Ohio § 3905.14

§ 3905.14.

(A) As used in sections 3905.14 to 3905.16 of the Revised Code : (1) “ Insurance agent ” includes a limited lines insurance agent, surety bail bond agent, and surplus line

broker. (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, except as provided in division (C) of this section, suspend,

revoke, or refuse to issue or renew any license of an insurance agent, assess a civil

penalty, or impose any other sanction or sanctions authorized under this chapter,

for one or more of the following reasons: (1) Providing incorrect, misleading, incomplete, or materially untrue information in

a license or appointment application; (2) Violating or failing to comply with any insurance law, rule, subpoena, consent agreement,

or order of the superintendent or of the insurance authority of another state; (3) Obtaining, maintaining, or attempting to obtain or maintain a license through misrepresentation

or fraud; (4) Improperly withholding, misappropriating, or converting any money or property received

in the course of doing insurance business; (5) Intentionally misrepresenting the terms, benefits, value, cost, or effective dates

of any actual or proposed insurance contract or application for insurance; (6) Having been convicted of or pleaded guilty or no contest to a felony regardless of

whether a judgment of conviction has been entered by the court; (7) Having been convicted of or pleaded guilty or no contest to 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, that is based on any act or omission relating

to the business of insurance, securities, or financial services, or that involves

moral turpitude regardless of whether a judgment has been entered by the court; (8) Having admitted to committing, or having been found to have committed, any insurance

unfair trade act or practice or insurance fraud; (9) Using fraudulent, coercive, or dishonest practices, or demonstrating incompetence,

untrustworthiness, or financial irresponsibility, in the conduct of business in this

state or elsewhere; (10) Having an insurance agent license, or its equivalent, denied, suspended, or revoked

in any other state, province, district, or territory; (11) Forging or causing the forgery of an application for insurance or any document related

to or used in an insurance transaction; (12) Improperly using notes, any other reference material, equipment, or devices of any

kind to complete an examination for an insurance agent license; (13) Knowingly accepting insurance business from an individual who is not licensed; (14) Failing to comply with any official invoice, notice, assessment, or order directing

payment of federal, state, or local income tax, state or local sales tax, or workers'

compensation premiums; (15) Failing to timely submit an application for insurance.  For purposes of division (B)(15) 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 insurance agent accepts a premium or an order to bind coverage

from a policyholder or applicant for insurance, whichever is later. (16) 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 by the insurer; (17) Having any professional license or financial industry regulatory authority registration

suspended or revoked or having been barred from participation in any industry; (18) Having been subject to a cease and desist order or permanent injunction related to

mishandling of funds or breach of fiduciary responsibilities or for unlicensed or

unregistered activities; (19) Causing or permitting a policyholder or applicant for insurance to designate the

insurance agent or the insurance agent's spouse, parent, child, or sibling as the

beneficiary of a policy or annuity sold by the insurance agent or of a policy or annuity

for which the agent, at any time, was designated as the agent of record, unless the

insurance agent or a relative of the insurance agent is the insured or applicant; (20) Causing or permitting a policyholder or applicant for insurance to designate the

insurance agent or the insurance agent's spouse, parent, child, or sibling as the

owner or beneficiary of a trust funded, in whole or in part, by a policy or annuity

sold by the insurance agent or by a policy or annuity for which the agent, at any

time, was designated as the agent of record, unless the insurance agent or a relative

of the insurance agent is the insured or applicant; (21) Failing to provide a written response to the department of insurance within twenty-one

calendar days after receipt of any written inquiry from the department, unless a reasonable

extension of time has been requested of, and granted by, the superintendent or the

superintendent's designee; (22) Failing to appear to answer questions before the superintendent after being notified

in writing by the superintendent of a scheduled interview, unless a reasonable extension

of time has been requested of, and granted by, the superintendent or the superintendent's

designee; (23) 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; (24) 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 or licensee known

to be involved in procuring, placing, or continuing the insurance for the policyholder

or applicant, upon the binding of the coverage; (25) In the case of an agent that is a business entity, 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 business

entity; (26) 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 a writing that was forged

as defined in section 2913.01 of the Revised Code ; (27) Misrepresenting the person's qualifications, status or relationship to another person,

agency, or entity, or using in any way a professional designation that has not been

conferred upon the person by the appropriate accrediting organization; (28) Obtaining a premium loan or policy surrender or causing a premium loan or policy

surrender to be made to or in the name of an insured or policyholder without that

person's knowledge and written authorization; (29) 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; (30) Soliciting, procuring an application for, or placing, either directly or indirectly,

any insurance policy when the person is not authorized under this chapter to engage

in such activity; (31) Soliciting, selling, or negotiating any product or service that offers benefits similar

