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Am. H. B. No. 430 As Reported by the House Insurance CommitteeAs Reported by the House Insurance Committee
130th General Assembly | Regular Session | 2013-2014 |
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Representatives Kunze, Stinziano
Cosponsors:
Representatives Hackett, Bishoff, Sears
A BILL
To amend sections 3905.01, 3905.06, and 3905.40 and
to enact section 3905.063 of the Revised Code to
regulate self-service storage facilities.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 3905.01, 3905.06, and 3905.40 be
amended and section 3905.063 of the Revised Code be enacted to
read as follows:
Sec. 3905.01. As used in this chapter:
(A) "Affordable Care Act" means the "Patient Protection and
Affordable Care Act," 124 Stat. 119, 42 U.S.C. 18031 (2011).
(B) "Business entity" means a corporation, association,
partnership, limited liability company, limited liability
partnership, or other legal entity.
(C) "Home state" means the state or territory of the United
States, including the District of Columbia, in which an insurance
agent maintains the insurance agent's principal place of residence
or principal place of business and is licensed to act as an
insurance agent.
(D) "In-person assister" means any person, other than a
navigator, who receives any funding from, or who is selected or
designated by, an exchange, the state, or the federal government
to perform any of the activities and duties identified in division
(i) of section 1311 of the Affordable Care Act. "In-person
assister" includes any individual that is employed by, supervised
by, or affiliated with an in-person assister and performs any of
the activities and duties identified in division (i) of section
1311 of the Affordable Care Act, any non-navigator assistance
personnel, and any other person deemed as such by rules adopted by
the superintendent under division (L) of section 3905.471 of the
Revised Code.
(E) "Insurance" means any of the lines of authority set forth
in Chapter 1739., 1751., or 1761. or Title XXXIX of the Revised
Code, or as additionally determined by the superintendent of
insurance.
(F) "Insurance agent" or "agent" means any person that, in
order to sell, solicit, or negotiate insurance, is required to be
licensed under the laws of this state, including limited lines
insurance agents and surplus line brokers.
(G) "Insurer" has the same meaning as in section 3901.32 of
the Revised Code.
(H) "License" means the authority issued by the
superintendent to a person to act as an insurance agent for the
lines of authority specified, but that does not create any actual,
apparent, or inherent authority in the person to represent or
commit an insurer.
(I) "Limited line credit insurance" means credit life, credit
disability, credit property, credit unemployment, involuntary
unemployment, mortgage life, mortgage guaranty, mortgage
disability, guaranteed automobile protection insurance, or any
other form of insurance offered in connection with an extension of
credit that is limited to partially or wholly extinguishing that
credit obligation and that is designated by the superintendent as
limited line credit insurance.
(J) "Limited line credit insurance agent" means a person that
sells, solicits, or negotiates one or more forms of limited line
credit insurance to individuals through a master, corporate,
group, or individual policy.
(K) "Limited lines insurance" means those lines of authority
set forth in divisions (B)(7) to (11)(12) of section 3905.06 of
the Revised Code or in rules adopted by the superintendent, or any
lines of authority the superintendent considers necessary to
recognize for purposes of complying with section 3905.072 of the
Revised Code.
(L) "Limited lines insurance agent" means a person authorized
by the superintendent to sell, solicit, or negotiate limited lines
insurance.
(M) "NAIC" means the national association of insurance
commissioners.
(N) "Insurance navigator" means a person selected to perform
the activities and duties identified in division (i) of section
1311 of the Affordable Care Act that is certified by the
superintendent of insurance under section 3905.471 of the Revised
Code. "Insurance navigator" refers to a navigator specified in
section 1311 of the Affordable Care Act, 42 U.S.C. 13031.
(O) "Negotiate" means to confer directly with, or offer
advice directly to, a purchaser or prospective purchaser of a
particular contract of insurance with respect to the substantive
benefits, terms, or conditions of the contract, provided the
person that is conferring or offering advice either sells
insurance or obtains insurance from insurers for purchasers.
(P) "Person" means an individual or a business entity.
(Q) "Sell" means to exchange a contract of insurance by any
means, for money or its equivalent, on behalf of an insurer.
(R) "Self-service storage facility" means an entity that is
engaged in the business of providing real property designed and
used for the purpose of renting or leasing individual storage
space to the public who are to have access to the space for the
purpose of storing and removing personal property on a
self-service basis, but does not include a garage or other storage
area in a private residence.
