Ohio § 3901.211

§ 3901.211.

(A)(1) No person may require as a condition precedent to the lending of money or the extension

of credit, or any renewal thereof, that the person to whom such money or credit is

extended or whose obligation a creditor is to acquire or finance, negotiate any policy

or renewal thereof through a particular insurer or group of insurers or agent or group

of agents. (2) No person may reject an insurance policy solely because the policy has been issued

or underwritten by a person that is not associated with the person, or an affiliate

of the person, rejecting the policy. (B) No person that lends money or extends credit may do any of the following: (1) As a condition for extending credit or offering any product or service that is equivalent

to an extension of credit, require that a customer obtain insurance from a depository

institution or an affiliate of a depository institution, or from a particular insurer,

agent, or other person.  However, this provision does not prohibit a person from informing a customer or

prospective customer that insurance is required in order to obtain a loan or credit,

that loan or credit approval is contingent upon the procurement by the customer of

acceptable insurance, or that insurance is available from the person or an affiliate

of that person. (2) Unreasonably reject a policy furnished by the customer or borrower for the protection

of the property securing the credit or lien.  A rejection shall not be deemed unreasonable if it is based on reasonable standards,

uniformly applied.  Such standards may include, but are not limited to, standards relating to the extent

of coverage required and the financial soundness and services of an insurer.  Such standards shall not discriminate against any particular type of insurer, nor

shall such standards call for the rejection of a policy because it contains coverage

in addition to that required in the credit transaction. (3) Require that any customer, borrower, mortgagor, purchaser, insurer, broker, or agent

pay a separate charge in connection with the handling of any policy required as security

for a loan on real estate or pay a separate charge to substitute the policy of one

insurer for that of another.  Division (B)(3) of this section does not apply to the interest that may be charged

on premium loans or premium advancements in accordance with the terms of the loan

or credit document.  Division (B)(3) of this section does not apply to required charges when the person

or an affiliate of that person is the licensed agent providing the insurance. (4) Require any procedures or conditions of duly licensed agents or insurers not customarily

required of the agents or insurers affiliated, or in any way connected, with the person

that lends money or extends credit; (5) Use an advertisement or other insurance promotional material that would cause a reasonable

person to mistakenly believe that the federal government or the state is responsible

for the insurance sales activity of, or stands behind the credit of, the person, depository

institution, or an affiliate of the person or depository institution; (6) Use an advertisement or other insurance promotional material that would cause a reasonable

person to mistakenly believe that the federal government or the state guarantees any

return on insurance products or is a source of payment on any insurance obligation

of or sold by the person or an affiliate of the person; (7) Pay or receive any commission, brokerage fee, or other compensation as an agent,

unless the person holds a valid agent's license for the applicable class of insurance.  However, an unlicensed person may make a referral to a licensed agent, provided

that the person does not discuss specific insurance policy terms and conditions.  The unlicensed person may be compensated for the referral;  however, in the case

of a referral of a customer, the unlicensed person may be compensated only if the

compensation is a fixed dollar amount for each referral that does not depend on whether

the customer purchases the insurance product from the licensed agent.  Further, any person that accepts deposits from the public in an area where such

transactions are routinely conducted in the depository institution may receive for

each customer referral no more than a one-time, nominal fee of a fixed dollar amount

that does not depend on whether the referral results in a transaction. (8) Solicit or sell insurance, other than credit insurance or flood insurance, unless

the solicitation or sale is completed through documents separate from any credit transactions; (9) Include the expense of insurance premiums, other than credit insurance premiums or

flood insurance premiums, in the primary credit transaction without the express written

consent of the customer; (10) As a condition of financing a residential mortgage or providing other financing arrangements

for residential property, including a mobile or manufactured home, require a mortgagor

or borrower to purchase homeowners insurance coverage or other residential property

insurance coverage in an amount that exceeds the replacement value of the dwelling

and its contents, regardless of the amount of mortgage or other financing arrangement

entered into by the mortgagor or borrower.  The fair market value of the land on which the dwelling is located shall not be

included in the replacement value of the dwelling and its contents. (C)(1) If an application for a loan or extension of credit is pending before a person that

lends money or extends credit and that also solicits insurance primarily for personal,

family, or household purposes in connection with that loan or extension of credit,

that person shall disclose to the customer, in writing, that the insurance related

