," means a
self-propelled vehicle designed for and principally used on public
roads, including an automobile, truck, motorcycle, and a motor
home, provided the motor home is not stationary and is not being
used as a temporary or permanent residence or office. "Motor
vehicle" does not include a trailer, motorized bicycle, golf cart,
off-road recreational vehicle, snowmobile, watercraft,
construction equipment, farm tractor or other vehicle designed and
principally used for agricultural purposes, mobile home, vehicle
traveling on treads or rails, or any similar vehicle.
Sec. 3937.31. (A) Every automobile insurance policy shall be
issued for a period of not less than two years one year or
guaranteed renewable for successive policy periods totaling not
less than two years one year. Where renewal is mandatory,
"cancellation," as used in sections 3937.30 to 3937.39 of the
Revised Code, includes refusal to renew a policy with at least the
coverages, included insureds, and policy limits provided at the
end of the next preceding policy period. No insurer may cancel any
such automobile insurance policy except pursuant to the terms of
the policy, and in accordance with sections 3937.30 to 3937.39 of
the Revised Code, and for one or more of the following reasons:
(1) Misrepresentation Fraud, concealment, or
misrepresentation by the insured to the insurer of any material
fact in the procurement or renewal of the insurance or in the
submission of claims thereunder;
(2) Loss of driving privileges through suspension,
revocation, or expiration of the driver's or commercial driver's
license of the named insured or any member of the named insured's
family covered as a driver; provided that the insurer shall
continue the policy in effect but exclude by endorsement all
coverage as to the person whose driver's license has been
suspended, revoked, or has expired, if the person is other than
the named insured or the principal operator;
(3) Nonpayment of premium, which means failure of the named
insured to discharge when due any of the named insured's
obligations in connection with the payment of premiums on a
policy, or any installment of such premiums, whether the premium
is payable directly to the insurer or its agent or indirectly
under any premium finance plan or extension of credit;
(4) The place of residence of the insured or the state of
registration or license of the insured automobile is changed to a
state or country in which the insurer is not authorized to write
automobile coverage.
This section does not apply in the case of a cancellation if
the insurer has indicated its willingness to issue a new policy
within the same insurer or within another insurer under the same
ownership or management as that of the insurer that has issued the
cancellation.
(B) Sections 3937.30 to 3937.39 of the Revised Code do not
prohibit:
(1) Changes in coverage or policy limits, cancellation, or
nonrenewal for any reason at the request or with the consent of
the insured;
(2) Lawful surcharges, adjustments, or other changes in
premium;
(3) Policy modification to all policies issued to a
classification of risk which do not effect a withdrawal or
reduction in the initial coverage or policy limits;
(4) An insurer's refusing for any reason to renew a policy
upon its expiration at the end of any mandatory period, provided
such nonrenewal complies with the procedure set forth in section
3937.34 of the Revised Code.
(C) Sections 3937.30 to 3937.39 of the Revised Code do not
apply to any policy or coverage that has been in effect less than
ninety days at the time notice of cancellation is mailed by the
insurer, unless it is a renewal policy.
(D) Renewal of a policy does not constitute a waiver or
estoppel with respect to grounds for cancellation that existed
before the effective date of such renewal.
(E) Nothing in this section prohibits an insurer from
incorporating into a policy any changes that are permitted or
required by this section or other sections of the Revised Code at
the beginning of any policy period within the two-year one-year
period set forth in division (A) of this section.
