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Sub. H. B. No. 278 As Reported by the House Insurance CommitteeAs Reported by the House Insurance Committee
129th General Assembly | Regular Session | 2011-2012 |
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Representatives Stebelton, Okey
Cosponsors:
Representatives Adams, R., Bubp, Combs, Foley, Grossman, Hollington, Huffman, Letson, Maag, McGregor, McKenney, Murray
A BILL
To amend sections 3901.21, 3937.30, 3937.31, 3937.32,
3937.33, 3937.34, 3937.35, 4509.01, 4509.20,
4509.41, and 4509.51 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,
and to reduce from two years to one year the
minimum policy period for automobile insurance
policies.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 3901.21, 3937.30, 3937.31, 3937.32,
3937.33, 3937.34, 3937.35, 4509.01, 4509.20, 4509.41, and 4509.51
of the Revised Code be amended 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:
(b) Medical condition, including both physical and mental
illnesses;
(d) Receipt of health care;
(g) Evidence of insurability, including conditions arising
out of acts of domestic violence;
(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. 3937.30. (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:
(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:
(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:
(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. 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 twenty twenty-five thousand dollars
because of bodily injury to or death of one person in any one
accident, in the amount of forty fifty thousand dollars because of
bodily injury to or death of two or more persons in any one
accident, and in the amount of fifteen
twenty-five thousand
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 twenty twenty-five thousand 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
forty 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
fifteen twenty-five thousand 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 of the Revised Code, in each of the
following cases:
(1) When twenty twenty-five thousand 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 forty 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 fifteen twenty-five thousand 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) Twenty Twenty-five thousand dollars because of bodily
injury to or death of one person in any one accident;
(2) Forty Fifty thousand dollars because of bodily injury to
or death of two or more persons in any one accident;
(3) Fifteen Twenty-five thousand dollars because of injury to
property of others in any one accident.
Section 2. That existing sections 3901.21, 3937.30, 3937.31,
3937.32, 3937.33, 3937.34, 3937.35, 4509.01, 4509.20, 4509.41, and
4509.51 of the Revised Code are hereby repealed.
Section 3. Sections 1 and 2 of this act shall take effect
nine months after the effective date of this act.
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