Chapter 3901-5 | Agents, Licensing, Continuing Education

Rule 3901-5-01 | Agent continuing education.

• Effective: November 14, 2019
• Promulgated Under: 119.03

(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.

(C) License renewal period and CE transcripts

(1) The license renewal period shall be set forth in rule 3901-5-09 of the Administrative Code.

(2) On-going renewal periods for major line and title agents shall be the last day of an agent's birth month every two years thereafter.

(3) The superintendent shall send a renewal notice to each agent at least one month prior to the agent's license expiration date. The renewal notice shall indicate if the resident agent has completed the required number of CE hours for that renewal period as of the date of the renewal notice.

(4) The superintendent shall post continuing education transcripts on the department's website.

(5) If the CE transcript or renewal notice indicates that a resident agent has not completed the required number of CE hours for that renewal period, it is the agent's responsibility to prove compliance with this rule and only request renewal of their license when they have successfully completed the required number of CE hours.

(6) If the agent is seeking an extension or the inactivation, surrender, reinstatement, reactivation or late renewal of a license, the agent must complete the necessary form as required by the superintendent.

(7) An agent's failure to receive a renewal notice does not relieve the agent of the responsibility to timely complete the CE requirements or to timely renew the license.

(8) Credits must be earned by the agent and posted to the agent's record by the continuing education provider or the superintendent.

(D) Exemptions

The CE requirements contained in section 3905.481 of the Revised Code do not apply to the following agents:

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

(2) Agents who hold only a limited lines licenses.

(3) Agents who hold only a title insurance license, provided they complete at least twelve credits of approved CE during each renewal period, ten of which must be directly related to the title insurance business and two of which must be approved as ethics.

Agents who hold both a resident title and a resident major line license will have the same renewal period for both license types. The agent must complete twenty-four credits of CE, ten of which must be directly related to the title insurance business and three of which must be approved as ethics.

(4) Agents who hold only a resident surety bail bond license shall comply with the CE requirements as set forth in section 3905.88 of the Revised Code.

Agents who hold both a resident surety bail bond license and a resident major line license will have two separate renewal period. With the exception of ethics, credits earned for the agent's major line license will not count towards the surety bail bond credit requirement. CE credits completed for the surety bail bond license will count towards the agent's major line CE requirement.

(E) Credits

(1) A person who moves to Ohio from another state and becomes a resident agent 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 has been filed according to the submission requirements of rule 3901-5-03 of the Administrative Code, but is held prior to the issuance of a written approval of such course by the superintendent, provided such written approval is granted.

(3) With the exception of association membership credit, any agent who completed a course more than once in a renewal period will only be given credit for the first time the course was completed.

(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 paragraph (E)(7) of rule 3901-5-04 of the Administrative Code.

(b) If partial credit is given, the course participation fee must be paid to the superintendent 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 are considered earned on the date the agent completed the course, not the date that the credits are posted on the agent's record with the superintendent.

(7) Agents who complete more than the required number of credit hours in a renewal period may apply those credit hours to the next renewal period, not to exceed fifty per cent of the required credit hours for the next renewal period. Excess CE credit hours will be carried over as general credit hours.

(8) Credit hours earned within the agent's late month renewal period pursuant to division (D) of section 3905.06 of the Revised Code, or the reinstatement period pursuant to division (E) of section 3905.06 of the Revised Code may be used to meet the requirements necessary to renew that license.

(F) Credit for publication, classroom instruction, and association membership

(1) An agent may receive up to ten hours of CE credit per renewal period for the publication of articles or books authored by such agent. 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 renewal period.

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

(5) An agent may earn up to four CE credits per renewal period for membership and active participation in local, regional, state or national professional insurance associations. Credits may be earned from the combination of different local, regional, state or national professional insurance associations in which the agent holds a membership to reach the four credit limit. The following are the minimum qualifications and limitations for earning association membership credit;

(a) The agent must be a dues-paying member of the local, regional, state or national professional insurance association that is approved as a CE provider and has a course specifically approved in this state to issue association membership credits.

(b) The agent must be in good standing with the local, regional, state or national professional insurance association at the time the credits are earned.

(c) The agent must actively participate in the functions of a local, regional, state or national professional insurance association, at the minimum, for the number of association credits earned. For purposes of this rule an association credit must provide for no less than fifty minutes of participation. Active participation in a local, regional, state or national professional insurance association can be met by the following activities:

(i) Attending a formal meeting or a formal business program hosted by a local, regional, state or national professional insurance association where attendance is verified;

(ii) Serving on and actively participating in a local, regional, state or national board or committee in affiliation with the local, regional, state or national professional insurance association; or

(iii) Participating in industry, regulatory or legislative meetings held by or on behalf of a local, regional, state or national professional insurance association.

(d) The agent must submit a written request to the association for the association's determination of participation credit and its submission of those credits to the superintendent.

(e) Credits approved for regular CE courses offered by the professional insurance associations do not count towards membership CE credit.

(f) Association credits will only count as general credits for satisfying major line, title or surety bail bond credit requirements. Association credits do not count towards satisfying ethics requirements for any type of license.

(g) The association must be an approved continuing education provider authorized to offer association membership CE credit in this state.

(h) The activity or program must have taken place while the association was authorized to offer association membership credit.

(i) The association is responsible for determining participation in a meeting, program or affiliation qualified for association credit.

(6) Credits earned from association membership using the same course identification number shall be permitted so long as the same activity type and completion date have not been previously submitted for credit. Agents may accumulate an unlimited number of association membership credits from the combination of different local, regional, state or national professional insurance associations, however, only the first four association credits reported to the superintendent will be applied towards the maximum number of association credits allowed per renewal period.

(G) 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 a license renewal, an exemption, extension or for inactive status is an unfair and deceptive act or practice in the business of insurance.

(H) 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, but the remaining paragraphs, terms and provisions shall be and continue in full force and effect.

Supplemental Information

Authorized By: 3905.486, 3905.16, 3901.20, 3901.041, 3905.95
Amplifies: 3905.12, 3905.481
Five Year Review Date: 8/29/2024
Prior Effective Dates: 9/22/2005, 1/1/2011

Rule 3901-5-02 | Continuing education provider.

• Effective: November 14, 2019
• Promulgated Under: 119.03

(A) Purpose

The purpose of this rule is to establish the procedure employed by the Ohio department of insurance in reviewing the application of entities described in divisions (C)(1) to (C)(5) of section 3905.484 of the Revised Code to be a provider of insurance continuing education courses.

(B) Authority

This rule is promulgated pursuant to the authority vested in the superintendent under sections 3901.041, 3905.481, 3905.484 and 3905.486 of the Revised Code.

(C) Definitions

(1) "Authorized Provider Official" is the person designated by a provider as the individual responsible for the conduct of a continuing education course and that course's instructors, monitors, and the employees of the provider.

(2) "Provider" is any person or business entity permitted to offer continuing education courses pursuant to divisions (C)(1) to (C)(5) of section 3905.484 of the Revised Code.

(D) Application

(1) An application shall be made on a form prescribed by the superintendent and shall include the appropriate fee based on the fee option selected on the application.

(2) The department shall review a provider application within thirty days of receipt.

(a) If the applicant submits an application that is incomplete or if the application lacks information deemed necessary by the department, the application will be returned with a letter indicating the areas which must be addressed before the review process will continue. If the department does not receive the requested information by the requested response date, the filing will be considered abandoned. The provider application fee is non-refundable and non-transferable.

(b) If a provider's application is approved, a provider identification number will be assigned and the provider will be notified in writing of the approval.

(c) The initial approval of a provider shall be from the date of approval through the thirty-first day of December of the same year in which the approval was granted.

(3) A provider shall apply for renewal of its provider status no later than November thirtieth each year. The department shall review a renewal application within thirty days of receipt.

(a) If the applicant submits a renewal application that is incomplete or if the application lacks information deemed necessary by the department, the application will be returned with a letter indicating the areas which must be addressed before the review process will continue. If the department does not receive the requested information by the requested response date, the filing will be considered abandoned. The provider renewal fee is non-refundable and non-transferable.

(b) The approved status of any provider whose renewal application has not been approved before the expiration date will automatically expire as of December thirty-first of that renewal year. The status of any active course connected with that provider will also automatically expire as of December thirty-first of the same year.

(c) Any provider whose authority has expired must reapply as a new provider before offering or holding any courses.

(E) Authorized provider official

(1) An authorized provider official is the individual responsible for the provider's compliance with the continuing education regulations. The authorized provider official is responsible for the provider's integrity and operation including the responsibility for obtaining continuing education provider approval, course approvals, verifying the qualifications of instructors, providing course schedules (where applicable), monitoring attendance, administering examinations (where applicable), and submitting course completion rosters and fees to the department or its designee, and providing any other documents required by the department.

(2) The authorized provider official must supply and maintain an accurate email address which will be used as the primary source of communication with the provider.

(F) 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, but the remaining paragraphs, terms and provisions shall be and continue in full force and effect.

Supplemental Information

Authorized By: 3901.041, 3905.481, 3905.484, 3905.486
Amplifies: 3905.481, 3905.484
Five Year Review Date: 8/29/2024

Rule 3901-5-03 | Continuing education course.

• Effective: November 14, 2019
• Promulgated Under: 119.03

(A) Purpose

The purpose of this rule is to establish a procedure for the review and approval of continuing education (CE) courses which licensed agents must complete for the purpose of maintaining their licenses.

(B) Authority

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

(C) Definitions

(1) "Classroom" means course activities or information occurring in real time at a specific time, date and place, and delivered in person, such as but not limited to a seminar or workshop by a qualified instructor. Student attendance is based on personally identifiable information (e.g., government-issued identification and signature) and student participation or interaction with course activities. Classroom courses do not require an examination.

(2) "Completion Date" is the date on which the student completes the course, including passing any required examination.

(3) "Course" means a self-study or classroom presentation of information on insurance and/or risk management topics, delivered in person, in print or electronically, which may be interactive or not, with successful completion measured by either attendance (classroom), distance learning, or by examination (self-study).

(4) "Course Completion Roster" means a listing of course completions, provided in a format determined by the superintendent, which includes the provider name, provider number, course name and course identification number, course completion date, student's name, national producer number (NPN), number of credits earned by each student, or any other information deemed necessary by the superintendent.

(5) "Course Difficulty Level" is determined based on whether the course is designed for inexperienced or experienced practitioners, as well as the amount of information presented and at what pace the information is presented.

(a) "Basic" is a course designed for entry-level agents or agents new to the subject matter.

(b) "Intermediate" is a course designed for agents who have existing competence in the subject area and who seek to further develop and apply their skills.

(c) "Advanced" is a course designed for agents who have a strong foundation and high level of competence in the subject matter.

(6) "Course Offering" is an approved event with a specific start and end time.

(7) "Distance Learning" means the method of instruction that is delivered in real time and presented by a qualified instructor, in which the agent and instructor are in different physical locations and interact with each other through various methods of telecommunication, including, but not limited to video teleconference, internet conference, virtual class or webinar. Distance learning is considered a type of classroom course and shall not include self-study method of instruction.

(8) "Interactive" means regular occurring opportunities for student participation, engagement, and interaction with course activities and information. Examples include, but are not limited to, question and answer sessions, entry of verification codes, polling, games, sequencing and matching exercises.

(9) "Proctor" means a disinterested third party that is a minimum age of eighteen years old, which can be any person except for family members or individuals who have a financial interest in the student's success on the exam. Co-workers must not be above or below in the student's line of supervision.