Sec. 3937.32. No cancellation of an automobile insurance
policy is effective, unless it is pursuant to written notice to
the insured of cancellation. Such notice shall contain:
(A) The policy number;
(B) The date of the notice;
(C) The effective date of cancellation of the policy, which
shall not be earlier than thirty days following the date of the
notice;
(D) An explanation of the reason for cancellation and the
information upon which it is based, or a statement that such
explanation will be furnished to the insured in writing within
five days after receipt of his the insured's written request
therefor to the insurer;
(E) Where cancellation is for nonpayment of premium at least
ten days notice from the date of mailing of cancellation
accompanied by the reason therefore therefor shall be given;
(F) A statement that if there is cause to believe such
cancellation is based on erroneous information, or is contrary to
law or the terms of the policy, the insured is entitled to have
the matter reviewed by the superintendent of insurance, upon
written application to the superintendent made not later than the
effective date of cancellation of the policy, and that if a
hearing is held by the superintendent of insurance, a deposit of
five dollars shall be made, and that such deposit shall be
returned to the insured if the finding is in his favor.
Sec. 3937.33. An insurer may cancel an automobile insurance
policy at such time prior to its expiration for such reasons as
may be permitted by section 3937.31 of the Revised Code, by
mailing to the insured, at his the insured's last known address
appearing on the insurer's records, at least thirty days prior to
the effective date of cancellation, a notice of cancellation
pursuant to section 3937.32 of the Revised Code. If such notice of
cancellation, for a reason other than nonpayment of premium, does
not contain an explanation of the reason for cancellation and the
information upon which it is based, the insurer shall, within five
days after receipt of the written request therefor by the insured,
furnish explanation to the insured in writing. Prior to the
effective date of cancellation, the insurer shall tender refund to
the insured any refund premium and other sums which may be due the
insured.
Upon compliance by the insurer with all requirements of this
section, such automobile insurance policy is cancelled on the
effective date stated in the notice of cancellation, except as
otherwise provided in section 3937.35 of the Revised Code. In the
event of the insurer's failure to comply with any requirement of
this section, such cancellation shall be ineffective and the
policy shall continue in force until such time as it is cancelled
or otherwise terminated pursuant to law and the terms of the
policy.
Sec. 3937.34. An insurer may refuse to renew an automobile
insurance policy by mailing to the insured, at his the insured's
last known address appearing on the insurer's records, and at
least thirty days prior to the date of expiration of the policy, a
notice of the insurer's intention not to renew the policy. Such
notice shall contain:
(A) The policy number;
(B) The date of the notice;
(C) The effective date of expiration;
(D) An explanation of the reason for nonrenewal and the
information upon which it is based, or a statement that such
explanation will be furnished to the insured in writing within
five days after receipt of his the insured's written request
therefor to the insurer.
Upon compliance by the insurer with all requirements of this
section, such
motor vehicle automobile insurance policy expires on
the expiration date stated in the policy and notice of intention
not to renew.
Sec. 3937.35. Upon receipt of a notice of cancellation given
pursuant to section 3937.33 of the Revised Code at any time prior
to the effective date of cancellation of a motor vehicle an
automobile insurance policy, the insured may apply in writing to
the superintendent of insurance for review of such cancellation.
If the superintendent finds that grounds for hearing do not exist,
he shall forthwith give written notice to the insured and insurer
of such finding. If the superintendent finds that there is cause
to believe that such cancellation is based on erroneous
information, or is contrary to law or the terms of the policy, he
the superintendent shall, not later than ten days following
receipt of the application, hold a hearing to determine whether
such cancellation is effective and shall give written notice of
such
hearing finding to the insured and the insurer not later than
five days prior to the hearing thereof, provided that the insured
make a deposit of five dollars by the hearing date. Such deposit
shall be returned if the finding is in the insured's favor but
otherwise shall be paid into the general revenue fund by the
department of insurance.
If, upon hearing, the superintendent finds that such
cancellation is in accordance with law and the terms of the
policy, he the superintendent shall, within five days following
hearing, issue his a written order finding approving such
cancellation in such case. If such order is issued less than ten
days prior to the effective date of cancellation of the policy,
the policy shall continue in force for ten days following the date
of the order or until the insured secures other coverage,
whichever occurs first, and the order of the superintendent shall
so state.
If, upon hearing review, the superintendent finds that such
cancellation is contrary to law or the terms of the policy, he the
superintendent shall issue his a written order finding
disapproving the cancellation and stating in what particulars the
same is improper. In such case, the policy continues in force as
provided in section 3937.33 of the Revised Code if the insured
tenders to the insurer at the time of hearing the within ten days
any premium refund made by the insurer.