(S) "Solicit" means to attempt to sell insurance, or to ask
or urge a person to apply for a particular kind of insurance from
a particular insurer.
(S)(T) "Superintendent" or "superintendent of insurance"
means the superintendent of insurance of this state.
(T)(U) "Terminate" means to cancel the relationship between
an insurance agent and the insurer or to terminate an insurance
agent's authority to transact insurance.
(U)(V) "Uniform application" means the NAIC uniform
application for resident and nonresident agent licensing, as
amended by the NAIC from time to time.
(V)(W) "Uniform business entity application" means the NAIC
uniform business entity application for resident and nonresident
business entities, as amended by the NAIC from time to time.
(W)(X) "Exchange" means a health benefit exchange established
by the state government of Ohio or an exchange established by the
United States department of health and human services in
accordance with the "Patient Protection and Affordable Care Act,"
124 Stat. 119, 42 U.S.C. 18031 (2011).
Sec. 3905.06. (A)(1) The superintendent of insurance shall
issue a resident insurance agent license to an individual
applicant whose home state is Ohio upon submission of a completed
application and payment of any applicable fee required under this
chapter, if the superintendent finds all of the following:
(a) The applicant is at least eighteen years of age.
(b) The applicant has not committed any act that is a ground
for the denial, suspension, or revocation of a license under
section 3905.14 of the Revised Code.
(c) If required under section 3905.04 of the Revised Code,
the applicant has completed a program of insurance education for
each line of authority for which the applicant has applied.
(d) If required under section 3905.04 of the Revised Code,
the applicant has passed an examination for each line of authority
for which the applicant has applied.
(e) Any applicant applying for variable life-variable annuity
line of authority is registered with the financial industry
regulatory authority (FINRA) as a registered representative after
having passed at least one of the following examinations
administered by the FINRA: the series 6 examination, the series 7
examination, the series 63 examination, the series 66 examination,
or any other FINRA examination approved by the superintendent.
(f) If required under section 3905.051 of the Revised Code,
the applicant has consented to a criminal records check and the
results of the applicant's criminal records check are determined
to be satisfactory by the superintendent.
(g) The applicant is a United States citizen or has provided
proof of having legal authorization to work in the United States.
(h) The applicant is of good reputation and character, is
honest and trustworthy, and is otherwise suitable to be licensed.
(2) The superintendent shall issue a resident insurance agent
license to a business entity applicant upon submission of a
completed application and payment of any applicable fees required
under this chapter if the superintendent finds all of the
following:
(a) Except as provided under division (C)(2) of section
3905.062 or division (C)(2) of section 3905.063 of the Revised
Code, the applicant either is domiciled in Ohio or maintains its
principal place of business in Ohio.
(b) The applicant has designated a licensed insurance agent
who will be responsible for the applicant's compliance with the
insurance laws of this state.
(c) The applicant has not committed any act that is a ground
for the denial, suspension, or revocation of a license under
section 3905.14 of the Revised Code.
(d) Any applicant applying for a portable electronics
insurance license line of authority satisfies the requirements of
division (C)(1) of section 3905.062 of the Revised Code or any
applicant applying for a self-service storage insurance license
line of authority satisfies the requirements of division (C)(1) of
section 3905.063 of the Revised Code.
(e) The applicant has submitted any other documents requested
by the superintendent.
(B) An insurance agent license issued pursuant to division
(A) of this section shall state the licensee's name, the license
number, the date of issuance, the date the license expires, the
line or lines of authority for which the licensee is qualified,
and any other information the superintendent deems necessary.
A licensee may be qualified for any of the following lines of
authority:
(1) Life, which is insurance coverage on human lives,
including benefits of endowment and annuities, and may include
benefits in the event of death or dismemberment by accident and
benefits for disability income;
(2) Accident and health, which is insurance coverage for
sickness, bodily injury, or accidental death, and may include
benefits for disability income;
(3) Property, which is insurance coverage for the direct or
consequential loss or damage to property of any kind;
(4) Casualty, which is insurance coverage against legal
liability, including coverage for death, injury, or disability or
damage to real or personal property;
(5) Personal lines, which is property and casualty insurance
coverage sold to individuals and families for noncommercial
purposes;
(6) Variable life and variable annuity products, which is
insurance coverage provided under variable life insurance
contracts and variable annuities;
(7) Credit, which is limited line credit insurance;
(8) Title, which is insurance coverage against loss or damage
suffered by reason of liens against, encumbrances upon, defects
in, or the unmarketability of, real property;
(9) Surety bail bond, which is the authority set forth in
sections 3905.83 to 3905.95 of the Revised Code;
(10) Portable electronics insurance, which is a limited line
described in section 3905.062 of the Revised Code;
(11) Self-service storage insurance, which is a limited line
described in section 3905.063 of the Revised Code;
(12) Any other line of authority designated by the
superintendent.
