Insurance Regulation

Revocation---page 11

Permanent termination of all authority to hold any license as a agent in this state.

Reasons for revocation, suspension, or refusal to issue/renew---page 11-13

-Providing incorrect, misleading, incomplete or materially untrue information -Violating or failing to comply with any ins. law, rule, subpoena, consent agreement or order of the Superintendent or of the ins. authority of another state -Obtaining or attempting to obtain a license through misrepresentation or fraud -Improperly withholding, misappropriating, or converting any money or property received in the course of doing ins. business -Intentionally misrepresenting the terms, benefits, value, cost or effective dates of any actual or proposed ins. contract of application for ins. -Having been convicted of or pleaded guilty or no contest to a felony -Having been convicted of or pleaded guilty or no contest to a misdemeanor that involves the misuse or theft of money or property belonging another. -Having admitted to committing or found to have committed unfair trade act or practice -Using fraudulent, coercive, or dishonest practices, incompetence, untrustworthiness or financial irresponsibility -Having license denied, suspended or revoked in any other state -Forging or causing the forgery of an application -Improperly using notes or other reference material to complete examination -Knowingly accept ins. business from individual not licensed -Failing to comply with administrative/court order directing payment of state income tax -Failing to submit an application for ins. within the time period -Failing to disclose to an applicant the agent has not been appointed by an insurer -Having any professional license suspended or revoked for mishandling of funds, breach of fiduciary responsibilities or having been subject to a cease and desist order or permanent injunction for unlicensed activities. -Causing or permitting a policyholder/applicant to designate the agent/family member as beneficiary -Failing to providing a written response to the Dept. of Ins. with 21 calendar days after receipt of any written inquiry from the Dept. -Transferring or placing ins. with an insurer other than the insurer expressively chosen by the applicant -Failing to inform a policyholder/applicant the identity of the insurer -Business entity failing to report an individual licensee's violation to the Dept. with violation was known -Submitting or using a document in the conduct of ins. business when the person knew or should have known the document contained the forged signature of another person. -Misrepresenting the person's qualifications in any way for professional designation that has not been conferred -Obtaining a premium loan or causing a premium loan to be made to or in the name of the insured w/o that person's knowledge or written authorization -Using paper, software, or other materials of an insurer after the insurer has been terminated -Soliciting, procuring an application for or placing directly/indirectly any policy when the person is not authorized -Soliciting, marketing or selling any product or service that offers benefits similar to ins. not regulated -Failing to fulfil a refund obligation -Using a license for purpose of procuring, receiving or forwarding applicants for ins. of any kind other than life -Offering, selling, soliciting or negotiating policies, contracts, agreements or applications for ins. or annuities for or on behalf of any insurer or multiple employer welfare arrangement NOT authorized to transact business in this state

Obtaining a License---page 6

Meet requirements of education/examination, age and residency, good character, pay application and fees

Unfair Discrimination---page 17

-Discrimination of Rates, premiums, or policy benefits for persons within the SAME class or with the same life expectancy is illegal. -Can't be made on the basis of marital status, race, national origin, gender identity, sexual orientation, creed or ancestry unless the distinction is made for a business purpose or required by law.

Solvency---page 7

Superintendent and Dept. of Ins. are charged with monitoring the financial strength and integrity of insurers authorized to conduct business in Ohio -To determine whether the continued operation of any insurer might be financially hazardous to policyholders, creditors or the public in general. -An insurer is considered INSOLVENT, for a period of 3 years, the insurer is unable to pay its obligations when due, or has fewer assets than liabilities, plus any required capital contributions ordered by the Superintendent.

Dept. of Ins. Regulations: Number, Dollars, Days, and Dates---page 22-23

-3 years - examine domestic insurers -15 days - to hold hearings after issuing a cease and desist order

False Advertising---page 16

-Advertisements can't include any untrue, deceptive, or misleading statements that apply to the business of ins. -False or deceptive advertising specifically includes misrepresenting

Agent Regulation-Appointment---page 10

-An agent/producer CAN'T legally act as an agent of an insurer unless he/she become an appointed agent of that insurer. -If an agent's license is canceled, all appointments are VOID. -Agent can reapply as a new agent

Non-resident Agent---page 2

-An individual or business entity currently licensed as a result producer in another state, may apply to the Dept. for a non-resident producer license, for line of authority equivalent to their existing license.

