This is a summary of the law.
THIS LAW IS EFFECTIVE MARCH 1, 2001.
As Introduced Section 1. That sections 3905.01, 3905.011, 3905.012,
3905.48, 3905.49, 3905.55, 3905.86, and 3905.99 be
HELP - Field amended, section 3905.86 (3905.81) be amended for the
Definitions for purpose of adopting a new section number as indicated
this Page in parentheses, and new section 3905.86 and sections
2927.27, 3905.83, 3905.84, 3905.841, 3905.85, 3905.851,
3905.861, 3905.862, 3905.87, 3905.88, 3905.89, 3905.90,
3905.91, 3905.92, 3905.921, 3905.93, 3905.931,
3905.932, 3905.933, 3905.934, 3905.94, 3905.941, and
3905.95 of the Revised Code be enacted to read as
follows:
Sec. 2927.27. (A) NO PERSON, OTHER THAN A LAW
ENFORCEMENT OFFICER, SHALL APPREHEND, DETAIN, OR ARREST
A PRINCIPAL ON BOND, WHEREVER ISSUED, UNLESS THAT
PERSON MEETS ALL OF THE FOLLOWING CRITERIA:
(1) THE PERSON IS ANY OF THE FOLLOWING:
(a) QUALIFIED, LICENSED, AND APPOINTED AS A SURETY BAIL
BOND AGENT UNDER SECTIONS 3905.83 TO 3905.95 OF THE
REVISED CODE;
(b) LICENSED AS A SURETY BAIL BOND AGENT BY THE STATE
WHERE THE BOND WAS WRITTEN;
(c) LICENSED AS A PRIVATE INVESTIGATOR UNDER CHAPTER
4749. OF THE REVISED CODE;
(d) LICENSED AS A PRIVATE INVESTIGATOR BY THE STATE
WHERE THE BOND WAS WRITTEN;
(e) AN OFF-DUTY PEACE OFFICER, AS DEFINED IN SECTION
2921.51 OF THE REVISED CODE.
(2) THE PERSON, PRIOR TO APPREHENDING, DETAINING, OR
ARRESTING THE PRINCIPAL, HAS ENTERED INTO A WRITTEN
CONTRACT WITH THE SURETY OR WITH A LICENSED SURETY BAIL
BOND AGENT APPOINTED BY THE SURETY, WHICH CONTRACT SETS
FORTH THE NAME OF THE PRINCIPAL WHO IS TO BE
APPREHENDED, DETAINED, OR ARRESTED.
FOR PURPOSES OF DIVISION(A) (2) OF THIS SECTION,
"SURETY" HAS THE SAME MEANING AS IN SECTION 3905.83 OF
THE REVISED CODE.
(3) THE PERSON, PRIOR TO APPREHENDING, DETAINING, OR
ARRESTING THE PRINCIPAL, HAS NOTIFIED THE LOCAL LAW
ENFORCEMENT AGENCY HAVING JURISDICTION OVER THE AREA IN
WHICH SUCH ACTIVITIES WILL BE PERFORMED AND HAS
PROVIDED ANY FORM OF IDENTIFICATION OR OTHER
INFORMATION REQUESTED BY THE LAW ENFORCEMENT AGENCY.
(B) NO PERSON SHALL REPRESENT THE PERSON'S SELF TO BE A
BAIL ENFORCEMENT AGENT OR BOUNTY HUNTER, OR CLAIM ANY
SIMILAR TITLE, IN THIS STATE.
(C) (1) WHOEVER VIOLATES THIS SECTION IS GUILTY OF
ILLEGAL BAIL BOND AGENT PRACTICES.
(2) A VIOLATION OF DIVISION (A) OF THIS SECTION IS A
MISDEMEANOR OF THE FIRST DEGREE OR, IF THE OFFENDER
PREVIOUSLY HAS BEEN CONVICTED OF OR PLEADED GUILTY TO
TWO OR MORE VIOLATIONS OF DIVISION (A) OF THIS SECTION,
A FELONY OF THE THIRD DEGREE.
(3) A VIOLATION OF DIVISION (B) OF THIS SECTION IS A
MISDEMEANOR OF THE FIRST DEGREE OR, IF THE OFFENDER
PREVIOUSLY HAS BEEN CONVICTED OF OR PLEADED GUILTY TO
TWO OR MORE VIOLATIONS OF DIVISION (B) OF THIS SECTION,
A FELONY OF THE THIRD DEGREE.