(C)(1) An individual seeking to renew a resident insurance
agent license shall apply biennially for a renewal of the license
on or before the last day of the licensee's birth month. A
business entity seeking to renew a resident insurance agent
license shall apply biennially for a renewal of the license on or
before the date determined by the superintendent. The
superintendent shall send a renewal notice to all licensees at
least one month prior to the renewal date.
Applications shall be submitted to the superintendent on
forms prescribed by the superintendent. Each application shall be
accompanied by a biennial renewal fee. The superintendent also may
require an applicant to submit any document reasonably necessary
to verify the information contained in the renewal application.
(2) To be eligible for renewal, an individual applicant shall
complete the continuing education requirements pursuant to section
3905.481 of the Revised Code prior to the renewal date.
(3) If an applicant submits a completed renewal application,
qualifies for renewal pursuant to divisions (C)(1) and (2) of this
section, and has not committed any act that is a ground for the
refusal to issue, suspension of, or revocation of a license under
section 3905.14 of the Revised Code, the superintendent shall
renew the applicant's resident insurance agent license.
(D) If an individual or business entity does not apply for
the renewal of the individual or business entity's license on or
before the license renewal date specified in division (C)(1) of
this section, the individual or business entity may submit a late
renewal application along with all applicable fees required under
this chapter prior to the first day of the second month following
the license renewal date.
(E) A license issued under this section that is not renewed
on or before its renewal date pursuant to division (C) of this
section or its late renewal date pursuant to division (D) of this
section automatically is suspended for nonrenewal on the first day
of the second month following the renewal date. If a license is
suspended for nonrenewal pursuant to this division, the individual
or business entity is eligible to apply for reinstatement of the
license within the twelve-month period following the date by which
the license should have been renewed by complying with the
reinstatement procedure established by the superintendent and
paying all applicable fees required under this chapter.
(F) A license that is suspended for nonrenewal that is not
reinstated pursuant to division (E) of this section automatically
is canceled unless the superintendent is investigating any
allegations of wrongdoing by the agent or has initiated
proceedings under Chapter 119. of the Revised Code. In that case,
the license automatically is canceled after the completion of the
investigation or proceedings unless the superintendent revokes the
license.
(G) An individual licensed as a resident insurance agent who
is unable to comply with the license renewal procedures
established under this section and who is unable to engage in the
business of insurance due to military service, a long-term medical
disability, or some other extenuating circumstance may request an
extension of the renewal date of the individual's license. To be
eligible for such an extension, the individual shall submit a
written request with supporting documentation to the
superintendent. At the superintendent's discretion, the
superintendent may not consider a written request made after the
renewal date of the license.
Sec. 3905.063. (A) As used in this section:
(1) "Customer" means a person who obtains the use of storage
space from a self-service storage facility under the terms of a
self-storage rental agreement.
(2) "Endorsee" means an employee or authorized representative
of a self-service storage facility authorized to sell or offer
self-service storage insurance.
(3) "Enrolled customer" means a customer who elects coverage
under a self-service storage insurance policy issued to a
self-service storage facility by an insurer or a policy issued
directly to a customer from an insurer.
(4) "Location" means any physical location in this state or
any web site, call center site, or similar location directed to
residents of this state.
(5) "Owner" means the owner, operator, property management
company, lessor, or sublessor of a self-service storage facility.
"Owner" does not mean an occupant.
(6) "Personal property" means moveable property not affixed
to land, and includes goods, merchandise, furniture, and household
items.
(7)(a) "Self-service storage insurance" means insurance
providing coverage for the loss of, or damage to, tangible
personal property that is contained in storage space or in transit
during a self-service storage rental agreement period, which may
be offered on a month-to-month or other periodic basis under an
individual policy, or as a group, commercial, or master policy
issued to a self-service storage facility to provide insurance for
the self-service storage facility's customers.