1033 Waiver---page 21

-Federal law makes it illegal for any individual convicted of a crime involving dishonesty, breach of trust or a violation of the Violence Crime Control and Law Enforcement Act of 1994 to work in the business of ins. affecting interstate commerce without receiving written consent from an ins. regulatory official (Director of Ins. or Commissioner of Ins.) a 1033 Waiver. -Anyone convicted of a felony involving dishonesty or breach of trust, who also engages in the business of ins. will be fined, imprisoned up to 5 years or both.

Unfair Insurance Trade Practices---page 15-16

-Knowingly commit an unfair method of competition or to engage in such actions with enough frequency that the commission of unfair marketing practices indicates a general business practice -The Dept. of Ins. may issue an order requiring the person to cease and desist from engaging in the method of competition, act or practice and/or impose penalties for violation of ins. laws

Disciplinary Actions---page 11

License Suspension, Revocation, or Refusal to Issue or Renew

Confidentiality of Records---page 19

-All records and information obtained by the Superintendent of Ins. or any employee or designee related to an investigation of an applicant for licensure or of an agent, broker, or other licensed person are XXXXXX and NOT public records. -The Superintendent may share the records with appropriate local, state, federal and international regulatory and law enforcement agencies if in connection with actual or potential criminal proceedings.

Incorporated Company---page 8

-Before a company can be incorporated as an insurer, it must escrow with a bank or trust company a sum sufficient to meet a minimum of $100,000 paid-in capital, and $150,000 contributed surplus. -The Superintendent will issue a certificate of authority conditioned upon the company obtaining, prior to transacting business, capital and surplus in the aggregate amt. of at least $2,500,000, including paid-in capital of at least $1 million, and contributed surplus of at least $1 million.

Temporary License to individuals under special circumstances---page 2

1. In case of death/disability of a licensed agent, to the surviving spouse, a court-appointed personal representative or a member of a business entity 2. In case of a licensed agent's entering active US Military service, to a designee 3. To any other person when the public interest would be best served by issuing such a license.

Fraudulent ins. Act.---page 18

An act committed by a person who knowingly and with intent to defraud -Prepares an ins. application that contains materially false information -Conceals any material fact for the purpose of misleading the insurer -Prepares or submits any claim that contains false information

Disclosure Authorization Form---page 19

Disclosure forms must be written in plain language, must be dated, and must specify this information -The types of persons authorized to disclose information about the individual.

Twisting---page 17

Is a misrepresentation, or incomplete or fraudulent comparison of ins. policies that persuades an insured/owner to his/her detriment, to cancel, lapse, switch policies or take out a policy with another insurer.

Temporary License---page 2

The Superintendent may issue a _______________________ agent license for a maximum period of 180 days, w/o requiring an examination. The purpose of a temporary license is to allow adequate time to sell the business, for the licensee to recover, or to provide for treating of new personnel to carry on the business.

State Regulation The Ohio Insurance Dept. is headed by ---page 6

The Superintendent of insurance who is the CFO and Director of the Dept. of Ins. -Empowered to make and enforce rules and regulations that implement the ins. laws of Ohio.

Inducement regulations NOT prohibited---page 17

-Paying bonuses to policyholders or otherwise abating their premiums out of surplus accumulated from nonparticipating ins. -Making allowance to policyholders who have continuously made premium payments directly to an office of the insurer in an amt. that fairly represents the saving in collection expenses -Readjusting the rate of premium for a group ins. policy based on the loss or expense experience.

Federal Regulations---page 19-20

1. Fair Credit Reporting Act 2. Fraud and False Statements 3. Do Not Call Registry

Change in Address--page 5

-Licensed agent must notify the Superintendent within 30 days of any change in residential or business address or phone number. -If a licensed person changes the state of residence, the person also has 30 days to file a change of address with the Superintendent and provide certification from the new state of residence. -If agent complies with requirements, the license will be changed to that of a nonresident license W/O any fees or license applications.

