Ohio Life Insurance pt2
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In carrying out his or her duties, the Superintendent has the power to
- regulate the rates and services of every insurer and set reasonable standards and practices for insurers to follow when doing business in the state;
- enforce the insurance laws;
- issue rules and regulations to administer the insurance laws;
- conduct examinations;
- and issue licenses to individuals and insurers
If the Superintendent believes that a person has engaged in an unfair or illegal act relating to insurance, he or she may
- request the attorney general to bring an action for a declaratory judgment regarding the matter at issue
- ; or initiate criminal proceedings by presenting evidence concerning the offense to the prosecuting attorney.
The Department will notify the insurer of the examination findings and give it up to
30days to respond
Cease and Desist Orders
- state the particular act, practice, or transaction that is subject to the cease and desist order
- ; and set a date for a hearing within 15 days of the order.
- any capital and surplus required by law
- the total par or stated value of its authorized and issued capital stock
Grounds for Disciplinary Action
rebating, misrepresentation, defamation, and unfair discrimination are unlawful practices that are grounds for license suspension, revocation, cancelation, or denial. The Insurance Code also lists other acts for which a license may be suspended or revoked, including violating an order of the Superintendent, converting money belonging to insurers, misrepresenting the terms of a policy, and being convicted of a felony, among others.
_________________is a person who is required to be licensed in Ohio in order to sell, solicit, or negotiate insurance. Such agents include limited lines insurance agents, surplus lines brokers, and individuals appointed by a health-insuring corporation to solicit or enroll subscribers or enrollees.
Producer (insurance agent)
To sell variable life insurance
a person must be an agent, hold the necessary licenses, and pass a written examination
A person who sells variable life insurance must immediately report the following to the Superintendent
- the suspension or revocation of an agent's license in another state or territory;
- any disciplinary sanction imposed by a national securities exchange or a federal, state, or territorial securities or variable life agency
- or a judgment or injunction entered against the agent because of fraud, deceit, misrepresentation, or violation of insurance or securities laws.
- may solicit insurance for a licensed and appointed agent who is responsible for signing and submitting the applications to the insurance company. The appointing agent is also responsible for a solicitor's misrepresentations and other wrongful conduct.
- When soliciting insurance, a solicitor must identify himself or herself as a representative of the agent rather than the insurer.
- is a licensed producer in good standing in his or her home state for the lines of authority requested in Ohio;
- applies for licensure and pays the required fees;
- provides the Superintendent with a certified copy of the license application from his or her home state or an original Uniform Application;
- has not committed any act that is grounds for license denial, suspension, or revocation;
- has a good reputation and character, is honest and trustworthy, and is otherwise suited to be licensed as an agent;
- and lives in a state that grants nonresident agent licenses to Ohio residents on the same basis.
A nonresident agent must report to the Department any changes of name, residential address, or business address within
30days of Change
To qualify for a license, an applicant must
- be at least 18 years of age; not have committed any act that is grounds for license denial, suspension, or revocation;
- complete a prelicensing education program;
- pay the required licensing fees;
- pass the state examination for the lines of authority for which the application is made;
- be registered with the Financial Industry Regulatory Authority (FINRA) as a registered representative if applying for a variable life or variable annuity line of authority;
- pass a criminal records check, if required;
- be a U.S. citizen or legally authorized to work in the United States;
- and have a good reputation and character, be honest and trustworthy, and be otherwise suited to be licensed.
An insurance agency may also be licensed if it
- is domiciled in Ohio or maintains its principal place of business in the state;
- appoints a person to be responsible for the business's compliance with state insurance laws;
- and has not committed an act that is grounds for license denial, suspension, or revocation.