Sec. 3905.01. (A) No person shall procure an
application or quote premiums for, discuss coverages
of, or solicit, negotiate, effect, procure, place,
write, deliver, renew, or bind, a policy of insurance,
INCLUDING ANY FIDELITY, SURETY, OR GUARANTY BOND,
through any medium for risks residing, located, or to
be performed in this state, unless the person is
licensed by the superintendent of insurance in
accordance with this chapter.
(B) Division (A) of this section does not apply to any
of the following persons:
(1) An insurer as defined in section 3901.32 of the
Revised Code;
(2) Any person who furnishes information regarding
group insurance, enrolls individuals in group insurance
plans, issues certificates under such plans, or
otherwise assists in administering such plans, if no
commission or other form of compensation related to
premium or sales volume is paid for such services;
(3) Any employee of a creditor with respect to
insurance products made available only in connection
with a credit transaction, including credit life
insurance, credit disability or accident and health
insurance, credit property insurance, mortgage life
insurance, mortgage accident and health insurance,
involuntary unemployment insurance, individual life
insurance, and individual disability or accident and
health insurance, if the entire premium is financed as
part of the credit transaction and the following
conditions are met:
(a) If the insurance product is an individual life
insurance policy, a licensed agent is responsible for
the insurance transaction.
(b) If the employee of the creditor is paid by the
insurance agent or by the insurance company, the
employee holds a limited authority license.
For purposes of division (B)(3) of this section,
"credit property insurance" means insurance covering
risks of loss, damage, and destruction of property used
as security for a credit transaction, which insurance
may also cover other property that is merely incidental
to the property used as security for the credit
transaction.
(4) Any employer, or officer or employee of an
employer, to the extent that the employer, officer, or
employee is engaged in the administration or operation
of any employee benefits program involving the use of
insurance for the employer's employees or the employees
of a subsidiary or affiliate of the employer, provided
that the employer, officer, or employee is not
compensated, either directly or indirectly, in any
manner by an insurance agent or by the insurance
company issuing the insurance;
(5) An adjuster employed by or representing an insurer
in the adjustment of claims or a public insurance
adjuster holding a certificate of authority issued
under Chapter 3951. of the Revised Code when performing
the duties of a public insurance adjuster.
(C) Division (A) of this section does not apply to any
of the following activities when performed by an
employee of, and at the direction of, an insurer or
licensed insurance agent:
(1) The acceptance of premiums other than the initial
premium;
(2) The gathering of information, such as names,
addresses, expiration dates of current insurance, and
names of current insurers;
(3) The setting of appointments for insurance agents,
provided that the person setting the appointment does
not communicate any information about insurance;
(4) The servicing of existing insurance policies issued
by or through the employee's employer, provided the
servicing is not part of a solicitation;
(5) The performance of clerical or ministerial duties.
(D) The superintendent may adopt rules in accordance
with Chapter 119. of the Revised Code to set forth the
specific acts that comprise any of the activities
described in this section, the performance of which
either requires or does not require licensure as an
agent.
Sec. 3905.011. (A) As used in this section and sections
3905.012 and 3905.013 of the Revised Code, "insurer"
has the same meaning as in section 3901.32 of the
Revised Code.
(B) Any person that is licensed as an agent under
section 3905.02 or 3905.18 of the Revised Code is
eligible to be appointed by one or more insurers
authorized to do business in this state.
(C)(1) Prior to BY appointing an agent, an insurer
shall certify CERTIFIES to the superintendent of
insurance, in accordance with rules adopted by the
superintendent under section 3905.013 of the Revised
Code, that the person is competent, financially
responsible, and suitable to represent the insurer.
(2) No agent shall represent to the public that the
agent has authority to represent a particular insurer
until the insurer has acknowledged that authority by
appointment of the agent in accordance with division
(C)(1) of this section.
(D)(1) No insurer shall pay a commission, fee, or other
type of consideration, or give any other thing of
value, to a person that is required to be licensed by
the superintendent under this chapter for the sale of,
or for any direct or indirect connection with the sale
of, any insurance sold by or on behalf of the insurer,
but is not so licensed.
(2) Nothing in this section prohibits an insurer from
entering into a compensation agreement with a creditor
with respect to insurance products made available only
in connection with a credit transaction, including
credit life insurance, credit disability or accident
and health insurance, credit property insurance,
mortgage life insurance, mortgage accident and health
insurance, involuntary unemployment insurance,
individual life insurance, and individual disability or
accident and health insurance, if the entire premium is
financed as part of the credit transaction. For
purposes of division (D)(2) of this section, "credit
property insurance" has the same meaning as in division
(B)(3) of section 3905.01 of the Revised Code.