Consumer Information/Can't charge Fees---page 10

Agents can't charge fees for taking or submitting an initial application for coverage with any one insurer, or for processing a change to an existing policy, a claim, renewal or a cancellation in connection with individual life or health ins. disability income policies, credit ins. products, private passenger automobile, homeowners or dwelling ins. or other personal lines policies.

Continuing Education---page 4

CE rules at established to protect the public by maintaining high standards of professional competence in the insurance industry and to maintain and improve the insurance skills and knowledge of licensed agents. -Complete 24 hrs of approved CE, including at least 3 hrs. of ethics training, every 2 years by the last day of the agent's birth month. -Credit hrs CAN'T be carried over from one renewal cycle to the next.

Cease and Desist Orders---page 13

The Superintendent has the power to issue an other that requires a person to cease and desist from an activity. -The order must specify the act or practice that is subject to the order. -Immediately after issuing the order, the Superintendent must send the notice of the order to the person(s) covered by the order by (certified mail, return receipt requested), requiring to stop the activity in violation immediately upon receipt of the notice. -The notice must set a date for a hearing within 15 days of the order -The Superintendent will issue a final order continuing or revoking the cease and desist order within 15 days after receiving objections to the hearing officer's report. -The Superintendent's final order is appealable

Commissions and Compensation---page 10

-NO ins. company/agent may PAY a commission, service fee, or other valuable consideration to a person for selling, soliciting or negotiating insurance in this state if that person is not properly licensed. -NO one may ACCEPT a commission, service fee, or other valuable consideration for selling, soliciting or negotiating -Renewal or other deferred commissions may be paid to a person for selling, soliciting or negotiating ins. in this state if the person was properly licensed at the time of the transaction.

Agents Exempt from CE requirements---page 4

-have been granted inactive status -hold only a limited lines license -Hold only a titled ins. license (provided they complete at least 12 CE during each renewal period) -Hold only a resident surety bail bond license (provided they complete at least 7 CE credits during each renewal period)

Licensing and Appointment Requirements: Number, Dollars, Days, and Dates---page 22-23

18 - Age to apply for license 20 hours - Required prelicensing education for each line of authority 180 days - Period of temporary license 12 months - Time period for license reinstatement after a lapse 30 days - To file a notice of agent's appointment with the Superintendent 30 days - To notify Superintendent of appointment termination 15 days - To send copy of notification to agent 30 days - For agent to file written comments concerning notification of appointment termination 24 hours - CE required every 2 years 3 hours - CE credits required in ethics

Unknowingly violates the Fair Credit Reporting Act---page 20

-An individual who violates the Act is liable in the amt. equal to the loss to the consumer, as well as any reasonable attorney fees incurred in the process

Personal information can be disclosed to---page 18

-With the individual's written authorization -To a person other than an ins. institution, provided such disclosure is reasonably necessary to enable that person to perform a professional function or to determine the individual's eligibility for an ins. benefit -To an insurer, agent, ins. support organization or self-insurer, provided the information disclosed is limited to what is reasonably necessary to detect or prevent criminal activity, fraud, misrepresentation, or nondisclosure in connection with ins. transactions -To a medical care institution or medical professional for the purpose of verifying coverage or benefits, informing an individual of a medical problem or conducting an audit -To a law enforcement or other governmental authority, or as otherwise permitted or required by law

Consumer Information/Allowed to charge Fees---page 11

Agents are allowed to charge a consumer a fee in connection with policies issued on a NO-COMMISION basis or for any other policies not specifically excluded by the Ins. Code.

Certificate of Authority application process---page 7

The company must file with the Superintendent its articles of incorporation, copy of the approval of the Attorney General and a copy of its bylaws or constitution. -If the company complies with the law, provides evidence of its ability to meet financial obligations, the Superintendent will renew the certificate of authority annually.