(10) "Self-Study" means the method of instruction that is delivered or presented without an instructor and which does not require a student to attend an organized class; but does require the passage of an examination and/or frequent interaction with courseware as a condition of progressing through the course material. Self-study courses can be interactive or non-interactive. Course activities or information is delivered outside of real time (recorded or otherwise similarly accessible) and at any time, such as but not limited to correspondence, online, video, audio, compact disc (CD), or digital video disc (DVD). Student attendance is verified based on identity (e.g., username, password, email, and signature).

(D) Application

All requests for approval of a course must be made in the manner prescribed by the superintendent and shall contain the following information:

(1) A description of:

(a) The number of requested credit hours and length of the course. For purposes of this rule a credit hour must provide for no less than fifty minutes of instruction. Breaks, introductions, lunches, announcements, or other non-instruction time is to be excluded in calculating the credit hours requested. Each course shall be a minimum of one credit hour, and shall be in increments of whole or one-half credit hours. No course will be approved for more than twenty-one credit hours.

(b) The course topic to which the course relates.

(c) The purpose or objective of the course and how the material offered will increase the knowledge of insurance and related subjects for the participants.

(d) The level of course difficulty (i.e. basic, intermediate, or advanced).

(e) The method of instruction in which the course will be delivered or presented.

(f) The methods utilized to provide reasonable assurance of the student's identity.

(g) The method(s) utilized to verify student's attendance, completion, or participation of the course. The methods utilized must be able to provide reasonable assurance of active student participation.

(h) The criteria used in selecting instructors. Providers must make available upon request by any person the information about the experience and qualifications of each instructor.

(i) The course tuition and the provider's fee refund policy, which must conform to the requirements of rule 3901-5-04 of the Administrative Code.

(2) A detailed content outline, which contains a description of each topic to be covered by the course. This outline must specify the time components spent on each topic and the description must be sufficiently detailed to justify the request for each credit hour. The outline shall contain:

(a) The proposed time component.

(b) The specific material to be covered in each time component.

(c) The method of presentation employed for each component.

(d) The justification for the time allotted to each component of the course.

(e) The time required to complete the course, in its entirety, without interruption.

(f) The identification of any component that includes a sales or marketing element.

(3) A description of materials to be used during the course.

(4) A statement as to whether an examination is required as part of the course and the minimum pass rate needed to pass the examination.

(5) A statement as to whether the course is part of a national insurance designation program.

(6) A statement as to whether the course is open to the public.

(7) A copy of the promotional brochures currently in use or proposed to be used for the course once approved by the superintendent. All promotional material must include the level of course difficulty (i.e. basic, intermediate, or advanced) and any time restrictions for the completion of a course imposed upon participants.

(8) The name of the authorized provider official as defined in rule 3901-5-02 of the Administrative Code.

(9) The anticipated initial date the course will be conducted, if known.

(10) If course approval is being requested through the use of an approved multi-state form, the provider must submit the completed form and any required attachments as noted on the form.

(11) Any other information the superintendent may request.

(E) Standards for review of course application

(1) In order for a course to be approved by the superintendent as an acceptable continuing education course, at a minimum, the course must:

(a) Be offered by an approved provider.

(b) Use the most recent policy forms filed in Ohio, editions, and laws to the extent possible.

(c) Have significant intellectual or practical content that enhances and improves the agent's insurance knowledge or professional competence. A course should be an organized program of learning dealing with matters directly related to insurance, the insurance industry, professional competence, ethical obligations, insurance office operations or management or similar subjects that will promote the purposes of this rule.

(d) Be given a title that is not misleading. At a minimum, the course title may not cause an individual to believe that the course is approved for a different course topic other than what is approved by the superintendent.

(e) Meet all other criteria set forth in this rule.

(F) Instructor qualification

(1) The authorized provider official is responsible for verifying that instructors meet the required minimum qualifications. Instructors must meet one of the following qualification categories:

(a) Qualification one: the instructor or speaker holds a postgraduate degree in insurance or a related field, or has one of the following professional designations:

"Chartered Life Underwriter" (CLU);

"Chartered Financial Consultant" (ChFC);

"Fellow Life Management Institute" (FLMI);

"Life Underwriting Training Council Fellow" (LUTCF);

"Chartered Property and Casualty Underwriter" (CPCU);

"Certified Insurance Counselor" (CIC);

"Registered Health Underwriter" (RHU); or

"Registered Employee Benefit Consultant" (REBC).

(b) Qualification two: the instructor or speaker has four years experience as a full-time employee or licensed agent interpreting or explaining insurance policy contracts and in addition holds one or more of the following designations:

"Certified Employee Benefits Specialist" (CEBS);

"Certified in Long Term Care" (CLTC)

"Certified Senior Advisor" (CSA)

"Life Underwriting Training Council Graduate" (LUTC Graduate);

"Fraternal Insurance Counselor" (FIC);

"Associate in Underwriting" (AU);

"Program General Insurance" (INS);

"Accredited Advisor Insurance" (AAI);

"Associate in Claims" (AIC);

"Associate in Risk Management" (ARM);

"Associate in Premium Auditing" (AIPA);

"Associate in Management" (AIM);

"Associate in Loss Control Management" (ALCM);

"Associate in Premium Auditing" (APA);

"Associate in Research and Planning" (ARP);

"Associate in Insurance Accounting and Finance" (AIAF);

"Associate in Marine Insurance Management" (AMIM);

"Associate in Automation Management" (AAM);

"Associate in Reinsurance" (ARE);

"Associate in Fidelity and Surety Bonding" (AFSB); or

Associate or bachelor degree with a specialization in insurance.

(c) Qualification three: the instructor has seven years of relevant experience.

(2) A provider shall verify each instructor's relevant qualifications and shall be prepared to provide evidence of such qualifications to the superintendent upon request.

(3) Instructors must be knowledgeable in the subject that they teach in a course.

(4) Instructors may receive CE credits for a course which they teach. An instructor is only eligible to receive credit for the same course once during a renewal cycle. The instructor may receive double the number of credit hours which they teach.

(5) Insurance company trainers as instructors must be full-time salaried employees of the insurance company sponsoring the course and must have as part of their full-time responsibilities the duty to provide insurance company training.

(6) College and university instructors may be full-time or adjunct faculty of the accredited college or university, must be teaching a curriculum course in his or her field of expertise, and must meet the requirements of the association that accredits the college or university.

(7) Any person that has had administrative action taken against a professional license or registration shall disclose such action to the provider prior to instructing a course, seminar, conference or lecture. If the provider wants to use this person as an instructor under its authority, the provider must notify the superintendent immediately upon receipt of such information. This person shall be ineligible to serve as an instructor, seminar or conference leader or lecturer unless written approval has been granted by the superintendent.

(G) Review of application

(1) A course application shall be made on a form prescribed by the superintendent and shall include the appropriate fee based on the fee option selected on the provider application. The superintendent shall review each application within thirty days of the date of receipt of a complete application and appropriate fees. The effective date of a course approval shall be within the superintendent's discretion.

(2) If the provider submits an initial course or renewal application that is incomplete or if the application lacks information deemed necessary by the superintendent, the application will be returned with a letter indicating areas which must be addressed before the review process will continue. If the superintendent does not receive the requested information by the requested response date, the filing will be considered abandoned. The course application fee is non-refundable and non-transferable.

(3) Providers will be notified in writing of the approval of each course and of the course number assigned to it by the superintendent. A course is approved from the date of approval until December thirty-first of the same year in which the course is approved. The course must be renewed on an annual basis in order for the provider to continue offering the course. An application for renewal shall be made no later than November thirtieth each year. The superintendent shall have thirty days to review course renewal applications.

(a) A course renewal application shall be made on a form prescribed by the superintendent and shall include the appropriate fee based on the fee option selected on the provider renewal application.

(b) The superintendent may require a full review of courses that have aged at least four years from initial approval or since its last full review. A full review may include the submission of a new course application, course outline, and other course application documents and information outlined in this rule for initial course review. Outcome of review may result in the issuance of a new course identification number, change to approved course topic, or number of approved credit hours.

(c) Any provider or associated course whose renewal has not been approved before the expiration date will automatically expire as of December thirty-first of that renewal year. The provider may not conduct any course for credit until the provider and associated courses are approved by the superintendent.

(4) Based upon a review of the application the superintendent may approve a course for fewer credits than requested, and a provider shall only offer and award the number of credit hours as approved.

(H) Additional guidelines for self-study courses

(1) A self-study course may be offered utilizing the following formats:

(a) On-line course with interactive chapter or section questions. This type of interactive on-line course has a series of questions at the end of each chapter or section designed to test the student's subject matter knowledge of that chapter or section. The student shall not advance to the next chapter or section until the student has successfully answered all the questions for the previous chapter or section. The student may review the material in order to answer a question. An interactive on-line self-study course is not required to have a final examination.

An interactive on-line course must be designed so as to prevent the student from completing the course in a time unreasonably short when compared to the credit hour total approved for the course.

(b) A non-interactive on-line course which has a scored on-line final examination,

(c) A non-interactive on-line or paper-based course which has a mail-in final examination, or

(d) Any type of self-study program with a final examination.

(e) Other types of self-study courses as the superintendent may approve.

(2) In addition to providing all other information required pursuant to this rule, a provider shall include:

(a) For an on-line interactive course, the number of questions that appear at the end of each chapter or section, a sample of the questions, references from the questions back to the text if requested by the superintendent, and a copy of the answer key for the sample questions; or

(b) For a course which requires a final examination, the number of examination questions which will appear on the student's examination, references from the examination back to the text if requested by the superintendent, and a copy of the examination answer key with the application. The answer key shall indicate the total amount of credit possible for answering each question correctly. If essay questions are employed in the examination there must be an explanation as to how essay questions will be graded.

(3) A provider shall require each agent to enroll and pay for the course before having access to the course material.

(4) A provider shall prevent access to the course unit/chapter questions and final exam before the agent reviews the course materials.

(5) A provider shall prevent downloading and printing of any course unit/chapter question and final exam.

(6) The following are minimum requirements for self-study final examination and for on-line interactive chapter/section questions:

(a) Multiple choice items must have a minimum of four options.

(b) Multiple choice items must have only one correct response.

(c) Multiple choice answers must be grammatically consistent and parallel in form to eliminate obviously wrong answers.

(d) No correct answer to one question shall provide a clue to the correct answer to any other questions in the chapter/section questions or final examination.

(e) Questions shall be clearly written.

(f) Questions shall adequately cover the course material set out in the course outline.

(g) Answers to the questions shall not be in a discernable pattern.

(h) Final exam questions must not duplicate any unit/chapter questions.

(7) In order to obtain credit for a self-study course the licensee must either:

(a) Complete an interactive on-line course having answered one hundred percent of each chapter's/section's questions correctly; or

(b) Receive a grade of seventy percent or greater on the final examination.

(8) A final examination shall be administered only upon completion of the self-study course and shall meet the minimum requirements:

(a) Final examinations must consist of a minimum of ten questions for each credit hour requested.

(b) A self-study course that includes a final examination shall have at least enough questions to fashion a minimum of two versions with at least fifty per cent of the question being new/different in each subsequent version.

(9) Providers offering self-study courses must have qualified instructors available to respond to questions within forty-eight hours by telephone or email.

(10) Providers must be able to prevent the issuance of a student affidavit until the course and course examination is successfully completed. Affidavits may be administered and signed electronically.

(11) Each student shall certify that he or she completed the course and, if applicable, the examination without assistance. If the examination is monitored, the provider or proctor may check ID to identify students.