Sec. 3905.012. (A)(1) Except as provided in division
(A)(2) of this section, any person licensed as an agent
under section 3905.02 or, 3905.18, OR 3905.85 of the
Revised Code, or appointed as a solicitor under section
3905.03 of the Revised Code, may at any time surrender
any or all licenses held by the person.
(2) No agent shall surrender the agent's licenses if
the superintendent of insurance is investigating any
allegation of wrongdoing by the agent or has initiated
proceedings under Chapter 119. of the Revised Code and
notice of an opportunity for a hearing has been issued
to the agent, and any attempt to so surrender is
invalid.
(B)(1) If an insurer or agent cancels the appointment
of an agent or solicitor due to suspected fraud,
misrepresentation, theft, conversion, or any other
culpable misappropriation, the insurer or agent shall
promptly notify the superintendent. The notice shall
include a complete statement of the facts and the
reasons for the cancellation.
(2) In the absence of fraud or actual malice, an
insurer or agent is immune from any civil liability
that otherwise might be incurred or imposed as a result
of any action taken by the insurer or agent to comply
with division (B)(1) of this section.
(C) If an agent's license is surrendered, revoked, or
suspended, all appointments held by the agent are void.
If a new license is issued to that person or if that
person's previous license is reinstated, any
appointment of the person to represent an insurer or
agent must be made in accordance with the requirements
of this chapter.
(D)(1) Any agent, other than a corporation,
partnership, or limited liability company, who is no
longer engaged in the business of insurance in any
capacity for which an agent's license is required may
apply to the superintendent for inactive status. The
superintendent may grant such status only if the
superintendent is satisfied that the person is not
engaged in and does not intend to engage in any of the
activities set forth in section 3905.01 of the Revised
Code that requires an agent's license.
(2) A person who has been granted inactive status is
exempt from any continuing education requirements
imposed under this chapter.
(3) The superintendent may adopt rules in accordance
with Chapter 119. of the Revised Code to establish
procedures for applying for inactive status, criteria
used to determine eligibility for such status, and
standards and procedures for transferring from inactive
to active status.
(E) The superintendent may suspend or revoke a license,
or take any other disciplinary action authorized by
this chapter, regardless of whether the person is
appointed or otherwise authorized to represent an
insurer or agent.
Sec. 3905.48. (A) No person, unless the person has
complied with division (B) of this section, shall be
permitted to take an examination for a license as an
agent to engage in the sale of any of the following
types of insurance:
(1) Life insurance, annuity contracts, variable annuity
contracts, and variable life insurance;
(2) Sickness and accident insurance;
(3) All lines of property and casualty insurance;
(4) SURETY BAIL BONDS;
(5) All other lines of insurance for which an
examination is required for licensing, except title
insurance.
(B) No person shall be permitted to take an examination
described in division (A) of this section unless either
of the following applies:
(1) The person has earned a bachelor's or associate's
degree in insurance in an accredited institution;
(2) The person has been granted a diploma for
successfully completing a high school curriculum under
section 3313.61 of the Revised Code or a certificate of
high school equivalence under rule 3301-41-1 of the
Administrative Code, or been granted a comparable
diploma or certificate by another state, and has
successfully completed at least forty hours of study in
a program of insurance education approved by the
superintendent of insurance in consultation with the
insurance agent education advisory council under
criteria established by the superintendent.
Sec. 3905.49. (A) As used in this section:
(1) "Insurer" has the same meaning as in section
3901.32 of the Revised Code.
(2) "Refusal to issue or renew" means the decision of
the superintendent of insurance not to process either
the initial application for a license as an agent or
the renewal of such a license.
(3) "Revocation" means the permanent termination of all
authority to hold any license as an agent in this
state.
(4) "Surrender for cause" means the voluntary
termination of all authority to hold any license as an
agent in this state, in lieu of a revocation or
suspension order.
(5) "Suspension" means the termination of all authority
to hold any license as an agent in this state, for
either a specified period of time or an indefinite
period of time and under any terms or conditions
determined by the superintendent.