Refusal to issue or renew (denial)---page 11

The decision of the Superintendent of ins. NOT to process either the initial application for a license as an agent or the renewal of such license.

Penalties for Violations---page 14-15

Violating any regulations of the Ins. Code the Superintendent will do: -Assess civil penalty NOT exceed $25,000 per violation -Assess administrative costs to cover the investigation/hearing expenses -Suspend all person's licenses for either a specified or indefinite period of time -Refuse to issue/renew a license -Permanently revoke all licenses -Prohibit the person from being employed in any capacity in ins, business, having any financial interest in ins. agency, company or 3rd party administrator -Order corrective actions in addition to other penalties listed -Accept a surrender for cause offered by the license, which will be for at least 5 years and prohibit the licensee from seeking any license authorized during that time period. -Each violation of the cease and desist order will be subject to a civil penalty of NOT more than $10,000

Examination of Books and Records---page 6

The Superintendent regulates ins. company authorized to do business in this state. The purpose of examination of insurer's books/records is to ensure that the companies remain solvent and conduct business in compliance with state laws and regulations pertaining to licensing, policy forms, rates, claims, and market conduct. -The Superintendent may examine any insurer as frequently as deemed necessary. -Domestic insurer's must be examined at least once every 3 years. -The examination may be deferred for a longer period that CAN'T exceed 5 years. -The examination expenses must be paid by the INSURER

Maintaining a License---page 6

The agent must complete CE every 2 years, pay renewal fees, current name and address and reinstatement within 12 months.

Prohibited Information---page 21

-Consumer reports CAN'T contain certain types of information if the report is requested in connection with a life ins. policy or credit transaction of less than $150,000. -This includes bankruptcies more than 10 yrs old, civil suits, records of arrest or convictions of crimes, or any other negative information that is more than 7 yrs old. -Negative information includes consumer's delinquencies, late payments, insolvency or any other form of default.

NAIC or affiliates/subsidiaries---page 2

To determine an applicant's licensure and standing status in another state, the Superintendent may utilize the PRODUCER DATABASE which is maintained by ________________.

Consent Agreement---page 15

-A person who is accused of violating the statutes of the Ins. Code may enter into a consent agreement. -The accused DOES NOT admit or deny the charges, but agrees to pay a fine. -Modifications made by the Superintendent may modify the agreement 5 years after the administrative action took place if the person meets certain conditions

Superintendent duties---page 6

-Adopting, amending and rescinding rules -Conducting investigations regarding violations of the ins. laws -Conducting examination of insurers to ensure solvency -Enforcing and administering laws regarding the licensing of agents -Approving policies and rates -Imposing penalties for violations of ins. laws

Inducements include---page 17

-Any special favor or advantage in dividends or benefits -Any stocks, bonds, securities or accrued dividends or profits -Anything of value not specified in the ins. contract EXAMPLE: A promotional or advertising item or meal with a fair market value of $50 or less is NOT considered a valuable consideration when given to induce a person to obtain a policy quote or general ins. information and is NOT tied to the purchase of an ins. policy.

Telemarketing MUST NOT DO sales rules---page 22

-Call any number on the registry or list -Deny someone a right to be placed on any list -Call outside permissible calling hours (before 8am and after 9pm) -Abandon calls -Fail to transmit call ID information -Threaten or intimidate a consumer or use obscene language -Cause any telephone to ring or engage in a person in conversation with the intent to annoy, abuse, or harass the person called.

Company Regulation Certificate of Authority---page 7

Before an ins. company can legally transact business in this state, it must first obtain a certificate of authority from the Dept. of Ins. This certificate indicates that the Superintendent of Ins. has examined the business and found it be financially stable and organized in accordance with Ins. Code.

Insurance Information Privacy---page 18

Insurance companies and agents CAN'T disclose personal information about individuals received in connection with ins. transactions, unless the disclosure is made:

Premium Refunds---page 17-18

Premiums owed to a policyholder/applicant must be refunded in a timely manner, specifically within these time periods -30 days after date of PH/applicant or insurer takes or requests action resulting in a refund -30 days after the date of the insurer's refund check, if the agent is expected to issue a portion of the total refund -45 days after the date of the agent's statement of account on which the refund first appears

Ohio Ins. Code ---page 9

The Ohio Ins. Code protects consumers in the area of claim settlement by prohibiting certain practices that are deemed unfair and/or deceptive if committed by an ins. company frequently enough to be considered general business practices.