(12) Details on how the examination materials are to be returned to the provider shall be included in the instructions.

(I) Additional guidelines for distance learning courses

(1) Distance learning must:

(a) Be conducted in real time at all locations and require each student to log into course using a distinct username, password, and/or email.

(b) Be designed such that students actively participate in the instructional process, by utilizing techniques that require substantial student interaction with the instructor, other students, or a computer program. The course design must not permit students to sit passively and observe instruction or read instructional material. The provider must have a process to determine when a student is inactive or not fully participating, such as when the screen is minimized, or the participant does not answer the polling questions and/or verification codes. No less than three methods of interactive activities must be asked at unannounced intervals during each one-hour course session to determine student attentiveness.

A provider may administer examinations to students for the purpose of verifying participation and evaluating the effectiveness of the distance learning course, but passage of an examination by a student shall not be a condition for advancement to a subsequent section of the course or successful completion of the course, unless the course is part of a national designation program which requires the passage of an examination.

(c) Utilize only instructors who are qualified according to Ohio's instructor guidelines pursuant to paragraph (E) of this rule.

(d) Have appropriate instructor and technical support to enable students to satisfactorily complete the course. The provider shall maintain an electronic roster to include records for each student's log-in/log-out times. Chat history and interactive responses should be captured as part of the electronic records.

(e) Utilize procedures that provide reasonable assurance of student identity. Provider must verify the identity and national producer number (NPN) of all students.

(f) Have a provider representative monitor attendance throughout the course and that the student receiving the continuing education credit actually performed all the work required to satisfactorily complete the course. When a student is deemed inactive, or not fully participating in the course, continuing education credit must be denied. Prior to the start of the course offering, the provider must inform each student of the course participation requirements and the consequences for failing to actively participate in the course.

(2) The provider must provide the students with an orientation or information package which contains all necessary information about the course subject matter and learning objective; procedures and requirements for satisfactory course completion, special requirements with regard to computer hardware and software or other equipment, and the availability of instructor or technical support.

(3) Students must be able to interact in real time with qualified instructor(s). Students should be able to submit questions or comments at any point during the course. A student cannot be capable of independently completing the course.

(4) The title of the course must clearly state that it is a distance learning course.

(5) No partial credit shall be granted for courses approved as a distance learning course.

(J) Organization or association meeting credit

A state insurance professional association or organization that is an approved provider pursuant to rule 3901-5-02 of the Administrative Code and that is affiliated with a national association or organization may file a course application and roster for annual association meetings conducted by the national association or organization.

(1) The course application must be filed prior to the meeting.

(2) The method of attendance verification shall be determined by the provider.

(3) Fees.

(a) No course fee shall be charged.

(b) The roster fee must be paid.

(K) Professional association membership credit

A local, regional, state or national professional insurance association that is an approved provider pursuant to rule 3901-5-02 of the Administrative Code may file a course application and roster for association membership credit.

(1) The provider must file with the superintendent of insurance for approval of a course number to be shown on all certificates issued for association membership CE credit prior to any participation activity that may result in association membership credit being offered.

(2) The local, regional, state or national professional insurance association must meet, at the minimum, the following qualifications:

(a) Must be organized as an association or corporation under state law;

(b) Must be based on paid memberships which renew annually or biennially for an additional membership fee;

(c) Must be organized for the express purpose of promoting the interests of insurance licensees or a class of insurance licensees;

(d) Local and regional associations must have been in existence for at least seven years prior to applying for course approval to offer association membership credit. State and national associations must have been in existence for at least five years prior to applying for course approval to offer association membership credit;

(e) Must have been formed for purposes other than providing CE credits to meet state educational requirements;

(f) Must have an active membership base of at least one hundred fifty, individually licensed insurance agents which are dues paying members of the association.

(g) Must submit a course application on a form prescribed by the superintendent and shall include the appropriate fee based on the fee option selected on the application. Course approval shall be authorized from the date of approval until December thirty-first of the same year in which the course is approved; and

(h) The course must be renewed on an annual basis in order for the provider to continue offering association membership credit. An application for renewal shall be made no later than November thirtieth each year on a form prescribed by the superintendent and shall include the appropriate fee based on the fee option selected on the renewal application.

(3) The method of verification of qualified participation activity shall be determined by the provider.

(4) The association is responsible for determining if participation in a meeting, program or affiliation qualifies for association credit and for the number of appropriate association credits earned. If the association determines that a requested activity does not qualify for association membership credit, the provider shall send a letter to the licensee within ten calendar days of the decision with an explanation as to why credit was not granted.

(5) The provider shall submit association membership credit requests to the superintendent on a form prescribed by the superintendent pursuant to the submission requirements of paragraph (D)(5) in rule 3901-5-04 of the Administrative Code.

(L) 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, but the remaining paragraphs, terms and provisions shall be and continue in full force and effect.

Last updated October 16, 2023 at 12:27 PM

Supplemental Information

Authorized By: 3901.041, 3905.486
Amplifies: 3905.484
Five Year Review Date: 8/29/2024
Prior Effective Dates: 1/1/2011

Rule 3901-5-04 | Continuing education market practices/audit.

• Effective: November 14, 2019
• Promulgated Under: 119.03

(A) Purpose

The purpose of this rule is to establish criteria, standards and procedures for providers of continuing education (CE) programs.

(B) Authority

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

(C) Provider practices

(1) A course must be offered and presented as approved. The failure to do so may result in a denial of CE credit for the course.

(2) Written notice of any changes to a provider or course application must be given to the superintendent no later than fifteen days subsequent to the effective date of the change. Notice of such changes must contain both the provider and course identification numbers.

(3) Providers may not change a course's content or outline without prior written approval of the superintendent. Change to a course content or outline may result in the issuance of a new course identification number. Failure to obtain such written approval in advance of offering the course may result in a denial of CE credit for the course.

(4) An approved course must be in session on the date(s) scheduled, during the specified hours and at the designated location unless cancelled in accordance with paragraph (C)(5) of this rule or unless notification of any change is given to the superintendent in accordance with paragraph (C)(2) of this rule.

(5) If an approved course is cancelled, or if an agent cancels in advance of the date of the course, the provider must refund all fees in full within forty-five days of the cancellation unless a different refund policy is conspicuously printed on the provider's materials.

(6) A provider must issue written notification to all individuals who are scheduled to attend a course of any change in the course location, date, time, course content, or refund policy prior to the course offering. If a course is postponed to a later date or moved to a location that is different and is more than ten miles from the original course location, the provider must offer each agent who is scheduled to attend the option of a full refund in lieu of attending the class.

(7) A provider must monitor the course attendance, examination or participation of each agent. The provider must be able to provide reasonable assurance of active student participation in every course.

(8) A provider must submit the date, time and location of each course to the superintendent at least ten days prior to the offering of the course. The provider must notify the superintendent, in writing, immediately upon cancellation of or any change to a scheduled course. Providers do not need to report examination schedules for courses approved as self-study.

(9) Providers approved to offer CE credit for association membership shall not submit to the superintendent association membership credit based on an agent's act of joining the local, regional, state or national professional insurance association.

(10) A provider must comply with the "Equal Employment Opportunity" and the Americans with Disabilities Act.

(11) Facilities must be large enough to comfortably accommodate all attendees and instructors and must be conducive to the education process.

(12) Providers shall submit all applications, schedules and rosters electronically, using a system prescribed by the superintendent, unless the superintendent has authorized other submission methods. Each individual accessing the department's electronic reporting system must have his or her own user name and password.

(13) Provider must obtain the following information from each agent as part of the course registration:

(a) National producer number (NPN);

(b) First and last name as they appear on the agent's license record with this state;

(c) Attestation from each agent that they will complete the course themselves and without improper assistance of others; and

(d) Agent's signature. Electronic signature is acceptable.

(D) Attendance rosters

(1) Each provider shall maintain accurate attendance records for each course. Providers must obtain the agents signatures and appropriate verification of the time of arrival and departure. .

(2) Within fifteen calendar days after the completion of a course, the provider shall file an attendance roster, which identifies each agent who completed the course. The roster must include the agent's name, national producer number (NPN) or other identification number requested by the superintendent, and the number of requested credits per agent listed on the roster. If partial credit is being given, the provider must note on the attendance roster the actual number of credits to be given to that agent. The participation fee amount submitted to the roster must be equal to the number of credits approved for the course.

(3) Instructors may receive double the number of credit hours which they taught. Any instructor for whom CE credit is sought shall also be identified on the attendance roster with a notation of the total number of credits that are to be given for the instruction. Providers must include a participation fee equal to the number of credits given to the instructor.

(4) The provider's failure to timely file an attendance roster, or other acceptable documentation, may result in a denial of CE credit for those agents who attended the course.

(5) For association membership credit, the provider must submit a course roster to the superintendent within fifteen calendar days of an agent making a written request to the association. Prior to submitting a course roster, it is the responsibility of the association to verify that the agent's activity qualifies for association credit.

(a) The provider shall submit only one qualifying activity or program per roster and shall identify the number of association credits each agent earned per activity. The provider may issue association credit on each roster ranging from one credit to no more than four credits per agent.

(b) The provider must submit the course participation fee of one dollar per association membership credit per member with the roster.

(E) Advertising

(1) All CE advertising or promotion of any kind must contain all of the following:

(a) The complete name of the provider as it appears on the application for provider approval;

(b) The complete title of the course as it appears on the application for course approval;

(c) The number of Ohio CE credit hours and topic for which the course is approved;

(d) Whether an exam is required in order to receive CE credit; and

(e) Level of course instruction (i.e. introductory, intermediate, advanced).

(2) A provider must not represent that a course has been approved for CE credit in Ohio until the superintendent issues written approval of course. A provider may represent that an application for CE approval is pending, but if a provider does so and approval is not granted, the provider must make a full refund of all fees. If a provider represents that approval is pending, the provider must also state, in substance, that the superintendent could deny course approval or approve the course for fewer credits than requested.

(3) A provider shall not offer any guarantee or represent that there is any guarantee that a licensee will pass a required examination.

(4) A provider approved to offer association membership credit shall not offer any guarantee or representation that membership in its organization will automatically qualify for CE credits.

(5) If several approved courses are offered together, all advertising and promotional materials must separately identify each approved course and the respective number of CE credit hours for which each course topic is approved.

(6) In advertising or promoting itself or any of its courses, a provider shall not make any representation or statement, or cause or permit another to make any representation or statement which is false, deceptive or misleading.

(7) A provider's refund policy must be clearly and conspicuously disclosed in all advertising and on all printed promotional materials.

(F) Audit

(1) The superintendent may audit a provider's records and courses at any time without prior notice.

(2) The instructors at an approved course may be required to provide proof of identity upon request during an audit of a course.

(G) Records retention

(1) Each provider shall retain all records which pertain to its Ohio CE activities for a minimum of four years.

(2) A provider must be able to verify who attended or completed each course for a minimum of four years following the completion of such course.

(3) A provider approved to issue association membership credit must be able to verify active participation by those members granted such credit for a minimum of four years following the completion of the calendar year in which credit was granted.

(H) Certificate of completion

(1) A certificate of completion shall contain the agent's name and national producer number (NPN) or other identification number requested by the superintendent, the name and identification number of the course, the date(s) the course was held or date(s) the association credit activity was earned, the number of credit hours completed by the agent, the name and identification number of the provider and a representative of the provider shall sign each certificate. Provider signature may be facsimile stamp, electronic or wet signature.