to insurance but is not regulated by the superintendent, without fully disclosing,

orally and in writing, to the prospective purchaser that the product or service is

not insurance and is not regulated by the superintendent; (32) Failing to fulfill a refund obligation to a policyholder or applicant in a timely

manner.  For purposes of division (B)(32) of this section, a rebuttable presumption exists

that a refund obligation is not fulfilled in a timely manner unless it is fulfilled

within one of the following time periods: (a) Thirty days after the date the policyholder, applicant, or insurer takes or requests

action resulting in a refund; (b) Thirty days after the date of the insurer's refund check, if the agent is expected

to issue a portion of the total refund; (c) Forty-five days after the date of the agent's statement of account on which the refund

first appears. The presumption may be rebutted by proof that the policyholder or applicant consented

to the delay or agreed to permit the agent to apply the refund to amounts due for

other coverages. (33) With respect to a surety bail bond agent license, rebating or offering to rebate,

or unlawfully dividing or offering to divide, any commission, premium, or fee; (34) Using a license for the principal purpose of procuring, receiving, or forwarding

applications for insurance of any kind, other than life, or soliciting, placing, or

effecting such insurance directly or indirectly upon or in connection with the property

of the licensee or that of relatives, employers, employees, or that for which they

or the licensee is an agent, custodian, vendor, bailee, trustee, or payee; (35) In the case of an insurance agent that is a business entity, using a life license

for the principal purpose of soliciting or placing insurance on the lives of the business

entity's officers, employees, or shareholders, or on the lives of relatives of such

officers, employees, or shareholders, or on the lives of persons for whom they, their

relatives, or the business entity is agent, custodian, vendor, bailee, trustee, or

payee; (36) Offering, selling, soliciting, or negotiating policies, contracts, agreements, or

applications for insurance, or annuities providing fixed, variable, or fixed and variable

benefits, or contractual payments, for or on behalf of any insurer or multiple employer

welfare arrangement not authorized to transact business in this state, or for or on

behalf of any spurious, fictitious, nonexistent, dissolved, inactive, liquidated or

liquidating, or bankrupt insurer or multiple employer welfare arrangement; (37) In the case of a resident business entity, failing to be qualified to do business

in this state under Title XVII of the Revised Code, failing to be in good standing

with the secretary of state, or failing to maintain a valid appointment of statutory

agent with the secretary of state; (38) In the case of a nonresident agent, failing to maintain licensure as an insurance

agent in the agent's home state for the lines of authority held in this state; (39) Knowingly aiding and abetting another person or entity in the violation of any insurance

law of this state or the rules adopted under it. (C) The superintendent shall not refuse to issue a license to an applicant because of

a conviction of or plea of guilty or no contest to an offense unless the refusal is

in accordance with section 9.79 of the Revised Code . (D)(1) Before denying, revoking, suspending, or refusing to issue any license or imposing

any penalty under this section, the superintendent shall provide the licensee or applicant

with notice and an opportunity for hearing as provided in Chapter 119. of the Revised

Code. (2) Notices regarding the scheduling of hearings and all other matters for which Chapter

119. of the Revised Code does not require a particular type of service shall be sent

by ordinary mail to the party and to the party's attorney. (3) Any subpoena for the appearance of a witness or the production of documents or other

evidence at a hearing, or for the purpose of taking testimony for use at a hearing,

shall be served by certified mail, return receipt requested, by an attorney or by

an employee of the department designated by the superintendent.  Such subpoenas shall be enforced in the manner provided in section 119.09 of the Revised Code .  Nothing in this section shall be construed as limiting the superintendent's other

statutory powers to issue subpoenas. (E) If the superintendent determines that a violation described in this section has occurred,

the superintendent may take one or more of the following actions: (1) Assess a civil penalty in an amount not exceeding twenty-five thousand dollars per

violation; (2) Assess administrative costs to cover the expenses incurred by the department in the

administrative action, including costs incurred in the investigation and hearing processes.  Any costs collected shall be paid into the state treasury to the credit of the department

of insurance operating fund created in section 3901.021 of the Revised Code . (3) Suspend all of the person's licenses for all lines of insurance for either a specified

period of time or an indefinite period of time and under such terms and conditions

as the superintendent may determine; (4) Permanently revoke all of the person's licenses for all lines of insurance; (5) Refuse to issue a license; (6) Refuse to renew a license; (7) Prohibit the person from being employed in any capacity in the business of insurance

and from having any financial interest in any insurance agency, company, surety bail

bond business, or third-party administrator in this state.  The superintendent may, in the superintendent's discretion, determine the nature,

conditions, and duration of such restrictions. (8) Order corrective actions in lieu of or in addition to the other penalties listed