Examination of Books and Records for foreign/alien insurers---page 6

The Superintendent may accept an examination report by the ins. supervisory official in the insurer's domicile or state of entry

Suspension---page 11

The termination of ALL authority to hold any license as an agent in this state, for either a specified or indefinite period of tie and under any terms or condition determined by the Superintendent.

Claim Data---page 10

Insurers are required to maintain claim data for at least 3 years after the claim was closed or until the next financial examination by the Dept. whichever is later.

Penalties and charges for violations of various state laws and regulations---page 14

-$25 to $500, imprisonment up to 6 months or both for selling shares of capital stock in a life ins. company for which an agent is appointed to see ins. -$25 to $500, imprisonment for up to 1 year or both for selling surplus lines ins. w/o being licensed as a surplus broker -$100 to $500 for failing to properly report dealings with unauthorized foreign insurers or for creating unlawful advertisements -Misdemeanor of the first degree for selling ins. without a license.

Duty to Report Convictions and Disciplinary Actions in Other States---page 5

-Agent must notify the Superintendent of any administrative action taken against the agent in another jurisdiction/or another governmental agency having profession, occupational, or financial licensing authority W/IN 30 days after the final disposition of the matter. -The notice must include a copy of the order, consent to order, or any other relevant legal document. -Agents must also provide notice of any criminal prosecution by any jurisdiction (other than misdemeanor traffic) W/IN 30 days after initial appearance before a judge/magistrate. The notice must include a certified copy of the charging document. -Within 30 days after the disposition of the criminal prosecution, the agent must provide the Superintendent a certified copy of the court's entry or order that reflects the final disposition of the prosecution, in addition to any other relevant legal document.

Willfully violates the Fair Credit Reporting Act---page 20

-An individual who violates the Act enough to constitute a general pattern or business practice will be subject to a penalty of up to $2,500.

Assumed Names---page 5

-An ins. agent that intends to do business in Ohio under any name other than their legal name must notify the Superintendent prior to using the assumed name. -However, a license will only be issued in the legal name of the applicant. -Commissions will ONLY be paid in the legal name of a licensee.

Rebating---page 16

-Any inducement offered to the insured in the sale of ins. products that is not specified in the policy. -Both the offer and acceptance of a rebate are illegal.

Licensing ---page 1

-Insurance professionals must be properly licensed for a specific line of authority in order to transact ins. -The purpose of licensing is to ensure that the producer meets educational and ethical standards required to fulfill producer's responsibilities to the insurer and to the public.

Fraud and False Statements---page 21

-It is considered unlawful ins. fraud for any person engaged in the business of ins. to willfully, and with the intent to deceive, make any oral or written statement that are either false or omit material facts. -Anyone engaged in this business of ins. whose activities affect interstate commerce, and who knowingly makes false material statements may be fined, imprisoned for up to 10 years or both -If the activity jeopardized the security of the accompanied insurer, the punishment can be up to 15 yrs in prison. -Anyone acting as a officer, director, or agent or other ins. employee who is convicted of embezzling funds faces the aforementioned fines and imprisonment. However, embezzlement was in an amt. less than $5,000, prison time may be reduced to 1 year.

Types of licensing and requirements---page 1

-Life-coverage on human lives -Accident/health coverage for sickness, bodily injury or accidental death and disability -Variable life and variable annuities coverage under variable life and or variable annuities -Property coverage for the direct and consequential loss or damage to property of every kind. -Casualty coverage against legal liability -Personal lines non-commercial property/casualty coverage -Credit debt insurance limited line -Title coverage against loss or damage due to liens against, encumbrances upon, defects in, or unmarketability of real property -Surety bail bone -Portable electronics insurance limited line -Any other type of insurance as determined by the Superintendent.