(2) A provider shall issue a certificate of completion to each agent within ten calendar days of course completion. For association membership credit, the course completion date shall be based on the date the provider received a written request from an agent requesting association membership credit pursuant to paragraph (F)(5) of rule 3901-5-01 of the Administrative Code or the date of the association activity, whichever is later.

(I) Severability

If any paragraph, term or provision of this rule is adjudged invalid for any reason, such 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.

Supplemental Information

Authorized By: 3901.041, 3905.486
Amplifies: 3905.484
Five Year Review Date: 8/29/2024
Prior Effective Dates: 12/31/1993, 9/22/2005

Rule 3901-5-05 | Agent education violations.

• Effective: November 14, 2019
• Promulgated Under: 119.03

(A) Purpose

The purpose of this rule is to identify conduct related to continuing education that violates Ohio statutes or rules and may subject a continuing education provider or agent to administrative actions.

(B) Authority

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

(C) Providers

The following are violations of the pre-licensing education and continuing education statutes and rules:

(1) Making any false, misleading or deceptive statement or representation about the status of a course approval, the number of hours for which a course topic is approved or any other statement about a course or provider. The penalty for a single violation is a forfeiture of five hundred dollars.

(2) The use of an unqualified instructor. The penalty for a single violation is a forfeiture of five hundred dollars.

(3) Failure to maintain all necessary records for the required time periods. The penalty for a single violation is a forfeiture of one hundred dollars.

(4) The use, submission or filing of any document for the purpose of complying with the agent education statutes and rules, or in responding to any inquiry from the superintendent concerning agent education, when the provider knows or should know that the document, or any part of it, is false or deceptive. The penalty for a single violation is a forfeiture of one thousand dollars.

(5) Failure to use the approved course outline. The penalty for a single violation is a forfeiture of one hundred dollars.

(6) Failure to notify the superintendent of changes to any course, previously approved, prior to course offering. The penalty for a single violation is a forfeiture of one hundred dollars.

(7) Failure to conduct the approved course for the full time, as specified in the course application. The penalty for a single violation is a forfeiture of one hundred dollars.

(8) Failure to monitor course attendance, course participation or completion of examination. The penalty for a single violation is a forfeiture of five hundred dollars.

(9) Failure to comply with applicable Americans with Disabilities Act and "Equal Employment Opportunity" regulations. The penalty for a single violation is a forfeiture of one hundred dollars.

(10) Failure to provide timely refunds to participants when required. The penalty for a single violation is a forfeiture of one hundred dollars.

(11) Failure to file or the late filing of any form or required information, other than attendance roster. The penalty for a single violation is a forfeiture of one hundred dollars.

(12) Failure to timely file an attendance roster. The penalty for a single violation is a forfeiture of five hundred dollars.

(13) Failure to conduct a course as it was approved or maintain course integrity. The penalty for a single violation is a forfeiture of five hundred dollars.

(14) Obtaining the attendance or enrollment of licensees or students by actual or implied coercion. The penalty for a single violation is a forfeiture of five hundred dollars.

(15) The failure of a provider to timely provide a certificate of completion to an attendee or the failure of a provider to provide an attendee with an accurate certificate of completion. The penalty for a single violation is a forfeiture of two hundred dollars.

(16) Failure to accurately report the actual number of course hours attended for each individual. The penalty for a single violation is a forfeiture of five hundred dollars.

(17) Failure to properly determine active participation in a local, regional, state or national professional insurance association activity. The penalty for a single violation is a forfeiture of five hundred dollars.

(18) Advertising that an agent may receive credit for simply becoming a member of an association. The penalty for a single violation is a forfeiture of one thousand dollars.

(19) Failure to provide a written response to the superintendent within twenty-one days after receipt of any written inquiry from the superintendent. The penalty for a single violation is a forfeiture of fifty dollars.

(20) Failure to report disciplinary action taken against the provider's authority by any regulatory body which grants a license, registration or permission to conduct business. The penalty for a single violation is a forfeiture of two hundred dollars.

(21) Sharing user names and passwords when accessing department reporting application. The penalty for a single violation is a forfeiture of five hundred dollars.

(22) The violation of any provision of rule 3901-5-01, 3901-5-02, 3901-5-03, 3901-5-04, 3901-5-06 or 3901-5-07 of the Administrative Code may be grounds for termination of a provider's authority to offer pre-license courses or continuing education courses in this state.

(D) Applicants and agents

The following are violations of the pre-licensing education and continuing education statutes and rules:

(1) The use, submission or filing of any document or record for the purpose of complying with the agent education statutes and rules, or in responding to any inquiry from the superintendent concerning agent education, when the person knows or should know that the document or record, or any part of the document or record, is false or deceptive.

(2) Obtaining, accepting or using any evidence of completion or participation from a provider when the person has not attended or completed the course or the number of hours identified on the certificate.

(3) Cheating or using unauthorized materials or receiving unauthorized assistance during an examination.

(4) Assisting another person in complying with the agent education requirements when the person knows or should know that the assistance is a violation of the agent education statutes and rules.

(5) Disruptive threatening or deceptive behavior during a course or examination shall be grounds for termination of participation and shall be grounds for the superintendent to refuse course completion credit or a passing grade of an examination for those individuals responsible for the disruptive, threatening or deceptive behavior.

(6) The use of any unauthorized telecommunication device, including by not limited to, cellular phones and "PDA's," examination notes and study guides, or conversations with unauthorized persons during an examination or authorized break from a state insurance licensure examination. The penalty for a single violation shall be grounds for the superintendent to refuse to issue any license as an insurance agent or assess a forfeiture of up to five hundred dollars.

(E) Application of penalties

(1) The superintendent may suspend, revoke, non-renew or deny authority to any pre-licensing education or continuing education provider who has committed multiple violations of paragraph (C) of this rule. This penalty may be in addition to the forfeitures levied pursuant to paragraph (C) of this rule.

(2) The superintendent may, once a violation of paragraph (C) or (D) of this rule requiring a forfeiture has been found, suspend all or part of such forfeiture, upon a showing of mitigating circumstances.

(F) 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, but the remaining paragraphs, terms and provisions shall be and continue in full force and effect.

Supplemental Information

Authorized By: 3901.041, 3905.486
Amplifies: 3905.04, 3905.481, 3905.484
Five Year Review Date: 8/29/2024
Prior Effective Dates: 1/1/2011

Rule 3901-5-06 | Agent education fees.

• Effective: November 10, 2014
• Promulgated Under: 119.03

(A) Purpose

The purpose of this rule is to establish the fees to be charged for certain services and transactions for the pre-licensing and the continuing education programs.

(B) Authority

This rule is promulgated pursuant to authority vested in the superintendent under sections 3901.041, 3901.043 and 3905.481 to 3905.486 of the Revised Code.

(C) All fees in this rule are non-refundable and non-transferable

(D) Continuing education provider and course initial and renewal application fees

(1) Every continuing education provider shall pay the fee established in paragraph (D)(2) of this rule. The fee is due with the submission of the provider application. Course fees, where applicable, shall be submitted with the course application.

(2) The applicant shall select one of the fee options listed below. If the status of the provider changes during the year and a different fee is due, the new fee will be in addition to the previous payments with no credit for the prior payments.

(a) Flat fee provider. The fee is one thousand dollars per year, which covers the provider application fee and course application fees for all course applications submitted during the calendar year.

(b) Individual fee provider. The fee is one hundred dollars for submission of the provider application, plus forty dollars for each course application.

(c) Limited fee provider. The fee is twenty-five dollars for submission of the provider application, plus twenty-five dollars for each course application. A provider electing this status is limited to offering no more than three courses of no more than three credit hours each, during the calendar year.

(E) Continuing education agent participation fee

(1) Provider's filing of course roster, listing of all licensees enrolled for continuing education credit one dollar per agent/per course approved credit hour.

(2) Licensee's filing of publication or author of written material continuing education credit one dollar per approved credit hour.

(F) Pre-licensing education provider, course and instructor initial and renewal application fees

(1) Provider application fee is one hundred dollars.

(2) Provider's course application fees:

(a) Fee for each course application is two hundred dollars.

(b) Fee for each subject matter category requested on the course application is twenty-five dollars.

(3) Instructor application fee is twenty-five dollars.

(G) Miscellaneous fees

Processing fee as a result of submitting any check, money order or other instrument which is returned to the superintendent for insufficient funds, account closed or for any other reason is thirty dollars. The superintendent may require a certified check from any agent or provider whose check has been dishonored.

(H) 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, but the remaining paragraphs, terms and provisions shall be and continue in full force and effect.

Last updated October 11, 2023 at 1:52 PM

Supplemental Information

Authorized By: 3901.041, 3901.043, 3905.481 to 3905.486
Amplifies: 3905.485
Five Year Review Date: 8/29/2024
Prior Effective Dates: 9/22/2005

Rule 3901-5-07 | Regulation of agent pre-licensing education.

• Effective: November 14, 2019
• Promulgated Under: 119.03

(A) Purpose

The purpose of this rule is to establish the criteria for agent pre-licensing education and to establish certain examination requirements.

(B) Authority

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

(C) Definitions

As used in this rule:

(1) "Authorized provider official" means a person designated by a provider and approved by the superintendent as the person who is responsible for a provider's compliance with the pre-licensing education regulations and who is responsible for a provider's integrity and operation. This includes the responsibility for obtaining pre-license education provider, course and instructor approvals.

(2) "Authorized provider personnel" means any person identified by a provider's authorized provider official as being authorized to certify a provider certification of course completion form, a certificate of pre-licensing course completion form, a schedule of courses form, attendance forms, and any other forms required by the superintendent.

(3) "Classroom" means any pre-licensing course method that is delivered or presented by a registered instructor in which the student and instructor are in the same physical location.

(4) "Course" means instruction offered by a provider approved by the superintendent to offer insurance education in one of the following subject matter categories:

(a) Property insurance;

(b) Casualty insurance;

(c) Life insurance;

(d) Accident and health insurance;

(e) Personal lines insurance; and

(f) Surety bail bond insurance.

(5) "Course completion date" means the date on which the student completes all of the required elements of the course, including passing any required examination.

(6) "Course hour" means the time spent providing instruction for preparation for a state insurance license examination. For purposes of this rule a course hour must provide for no less than sixty minutes of instruction. A course hour may include a reasonable amount of time testing, but not the time a student spends studying, preparing for a course, breaks, introductions, lunches, announcements, receiving marketing or sales technique instruction or other non-instruction time.

(7) "Program of insurance education" means a provider's overall curriculum.

(8) "Provider" means an organization or person approved by the superintendent to offer agent pre-licensing courses.

(9) "Registered student" means any person who has given an approved pre-license education provider a written intention and payment to take their program of insurance education. Only students who are taking a course for the purpose of complying with the pre-licensing education requirements shall be deemed enrolled for purposes of this rule.

(10) "Self-study" means any pre-licensing course method that does not require that a student attend organized classes, is completed by individual study, and ends with a final examination offered by the approved pre-licensing provider.

(11) "Self-study with prep course" means any pre-licensing course method that is offered as self-study but includes some organized classroom time prior to the offering of a final examination.

(12) "Superintendent" means the superintendent of insurance.

(D) Pre-license education exemptions

(1) Any person with a bachelor's or associate's degree in insurance, or a related degree with a concentration of insurance courses from an accredited institution shall be exempt from agent pre-licensing education requirements for all major lines of authority.

(2) Any person with one or more of the following professional designations shall be exempt from agent pre-licensing education requirements for personal lines or for property and casualty lines of authority.