(b) "Self-service storage insurance" does not mean any of the
following:
(i) A consumer goods service contract governed by section
3905.423 of the Revised Code;
(ii) A policy of insurance covering a seller's or a
manufacturer's obligations under a warranty;
(iii) A homeowner's, renter's, private passenger automobile,
or similar insurance policy.
(8) "Self-service storage rental agreement" means a written
agreement containing the terms and conditions governing the use of
storage space provided by a self-service storage facility.
(9) "Supervising entity" means an insurer or a business
entity licensed as an insurance agent under section 3905.06 of the
Revised Code that is appointed by an insurer to supervise the
administration of a self-service storage insurance program.
(B)(1) Except as provided in division (B)(2) of this section,
no self-service storage facility or self-service storage
facility's employee shall offer, sell, solicit, or place
self-service storage insurance unless the self-service storage
facility is licensed under section 3905.06 or 3905.07 of the
Revised Code with a self-service storage insurance line of
authority.
(2) Any self-service storage facility offering or selling
self-service storage insurance on or before the effective date of
this section that wishes to continue offering or selling that
insurance shall apply for a license within ninety days after the
superintendent of insurance makes the application available.
(C)(1) The superintendent shall issue a resident insurance
license to a self-service storage facility under section 3905.06
of the Revised Code if the self-service storage facility satisfies
the requirements of sections 3905.05 and 3905.06 of the Revised
Code, except that the application for a self-service storage
insurance license shall satisfy the following additional
requirements:
(a) The application shall include the location of the
self-service storage facility's home office.
(b) If the application requires the self-service storage
facility to designate an individual or entity as a responsible
insurance agent, that agent shall not be required to be an
employee of the applicant and may be the supervising entity or an
individual agent who is an employee of the supervising entity.
(c) If the self-service storage facility derives less than
fifty per cent of the self-service storage facility's revenue from
the sale of self-service storage insurance, the application for a
self-service storage insurance license may require the
self-service storage facility to provide the name, residence
address, and other information required by the superintendent for
one employee or officer of the self-service storage facility who
is designated by the self-service storage facility as the person
responsible for the self-service storage facility's compliance
with the requirements of this chapter.
(d) If the self-service storage facility derives fifty per
cent or more of the self-service storage facility's revenue from
the sale of self-service storage insurance, the application may
require the information listed under division (C)(1)(c) of this
section for all owners with at least ten per cent interest or
voting interest, partners, officers, and directors of the
self-service storage facility, or members or managers of a
self-service storage facility that is a limited liability company.
(2) The superintendent shall issue a nonresident insurance
agent license to a self-service storage facility if the
self-service storage facility satisfies the requirements of
section 3905.07 of the Revised Code. However, if the nonresident
self-service storage facility's home state does not issue a
limited lines license for self-service storage insurance, the
nonresident self-service storage facility may apply for a resident
license under section 3905.06 of the Revised Code in the same
manner and with the same rights and privileges as if the
self-service storage facility were a resident of this state.
(D) The holder of a limited lines license may not sell,
solicit, or negotiate insurance on behalf of any insurer unless
appointed to represent that insurer under section 3905.20 of the
Revised Code.
(E) Division (B)(34) of section 3905.14 of the Revised Code
shall not apply to the self-service storage facility or the
self-service storage facility's endorsees.
(F) If insurance is required as a condition of a self-service
storage rental agreement, the requirement may be satisfied by the
customer's purchase of self-service storage insurance that is
sold, solicited, or negotiated by the self-service storage
facility or presentation to the self-service storage facility of
evidence of other applicable insurance coverage.
(G)(1) A self-service storage facility may authorize any
endorsee of the self-service storage facility to sell or offer
self-service storage insurance to a customer at any location at
which the self-service storage facility engages in self-service
storage transactions.
(2) An endorsee is not required to be licensed as an
insurance agent under this chapter if the self-service storage
facility is licensed under this section and the insurer issuing
the self-service storage insurance either directly supervises or
appoints a supervising entity to supervise the administration of
the self-service storage insurance program including development
of a training program for endorsees in accordance with division
(H) of this section.
(3) No endorsee shall do any of the following:
(a) Advertise, represent, or otherwise represent the
endorsee's self as an insurance agent licensed under section
3905.06 of the Revised Code;
(b) Offer, sell, or solicit the purchase of self-service
storage insurance except in conjunction with and incidental to the
sale or lease of self-service storage;
(c) Make any statement or engage in any conduct, express or
implied, that would lead a customer to believe either of the
following:
(i) That, if insurance is required as a condition of a
self-service storage rental agreement, the purchase by the
customer of self-service storage insurance offered by the
self-service storage facility is the only method by which that
condition may be met;
(ii) That the self-service storage facility or its endorsees
are qualified to evaluate the adequacy of the customer's existing
insurance coverage.