Section 1034, Civil Penalties and Injunctions for Violations of Section 1033---page 21

-The Attorney General may bring a CIVIAL ACTION in the appropriate US district court against any person who engages in conduct that is in violation of Section 1033 of not more than $50,000 for each violation, or the amt. of compensation the person received as a result of the prohibited conduct, whichever is greater.

Non-resident Agent requirements---page 2

1. Currently licensed as a resident in good standing in applicant's home state 2. Licensed in the home state for the same limes of authority as requested in this state 3. Has submitted the request for licensure prescribed by the Superintendent 4. Has not committed any act that is ground for denial, suspension or revocation of a license 5. Is of good reputation and character, honest and trustworthy and suitable of a license 6. Is licensed in a state that issues non-resident ins. agent license to residents of this state on the same basis (reciprocity) 7. If a business entity, has designated a resent agent to be responsible for the applicant's compliance with the state's ins. laws 8. Has submitted any other documents requested by the Superintendent. 9. A non-resident license must be renewed BIENNIALLY by the last day of the licensee's birth month. 10. A nonresident business entity must apply for renewal biennially on the date established by the Superintendent.

Miscellaneous Producer Regulations: Number, Dollars, Days, and Dates---page 23

30 days - To report change of address 30 days - To report administrative actions or criminal prosecution 5 years - Agents CAN'T seek a new license after surrendering previous existing license

Insurance Fraud---page 18

A misdemeanor of the first degree -If the amt. of the false or deceptive claim is between $1,000 and $7,500 the fraud is a felony of the 5th degree -If the amt. is $7,500 and $150,000 it is a felony of the 4th degree. -If the amt. is $150,000 or more it is a felony of the 3rd degree

Insurance Fraud con't.---page 18

Any person who provides or receives information about possible ins. fraud CAN'T be sued or held liable for any civil damages (such as libel, slander, or any other tort action from: any law enforcement official; Superintendent; Ins. Frauds Bureau; National Association of Ins. Commissioners or any person or organization established to detect and prevent fraudulent ins. acts.

Insurance Agent---page 1

Any person who, in order to sell, solicit, or negotiate ins. is required to be licensed under the laws of this state, including limited lines ins. agents and surplus line brokers.

Financial Requirements---page 7

To facilitate the Dept's surveillance of the financial condition of authorized insurers -Each insurer is required to submit to an annual audit of financial statements by an independent CPA -Must file an audit financial report and an annual statement with the Superintendent. -Insurers must also maintain a system of internal control over financial reporting -This regulation applies to ALL insurers who have direct premiums of more than $1 Million and who have more than 1,000 policyholders nationwide.

Defamation of Insurer---page 17

When an oral or written statement is made that is intended to injure a person engaged in the ins. business. -Also applies to statements that are maliciously critical of the financial condition of any person or a company

Investigative Consumer Reports---page 20

-Information is obtained through an investigation and interviews with associates, friends, and neighbors of the consumer. -These reports CAN'T be made unless the consumer is advised in writing about the report within 3 days of the date the report was requested. -Consumers must be advised that they have a right to request additional information concerning the report and the insurer has 5 days to provide the consumer with that information. -If a policy of ins. is declined or modified because of information contained in either a consumer or investigative report, the consumer must be advised and provided with the name and address of the reporting agency.

Conditions of the modified consent agreement---page 15

-Is in good business repute and is suitable to be an ins. agent -Has made restitution for all losses suffered by anyone as a result of the person's conduct -Has NOT been convicted of any felony or misdemeanor -The person's character has been rehabilitated

Policy forms and Rates---page 9

-The purpose of rate and form approval regulation is to promote the public welfare by regulating ins. rates in order to assure that they are NOT excessive, inadequate, or unfairly discriminatory. -Insurers are required to file with the Superintendent their schedules of premium rates, every policy form, endorsement, rider, and any revisions or modification. -Insurers may also satisfy the filing obligations by becoming a member of, or subscriber to a licensed rating bureau. -All rate filings are subject to a 30 day waiting period before they become effective.