(a) "Chartered Property and Casualty Underwriter" (CPCU);

(b) "Accredited Advisor in Insurance" (AAI);

(c) "Associate in Risk Management" (ARM); or

(d) "Certified Insurance Counselor" (CIC).

(3) Any person with one or more of the following professional designations shall be exempt from agent pre-licensing education requirements for life lines of authority:

(a) "Chartered Life Underwriter" (CLU);

(b) "Certified Employee Benefit Specialist" (CEBS);

(c) "Chartered Financial Consultant" (ChFC);

(d) "Certified Insurance Counselor" (CIC);

(e) "Certified Financial Planner" (CFP);

(f) "Fellow of the Life Management Institute" (FLMI); or

(g) "Life Underwriter Training Council Fellow" (LUTCF).

(4) Any person with one or more of the following professional designations shall be exempt from agent pre-licensing education requirements for accident and health line of authority:

(a) "Registered Health Underwriter" (RHU);

(b) "Certified Employee Benefit Specialist" (CEBS);

(c) "Registered Employee Benefits Consultant" (REBC); or

(d) "Health Insurance Associate" (HIA).

(5) Any person requesting exemption of the pre-licensing education requirement under the exemptions in paragraph (D)(1), (D)(2), (D)(3) or (D)(4) of this rule shall provide verification of the degree in insurance or professional designation prior to registering for the examination in order to receive a pre-licensing education waiver from the superintendent. A separate education waiver must be requested and obtained for each subject matter category.

(6) An active military service member or veteran may submit any documentation, evidence, statement or endorsement that may be available or produced for the superintendent's consideration to demonstrate substantial equivalence of education and experience while serving in the armed forces to meet the requirements of licensure. A separate education waiver must be requested and obtained for each subject matter category.

(7) A pre-licensing education waiver issued using the exemptions in paragraph (D)(1), (D)(2), (D)(3), (D)(4), or (D)(6) of this rule are valid for one hundred eighty days from the date the waiver was issued by the superintendent. An extension shall be granted if the applicant is actively deployed for military service.

(8) No person who has been issued a pre-licensing education waiver from the superintendent under the exemptions in paragraph (D)(1), (D)(2), (D)(3), (D)(4), or (D)(6) of this rule may be issued more than one exemption for each major line of authority.

(9) Any person who has received an education waiver under the exemptions in paragraph (D)(1), (D)(2), (D)(3), (D)(4), or (D)(6) of this rule and has not passed the corresponding examination prior to the expiration of the waiver shall complete any required education according to section 3905.04 of the Revised Code before the agent is eligible to sit for such examination. If an applicant is actively deployed for military service, an extension shall be granted and this will not apply.

(10) No person who has surrendered an insurance license or who has had an insurance license suspended, inactivated, cancelled for non-renewal or revoked may use the exemptions in paragraph (D)(1), (D)(2), (D)(3), (D)(4), or (D)(6) of this rule.

(E) Program of insurance education application requirements

(1) An application for pre-licensing provider, course, and instructor approval shall be on forms prescribed by the superintendent. An application for provider approval must include an application for at least one course approval and, if offering classroom or self-study with prep instruction, at least one instructor application. Applications shall be completed by the authorized provider official.

(a) To be eligible to be the designated authorized provider official, a person shall be of good character and business repute and shall agree to be responsible for the provider's compliance with the laws and regulations relating to pre-licensing insurance education programs. A person who has had an insurance license suspended, revoked or surrendered for cause in any state is not eligible to serve as an authorized provider official.

(b) For the purposes of this rule, a course method type is defined as classroom, self-study or self-study with prep course. An application for pre-licensing course approval shall only include one course method type per course application. Multiple course applications will be required if more than one course method type is requested.

A request for one or multiple subject matter categories as referenced in paragraph (C)(4) of this rule shall be requested on each pre-license course application. The appropriate fee shall be submitted for each subject matter category requested on the application.

(c) For the purposes of this rule, an instructor application must be submitted for each subject matter category as referenced in paragraph (C)(4) of this rule when a provider is requesting approval for any self-study with prep course or classroom method type.

The approval of an instructor qualifies that instructor to provide classroom instruction under the authority of that provider for any subject matter category in which the instructor was approved.

(2) If the applicant or provider submits an initial or renewal application that is incomplete or if the application lacks information deemed necessary by the superintendent, the application will be returned with a letter indicating areas which must be addressed before the review process will continue. If the superintendent does not receive the requested information by the requested response date, the filing will be considered abandoned. Initial and renewal application fees are non-refundable and non-transferable.

(a) If a provider, course or instructor application(s) are approved or renewed, the provider will be notified in writing of this approval. The superintendent will assign provider and course identification numbers for initial approvals.

(b) The initial approval of a provider, course or instructor shall be valid from the date of approval through the thirty-first day of December of the same year in which the approval was granted.

(c) No person or organization shall offer any agent pre-licensing education until the superintendent issues a written approval for the program of insurance education.

(3) A provider shall submit any provider, course or instructor renewal applications annually no later than November thirtieth on forms prescribed by the superintendent. The superintendent shall have thirty days to review initial and renewal applications.

(a) Any provider whose renewal has not been processed and approved before the expiration date will automatically expire as of December thirty-first of that renewal year. All active courses and registered instructors connected with a provider that is not renewed will automatically expire as of December thirty-first of the same year.

(b) Any course or instructor renewal that has not been processed and approved before the expiration date will automatically expire as of December thirty-first of that renewal year.

(c) Any provider whose authority has expired must reapply as a new provider before offering or holding any courses.

(d) No provider shall conduct pre-licensing education courses until the provider's renewal application, course applications and any necessary instructor applications have been approved by the superintendent and the provider has received a renewal approval letter from the superintendent.

(e) The non-renewal of a provider, course(s) or instructor(s) does not affect the validity of certificates of completion of pre-licensing course that the provider issued prior to the non-renewal.

(F) Course requirements

(1) Classroom

(a) The minimum number of registered students shall be two and the maximum number shall be fifty.

(b) All courses must be held for a minimum of twenty course hours and must begin and end as scheduled.

(c) Providers must monitor attendance at each course. An attendance record shall be kept for each course. The attendance record must contain the full name of the provider, subject matter category of the course, beginning and ending date of the course, each student's name and verification of each student's attendance.

(d) A course schedule shall be filed with the superintendent no later than ten days before a course is scheduled to begin. Multiple courses may be included on a schedule as long as the schedule is filed at least ten days before the earliest course listed is scheduled to begin. Written notice must be given to the superintendent immediately upon cancellation or any change to a scheduled course.

(e) A student's completion of a course shall be satisfied when the student has attended the minimum number of hours required pursuant to section 3905.04 of the Revised Code and has received instruction on the content outlines for the topics and subtopics listed in the most recent edition of the Ohio superintendent of insurance licensing information bulletin at the time the course was taken.

(f) Within fifteen calendar days of the conclusion of a classroom course, the authorized provider official shall submit to the superintendent, a course completion roster on a form prescribed by the superintendent. The roster must contain the names of each student who attended the course. The provider official shall identify the number of hours attended by each student and whether a course completion certificate was issued to the student.

(2) Self-study

(a) A student's completion of a self-study course shall be satisfied when the student has completed an equivalent to twenty course hours through self-study course instruction and has received a grade of seventy per cent or greater on a final examination given by the approved pre-licensing provider.

(b) A provider's self-study examination shall be administered only upon completion of a self-study course.

(c) Each student shall sign an affidavit provided by the approved provider stating that the student completed the examination without assistance.

(d) The following are minimum requirements for final examinations:

(i) Multiple choice items must have a minimum of four options;

(ii) Multiple choice items must have only one correct response;

(iii) Multiple choice answers must be grammatically consistent and parallel in form to eliminate obviously wrong answers;

(iv) No correct answer to one question shall provide a clue to the correct answer to any other questions in the chapter/section or examination;

(v) Questions shall be clearly written;

(vi) Questions shall adequately cover the course material; and

(vii) Answers to the questions shall not be in a discernable pattern.

(e) Within fifteen calendar days of the conclusion of a self-study course, the authorized provider official shall submit to the superintendent, a course completion roster on a form prescribed by the superintendent. The roster must contain the names of each student who satisfactorily completed the course.

(3) Self-study with prep course.

(a) A course schedule shall be filed with the superintendent not later than ten days before a prep course is scheduled to begin. Multiple prep courses may be included on a schedule as long as the schedule is filed at least ten days before the earliest prep course listed is schedule to begin. Written notice must be given to the superintendent immediately upon cancellation or any change to a scheduled prep course.

(b) An attendance record shall be kept for each prep course. The attendance record must contain the full name of the provider, subject matter category of the course, beginning and ending date of the prep course, each student's name, and verification of each student's attendance.

(c) A provider's self-study examination shall be administered only upon completion of a self-study prep course.

(d) Each student shall sign an affidavit provided by the approved provider stating that the student competed the examination without assistance.

(e) The following are minimum requirements for final examinations:

(i) Multiple choice items must have a minimum of four options;

(ii) Multiple choice items must have only one correct response;

(iii) Multiple choice answers must be grammatically consistent and parallel in form to eliminate obviously wrong answers;

(iv) No correct answer to one question shall provide a clue to the correct answer to any other questions in the chapter/section or examination;

(v) Questions shall be clearly written;

(vi) Questions shall adequately cover the course material; and

(vii) Answers to the questions shall not be in a discernable pattern.

(f) A student's completion of a self-study with prep course shall be satisfied when the student has completed an equivalent to a twenty course hours through a combination of self-study and classroom instruction and has received a grade of seventy per cent or greater on a final examination given by the approved pre-licensing provider.

(g) Within fifteen calendar days of the conclusion of a self-study with prep course, the authorized provider official shall submit to the superintendent, a course completion roster on a form prescribed by the superintendent. The roster must contain the names of each student who satisfactorily completed the course.

(G) Instructor qualifications

(1) No person may teach or hold oneself out as qualified to teach pre-licensing education courses except as an approved instructor for an approved provider. All instructors for agent pre-licensing insurance education programs must meet the following criteria:

The individual must be or good character and business repute and has never had a professional license or registration revoked, suspended or surrendered for cause in any state.

(2) The provider must demonstrate that an individual applying to instruct property and casualty insurance courses or personal lines insurance courses has met at least one of the following criteria:

(a) Received a bachelor's or associate's degree in insurance from an accredited institution;

(b) Holds a current and valid designation of "Chartered Property and Casualty Underwriter" (CPCU);

(c) Has worked regularly in the property and casualty insurance industry for the preceding three years and currently has one of the following professional designations:

(i) "Accredited Advisor in Insurance" (AAI);

(ii) "Associate in Risk Management" (ARM);

(iii) "Certified Insurance Counselor" (CIC); or

(d) Has worked regularly in the property and casualty insurance industry for the preceding five years.

(3) The provider must demonstrate that an individual applying to instruct life insurance courses has met at least one of the following criteria:

(a) Received a bachelor's or associate's degree in insurance from an accredited institution;

(b) Holds a current and valid designation of "Chartered Life Underwriter" (CLU);

(c) Has worked regularly in the life insurance industry for the preceding three years and currently holds one of the following designations;

(i) "Chartered Financial Consultant" (ChFC);

(ii) "Fellow of the Life Management Institute" (FLMI);

(iii) "Life Underwriter Training Council Fellow" (LUTCF);

(iv) "Certified Insurance Counselor" (CIC);

(v) "Certified Financial Planner" (CFP); or

(d) Has worked regularly in the life insurance industry for the preceding five years.