(4) An endorsee shall disclose that self-service storage
insurance may duplicate coverage already provided under a
customer's homeowner's insurance policy, renter's insurance
policy, or other coverage.
(H) Each self-service storage facility, or the supervising
entity to that self-service storage facility, shall provide a
training and education program for all endorsees who sell or offer
self-service storage insurance. The program may be provided as a
web-based training module or in any other electronic or recorded
video form. The training and education program shall meet all of
the following minimum standards:
(1) The training shall be delivered to each endorsee of each
self-service storage facility who sells or offers self-service
storage insurance and the endorsee shall complete the training.
(2) If the training is conducted in an electronic form, the
supervising entity shall implement a supplemental education
program regarding self-service storage insurance that is conducted
and overseen by employees of the supervising entity who are
licensed as insurance agents under section 3905.06 of the Revised
Code.
(3) The training and education program shall include basic
information about self-service storage insurance and information
concerning all of the following prohibited actions of endorsees:
(a) No endorsee shall advertise, represent, or otherwise
represent the endorsee's self as a licensed insurance agent.
(b) No endorsee shall offer, sell, or solicit the purchase of
self-service storage insurance except in conjunction with and
incidental to the rental of a storage space by the self-service
storage facility.
(c) No endorsee shall make any statement or engage in any
conduct, express or implied, that would lead a customer to believe
any of the following:
(i) That the insurance policies offered by the endorsee
provide coverage not already provided by a customer's homeowner's
insurance policy, renter's insurance policy, or by another source
of coverage;
(ii) That, if insurance is required as a condition of a
self-service storage rental agreement, the purchase by the
customer of self-service storage insurance offered by the
self-service storage facility is the only method by which that
condition may be met;
(iii) That the self-service storage facility or its endorsees
are qualified to evaluate the adequacy of the customer's existing
insurance coverage.
(I) A supervising entity appointed to supervise the
administration of a self-service storage insurance program under
division (G)(2) of this section shall maintain a registry of
locations supervised by that entity that are authorized to sell or
solicit self-service storage insurance in this state. The
supervising entity shall make the registry available to the
superintendent upon request by the superintendent if the
superintendent provides ten days' notice to the self-service
storage facility or supervising entity.
(J) At every location where a self-service storage facility
offers self-service storage insurance to customers, the
self-service storage facility shall provide brochures or other
written materials to prospective customers that include all of the
following:
(1) A summary of the material terms of the insurance
coverage, including all of the following:
(a) The identity of the insurer;
(b) The identity of the supervising entity;
(c) The amount of any applicable deductible and how it is to
be paid;
(d) Benefits of the coverage;
(e) Key terms and conditions of coverage.
(2) A summary of the process for filing a claim;
(3) A disclosure that self-service storage insurance may
provide a duplication of coverage already provided by a customer's
homeowner's insurance policy, renter's insurance policy, or other
source of coverage;
(4) A disclosure that, if insurance is required as a
condition of a self-service storage rental agreement, the
requirement may be satisfied by the customer's purchase of
self-service storage insurance that is sold, solicited, or
negotiated by the self-service storage facility or the customer's
presentation to the self-service storage facility of evidence of
other applicable insurance coverage;
(5) A disclosure that neither the endorsee nor the
self-service storage facility is qualified to evaluate the
adequacy of the customer's existing insurance coverage;
(6) A disclosure that the customer may cancel enrollment for
coverage under a self-service storage insurance policy at any time
and receive a refund of any applicable premium.
(K)(1) The charges for self-service storage insurance may be
billed and collected by the self-service storage facility, and the
self-service storage facility may receive compensation for
performing billing and collection services, if either of the
following conditions are met:
(a) If the charge to the customer for coverage is not
included in the cost associated with the purchase or lease of
self-service storage or related services, the charge for coverage
is separately itemized on the customer's bill.
(b) If the charge to the customer for coverage is included in
the cost associated with the lease of self-service storage, the
self-service storage facility clearly and conspicuously discloses
to the customer that the charge for self-service storage insurance
coverage is included with the lease for self-service storage.