To qualify for an Individual resident license in this state, an applicant must meet these requirements---page 3

-Be at least 18 yrs. old -Complete required prelicensing education for each line of authority applied for -Pass a licensing exam -Submit an application form -Pay any required fees -Pass a criminal records check and submit a full set of fingerprints -Be found trustworthy -Have NOT committed any act that is a ground for the denial, suspension, or revocation of a license.

Unfair Claims Settlement Practices---page 9

-Any misrepresentation of contract provisions related to policy benefits -Not acknowledging a notice of claim within 15 days -Not replying within 21 days to any claim inquiry from the Superintendent -Not investigating a claim within 21 days of the receipt of a notice of claim -Not providing a claimant with necessary information regarding statements of forms that may be needed to settle a claim within 15 days of receiving a notice of claim -Not settling a claim fairly and reasonably within the terms of the policy -Forcing claimants into litigation to settle a claim -Forcing a claimant to accept a settlement that is less than that which would have been awarded through arbitration -Attempting to settle a claim based on an application that was changed without the consent of the insured -Purposely delaying a claim payment without just cause -Not notifying a claimant regarding acceptance or rejection of a claim within 21 days of receipt of proof of loss -Refusing to settle a claim solely because the insured requested it without independently evaluating the insured's liability -Not adopting reasonable standards for processing communications from claimants -Not advising a claimant of the amt. of a claim's settlement -Not paying a claim within 5 days of final agreement to the settlement.

Maintenance and Duration of License Renewal/nonrenewal---page 3

Ins. agents in this state are required to renew their license biennially on or before the last day of the agent's birth month. -The licensees must submit an approved application; pay a renewal fee and complete continuing education requirement.

Agent Appointment Procedures---page 8

In order to represent an authorized ins. company as its agent, the licensee must be appointed by that ins. company. -To appoint an ins. agent, an insurer must file a notice of appointment with the Superintendent NO LATER than 30 days after the date the agency contract is executed or the first ins. application is submitted, whichever is earlier. -All individual/business entity agent appts. must be submitted to the Superintendent electronically (unless insurer appoints fewer than 25 agents) -Appointments renew automatically on July 1st of each year. -The insurer must pay a fee to the Superintendent for each agent appointment and annual renewal. -Before appointing a licensee, an insurer will certify to the Superintendent that the person is competent, financially responsible and suitable to represent the insurer. -While an appointment remains in force, an insurer is bound by the acts of the person named in the appointment within that person's actual and apparent authority as its agent.

Important Dollar Amounts: Number, Dollars, Days, and Dates---page 23

$25,000 - Civil penalty per violation of Ins. Code $25-$500 - Fine for acting w/o a license $100-$500 - Fine for failing to file proper fees, taxes or assessments $10,000 - Civil penalty for violating the Superintendent's cease and desist order

Qualifications---page 3

-Applicants for an agent license must complete 20 hours of prelicensing education in the line of authority for which the applicant is applying. -The certificate of prelicensing course completion is valid for 180 calendar days from the completion of the course.

A resident ins. agent license may be issued to a business entity if the Superintendent of Ins. finds that the applicant has met these requirements---page 3

-Either is domiciled in Ohio or maintains its principal place of business in this state -Has designated a licensed insurance agent who will be responsible for the entity's compliance with the ins. laws of this state -Has NOT committed any act that is ground for denial, suspension or revocation of a license.

Fair Credit Reporting Act---page 20

-Established procedures that consumer reporting agencies must follow in order to ensure that records are confidential, accurate, relevant, and properly used. -The law also protects consumers against the circulation of inaccurate or obsolete information -The acceptability of a risk is determined by checking the individual risk against many factors directly related to the risk's potential for loss -The underwriter may request additional information from an outside source. -Two categories are Consumer Reports and Investigative Consumer Reports. These can be used by someone with a legitimate business purpose, including ins. underwriting, employment screening and credit transactions