in division (E) of this section.  Such an order may provide for the suspension of civil penalties, license revocation,

license suspension, or refusal to issue or renew a license if the licensee complies

with the terms and conditions of the corrective action order. (9) Accept a surrender for cause offered by the licensee, which shall be for at least

five years and shall prohibit the licensee from seeking any license authorized under

this chapter during that time period.  A surrender for cause shall be in lieu of revocation or suspension and may include

a corrective action order as provided in division (E)(8) of this section. (F) The superintendent may consider the following factors in denying a license, imposing

suspensions, revocations, fines, or other penalties, and issuing orders under this

section: (1) Whether the person acted in good faith; (2) Whether the person made restitution for any pecuniary losses suffered by other persons

as a result of the person's actions; (3) The actual harm or potential for harm to others; (4) The degree of trust placed in the person by, and the vulnerability of, persons who

were or could have been adversely affected by the person's actions; (5) Whether the person was the subject of any previous administrative actions by the

superintendent; (6) The number of individuals adversely affected by the person's acts or omissions; (7) Whether the person voluntarily reported the violation, and the extent of the person's

cooperation and acceptance of responsibility; (8) Whether the person obstructed or impeded, or attempted to obstruct or impede, the

superintendent's investigation; (9) The person's efforts to conceal the misconduct; (10) Remedial efforts to prevent future violations; (11) If the person was convicted of a criminal offense, the nature of the offense, whether

the conviction was based on acts or omissions taken under any professional license,

whether the offense involved the breach of a fiduciary duty, the amount of time that

has passed, and the person's activities subsequent to the conviction; (12) Such other factors as the superintendent determines to be appropriate under the circumstances. (G)(1) A violation described in division (B)(1), (2), (3), (4), (5), (6), (7), (8), (9),

(10), (11), (12), (13), (14), (16), (17), (18), (19), (20), (22), (23), (24), (25),

(26), (27), (28), (29), (30), (31), (32), (33), (34), (35), or (36) of this section

is a class A offense for which the superintendent may impose any penalty set forth

in division (E) of this section. (2) A violation described in division (B)(15) or (21) of this section, or a failure to

comply with section 3905.061 , 3905.071 , or 3905.22 of the Revised Code , is a class B offense for which the superintendent may impose any penalty set forth

in division (E)(1), (2), (8), or (9) of this section. (3) If the superintendent determines that a violation described in division (B)(36) of

this section has occurred, the superintendent shall impose a minimum of a two-year

suspension on all of the person's licenses for all lines of insurance. (H) If a violation described in this section has caused, is causing, or is about to cause

substantial and material harm, the superintendent may issue an order requiring that

person to cease and desist from engaging in the violation.  Notice of the order shall be mailed by certified mail, return receipt requested,

or served in any other manner provided for in this section, immediately after its

issuance to the person subject to the order and to all persons known to be involved

in the violation.  The superintendent may thereafter publicize or otherwise make known to all interested

parties that the order has been issued. The notice shall specify the particular act, omission, practice, or transaction that

is subject to the cease-and-desist order and shall set a date, not more than fifteen

days after the date of the order, for a hearing on the continuation or revocation

of the order.  The person shall comply with the order immediately upon receipt of notice of the

order. The superintendent may, upon the application of a party and for good cause shown,

continue the hearing.  Chapter 119. of the Revised Code applies to such hearings to the extent that that

chapter does not conflict with the procedures set forth in this section.  The superintendent shall, within fifteen days after objections are submitted to

the hearing officer's report and recommendation, issue a final order either confirming

or revoking the cease-and-desist order.  The final order may be appealed as provided under section 119.12 of the Revised Code . The remedy under this division is cumulative and concurrent with the other remedies

available under this section. (I) If the superintendent has reasonable cause to believe that an order issued under

this section has been violated in whole or in part, the superintendent may request

the attorney general to commence and prosecute any appropriate action or proceeding

in the name of the state against such person. The court may, in an action brought pursuant to this division, impose any of the following: (1) For each violation, a civil penalty of not more than twenty-five thousand dollars; (2) Injunctive relief; (3) Restitution; (4) Any other appropriate relief. (J) With respect to a surety bail bond agent license: (1) Upon the suspension or revocation of a license, or the eligibility of a surety bail

bond agent to hold a license, the superintendent likewise may suspend or revoke the

license or eligibility of any surety bail bond agent who is employed by or associated

with that agent and who knowingly was a party to the act that resulted in the suspension

or revocation. (2) The superintendent may revoke a license as a surety bail bond agent if the licensee

is adjudged bankrupt. (K) Nothing in this section shall be construed to create or imply a private cause of

action against an agent or insurer.