Sec. 3937.46. (A) An intrafamily liability exclusion shall
not apply or be enforced by an insurer against the owner or
operator of a motor vehicle in a claim or in a suit for damages
made against the owner or operator under Chapter 2125. of the
Revised Code.
(B) The prohibition included in division (A) of this section
does not apply if both of the following conditions are met:
(1) The policy providing the liability coverage in question
includes uninsured-underinsured motorist coverage pursuant to
section 3937.18 of the Revised Code;
(2) Such an intrafamily claim is not precluded by an
intrafamily exclusion in the uninsured-underinsured motorist
coverage in question.
(C) As used in this section:
(1) "Intrafamily liability exclusion" means any provision
included in an automobile insurance policy that excludes liability
insurance coverage for the owner or operator of a motor vehicle
against a claim for injury or death suffered by a family member of
that owner or operator.
(2) "Automobile insurance policy" has the same meaning as in
section 3937.30 of the Revised Code.
Sec. 4505.11. This section shall also apply to all-purpose
vehicles and off-highway motorcycles as defined in section 4519.01
of the Revised Code.
(A) Each owner of a motor vehicle and each person mentioned
as owner in the last certificate of title, when the motor vehicle
is dismantled, destroyed, or changed in such manner that it loses
its character as a motor vehicle, or changed in such manner that
it is not the motor vehicle described in the certificate of title,
shall surrender the certificate of title to that motor vehicle to
a clerk of a court of common pleas, and the clerk, with the
consent of any holders of any liens noted on the certificate of
title, then shall enter a cancellation upon the clerk's records
and shall notify the registrar of motor vehicles of the
cancellation.
Upon the cancellation of a certificate of title in the manner
prescribed by this section, any clerk and the registrar of motor
vehicles may cancel and destroy all certificates and all
memorandum certificates in that chain of title.
(B)(1) If an Ohio certificate of title or salvage certificate
of title to a motor vehicle is assigned to a salvage dealer, the
dealer is not required to obtain an Ohio certificate of title or a
salvage certificate of title to the motor vehicle in the dealer's
own name if the dealer dismantles or destroys the motor vehicle,
indicates the number of the dealer's motor vehicle salvage
dealer's license on it, marks "FOR DESTRUCTION" across the face of
the certificate of title or salvage certificate of title, and
surrenders the certificate of title or salvage certificate of
title to a clerk of a court of common pleas as provided in
division (A) of this section. If the salvage dealer retains the
motor vehicle for resale, the dealer shall make application for a
salvage certificate of title to the motor vehicle in the dealer's
own name as provided in division (C)(1) of this section.
(2) At the time any salvage motor vehicle is sold at auction
or through a pool, the salvage motor vehicle auction or salvage
motor vehicle pool shall give a copy of the salvage certificate of
title or a copy of the certificate of title marked "FOR
DESTRUCTION" to the purchaser.
(C)(1) When an insurance company declares it economically
impractical to repair such a motor vehicle and has paid an agreed
price for the purchase of the motor vehicle to any insured or
claimant owner, the insurance company shall receive the
certificate of title and the motor vehicle and proceed as follows.
Within:
(a) If an insurance company receives the certificate of title
and the motor vehicle, within thirty business days, the insurance
company shall deliver the certificate of title to a clerk of a
court of common pleas and shall make application for a salvage
certificate of title. The
(b) If an insurance company obtains possession of the motor
vehicle but is unable to obtain the properly endorsed certificate
of title for the motor vehicle, within thirty business days
following the vehicle's owner or lienholder's acceptance of the
insurance company's payment for the vehicle, the insurance company
may apply to the clerk of a court of common pleas for a salvage
certificate of title without delivering the certificate of title
for the motor vehicle. The application shall be accompanied by
evidence that the insurance company has paid a total loss claim on
the vehicle, a copy of the written request for the certificate of
title on the insurance company's letterhead, and the original
certified mail, return receipt notice, addressed to the last known
owner of the vehicle and any known lienholder, to obtain the
certificate of title.
