3901-5-01 Licensees.

(A) Purpose

The purpose of this rule is to establish continuing education (CE) requirements, standards and procedures for insurance agents.

(B) Authority

This rule is promulgated pursuant to the authority vested in the superintendent under sections 3901.041, 3901.20, 3905.16, 3905.486, and 3905.95 of the Revised Code.

(1) The first twenty-four month compliance period for a person who is first issued a license as an agent on or after June 30, 1998 shall commence on January first of the year following the year of the issuance of the license and shall end on December thirty-first of the second year following the year of the issuance of the license. Every subsequent twenty-four month period shall constitute a compliance period. Each compliance period shall commence on January first immediately following the preceding compliance period and shall end on December thirty-first of the second year after the preceding compliance period.

(2) A person who holds a license that was issued prior to June 30, 1998, shall retain his or her current compliance period.

(3) The first twenty-four month compliance period for a person who returned to active status pursuant to 3901-5-09(L) shall commence on January first of the year following the year of the reactivation of the license and shall end on December thirty-first of the second year following the year of the issuance of the license. Every subsequent twenty-four month period shall constitute a compliance period. Each compliance period shall commence on January first immediately following the preceding compliance period and shall end on December thirty-first of the second year after the preceding compliance period.

(4) The first twenty-four month compliance period for a licensee from another state who has made Ohio his state of residence shall commence on January first of the year following the year of the issuance of the resident license and shall end on December thirty-first of the second year following the year of the issuance of the license. Every subsequent twenty-four month period shall constitute a compliance period. Each compliance period shall commence on January first immediately following the preceding compliance period and shall end on December thirty-first of the second year after the preceding compliance period.

(D) CE Transcripts

(1) Following the completion of a licensee’s twenty-four month compliance period, the department shall issue a CE transcript to each resident licensee.

(2) If the CE transcript indicates that a resident licensee has completed the required number of CE hours for that compliance period and is reported as being in compliance with the CE requirements of this state, no additional documentation or reporting is necessary for that compliance period unless instructed by the Department.

(3) If the CE transcript indicates that a resident licensee has not completed the required number of CE hours for that compliance period and is reported as being in non-compliance with the CE requirement of this state, it is the individual licensee’s responsibility to prove that the licensee actually completed the required CE hours and to prove compliance with this rule.

(4) If the licensee is seeking an extension or the inactivation or surrender of licenses, the licensee must complete the necessary form as required by the department.

(5) A licensee’s failure to receive the department’s CE transcripts does not relieve the licensee of the responsibility to timely complete the CE requirements.

(E) Extensions

(1) The superintendent may grant a licensee a reasonable extension of time in which to complete the minimum number of hours of continuing education if the superintendent finds that the licensee is or was unable to do so as a result of a disability or special circumstances.

(2) It is the licensee’s responsibility to request an extension. Requests must be made in writing prior to the end of the compliance period for which the extension is requested or as soon as practicable thereafter. Requests should include supporting documentation and the required fee.

(3) When an extension is granted, it applies only to that compliance period. If the disability or special circumstances extends to a subsequent compliance period, another extension must be requested. Permanent conditions are not eligible for an indefinite extension.

(F) Exemptions

(1) The CE requirements contained in division (A) of section 3905.481 of the Revised Code do not apply to the following persons:

(a) Persons who have been granted inactive status pursuant to section 3905.16 of the Revised Code.

(b) Business entities which hold licenses are exempt from the CE requirements of this state. Licensees who are natural persons and who are affiliated with a business entity are not exempt from the CE requirements of this state.

(c) Persons who hold only title insurance licenses and do not hold any other license as an insurance agent other than a limited authority license provided they complete at least ten hours of approved CE that is directly related to the title insurance business during each compliance period.

(d) Persons who hold one or more limited authority licenses but who do not hold any other type of agent license.

(e) Persons who hold surety bail bond licenses.

(G) Surety Bail Bond Licenses

(1) Persons who hold only a surety bail bond license must complete at least fourteen hours of approved surety bail bond CE during each compliance period.

(2) Persons who hold a surety bail bond license in addition to any other agent license other than a limited lines license must complete twenty hours of CE, of which fourteen hours must be approved surety bail bond CE.

(H) Credits

(1) A person who moves to Ohio from another state and becomes a resident licensee may not carry over any CE credits from the other state.

(2) At the discretion of the superintendent, credit may be given for a course that is held prior to the issuance of a written approval of such course by the superintendent.

(3) If a course is taken more than once in a compliance period by the same person, credit may be given only for the first time that person took and completed the course.

(4) Partial credit, rounded down in one hour increments, may be given for classroom courses only at the provider’s option.

(a) The provider may, but is not required to, give refunds for the portion of the course unattended. The provider’s refund policy on partial attendance must be disclosed pursuant to the requirements of rule 3901-5-04(E)(6).

(b) If partial credit is given, the course participation fee must be paid to the department or its designee in the amount required as if the agent had attended the entire class.

(5) To qualify for CE credit, both the course and the provider must be approved by the superintendent.

(6) Credit hours awarded in one compliance period cannot be carried over or applied in any other compliance period.

(I) Credit for publication and instruction

(1) A person may receive up to ten hours CE credit per reporting period for the publication of articles or books authored by such person. Articles and books must deal with matters directly related to the business of insurance. An article must be published in a generally known and recognized state or national publication. The extent to which such credit may be given shall be at the discretion of the superintendent. A request for such credit must be made in writing and must be accompanied by proof of authorship and publication. Credit will be given only once for each approved article or book.

(2) CE credit may be allowed for the authors of written materials used in approved CE courses on a one-time per course basis. The author will be allowed the number of CE credit hours for which the course was approved. If there are multiple authors of the written course materials, no author will receive more than his or her pro rata share as determined by the provider. The total number of hours received by all authors for a course cannot exceed the total number of hours for which the course is approved. A request for such credit must be made in writing and must be accompanied by proof of authorship.

(3) Instructors for approved CE courses may receive CE credit for instructing courses. Credit may be given in an amount equal to two times the number of hours actually spent instructing a course. Credit will be given only once per course per compliance period.

(4) A person who authors materials for an approved course and teaches the same course in a compliance period may receive credit for authoring the written materials or instructing the course, but not for both activities in any one compliance period, subject to paragraph (H)(3) of this rule.

(J) Unfair and deceptive act or practice

The making of any misrepresentation, or any untrue, misleading or deceptive statement or assertion in support of or in connection with a request for an exemption, extension or for inactive status is an unfair and deceptive act or practice in the business of insurance.

(K) Severability

If any paragraph, term or provision of this rule is adjudged invalid for any reason, the judgment shall not affect, impair or invalidate any other paragraph, term or provision of this rule, and the remaining paragraphs, terms and provisions shall be and shall continue in full force and effect.

Effective: 09/22/2005

R.C. 119.032 review dates: 07/08/2005 and 12/31/2009

Promulgated Under: 119.03

Statutory Authority: 3901.041, 3901.20, 3905.16, 3905.486, 3905.95

Rule Amplifies: 3905.481, 3905.88

Prior Effective Dates: 10/12/1998, 7/8/2002