(2) All funds received by a self-service storage facility
from a customer for the sale of self-service storage insurance
shall be considered funds held in trust by the self-service
storage facility in a fiduciary capacity for the benefit of the
insurer. Self-service storage facilities that bill and collect
such charges are not required to maintain those funds in a
segregated account if the self-service storage facility is
authorized by the insurer to hold those funds in an alternate
manner and the self-service storage facility remits the amount of
the charges to the supervising entity within sixty days after
receiving the charges.
(L)(1) Except as otherwise provided in divisions (L)(2) and
(3) of this section, an insurer may terminate or otherwise change
the terms and conditions of a policy of self-service storage
insurance only upon providing the self-service storage facility
policyholder and enrolled customers with at least sixty days'
prior notice. If the insurer changes the terms and conditions, the
insurer shall promptly provide the self-service storage facility
policyholder with a revised policy or endorsement and each
enrolled customer with a revised certificate, endorsement, updated
brochure, or other evidence indicating that a change in the terms
and conditions has occurred and a summary of material changes.
(2) An insurer may terminate an enrolled customer's
enrollment under a self-service storage insurance policy upon
fifteen days' prior notice for discovery of fraud or material
misrepresentation in obtaining coverage or in the presentation of
a claim under the policy.
(3) An insurer may immediately terminate an enrolled
customer's enrollment under a self-service storage insurance
policy for any of the following reasons:
(a) The enrolled customer fails to pay the required premium;
(b) The enrolled customer ceases to have an active lease at
the self-service storage facility;
(c) The enrolled customer exhausts the aggregate limit of
liability, if any, under the terms of the self-service storage
insurance policy and the insurer sends notice of termination to
the customer within thirty calendar days after exhaustion of the
limit. However, if the insurer does not send the notice within the
thirty-day time frame, enrollment shall continue notwithstanding
the aggregate limit of liability until the insurer sends notice of
termination to the enrolled customer.
(4) If a self-service storage insurance policy is terminated
by a self-service storage facility policyholder, the self-service
storage facility policyholder shall provide notice to each
enrolled customer advising the customer of the termination of the
policy and the effective date of the termination. The written
notice shall be sent by mail, electronic mail, or delivery to the
customer at least thirty days prior to the termination.
(5) Notice required pursuant to this section shall be
provided in writing, either via mail or by electronic means.
(a) If notice is provided via mail, it shall be mailed or
delivered to the self-service storage facility at the self-service
storage facility's mailing address and to all affected enrolled
customers at the last known mailing addresses of those customers
on file with the insurer. The insurer or self-service storage
facility shall maintain proof of mailing in a form authorized or
accepted by the United States postal service or other commercial
mail delivery service.
(b) If notice is provided electronically, it shall be
transmitted via facsimile or electronic mail to the self-service
storage facility at the self-service storage facility's facsimile
number or electronic mail address and to all affected enrolled
customers at the last known facsimile numbers or electronic mail
addresses of those customers on file with the insurer. The insurer
or self-service storage facility shall maintain proof that the
notice was sent.
(M) An enrolled customer may cancel the enrolled customer's
coverage under a self-service storage insurance policy at any
time. Upon cancellation, the insurer shall refund any applicable
unearned premium.
(N) A license issued pursuant to this section shall authorize
the self-service storage facility and its endorsees to engage only
in those activities that are expressly permitted by this section.
(O)(1) If a self-service storage facility or a self-service
storage facility's endorsee violates any provision of this
section, the superintendent may revoke or suspend the license
issued or impose any other sanctions provided under section
3905.14 of the Revised Code.
(2) If any provision of this section is violated, or if an
unfair or deceptive practice is engaged in, by a self-service
storage facility or a self-service storage facility's endorsee at
a particular location, the superintendent may issue a cease and
desist order to a particular location, or take any other
administrative action authorized in section 3901.22 and division
(D) of section 3905.14 of the Revised Code.
(3) If the superintendent determines that a violation of this
section or section 3905.14 of the Revised Code has occurred, the
superintendent may assess a civil penalty in an amount not
exceeding twenty-five thousand dollars per violation and an
administrative fee to cover the expenses incurred by the
department in the administrative action, including costs incurred
in the investigation and hearing process.