(4) The provider must demonstrate that an individual applying to instruct accident and health insurance courses has met at least one of the following criteria:

(a) Received a bachelor's or associate's degree in insurance from an accredited institution;

(b) Has worked regularly in the accident and health insurance industry for the preceding three years and holds one of the following designations:

(i) "Registered Health Underwriter" (RHC);

(ii) "Certified Employee Benefit Specialist" (CEBS);

(iii) "Registered Employee Benefits Consultant" (REBC);

(iv) "Health Insurance Associate" (HIA); or

(c) Has worked regularly in the accident and health insurance industry for the preceding five years.

(5) The provider must demonstrate that an individual applying to instruct surety bail bond insurance courses has met at least one of the following criteria:

(a) Received a bachelor's or associate's degree in insurance from an accredited institution;

(b) Has been licensed as a surety bail bond agent regularly for the preceding four years; or

(c) Has worked in the surety bail bond industry regularly for the preceding five years.

(H) Provider operations

(1) Course instruction shall be based on the content outlines for the topics and subtopics listed in the most recent edition of the Ohio superintendent of insurance licensing information bulletin or any supplements at the time the course was held.

(2) Providers may utilize the pre-license education student registration form prescribed by the superintendent. If a provider uses their own registration form, the registration form must include, all of the information found on the superintendent's prescribed form. Providers must ensure each registration form is completed, for each student registered for a course.

(3) A provider shall provide each registered student with the following information and documentation prior to course attendance:

(a) The most recent edition of the Ohio superintendent of insurance licensing information bulletin, and any supplements;

(b) Course method and subject matter category the student is registered to take;

(c) Location of the course or examination and any relevant information pertaining to the date and time of the course or examination as well as the name of any scheduled instructors;

(d) For courses that have a classroom component, each student shall receive the name, author, and edition of all textbooks used;

(e) For self-study courses, each student shall receive information as to what date the study material was purchased and the provider's exam delivery method;

(f) Any fees charged by the provider and an explanation of what those fees cover;

(g) The provider's refund policy; and

(h) Written receipt of payment for the course.

(4) A provider must obtain written verification from each registered student that they have received and understand the information required pursuant to paragraph (H)(2) of this rule. Student signature may be electronic or wet signature.

(5) A provider cannot advertise, offer, or conduct courses in a method or subject matter category for which the provider has not received written approval from the superintendent.

(6) The authorized provider official shall notify the superintendent, in writing, of any change to the provider application or renewal application, including but not limited to, the identity of the authorized provider official or authorized provider personnel, provider address, provider telephone number, provider name, or changes in the ownership or control of the provider. The notification shall be made within fifteen days of the effective date of the change. Any change to instructor qualifications, the types of course subject matter categories or course methods to be offered and require approval in accordance with paragraph (E)(2) of this rule.

(7) Instructors must be qualified in accordance with paragraph (F) of this rule and may instruct only those subject matter categories of insurance for which they are approved and for which the provider is approved.

(8) A course must be in session on the date(s) scheduled, during the specified hours and at the designated location unless cancelled or notification of any change is provided to the superintendent.

(9) If a course is cancelled, or if a student cancels in advance of the date of the course, the provider must refund all fees in full within forty-five days of the cancellation unless a different refund policy has been provided to the student.

(10) A provider must issue written notification to all individuals who are scheduled to attend a course of any change in the course location, date, time, or refund policy prior to the course offering or examination. If a course is postponed to a later date or moved to a location that is different and is more than ten miles from the original course location, the provider must offer each student who is scheduled to attend the class or take the provider's self-study examination the option of a full refund in lieu of attending the class or taking the examination.

(11) A provider must comply with the Equal Employment Opportunity Act and the Americans with Disabilities Act.

(12) Facilities must be large enough to comfortably accommodate all attendees and instructors and must be conducive to the education process.

(13) The authorized provider official must supply and maintain an accurate email address which will be used as the primary source of communication with the provider.

(14) Providers shall submit all applications, schedules and rosters electronically, using a system prescribed by the superintendent, unless the superintendent has authorized other submission methods. Each individual accessing the department's electronic reporting system must have his or her own user name and password.

(15) A provider shall not offer any guarantee or represent that there is any guarantee that a student will pass any required examination offered by the provider.

(16) A provider shall not offer any guarantee to a student that the completion of their program of insurance education guarantees the student will pass the state insurance license examination.

(17) Providers shall not permit any of their instructors to take a state insurance license examination for any license type or line of authority if the instructor holds an active license for that license type or line of authority.

(18) In advertising or promoting itself or any of its courses, a provider shall not make any representation or statement, or cause or permit another to make any representation or statement which is false, deceptive or misleading.

(I) Certificates of course completion

(1) A provider shall issue a certificate of course completion only after a student has met the minimum completion requirements pursuant to paragraph (F)(1)(e), (F)(2)(a), or (F)(3)(f) of this rule.

(2) Within three days after a course is completed, the provider shall provide a completed certificate of pre-licensing course completion form to each student that certifies that the student completed the course. Certificates may be sent to each student electronically, but must be formatted in a manner that prevents changes to the course and student information.

(3) The certificate shall be on a form prescribed by the superintendent or an exact replica of the superintendent's form, minus the state seal. The certificate shall not be valid unless it contains the signatures of the instructor or authorized provider personnel and the student.

(4) The certificate of pre-licensing course completion is valid for one hundred eighty calendar days from the completion of the course or passing of provider's self-study examination. If the one hundred eighty calendar day period expires before the student passes the licensing examination, the student will not be eligible to sit for another licensing examination for that type of license until the student completes another approved pre-licensing insurance education course for that license type.

(5) At the time a student registers with the testing service designated by the superintendent, the student must provide the provider's identification number as it appears on the certificate of pre-licensing course completion.

(6) A student shall not be permitted to sit for a licensing examination unless the student has a valid certificate of pre-licensing course completion form or a notice of pre-license education waiver from the superintendent.

(7) The student shall submit two forms of identification, to the examination monitor, one of which shall be a photo identification.

(J) Audit and records retention

(1) A provider shall maintain proof that each registered student received all documents required pursuant to paragraph (H)(3) of this rule for four years after completion of a course.

(2) A provider shall keep copies of all certificates of course completion for four years after completion of a course.

(3) A provider shall keep a copy of all self-study exams for four years after completion of a course.

(4) A provider shall keep a copy of the self-study affidavits signed by the students for four years after the completion of a course.

(5) A provider shall keep a copy of the rosters submitted to the superintendent for four years after completion of a course.

(6) A provider shall keep copies of all other records required by this rule for a minimum of four years.

(7) A provider's records are subject to inspection and audit by the superintendent at any time without prior notice.

(8) A provider may maintain the required documents in an electronic format.

(9) The superintendent may enter and observe a course at any time without prior notice.

(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, but the remaining paragraphs, terms and provisions shall be and continue in full force and effect.

Last updated October 16, 2023 at 12:27 PM

Supplemental Information

Authorized By: 3901.041, 3905.486
Amplifies: 3905.04, 3905.041, 3905.484
Five Year Review Date: 8/29/2024
Prior Effective Dates: 1/1/2011, 11/10/2014

Rule 3901-5-09 | Agent licensing and appointments.

• Effective: November 14, 2019
• Promulgated Under: 119.03

(A) Purpose

The purpose of this rule is to set forth procedures and requirements for the licensing and appointment of insurance agents in this state; and to identify lines of authority eligible for limited lines licenses.

(B) Authority

This rule is promulgated pursuant to the authority vested in the superintendent under sections 3901.041, 3905.04, 3905.12, 3905.20 and 3905.95 of the Revised Code.

(C) Definitions

For purposes of this rule:

(1) "Insurer" and "insurance company" shall have the same meaning in this rule as "insurer" does in section 3901.32 of the Revised Code.

(2) "Clearance letter" is the certification to another state of an agent's license status when moving out of Ohio.

(D) Resident individual agent licensing

(1) An applicant must comply with the requirements contained in sections 3905.05 and 3905.06 of the Revised Code for the appropriate line of authority.

(2) An individual applying for a resident insurance agent license shall do all of the following:

(a) The applicant shall complete any pertinent pre-licensing education for the lines of authority listed below unless the applicant is exempt pursuant to paragraph (D) of rule 3901-5-07 of the Administrative Code:

(i) Life: twenty hours;

(ii) Accident and health: twenty hours;

(iii) Property: twenty hours;

(iv) Casualty: twenty hours;

(v) Personal lines: twenty hours;

(vi) Surety bail bonds: twenty hours;

(b) Pass any required licensing examination as set forth in division (B) of section 3905.04 of the Revised Code;

(c) Request a criminal records check as set forth in section 3905.051 of the Revised Code;

(d) Submit a completed application form prescribed by the superintendent;

(e) Pay any required fees; and

(f) Submit any other information or supporting documentation as requested by the superintendent.

(3) A completed application may not be submitted until the applicant has passed any required licensing examination, but must be submitted within one hundred eighty calendar days of the applicant's passing that examination. An extension shall be granted if the applicant is deployed for active military service.

(4) The superintendent shall request information at the time of application to identify if applicant is an active military member or veteran, spouse of an active military member or veteran or the surviving spouse. Any active military, veteran, spouse or surviving spouse applications not submitted and automatically approved through the electronic application system shall receive expedited service to the extent all requirements for licensure are met.

(5) An applicant is not eligible for a license until the superintendent or the superintendent's designee, as determined by the superintendent, receives a completed application including the completed application form, the criminal records check, any other information required by the superintendent and any required fees. An incomplete application cannot be processed by the superintendent and may be returned to the applicant.

(6) A license shall be deemed issued on the date the application is approved by the superintendent.

(7) A license shall be issued in the legal name of the applicant.

(8) If an agent has active appointments at the time the agent's licenses are inactivated by agent request, canceled, non-renewed, suspended, revoked or surrendered, the superintendent shall notify the appointing companies of the inactivation, cancellation, non-renewal, suspension, revocation or surrender.

(9) An agent must report to the superintendent all demographic changes (i.e. name, resident address, business address, mailing address, email address, etc.) within thirty days of the change.

(E) Nonresident individual agent licensing

(1) An individual applying for a nonresident insurance agent license shall do all of the following:

(a) Submit a completed application form prescribed by the superintendent;

(b) Comply with the requirements set forth in section 3905.07 of the Revised Code for the appropriate line of authority;

(c) Pay any required fees; and

(d) Submit any other information or supporting documentation as requested by the superintendent.

(2) Upon satisfying the requirements of this rule, a nonresident agent license shall be issued to the applicant granting the applicant the same scope of authority as the applicant has under the license issued by the applicant's home state.

(3) If the applicant's home state does not issue nonresident insurance agent licenses to residents of this state, then the applicant must complete any licensing requirements that are imposed upon residents of this state.

(4) A nonresident license shall be deemed issued on the date the application is approved by the superintendent.

(5) A license shall be issued in the legal name of the applicant.

(6) A nonresident agent who applies for a line of authority for which he is not licensed in his home state must fulfill the requirements for an Ohio resident agent license for that type of authority.

(7) An agent must report to the superintendent all demographic changes (i.e. name, resident address, business address, mailing address, email address, etc.) within thirty days of the change.

(8) A nonresident must maintain an active resident license in another state in order to maintain the nonresident Ohio license. Failure to maintain an active resident license is grounds for the revocation of an Ohio non-resident license. It is the agent's responsibility to notify the superintendent of a change in the agent's resident license state.