(B) The superintendent may suspend, revoke, or refuse
to issue or renew any license as an agent, SURETY BAIL
BOND AGENT, surplus line broker, or limited insurance
representative, or impose any other sanction authorized
under this chapter, for one or more of the following
reasons:
(1) Obtaining or attempting to obtain any license or
appointment through misrepresentation or fraud,
including making any materially untrue statement in an
application for a license or appointment;
(2) Violating or failing to comply with any insurance
law, rule, subpoena, consent agreement, or order of the
superintendent;
(3) Misappropriating or converting to the person's own
use any moneys belonging to policyholders, prospective
policyholders, beneficiaries, insurance companies,
SURETIES, PRINCIPALS, or others received in the course
of the person's insurance business;
(4) Failing to timely submit an application for
insurance. For purposes of division (B)(4) of this
section, a submission is considered timely if it occurs
within the time period expressly provided for by the
insurer, or within seven days after the agent accepts a
premium or an order to bind from a policyholder or
applicant, whichever is later.
(5) Knowingly misrepresenting the terms, benefits,
value, cost, or effective dates of any actual or
proposed insurance policy or, contract, OR BOND;
(6) Being convicted of a felony;
(7) Being convicted of a misdemeanor that involves the
misuse or theft of money or property belonging to
another, fraud, forgery, dishonest acts, or breach of a
fiduciary duty, or that is based on any act or omission
relating to the business of insurance, securities, or
financial services;
(8) Committing an unfair trade act or practice under
any section of Title XXXIX of the Revised Code or any
rule adopted thereunder;
(9) Having an insurance license suspended or revoked in
any other state, province, or territory;
(10) Forging or causing the forgery of another's name
to any document related to or used in an insurance
transaction;
(11) Possessing or using any unauthorized materials
during a licensing or continuing education examination
or cheating on a licensing or continuing education
examination;
(12) Failing to disclose to an applicant for insurance
or policyholder upon accepting a premium or an order to
bind coverage from the applicant or policyholder, that
the person has not been appointed as agent by the
insurer and is not an appointed solicitor of an
appointed agent;
(13) Having any professional license suspended or
revoked as a result of a mishandling of funds or breach
of fiduciary responsibilities;
(14) Causing or permitting a policyholder or applicant
for insurance to designate the person or the person's
spouse, parent, child, or sibling as the beneficiary of
a policy or annuity sold by the person, unless the
person or a relative of the person is the insured or
applicant;
(15) Failing to provide a written response to the
department of insurance within thirty days after
receipt of any written inquiry from the department;
(16) Failing to notify the superintendent of any change
in the person's address, within thirty days after the
change occurs, as required by section 3905.54 of the
Revised Code;
(17) Transferring or placing insurance with an insurer
other than the insurer expressly chosen by the
applicant for insurance or policyholder without the
consent of the applicant or policyholder or absent
extenuating circumstances;
(18) Engaging in any fraudulent, DISHONEST, or coercive
practice in connection with the business of insurance;
(19) Failing to inform a policyholder or applicant for
insurance of the identity of the insurer or insurers,
or the identity of any other insurance agent, general
agent, surplus line broker, or licensee known to be
involved in procuring, placing, or continuing the
insurance for the policyholder or applicant, upon the
binding of the coverage;
(20) In the case of an agent that is a corporation,
limited liability company, or partnership, failing to
report an individual licensee's violation to the
department when the violation was known or should have
been known by one or more of the partners, officers,
managers, or members of the corporation, limited
liability company, or partnership;
(21) Submitting or using a document in the conduct of
the business of insurance when the person knew or
should have known that the document contained the
forged signature of another person;
(22) Misrepresenting the person's qualifications or
using in any way a professional designation that has
not been conferred upon the person by the appropriate
accrediting organization;
(23) Obtaining a premium loan or causing a premium loan
to be made to or in the name of an insured without that
person's knowledge and written authorization;
(24) Failing to notify the superintendent of any
disciplinary action taken by the insurance authority of
another state, within sixty days after the action was
taken, as required by section 3905.54 of the Revised
Code;
(25) Failing to file any of the reports or notices
required under this chapter;
(26) Submitting an application for insurance, or
causing the issuance of an insurance policy or
contract, on behalf of an applicant who did not request
or authorize the insurance. Division (B)(26) of this
section does not apply to any policy issued by an other
than life insurance company.
(27) Using paper, software, or any other materials of
or provided by an insurer after the insurer has
terminated the authority of the licensee, if the use of
such materials would cause a reasonable person to
believe that the licensee was acting on behalf of or
otherwise representing the insurer;
(28) Providing misleading, deceptive, or untrue
information to an applicant for insurance or a
policyholder regarding a particular insurance agent,
company, or product;
(29) Soliciting, procuring an application for, or
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