(c) Upon receipt of a properly completed application for a
salvage certificate of title as described in division (C)(1)(a) or
(b) or (C)(2) of this section, the clerk shall issue the salvage
certificate of title on a form, prescribed by the registrar, that
shall be easily distinguishable from the original certificate of
title and shall bear the same information as the original
certificate of title except that it may bear a different number
than that of the original certificate of title. Except as provided
in division (C)(2)(3) of this section, the salvage certificate of
title shall be assigned by the insurance company to a salvage
dealer or any other person for use as evidence of ownership upon
the sale or other disposition of the motor vehicle, and the
salvage certificate of title shall be transferrable to any other
person. The clerk shall charge a fee of four dollars for the cost
of processing each salvage certificate of title.
(2) If an insurance company requests that a salvage motor
vehicle auction take possession of a motor vehicle that is the
subject of an insurance claim, and subsequently the insurance
company denies coverage with respect to the motor vehicle or does
not otherwise take ownership of the motor vehicle, the salvage
motor vehicle auction may proceed as follows. After the salvage
motor vehicle auction has possession of the motor vehicle for
forty-five days, it may apply to the clerk of a court of common
pleas for a salvage certificate of title without delivering the
certificate of title for the motor vehicle. The application shall
be accompanied by a copy of the written request that the vehicle
be removed from the facility on the salvage motor vehicle
auction's letterhead, and the original certified mail, return
receipt notice, addressed to the last known owner of the vehicle
and any known lienholder, requesting that the vehicle be removed
from the facility of the salvage motor vehicle auction. Upon
receipt of a properly completed application, the clerk shall
follow the process as described in division (C)(1)(c) of this
section. The salvage certificate of title so issued shall be free
and clear of all liens.
(3) If an insurance company considers a motor vehicle as
described in division (C)(1)(a) or (b) of this section to be
impossible to restore for highway operation, the insurance company
may assign the certificate of title to the motor vehicle to a
salvage dealer or scrap metal processing facility and send the
assigned certificate of title to the clerk of the court of common
pleas of any county. The insurance company shall mark the face of
the certificate of title "FOR DESTRUCTION" and shall deliver a
photocopy of the certificate of title to the salvage dealer or
scrap metal processing facility for its records.
(3)(4) If an insurance company declares it economically
impractical to repair a motor vehicle, agrees to pay to the
insured or claimant owner an amount in settlement of a claim
against a policy of motor vehicle insurance covering the motor
vehicle, and agrees to permit the insured or claimant owner to
retain possession of the motor vehicle, the insurance company
shall not pay the insured or claimant owner any amount in
settlement of the insurance claim until the owner obtains a
salvage certificate of title to the vehicle and furnishes a copy
of the salvage certificate of title to the insurance company.
(D) When a self-insured organization, rental or leasing
company, or secured creditor becomes the owner of a motor vehicle
that is burned, damaged, or dismantled and is determined to be
economically impractical to repair, the self-insured organization,
rental or leasing company, or secured creditor shall do one of the
following:
(1) Mark the face of the certificate of title to the motor
vehicle "FOR DESTRUCTION" and surrender the certificate of title
to a clerk of a court of common pleas for cancellation as
described in division (A) of this section. The self-insured
organization, rental or leasing company, or secured creditor then
shall deliver the motor vehicle, together with a photocopy of the
certificate of title, to a salvage dealer or scrap metal
processing facility and shall cause the motor vehicle to be
dismantled, flattened, crushed, or destroyed.
(2) Obtain a salvage certificate of title to the motor
vehicle in the name of the self-insured organization, rental or
leasing company, or secured creditor, as provided in division
(C)(1) of this section, and then sell or otherwise dispose of the
motor vehicle. If the motor vehicle is sold, the self-insured
organization, rental or leasing company, or secured creditor shall
obtain a salvage certificate of title to the motor vehicle in the
name of the purchaser from a clerk of a court of common pleas.
