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Ohio Laws and Rules
(A) No licensee shall transact or solicit business under sections 1321.71 to 1321.84 of the Revised Code under any other name than that set forth on its license.
(B) Licenses issued under sections 1321.71 to 1321.84 of the Revised Code are not transferable and not assignable.
(C) At least thirty days prior to the effective date of an address change, each licensee shall notify the division of financial institutions of a change in the address shown on its license by filing an approved relocation application with the division. A new license must be obtained prior to conducting business at the new location. If the licensee is relocating its place of business to a location outside the municipal corporation in which it is currently located, the licensee must also file a license application fee.
HISTORY: Eff 12-1-79; 7-10-95; Replaces: 1301:8-4-02, eff. 6-3-04
Rule promulgated under: RC 119.03
Rule authorized by: RC 1321.77
Rule amplifies: RC 1321.74
RC 119.032 Review Date: 5-24-09
(A) In connection with division (C) of section 1321.74 of the Revised Code, no licensee may establish or maintain a branch office for purposes of keeping records or accepting payments without first obtaining a license from the division of financial institutions.
(B) An application for approval of such a branch office shall state the proposed location, the function to be performed there and such other information which the division may require, and shall be accompanied by a license fee and, if required by the division, an investigation fee of two hundred dollars.
(C) If the division finds that the branch application is in compliance with the provisions of sections 1321.71 to 1321.84 of the Revised Code, a license shall be issued.
HISTORY: Eff. 7-10-95; 6-3-04
Rule promulgated under: RC 119.03
Rule authorized by: RC 1321.77
Rule amplifies: RC 1321.74
R.C. 119.032 review dates: 03/19/2004 and 05/24/2009
(A) As used in sections 1321.73 and 1321.74 of the Revised Code, “net worth” shall mean the difference between total assets and total indebtedness, as determined by generally accepted accounting principles, but shall not include furniture, fixtures and equipment, real estate or intangibles.
(B) If the division of financial institutions determines that the net worth of a licensee or an applicant, as provided by section 1321.73 or 1321.74 of the Revised Code, is deficient or inflated, the division may be written notice require an audited financial statement by an independent licensed, certified accountant, the cost of which shall be paid by the licensee or applicant.
HISTORY: Eff. 7-10-95; 6-3-04
Rule promulgated under: RC 119.03
Rule authorized by: RC 1321.77
Rule amplifies: RC 1321.73, 1321.74
R.C. 119.032 review dates: 03/19/2004 and 05/24/2009
(A) In connection with section 1321.76 of the Revised Code, each licensee shall maintain required records for all premium finance agreements made pursuant to sections 1321.71 to 1321.83 of the Revised Code at either the licensed office or any other location approved in writing by the division of financial institutions.
(B) The following required records shall be maintained up-to-date and shall be available at all times for review by the division:
(1) A copy of each premium finance agreement entered into by the licensee which shall be kept in one file by consecutive account number or contract number and maintained for at least two years from the effective date of the insurance policy.
(2) A ledger record or payment history shall be kept for each open, canceled and prepaid premium finance agreement for at least two years from the final entry. The ledger record or payment history shall disclose the following information:
(a) Account or contract number;
(b) Insured’s name and address;
(c) Type and effective date of insurance policy;
(d) Date finance charges begin to accrue;
(e) Finance charge rate;
(f) Federal annual percentage rate;
(g) Acquisition charge;
(h) Amount financed;
(i) Dollar amount of finance charge;
(j) Total of payments;
(k) Terms of repayment;
(l) Default charge;
(m) A chronological entry of all credits, debits, payments and charges received or assessed in connection with the premium finance agreement, recorded thereon in an identifiable manner, in order to show the actual date of receipt, assessment or disbursement and the running balance due on the account after each payment.
(3) All premium finance agreements, intent notices, cancellation notices, and other notices or documents given or used in connection with such agreements, shall be identified by the account or contract number.