Exceptions to the Do Not Call Registry---page 22

-From or on behalf of organizations which have established a business relationship with the consumer (last 18 months from the date of a sale/transaction) -For which the consumer has given prior written permission -Not commercial or that do not include unsolicited advertisements -By or on behalf of tax-exempt non-profit organizations -To keep in compliance with the rules, organizations must consult the registry every 31 days. Any phone numbers on the registry must be dropped from the organization's call list

Superintendent may suspend, revoke, or refuse to issue/renew a license---page 5

-If the agent has been convicted of or pleaded guilty or no content (nolo contendere) to a felony or a misdemeanor that involves misuse or theft of money or property, forgery, fraud, dishonest acts, or moral turpitude (conduct that is contrary to community standards of justice, honesty or good morals) regardless of whether a judgement of conviction has been entered by the court.

Do Not Call Registry---page 22

-In 2003, the Federal Trade Commission (FTC) and the Federal Communications Commission (FCC) worked together to create the ________________, allowing consumers to include their phone numbers on the list. -Ins. companies need to comply with this regulation.

Consumer Reports---page 20

-Includes written and/or oral information regarding a consumer's credit, character, reputation, or habits collected by a reporting agency from employment records, credit reports and other public sources.

Rebates---page 16

-Rebates of premiums payable on the policy -Special favors or services -Advantages in the dividends or other benefits -Stocks, bonds, securities and their dividends or profits

Agents are allowed to charge fees if these conditions are met---page 11

-The fee is disclosed to the consumer and is identified separated from the premium -The fee is NOT calculated as a percentage of the premium -The fee is NOT refunded, waived or reduced in any manner by a commission earned for the policy -The amt. of the fee and the consumer's obligation to pay is not conditioned upon any future transaction, such as purchase, cancellation, lapse or nonrenewal of ins. -The agent discloses that the fee is charged by the agent, and not the insurer, that is NOT a state law requirement, and the fee is not refundable. -The consumer consents to the fee -The agent does not unfairly discriminate in charging the fee.

Termination of Appointment---page 8

-The insurer must notify the Superintendent within 30 days after the effective date of the termination. -Within 15 days of notifying the Superintendent, a copy of the notification must be mailed to the agent at his/her last known address -Agent then has 30 days after receiving the copy of notification to file any written comments concerning the notification with the Superintendent and a copy to the insurer.

Failure to comply with the Fair Credit Reporting Act---page 20

-The reporting agency and users of the information are subject to civil action for failure to comply with the provisions. -A person who knowingly and willfully obtains information on a consumer from a consumer reporting agency under false pretenses may also be fined and/or imprisoned for up to 2 years.

Surrender license---page 3-4

A licensed agent may surrender his or her license at ANY TIME, as long as the agent is NOT under an investigation by the Superintendent -When an agent's license is surrendered, suspended, revoked, canceled or inactivated, all agent's appointments ARE VOID. -Failure to renew a license the agent may be eligible for license reinstatement within 12 months following the renewal date. -The agent must meet the CE requirements, submit renewal application, pay late and renewal fees.

Hearings---page 14

Before the Superintendent takes an action against a person alleged to have violated the Ins. Code, the Superintendent will provide the person a notice and an opportunity for a hearing. -The notice must inform the aggrieved party of the right to request a hearing within 30 days of the time of mailing the notice. -Once a hearing is requested, the notice of the hearing will be served at the person's last known address by certified mail with return receipt at least 15 days prior to the hearing

Inactivity due to Military Service or Extenuating Circumstances---page 4

If an agent is unable to comply with the license renewal requirements due to military service, a long-term medical disability or another extenuating circumstance, the agent may request an extension of the renewal date. -To be eligible for an extension, the agent must submit a written request with supporting documentation to the Superintendent prior to the renewal date. -The Superintendent has the authority to waive the $100 renewal extension fee due to special circumstances.

Misrepresentation---page 16

It is illegal to issue, publish, or circulate any illustration or sales material that is false, misleading or deceptive as to policy benefits or terms, the payment of dividends, etc. also refers to oral statements

Illegal inducements---page 17

It is unlawful to pay, offer or accept an inducement to buy ins.