(E) If a motor vehicle titled with a salvage certificate of
title is restored for operation upon the highways, application
shall be made to a clerk of a court of common pleas for a
certificate of title. Upon inspection by the state highway patrol,
which shall include establishing proof of ownership and an
inspection of the motor number and vehicle identification number
of the motor vehicle and of documentation or receipts for the
materials used in restoration by the owner of the motor vehicle
being inspected, which documentation or receipts shall be
presented at the time of inspection, the clerk, upon surrender of
the salvage certificate of title, shall issue a certificate of
title for a fee prescribed by the registrar. The certificate of
title shall be in the same form as the original certificate of
title and shall bear the words "REBUILT SALVAGE" in black boldface
letters on its face. Every subsequent certificate of title,
memorandum certificate of title, or duplicate certificate of title
issued for the motor vehicle also shall bear the words "REBUILT
SALVAGE" in black boldface letters on its face. The exact location
on the face of the certificate of title of the words "REBUILT
SALVAGE" shall be determined by the registrar, who shall develop
an automated procedure within the automated title processing
system to comply with this division. The clerk shall use
reasonable care in performing the duties imposed on the clerk by
this division in issuing a certificate of title pursuant to this
division, but the clerk is not liable for any of the clerk's
errors or omissions or those of the clerk's deputies, or the
automated title processing system in the performance of those
duties. A fee of fifty dollars shall be assessed by the state
highway patrol for each inspection made pursuant to this division
and shall be deposited into the state highway safety fund
established by section 4501.06 of the Revised Code.
(F) No person shall operate upon the highways in this state a
motor vehicle, title to which is evidenced by a salvage
certificate of title, except to deliver the motor vehicle pursuant
to an appointment for an inspection under this section.
(G) No motor vehicle the certificate of title to which has
been marked "FOR DESTRUCTION" and surrendered to a clerk of a
court of common pleas shall be used for anything except parts and
scrap metal.
(H)(1) Except as otherwise provided in this division, an
owner of a manufactured or mobile home that will be taxed as real
property pursuant to division (B) of section 4503.06 of the
Revised Code shall surrender the certificate of title to the
auditor of the county containing the taxing district in which the
home is located. An owner whose home qualifies for real property
taxation under divisions (B)(1)(a) and (b) of section 4503.06 of
the Revised Code shall surrender the certificate within fifteen
days after the home meets the conditions specified in those
divisions. The auditor shall deliver the certificate of title to
the clerk of the court of common pleas who issued it.
(2) If the certificate of title for a manufactured or mobile
home that is to be taxed as real property is held by a lienholder,
the lienholder shall surrender the certificate of title to the
auditor of the county containing the taxing district in which the
home is located, and the auditor shall deliver the certificate of
title to the clerk of the court of common pleas who issued it. The
lienholder shall surrender the certificate within thirty days
after both of the following have occurred:
(a) The homeowner has provided written notice to the
lienholder requesting that the certificate of title be surrendered
to the auditor of the county containing the taxing district in
which the home is located.
(b) The homeowner has either paid the lienholder the
remaining balance owed to the lienholder, or, with the
lienholder's consent, executed and delivered to the lienholder a
mortgage on the home and land on which the home is sited in the
amount of the remaining balance owed to the lienholder.
(3) Upon the delivery of a certificate of title by the county
auditor to the clerk, the clerk shall inactivate it and maintain
it in the automated title processing system for a period of thirty
years.