(4) A daily cash receipt and disbursement record, which shall include the account or contract number and the name of the insureds, and shall document all transactions involving either the receipt or disbursement of money on the account of insureds, as well as the actual date of any such transaction.
(5) An alphabetical index of all insureds identified by account or contract number.
(C) Other methods of recording data, keeping records and keeping books, such as electronic or computerized methods, may be used in lieu of the methods described in this rule, provided written printouts or hard copies of the required data are readily available at each licensed location in a form approved, in advance, by the division.
HISTORY: Eff 12-1-79; 7-10-95; 6-3-04
Rule promulgated under: RC 119.03
Rule authorized by: RC 1321.77
Rule amplifies: RC 1321.76
R.C. 119.032 review dates: 03/19/2004 and 05/24/2009
(A) Any advertising for business subject to sections 1321.71 to 1321.84 Revised Code shall not be false, misleading or deceptive.
(B) In connection with section 1321.76 of the Revised Code, every licensee shall maintain in each licensed office or in a central location, approved by the division of financial institutions, a scrapbook or file of all newspaper, magazine, direct mailing, and roadside advertising, and scripts of radio and television commercials, for a period of one year from the date disseminated. Such scrapbook or other file shall be readily available for inspection by the division at all times. Every licensee shall notify the division in writing of the location of the scrapbook or file.
HISTORY: Eff. 7-10-95; 6-3-04
Rule promulgated under: RC 119.03
Rule authorized by: RC 1321.77
Rule amplifies: RC 1321.76
R.C. 119.032 review dates: 03/19/2004 and 05/24/2009
All books, records, data and documents required to be kept by a licensee shall be maintained at the licensed location.
HISTORY: Eff. 7-10-95; Replaces: 1301:8-4-07, eff. 6-3-04
Rule promulgated under: RC 119.03
Rule authorized by: RC 1321.77
Rule amplifies: RC 1321.76
R.C. 119.032 review dates: 05/24/2009
In connection with division (C) of section 1321.80 of the Revised Code, the licensee shall maintain for one year a copy of due bills, receipts, invoices or other evidence relating to any check collection charge in excess of ten dollars paid by or on behalf of the insured to or through the licensee for any dishonored check, negotiable order of withdrawal, share draft or any other negotiable instrument.
HISTORY: Eff. 7-10-95; 6-3-04
Rule promulgated under: RC 119.03
Rule authorized by: RC 1321.77
Rule amplifies: RC 1321.80
R.C. 119.032 review dates: 03/19/2004 and 05/24/2009
“Finance charge” as used in sections 1321.71 to 1321.84 of the Revised Code means the finance charge rate authorized in such sections, and shall not have the meaning set forth for that term in the federal reserve board regulation Z on truth in lending, 12 CFR 226.4.
HISTORY: Eff. 7-10-95; 6-3-04
Rule promulgated under: RC 119.03
Rule authorized by: RC 1321.77
Rule amplifies: RC 1321.79
R.C. 119.032 review dates: 03/19/2004 and 05/24/2009
(A) For purposes of sections 1321.71 to 1321.84 of the Revised Code, “date of cancellation” shall mean the date specified in the notice of cancellation mailed by the licensee to the insurer.
(B) A cancellation charge may be assessed on or after the date of cancellation.
(C) In the event of reinstatement of a canceled insurance policy, a cancellation charge may be assessed each additional occasion that a notice of cancellation is mailed by the licensee to the insurer.
HISTORY: Eff. 7-10-95; 6-3-04
Rule promulgated under: RC 119.03
Rule authorized by: RC 1321.77
Rule amplifies: RC 1321.80
R.C. 119.032 review dates: 03/19/2004 and 05/24/2009
Division (D) of section 1321.79 of the Revised Code need not apply to any insurance policy described in the premium finance agreement that is for other than personal, family or household purposes.
R.C. 119.032 review dates: 02/23/2004 and 11/15/2008
Promulgated Under: 119.03
Statutory Authority: 1321.77
Rule Amplifies: 1321.79
Prior Effective Dates: 7-20-95