to the credit extension may be purchased from an insurer or agent of the customer's

choice, subject only to the lender's right to reject a given insurer or agent as provided

in division (B)(2) of this section.  Further, the disclosure shall inform the customer that the customer's choice of

an insurer or agent will not affect the credit decision or credit terms in any way,

except that the person lending money or extending credit may impose reasonable requirements

as provided in division (B)(2) of this section. (2) If an application for a loan or extension of credit is pending before a person that

lends money or extends credit and that also solicits insurance primarily for personal,

family, or household purposes in connection with that loan or extension of credit,

that person shall obtain a written acknowledgement of the receipt of the disclosure

at the time the customer receives the disclosure or at the time of the initial purchase

of the insurance policy.  If the solicitation is conducted by telephone, the person shall obtain an oral acknowledgement

of receipt of the disclosure, maintain sufficient documentation to show that the acknowledgement

was given by the customer, and make reasonable efforts to obtain a written acknowledgement

from the customer.  If a customer affirmatively consents to receiving the disclosures electronically

and the disclosures are provided in a format that the customer may retain or obtain

later, the person may provide the disclosure and obtain acknowledgement of the receipt

of the disclosure from the customer using electronic media. (3) This division does not apply to the offering or sale of limited line credit insurance

as defined in section 3905.01 of the Revised Code . (D)(1) A depository institution that solicits, sells, advertises, or offers insurance, and

any person that solicits, sells, advertises, or offers insurance on behalf of a depository

institution or on the premises of a depository institution, shall disclose to the

customer in writing, where practicable and in a clear and conspicuous manner, prior

to a sale, that the insurance: (a) Is not a deposit; (b) Is not insured by the federal deposit insurance corporation or any other federal

government agency; (c) Is not guaranteed by the depository institution, and, when applicable, that the insurance

is not guaranteed by an affiliate of the depository institution or by any person that

is soliciting, selling, advertising, or offering insurance; (d) Involves investment risk including the possible loss of value, where this disclosure

is appropriate. (2) A depository institution that solicits, sells, advertises, or offers insurance, and

any person that solicits, sells, advertises, or offers insurance on behalf of a depository

institution or on the premises of a depository institution, shall obtain written acknowledgement

of the receipt of the disclosure from the customer at the time the customer receives

the disclosure or at the time of the initial purchase of the insurance policy.  If the solicitation is conducted by telephone, the person or depository institution

shall obtain an oral acknowledgement of receipt of the disclosure, maintain sufficient

documentation to show that the acknowledgement was given by the customer, and make

reasonable efforts to obtain a written acknowledgement from the customer.  If a customer affirmatively consents to receiving the disclosures electronically

and the disclosures are provided in a format that the customer may retain or obtain

later, the person or depository institution may provide the disclosure and obtain

acknowledgement of the receipt of the disclosure from the customer using electronic

media. (3) For purposes of divisions (D)(1) and (2) of this section, an affiliate of a depository

institution is subject to these requirements only to the extent that it sells, solicits,

advertises, or offers insurance products or annuities at an office of a depository

institution or on behalf of a depository institution.  These requirements apply only when an individual purchases, applies to purchase,

or is solicited to purchase insurance products or annuities primarily for personal,

family, or household purposes and only to the extent that a disclosure would be accurate. (4) For purposes of division (D)(1) of this section, a person is selling, soliciting,

advertising, or offering insurance on behalf of a depository institution, whether

at an office of the depository institution or another location, if at least one of

the following applies: (a) The person represents to the customer that the sale, solicitation, advertisement,

or offer of insurance is by or on behalf of the depository institution; (b) The depository institution refers a customer to the person that sells insurance and

the depository institution has a contractual arrangement to receive commissions or

fees derived from the sale of insurance resulting from the referral; (c) Documents evidencing the sale, solicitation, advertisement, or offer of insurance

identify or refer to the depository institution. (E) Nothing in this section shall prevent a person that lends money or extends credit

from placing insurance on real or personal property in the event the mortgagor, borrower,

or purchaser has failed to provide required insurance in accordance with the terms

of the loan or credit document. (F)(1) A violation of this section is an unfair and deceptive act or practice in the business

of insurance under sections 3901.19 to 3901.26 of the Revised Code . (2) Any person subject to this section shall, upon reasonable notice, make available

to the superintendent of insurance all books and records relating to insurance transactions.