(4) Upon application by the owner of a manufactured or mobile
home that is taxed as real property pursuant to division (B) of
section 4503.06 of the Revised Code and that no longer satisfies
divisions (B)(1)(a) and (b) or divisions (B)(2)(a) and (b) of that
section, the clerk shall reactivate the record of the certificate
of title that was inactivated under division (H)(3) of this
section and shall issue a new certificate of title, but only if
the application contains or has attached to it all of the
following:
(a) An endorsement of the county treasurer that all real
property taxes charged against the home under Title LVII of the
Revised Code and division (B) of section 4503.06 of the Revised
Code for all preceding tax years have been paid;
(b) An endorsement of the county auditor that the home will
be removed from the real property tax list;
(c) Proof that there are no outstanding mortgages or other
liens on the home or, if there are such mortgages or other liens,
that the mortgagee or lienholder has consented to the reactivation
of the certificate of title.
(I)(1) Whoever violates division (F) of this section shall be
fined not more than two thousand dollars, imprisoned not more than
one year, or both.
(2) Whoever violates division (G) of this section shall be
fined not more than one thousand dollars, imprisoned not more than
six months, or both.
Sec. 4509.01. As used in sections 4509.01 to 4509.78 of the
Revised Code:
(A) "Person" includes every natural person, firm,
partnership, association, or corporation.
(B) "Driver" means every person who drives or is in actual
physical control of a motor vehicle.
(C) "License" includes any license, permit, or privilege to
operate a motor vehicle issued under the laws of this state
including:
(1) Any temporary instruction permit or examiner's driving
permit;
(2) The privilege of any person to drive a motor vehicle
whether or not such person holds a valid license;
(3) Any nonresident's operating privilege.
(D) "Owner" means a person who holds the legal title of a
motor vehicle. If a motor vehicle is the subject of a lease with
an immediate right of possession vested in the lessee, the lessee
is the owner. A person listed as the owner on a certificate of
title on which there is a notation of a security interest is the
owner. A buyer or other transferee of a motor vehicle who receives
the certificate of title from the seller or transferor listing the
seller or transferor thereon as the owner with an assignment of
title to the buyer or transferee nonetheless is the owner even
though a subsequent certificate of title has not been issued
listing the buyer or transferee as the owner.
(E) "Registration" means registration certificates and
registration plates issued under the laws of this state pertaining
to the registration of motor vehicles.
(F) "Nonresident" means every person who is not a resident of
this state.
(G) "Nonresident's operating privilege" means the privilege
conferred upon a nonresident by the laws of this state pertaining
to the operation by such person of a motor vehicle, or the use of
a motor vehicle owned by such person, in this state.
(H) "Vehicle" means every device by which any person or
property may be transported upon a highway, except electric
personal assistive mobility devices, devices moved by power
collected from overhead electric trolley wires, or used
exclusively upon stationary rails or tracks, and except devices
other than bicycles moved by human power.
(I) "Motor vehicle" means every vehicle propelled by power
other than muscular power or power collected from overhead
electric trolley wires, except motorized bicycles, road rollers,
traction engines, power shovels, power cranes and other equipment
used in construction work and not designed for or employed in
general highway transportation, hole-digging machinery,
well-drilling machinery, ditch-digging machinery, farm machinery,
threshing machinery, hay baling machinery, and agricultural
tractors and machinery used in the production of horticultural,
floricultural, agricultural, and vegetable products.
(J) "Accident" or "motor vehicle accident" means any accident
involving a motor vehicle which results in bodily injury to or
death of any person, or damage to the property of any person in
excess of four hundred dollars.
(K) "Proof of financial responsibility" means proof of
ability to respond in damages for liability, on account of
accidents occurring subsequent to the effective date of such
proof, arising out of the ownership, maintenance, or use of a
motor vehicle in the amount of twelve twenty-five thousand five
hundred dollars because of bodily injury to or death of one person
in any one accident, in the amount of twenty-five fifty thousand
dollars because of bodily injury to or death of two or more
persons in any one accident, and in the amount of seven
twenty-five thousand five hundred dollars because of injury to
property of others in any one accident.