(F) Limited lines licenses

(1) A person may obtain a limited lines license for one or more of the lines of insurance specified in paragraph (F)(2) of this rule so long as the following conditions are met:

(a) Submitted a completed application form or other form and means prescribed by the superintendent;

(b) Pay any required fees;

(c) Applicants applying as a resident individual must request a criminal records check as set forth in section 3905.051 of the Revised Code;

(d) Submit any other information or supporting documentation as requested by the superintendent;

(e) The applicant is of good reputation and character, is honest and trustworthy, and is otherwise suitable to be licensed; and

(f) Resident applicants must comply with the requirements set forth in sections 3905.05 and 3905.06 of the Revised Code. Nonresident applicants must comply with the requirements contained in section 3905.07 of the Revised Code.

(2) Limited lines licenses may be issued for the following lines of insurance:

(a) Credit insurance products as defined in division (G) of section 3905.01 of the Revised Code;

(b) Rental car insurance in accordance with rule 3901-5-10 of the Administrative Code;

(c) Crop insurance providing protection against damage to crops from unfavorable weather conditions, fire, or lightning, flood, hail, insect infestation, disease or other yield-reducing conditions or perils provided by the private insurance market, or that is subsidized by the federal crop insurance corporation, including multi-peril crop insurance;

(d) Funeral expense insurance sold to provide for payment of funeral or burial goods and services in accordance with sections 3905.45 and 3905.451 of the Revised Code so long as the agent is also a licensed funeral director in this state.

(e) Title insurance marketing representative as provided in paragraph (G) of this rule;

(f) Portable electronics insurance as provided in section 3905.062 of the Revised Code;

(g) Self-service storage insurance as provided in section 3905.063 of the Revised Code;

(h) Travel insurance coverage as provided in section 3905.064 of the Revised Code; and

(i) Any limited lines insurance agent license as required by section 3905.072 of the Revised Code.

(3) No pre-licensing education, licensing examination or continuing education is required for a limited lines license. Except as specified by sections 3905.85 and 3905.88 of the Revised Code and in accordance with paragraph (D) of rule 3901-5-01 of the Administrative Code.

(4) Limited lines licenses are subject to section 3905.14 of the Revised Code and all other requirements for agents, except as provided in this rule.

(5) A license shall be deemed issued on the date the application is approved by the superintendent.

(6) A license shall be issued in the legal name of the applicant.

(7) Upon satisfying the requirements of this rule, a nonresident limited line agent license shall be issued to the applicant granting the applicant the same scope of authority as the applicant has under the license issued by the applicant's home state.

(8) If the applicant's home state does not issue nonresident limited line insurance agent licenses to residents of this state, then the applicant must complete any licensing requirements that are imposed upon residents of this state.

(9) A nonresident agent who applies for a line of authority for which the agent is not licensed in the home state must fulfill the requirements for an Ohio resident agent license for that type of authority.

(10) A nonresident must maintain an active resident limited line license in another state in order to maintain his nonresident Ohio license. Failure to maintain an active resident license is grounds for the revocation of an Ohio nonresident license. It is the agent's responsibility to notify the superintendent of a change to the agent's resident license state.

(11) The holder of a limited lines license may not sell, solicit, or negotiate insurance on behalf of any insurer unless appointed to represent that insurer.

(12) If an agent has active appointments at the time the agent's licenses are inactivated by agent request, canceled, non-renewed, suspended, revoked or surrendered, the superintendent shall notify the appointing companies of the inactivation, cancellation, non-renewal, suspension, revocation or surrender.

(13) An agent must report to the superintendent all demographic changes (i.e. name, resident address, business address, mailing address, email address, etc.) within thirty days of the change.

(14) The superintendent has discretion to investigate the suitability of an applicant for a limited lines license and may suspend, revoke, refuse to issue, or renew a limited lines license for any of the reasons that the superintendent may refuse to issue a full-lines agent's license.

(G) Title insurance marketing representative

(1) Persons who market goods and services associated with the issuance of title insurance shall obtain a limited lines license as a title insurance marketing representative. A title insurance marketing representative shall be appointed by a licensed title agent. A title insurance marketing representative may solicit and perform marketing services only on behalf of the appointing agent. A title insurance marketing representative who holds a limited lines license may not do any of the following:

(a) Quote filed title insurance rates or premiums;

(b) Discuss insurance coverages, benefits or limits except that the marketing representative may, in general terms, explain the basic differences between an owner's policy and a lender's policy;

(c) Make recommendations, provide advice about, or negotiate title insurance;

(d) Execute or issue a title insurance policy, binder or commitment;

(e) Determine insurability;

(f) Holds oneself out as a representative of a title insurance company.

(2) A title agent who appoints a title insurance marketing representative shall be responsible for the acts and omissions of the title insurance marketing representative. Violations of the insurance laws in Title 39 of the Revised Code that are committed by a title insurance marketing representative will be attributed to the appointing title agent as well as to the marketing representative and will subject the appointing licensed title agent to a civil forfeiture in an amount not to exceed ten thousand dollars for each violation, unless the violation is reported by the title agent to the superintendent promptly upon discovery and the title agent takes appropriate remedial action.

(3) Any written materials used or distributed by a title insurance marketing representative must be pre-approved by the licensed title agent that appointed the title insurance marketing representative.

(4) No pre-licensing education, licensing examination or continuing education is required for a person who holds a limited lines license as a title insurance marketing representative.

(5) No person who is prohibited under division (B) of section 3953.21 of the Revised Code from acting as an agent for a title insurance company shall be licensed as a title insurance marketing representative.

(6) A license as a title insurance marketing representative is valid and authorizes the holder to act as a title insurance marketing representative to the extent permitted by law only so long as the person is appointed by a licensed title insurance agent.

(7) A title marketing representative may be appointed by only one title agent at any given time.

(H) Resident business entity licenses

(1) A business entity that is either domiciled in Ohio or maintains a principal place of business in Ohio may be licensed as an insurance agent in this state if it satisfies all of the following conditions:

(a) Submits a completed business entity application prescribed by the superintendent;

(b) Complies with division (B) of section 3905.05 of the Revised Code and division (A)(2) of section 3905.06 of the Revised Code;

(c) Is authorized to do business in the state of Ohio by the Ohio secretary of state if so required by section 1703.03, 1705.54, or 1775.64 of the Revised Code;

(d) Pays any required fees; and

(e) Submits any other information or supporting documentation as requested by the superintendent.

(2) A resident business entity agent license shall be deemed issued on the date and the application is approved by the superintendent.

(3) A resident business entity agent must maintain at least one designated licensed individual insurance agent who will be responsible for the business entity's compliance with the insurance law of this state. Failure to maintain a licensed agent is grounds for revocation of the business entity's license.

(4) If the resident business entity ceases to exist as a corporate or other legal entity, its agent license shall be subject to revocation.

(5) A business entity agent must report any change in its name, address, email address, licensed agents, officers, directors, and members or owners with ten per cent or more voting interest in the licensed entity to the superintendent within thirty days of such change.

(6) In addition to the requirements in paragraph (H)(5) of this rule, a business entity title agent must notify the superintendent of any change in its ownership or in the ownership of any business entity holding an ownership interest in the business entity title agent within thirty days and must include an organizational chart that shows all owners and their percentages of ownership of both the business entity title agent and business entities having ownership interests.

(7) A resident business entity applicant must apply for licensure under the legal name of the applicant as registered with the Ohio secretary of state. The superintendent may deny the use of a name that is too similar to a name already in use by another business entity or a name that may be misleading to the public.

(I) Nonresident business entity licenses

(1) A business entity domiciled in another state or whose principal place of business is in another state may be licensed as an insurance agent in this state if it satisfies all of the following conditions:

(a) Submits a completed business entity application prescribed by the superintendent;

(b) Complies with the provisions of section 3905.07 of the Revised Code;

(c) Pay any required fees; and

(d) Submits any other information or supporting documentation as requested by the superintendent.

(2) Upon satisfying the requirements of this rule, a nonresident business entity license shall be issued to the applicant granting the applicant the same scope of authority as the applicant has under the license issued by the applicant's home state.

(3) A nonresident business entity agent license shall be deemed issued on the date and the application is approved by the superintendent.

(4) A nonresident business entity agent must maintain at least one individual insurance agent licensed in Ohio who will be responsible for the business entity's compliance with the insurance laws of this state. Failure to maintain an Ohio licensed agent is grounds for revocation of the business entity's license.

(5) Registration with the Ohio secretary of state is not a license prerequisite for nonresident business entity licensure. Nonresident business entities should contact the Ohio secretary of state to verify if registration is required in order to do business in the state of Ohio. Registration with the Ohio secretary of state may be required pursuant to section 1703.03, 1705.54, or 1775.64 of the Revised Code.

(6) A business entity agent must report any change in its name, address, email address, licensed agents, officers, directors, and members or owners with ten per cent or more voting interest in the licensed entity to the superintendent within thirty days of such change.

(7) A business entity title agent must notify the superintendent of any change in its ownership or in the ownership of any business entity holding an ownership interest in the business entity title agent within thirty days and must include an organizational chart that shows all owners and their percentage of ownership of both the business entity title agent and business entities having ownership interests.

(8) A nonresident business entity applicant must apply for licensure under the legal name of the applicant. The superintendent may deny the use of a name that is too similar to a name already in use by another business entity or a name that may be misleading to the public.

(J) License renewal

(1) An agent who wishes to renew their insurance agent license shall do all of the following:

(a) Submit a completed renewal application prescribed by the superintendent;

(b) Comply with the renewal requirements set forth in section 3905.06, 3905.07 or 3905.85 of the Revised Code;

(c) Complete any CE credit requirement prior to submitting a license renewal application:

(i) Resident individual agents who hold a major line of authority license have a CE credit requirement of twenty-four credits (three of which must be approved as ethics credits).

(ii) Resident individual title agents have a CE credit requirement of twelve credits (ten of which must be approved as title credits and two of which must be approved as ethics credits).

(iii) Resident individual surety bail bond agents have a CE credit requirement of seven credits (six of which must be approved as surety bail bond credits and one of which must be approved as ethics credits). Surety bail bond agents shall be exempt from completing surety bail bond CE requirements for their first renewal cycle if the agent was initially issued a surety bail bond license in January or February of the same calendar year of their first renewal cycle.

(d) Pay any required fees;

(i) License renewal fee as set forth in section 3905.40 or 3905.85 of the Revised Code;

(ii) In addition to the license renewal fee, the fee for filing a renewal application during the late renewal period is fifty dollars; or

(iii) In addition to the license renewal fee, the fee for filing a renewal application during the reinstatement period is one hundred dollars.

(iv) The superintendent shall waive the fee in paragraphs (J)(1)(d)(ii) and (J)(1)(d)(iii) of this rule due to active military service. In addition, the superintendent has the authority to waive the fees due to long term medical disability, or some other special or extenuating circumstance.

(e) Submit any other information or supporting documentation as requested by the superintendent.

(2) Individual resident and non-resident insurance agent licenses with a limited line of authority, major line of authority or title shall renew their license by the last day of their birth month. No transition period from date of initial licensure to the date of the first license expiration shall be less than eighteen months or more than twenty-nine months.

(3) On-going license expiration dates after the initial license renewal for individual resident and non-resident insurance agent licenses with a limited line of authority, major line of authority or title shall be the last day of the agent's birth month every two years thereafter.

(4) Non-resident business entities shall renew by the last day of September in odd numbered years. On-going renewal dates shall be the last day of September every odd numbered year thereafter.

(5) Resident business entities shall renew by the last day of September in even numbered years. On-going renewal dates shall be the last day of September every even numbered year thereafter.