The Superintendent will issue a license in one or more of the following lines of authority to individuals who meet the licensing requirements:
- life accident and health
- property casualty
- variable life and variable annuity products
- personal lines
- surety bail bond
- any other line of insurance permitted under state law
A person applying for a resident insurance agent license must complete 20 hours of prelicensing education in each of the following areas:
- life, variable life, and variable annuity products
- accident and health
- property casualty
- personal lines
- surety bail bonds
A person is exempt from the prelicensing education requirements if the individual
- has a bachelor's or associate's degree in insurance;
- has earned the professional designation of Chartered Property and Casualty Underwriter (CPCU);
- or has earned the professional designation of Chartered Life Underwriter (CLU).
An insurer can appoint______number of agents to transact insurance business on its behalf.
An agent's appointment is renewed automatically on_________each year unless the insurer terminates the appointment earlier.
An insurer must notify the Superintendent within_____days of terminating an agent's appointment.
- An agent's license is valid for two years unless it is revoked or suspended. To continue a license, the agent must renew the license by the last day of the agent's birth month;
- satisfy the continuing education requirements;
and submit a renewal application and pay the required fee.
A company's certificate of authority must be renewed by
June 30 each year
Every insurance agent licensed in Ohio is required to complete at least
- 24 hours every two years
- three hours must be in ethics training
Change of Address or Name
30 days to notify
After a hearing, the Superintendent can issue
- cease and desist,
- impose a fine,
- suspend or revoke a license,
- or any combination of these measures.
Transacting insurance without a license is considered a___________________
first degree misdemeanor
Insurers and agents cannot pay or offer anything of value to induce someone to buy insurance. The following cannot be offered as inducements for the purchase of an insurance policy or annuity contract:
It is unlawful to make statements or comparisons that misrepresent
- a policy's terms,
An insurer may not unfairly discriminate among policyholders by
- charging different premiums
- offering different terms of coverage.
___________ cannot pay anything of value to induce someone to buy insurance, including a rebate on the premium
Insurers and agents
Insurers and agents also cannot make a false or misleading statement or comparison about an insurance policy to induce someone to lapse, surrender, terminate, retain, or convert an insurance policy or to buy a policy with another insurer. This unfair trade practice is known as__________________
_____________is the publish or circulate a false, deceptive, or misleading statement about—or a statement that is maliciously critical of or derogatory to—the financial condition of an insurer when such a statement is designed to injure anyone in the insurance business.
Defamation; False or Malicious Statements
_______________occurs when persons of the same class, different gender and different race or handicap with substantially equal risk are charged different premiums, fees, or other charges or when different benefits are paid to these persons.
An agent must refund premiums and other funds to a policyholder in a timely manner. An agent will have acted in a timely manner if he or she refunds a premium
30 days after the policyholder, applicant, or insurer requests an action resulting in a refund;
30 days after the date of the insurer's refund check if the agent is expected to issue part of the refund
45 days after the date of the agent's statement of account on which the refund first appears.
A life insurance policy may not be backdated more than three months before the date of the original application if, as a result, the insured would rate at an age lower than his or her age at the date of the application.
An Insurance Guaranty Association is a nonprofit legal entity created by state statute to protect
those insured by insurers who fail to perform contractual obligations due to their impairment or insolvency, up to certain specified limits.
- submit an insurance application or claim that is fraudulent or deceptive;
- help another person present a fraudulent claim or application
Anyone violating this prohibition is guilty of insurance fraud, which is a first degree misdemeanor. However, a person will be guilty of
- a fifth degree felony if the claim is more than $500 but less than $5,000;
- a fourth degree felony if the claim is more than $5,000 but less than $100,000;
- and a third degree felony if the claim is $100,000 or more.
It is unlawful for an insurer or agent to insure the following:
- a person without the person's knowledge or consent
- a fictitious persona
- person over 65 or under 15 years
- old a sickly or infirm person
- transfer or conceal property belonging to an insurer;
- conceal, destroy, alter, or make a false entry in a document relating to an insurer's property;
- withhold documents relating to an insurer's property from a receiver, trustee, or other officer of a court entitled to their possession;
- or give or receive anything of value for acting or not acting in a judicial proceeding if the act contributes to an insurer's impairment or insolvency.
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