(P)(1) Notwithstanding any other provision of law, if a
self-service storage facility's insurance-related activities, and
those of its endorsees, employees, and authorized representatives,
are limited to offering and disseminating self-service storage
insurance on behalf of and under the direction of a limited lines
self-service storage insurance agent that meets the requirements
of this section, the facility is authorized to offer and
disseminate insurance and receive related compensation for these
services if the self-service storage facility is registered by the
limited lines self-service storage insurance agent as described in
division (I) of this section. Any compensation paid to a
self-service storage facility's endorsee, employee, or authorized
representative for the services described in this section shall be
incidental to the endorsee's, employee's, or authorized
representative's overall compensation and not based on the
purchase of the self-service storage insurance coverage.
(2) All costs paid or charged to a consumer for the purchase
of self-service storage insurance or related services, including
compensation to the self-service storage facility, shall be
separately itemized on the customer's bill.
(Q) The superintendent may adopt rules implementing this
section.
Sec. 3905.40. There shall be paid to the superintendent of
insurance the following fees:
(A) Each insurance company doing business in this state shall
pay:
(1) For filing a copy of its charter or deed of settlement,
two hundred fifty dollars;
(2) For filing each statement, one hundred seventy-five
dollars;
(3) For each certificate of authority or license, one hundred
seventy-five, and for each certified copy thereof, five dollars;
(4) For each copy of a paper filed in the superintendent's
office, twenty cents per page;
(5) For issuing certificates of deposits or certified copies
thereof, five dollars for the first certificate or copy and one
dollar for each additional certificate or copy;
(6) For issuing certificates of compliance or certified
copies thereof, sixty dollars;
(7) For affixing the seal of office and certifying documents,
other than those enumerated herein, two dollars;
(8) For each agent appointment and each annual renewal of an
agent appointment, not more than twenty dollars.
(B) Each domestic life insurance company doing business in
this state shall pay for annual valuation of its policies, one
cent on every one thousand dollars of insurance.
(C) Each applicant for licensure as an insurance agent except
applicants for licensure as surety bail bond agents, surplus line
brokers, and portable electronics insurance vendors, and
self-service storage facilities shall pay ten dollars for each
line of authority requested. Fees collected under this division
shall be credited to the department of insurance operating fund
created in section 3901.021 of the Revised Code.
(D) Each domestic mutual life insurance company shall pay for
verifying that any amendment to its articles of incorporation was
regularly adopted, two hundred fifty dollars with each application
for verification. Any such amendment shall be considered to have
been regularly adopted when approved by the affirmative vote of
two-thirds of the policyholders present in person or by proxy at
any annual meeting of policyholders or at a special meeting of
policyholders called for that purpose.
(E) Each insurance agent doing business in this state shall
pay a biennial license renewal fee of twenty-five dollars, except
the following insurance agents are not required to pay that
license renewal fee:
(1) Individual resident agents who have met their continuing
education requirements under section 3905.481 of the Revised Code;
(2) Surety bail bond agents;
(3) Surplus line brokers;
(4) Portable electronics insurance vendors;
(5) Self-service storage facilities.
(F) Each applicant for licensure as a portable electronics
insurance vendor with a portable electronics insurance limited
lines license and each licensed vendor doing business in this
state shall pay the following fees prescribed by the
superintendent:
(1) For vendors engaged in portable electronic transactions
at more than ten locations in this state, an application fee not
to exceed five thousand dollars for an initial license and a
biennial license renewal fee not to exceed two thousand five
hundred dollars for each renewal thereafter;
(2) For vendors engaged in portable electronic transactions
at ten or fewer locations in this state, an application fee not to
exceed three thousand dollars for an initial license and a
biennial license renewal fee not to exceed one thousand dollars
for each renewal thereafter.
(G) Each applicant for a self-service storage insurance
limited lines license and each holder of such a license in this
state shall pay the following fees prescribed by the
superintendent:
(1) For self-service storage facilities engaged in
self-service transactions at more than ten locations in this
state, an application fee not to exceed one hundred dollars for an
initial license and a biennial license renewal fee not to exceed
twenty-five dollars for each renewal thereafter;
(2) For self-service storage facilities engaged in
self-service storage transactions at ten or fewer locations in
this state, an application fee not to exceed fifty dollars for an
initial license and a biennial license renewal fee not to exceed
ten dollars for each renewal thereafter.
(H) All fees collected by the superintendent under this
section except any fees collected under divisions (A)(2), (3), and
(6) of this section shall be credited to the department of
insurance operating fund created under section 3901.021 of the
Revised Code.
Section 2. That existing sections 3905.01, 3905.06, and
3905.40 of the Revised Code are hereby repealed.
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