(L) "Motor-vehicle liability policy" means an "owner's
policy" or an "operator's policy" of liability insurance,
certified as provided in section 4509.46 or 4509.47 of the Revised
Code as proof of financial responsibility, and issued, except as
provided in section 4509.47 of the Revised Code, by an insurance
carrier authorized to do business in this state, to or for the
benefit of the person named therein as insured.
Sec. 4509.20. (A) A policy or bond does not comply with
divisions (A)(5), (A)(6), and (A)(7) of section 4509.19 of the
Revised Code unless issued by an insurance company or surety
company authorized to do business in this state, except as
provided in division (B) of this section, or unless such policy or
bond is subject, if the accident has resulted in bodily injury or
death, to a limit, exclusive of interest and costs, of not less
than twelve twenty-five thousand five hundred dollars because of
bodily injury to or death of one person in any one accident, and,
subject to said limit for one person, to a limit of not less than
twenty-five
fifty thousand dollars because of bodily injury to or
death of two or more persons in one accident, and, if the accident
has resulted in injury to, or destruction of property, to a limit
of not less than
seven twenty-five thousand five hundred dollars
because of injury to or destruction of property of others in any
one accident.
(B) A policy or bond does not comply with divisions (A) (5),
(A) (6), and (A) (7) of section 4509.19 of the Revised Code with
respect to any motor vehicle which was not registered in this
state or was a motor vehicle which was registered elsewhere than
in this state at the effective date of the policy or bond or the
most recent renewal thereof, unless the insurance company or
surety company issuing such policy or bond is authorized to do
business in this state, or if said company is not authorized to do
business in this state unless it executes a power of attorney
authorizing the registrar of motor vehicles to accept service on
its behalf of notice or process in any action upon such policy or
bond arising out of such accident.
The registrar may rely upon the accuracy of the information
in the required report of a motor vehicle accident as to the
existence of insurance or a bond unless the registrar has reason
to believe that the information is erroneous.
Sec. 4509.41. (A) Judgments are satisfied for the purpose of
sections 4509.01 to 4509.78, inclusive, of the Revised Code, in
each of the following cases:
(1) When twelve twenty-five thousand five hundred dollars has
been credited upon any judgments in excess of that amount because
of bodily injury to or death of one person as a result of any one
accident;
(2) When the sum of twenty-five fifty thousand dollars has
been credited upon any judgments in excess of that amount because
of bodily injury to or death of two or more persons as the result
of any one accident;
(3) When seven twenty-five thousand five hundred dollars has
been credited upon any judgments rendered in excess of that amount
because of injury to property of others as a result of any one
accident.
(B) Payments made in settlements of any claims because of
bodily injury, death, or property damage arising from such
accident shall be credited in reduction of the amounts provided
for in this section.
Sec. 4509.51. Subject to the terms and conditions of an
owner's policy, every owner's policy of liability insurance:
(A) Shall designate by explicit description or by appropriate
reference all motor vehicles with respect to which coverage is
thereby granted;
(B) Shall insure the person named therein and any other
person, as insured, using any such motor vehicles with the express
or implied permission of the insured, against loss from the
liability imposed by law for damages arising out of the ownership,
maintenance, or use of such vehicles within the United States or
Canada, subject to monetary limits exclusive of interest and
costs, with respect to each such motor vehicle, as follows:
(1) Twelve Twenty-five thousand five hundred dollars because
of bodily injury to or death of one person in any one accident;
(2) Twenty-five Fifty thousand dollars because of bodily
injury to or death of two or more persons in any one accident;
(3) Seven Twenty-five thousand five hundred dollars because
of injury to property of others in any one accident.
SECTION 2. That existing sections 3901.21, 3937.18, 3937.30,
3937.31, 3937.32, 3937.33, 3937.34, 3937.35, 4505.11, 4509.01,
4509.20, 4509.41, and 4509.51 of the Revised Code are hereby
repealed.
SECTION 3. (A) The amendments to section 3937.31 of the
Revised Code of Sections 1 and 2 of this act shall take effect six
months after the effective date of this act.
(B) The amendments to sections 4509.01, 4509.20, 4509.41, and
4509.51 of the Revised Code by Sections 1 and 2 of this act that
increase the threshold amounts required for proof of financial
responsibility shall take effect nine months after the effective
date of this act and shall apply to motor-vehicle liability
policies, as defined in section 4509.01 of the Revised Code, that
are issued or renewed in Ohio nine or more months after the
effective date of this act. A policy in effect on the effective
date of these amendments shall continue to constitute proof of
financial responsibility for the remainder of the term of that
policy.
(C) The amendments to section 3937.18 and the enactment of
section 3937.46 of the Revised Code by Sections 1 and 2 of this
act that restrict the implementation of intrafamily exclusions in
motor-vehicle insurance policies shall apply to motor-vehicle
insurance policies issued or renewed in Ohio on and after the
effective date of this act. A policy in effect immediately prior
to the effective date of these amendments shall remain in effect
for the remainder of the term of that policy.
SECTION 4. (A) A study committee is hereby established to
study the feasibility of requiring insurance companies issuing
motor vehicle liability insurance policies in this state to report
certain policy information to the Registrar of Motor Vehicles. The
study committee shall consist of twelve members, including the
Director of Public Safety or the Director's designee, the
Superintendent of Insurance or the Superintendent's designee, six
members appointed by the Governor, two members appointed by the
Speaker of the House of Representatives, and two members appointed
by the President of the Senate. Of the members appointed by the
Governor, one shall represent an Ohio-based automobile insurance
company or organization, one shall be an automobile insurance
agent, one shall represent the Buckeye State Sheriffs'
Association, one shall represent the Ohio Association of Chiefs of
Police, one shall represent the Ohio Clerk of Courts Association,
and one shall be a representative of Ohio's municipal judges. Of
the members appointed by the Speaker of the House of
Representatives, both shall be members of the House of
Representatives and only one shall be of the same political party
as the Speaker. Of the members appointed by the President of the
Senate, both shall be members of the Senate and only one shall be
of the same political party as the President. The Governor,
Speaker, and President shall make their appointments within two
weeks after the effective date of this section. The Director of
Public Safety or the Director's designee and the Superintendent of
Insurance or the Superintendent's designee shall serve as
co-chairpersons of the study committee.
(B) The study committee shall begin meeting as soon as
practicable after the effective date of this section and shall
consider all of the following:
(1) Whether insurers should be required to report all motor
vehicle liability insurance renewals, cancellations, or lapses to
the Registrar and, if so, the time within which the report should
be made;
(2) Whether insurers should be required to report the
issuance of new motor vehicle policies to the Registrar and, if
so, the time within which the report should be made;
(3) The impact of such required reporting on the costs
incurred by the insurance industry and the potential for increased
insurance premiums;
(4) The form and content of any recommended reports;
(5) Whether the Director of Public Safety, the Superintendent
of Insurance, or the Registrar should be required or authorized to
adopt rules under Chapter 111. or 119. of the Revised Code to
implement any recommended reporting requirements;
(6) What sanctions should be imposed for any failure by an
insurer to timely file any required report;
(7) What uses should be made of the reported information,
including whether the information should be excluded from the
public records provisions of section 149.43 of the Revised Code;
(8) What notice, if any, should be provided to the person
whose insurance has been reported lapsed or canceled;
(9) Whether the insurer should be granted immunity from civil
liability for failure to make a report;
(10) Any other related issues the Registrar or the members of
the study committee consider relevant.
(C) The study committee shall consider provisions contained
in the laws or regulations of other states regarding motor vehicle
liability insurance verification.
(D) Not later than one year after the effective date of this
section, the study committee shall prepare a comprehensive report,
including findings and recommendations, and shall submit the
report to the Governor, the Registrar of Motor Vehicles, the
Speaker of the House of Representatives, the President of the
Senate, and the Chairpersons of the Insurance and Transportation
committees of the House of Representatives and the Senate. After
submitting its report, the study committee shall cease to exist.
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