(6) All surety bail bond agents shall renew their surety bail bond license by the last day of February each year.

(K) Appointments

(1) Within thirty days after the date the agency contract is executed or the first insurance application is submitted, each insurer shall file a notice of appointment with the superintendent regarding all agents who were newly appointed to represent the insurer. Additionally, within thirty days of a termination, each insurer shall notify the superintendent of any agents whose appointments were terminated by the insurer. The insurer shall specify the effective date of appointment or termination for each agent. The insurer shall identify each agent by the full name that appears on the agent's insurance license, national producer number or other such identification number as requested by the superintendent, and such other information as the superintendent may require.

(2) All individual and business entity agent appointments and terminations must be submitted to the superintendent electronically.

(a) An insurer that annually appoints and/or terminates twenty-five or fewer agents may make non-electronic appointments and terminations.

(b) Any insurer that annually appoints and/or terminates more than twenty-five agents but that is unable to process electronic appointments and terminations must provide adequate documentation explaining its inability to comply.

(3) Appointments will renew automatically on the first day of July each year unless the insurer terminates the appointment prior to the renewal date.

(4) No appointment shall be effective unless the appointee is licensed for that line of authority.

(5) The superintendent will bill insurers for the initial and renewal appointment fees. If an agent holds both a property and casualty appointment with an insurer, a single appointment fee will be billed for those appointments that are processed at the same time.

(6) If the termination of an appointment is for any of the reasons set forth in division (B) of section 3905.14 of the Revised Code, the insurer shall provide a detailed statement of the facts and the reasons for the termination to the superintendent within thirty days of the effective date of the termination. Insurers who provide such statements shall be immune from liability to the extent provided in section 3905.211 of the Revised Code.

(L) Inactive status

(1) An agent may request inactive status by submitting a form prescribed by the superintendent and such other information as the superintendent may request. The agent must attest that the conditions in paragraph (L)(2) of this rule are met.

(2) An agent may be eligible for inactive status only if and so long as all of the following conditions are met at the time of the inactivation request:

(a) The agent is not employed or engaged, full or part-time, in any capacity for which an agent's license is required and does not engage in or in any way participate in or assist with any activity for which an agent's license is required in this state. This does not apply to clerical or ministerial acts;

(b) The agent must be out of the insurance industry in relation to any duties or activities that would require an agent's license for at least the next twenty-four months;

(c) The agent must be in compliance with their continuing education requirements;

(d) The agent must be in good standing with the superintendent;

(e) The agent is a natural person and holds an active resident major line of authority, title, or surety bail bond license in this state at the time of inactivation request; and

(f) The request for inactivation was received by the superintendent prior to the expiration date of the license.

(3) If the superintendent is satisfied that the agent is eligible for inactive status, the superintendent shall notify the agent and all appointing insurers and agents about the inactive status.

(4) A person who has been granted inactive status must notify each insurer with which he or she is appointed no later than ten days after inactive status is granted. Failure to do so is grounds to terminate the inactive status. All appointments held by an agent who has been granted inactive status shall be void as of the date inactive status is granted.

(5) If an agent is granted inactive status and subsequently engages in, participates or assists in any way in any conduct or activity for which a license is required, excluding clerical or ministerial acts, such agent's license(s) may be suspended or revoked or the superintendent may impose a civil penalty in an amount not to exceed twenty-five thousand dollars.

(6) When an agent is granted inactive status, the inactive status affects all licenses and appointments held by that agent except surety bail bond and title which may be maintained independent of the inactivation of other licenses.

(7) An agent who has been granted inactive status is exempt from the continuing education requirements of this state.

(8) An agent who has been inactive two years or more may return to active status upon the following conditions:

(a) The agent notifies the superintendent using the form and means prescribed by the superintendent and provides any other information requested by the superintendent;

(b) The agent has completed approved continuing education credits based on the license type being activated or has completed a pre-licensing education course for the particular type of license being reactivated, within the preceding six months of the reactivation application;

(i) An agent who held resident major line of authority license must complete twenty-four hours of approved continuing education, three of which must be approved as ethics;

(ii) An agent who held a title license must complete twelve credits, ten of which must be approved as title specific and two of which must be approved as ethics;

(iii) An agent who held a surety bail bond license must complete fourteen credits, twelve of which must be approved as surety bail bond specific and two of which must be approved as ethics.

(c) The person has paid a reactivation fee of fifty dollars;

(d) The person, if requesting the reactivation of a surety bail bond license, has paid an additional fee of one hundred fifty dollars; and

(e) The person is otherwise eligible and suitable to be an agent.

(9) A person who has been inactive less than two years must comply with paragraph (D) of this rule as a new applicant.

(10) The licenses of a person who has been granted inactive status may be subject to suspension, revocation or any other disciplinary action for questionable conduct occurring before or after the inactive status was granted.

(11) Inactive status applies prospectively.

(M) Surrender

(1) An agent may surrender all or some of the agent's licenses by submitting a form prescribed by the superintendent. If an agent is under investigation by the superintendent or the superintendent has issued a notice of opportunity for hearing under Chapter 119. of the Revised Code, the superintendent may not accept a surrender except for cause and as a resolution of allegations that the agent violated the insurance laws and regulations of this state. For purposes of this paragraph, an investigation shall include the review of any complaint made against or involving the agent.

(2) A surrender will be effective immediately after the superintendent receives the request or at a date chosen by the agent but in no case shall the surrender be effective prior to the date of receipt by the superintendent or more than thirty days after receipt of the surrender request.

(3) The surrender of an agent's license for any line of authority voids all appointments held by the agent for that line of authority.

(4) The superintendent shall notify each appointing company and agent when an agent's licenses are surrendered.

(5) An individual who has surrendered a license or licenses and who wants to obtain a license as an agent must comply with the pre-licensing education and examination requirements as if the person had never been licensed, if otherwise eligible and suitable to be an agent. This provision shall apply to a license previously surrendered even when the agent still has a license of another type.

(6) A person who has been granted inactive status may surrender all or some licenses if the person is otherwise eligible to surrender licenses.

(7) A clearance letter request acts as a voluntary surrender of all licenses. Once a clearance is issued an individual may reactivate the Ohio licenses if the following requirements are met:

(a) The individual requested reactivation within ninety days of the effective date of surrender by clearance request, and

(b) The individual did not obtain a resident license in another state.

(8) When an individual reactivates Ohio licenses pursuant to paragraph (M)(7) of this rule, the individual's continuing education requirements and license renewal date continue as if a clearance letter had not been requested.

(N) Compensation

(1) Commissions or other compensation paid by an insurer to a person for any activity that requires a license must be paid in the legal name of the licensee as that name appears on the superintendent's records or a trade name registered in accordance with section 3905.11 of the Revised Code.

(2) An agent who is appointed with the issuing insurance company may pay commissions to another agent who is licensed for that line of business but who is not appointed with the issuing insurance company.

(3) A licensed agent may assign commissions lawfully earned to a non-licensed person or entity pursuant to a written agreement and for a purpose that is not otherwise a pretext for the unlawful payment or split of commissions or the payment of an unlawful lead fee to the assignee.

(4) An agent or insurer may pay an unlicensed person or organization for administrative services actually rendered by that person or organization in connection with an insurance program offered to the members or customers of the unlicensed person or organization. Such payment shall be negotiated in an arms-length transaction. The amount of payment may not be calculated as a percentage of premium or any other measure of sales production. The amount of payment must be reasonable in relation to the services actually rendered. This paragraph does not prohibit the payment of a flat fee per transaction or service.

(5) An agent or insurance company may pay an unlicensed person or organization for an endorsement in favor of the agent, insurance company or a product. Such payment shall be a flat fee per member or customer or shall be in the amount of actual costs incurred by the unlicensed person or organization in making the endorsement. In no event shall the payment be calculated as a percentage of premium or any other measure of sales production.

(6) For purposes of this rule, an "endorsement" means a communication by an unlicensed person in any medium that introduces or mentions the availability of a general type of insurance coverage, identifies a particular insurer or agent, explains the method for obtaining additional information, and contains the words "endorse," "endorsed by," "sponsor," or "sponsored by," if all of the following conditions apply:

(a) The communication does not contain any comparison to other insurance products, insurers or agents;

(b) The communication does not contain any specific information or details about the benefits provided by the insurance;

(c) The communication does not indicate the rates or cost of the insurance;

(d) The communication does not contain any statement or suggestion that the recipient needs, or should apply for or buy the insurance.

(O) 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, but the remaining paragraphs, terms and provisions shall be and continue in full force and effect.

Supplemental Information

Authorized By: 3901.41, 3905.04, 3905.12, 3905.20
Amplifies: 3905.04, 3905.06, 3905.07, 3905.12, 3905.20, 3905.481
Five Year Review Date: 8/29/2024
Prior Effective Dates: 7/1/2007, 8/2/2010

Rule 3901-5-10 | Rental car insurance agent limited license.

• Effective: November 16, 2023
• Promulgated Under: 119.03

(A) Purpose

The purpose of this rule is to set forth procedures and requirements for the issuance of a limited authority rental car agent license. Paragraph (F) of rule 3901-5-09 of the Administrative Code authorizes a limited lines license for rental car insurance.

(B) Authority

This rule is promulgated pursuant to the authority vested in the superintendent under sections 3901.041 and 3905.28 of the Revised Code.

(C) Definitions

For the purposes of this rule:

(1) "Endorsee" means an employee of a rental car agent or any authorized representative who meets the requirements of this rule.

(2) "Person" means an individual or a business entity.

(3) "Rental agreement" means any written master, corporate, group or individual agreement setting forth the terms and conditions governing the use of a rental car rented or leased by a rental car company.

(4) "Rental car" means any motor vehicle that is intended to be rented or leased for a period of less than thirty consecutive days by a driver who is not required to possess a commercial driver's license to operate the motor vehicle and the motor vehicle is either of the following:

(a) A private passenger motor vehicle, including a passenger van, minivan, or sports utility vehicle; or

(b) A cargo vehicle, including a cargo van, pickup truck, or truck with a gross vehicle weight of less than twenty-six thousand pounds.

(5) "Rental car agent" means any rental car company that is licensed by the superintendent and appointed by an insurer to offer, sell, or solicit rental car insurance pursuant to this rule.

(6) "Rental car company" means any person in the business of renting rental cars to the public.

(7) "Rental car insurance" means insurance offered, sold, or solicited in connection with and incidental to the rental of rental cars, whether at the rental office or by pre-selection of coverage in master, corporate, group or individual agreements that:

(a) Is non-transferable;

(b) Applies only to the rental car that is the subject of the rental agreement; and

(c) Is limited to the following kinds of insurance:

(i) Personal accident insurance for renters and other rental car occupants, for accidental death or dismemberment, and for medical expenses resulting from an accident that occurs with the rental car during the rental period;

(ii) Liability insurance that provides protection to the renters and to other authorized drivers of a rental car for liability arising from the operation or use of the rental car during the rental period;

(iii) Personal effects insurance that provides coverage to renters and other vehicle occupants for loss of, or damage to, personal effects in the rental car during the rental period; and

(iv) Roadside assistance and emergency sickness protection insurance.

(8) "Renter" means any person who executes a rental agreement.

(D) General rules

(1) No rental car company, and no officer, director, authorized representative, or employee of a rental car company, shall offer, sell, solicit or identify the availability of or effectuate the placement of rental car insurance or the purchase of rental car insurance unless that person is licensed as an insurance agent pursuant to Chapter 3905. of the Revised Code or there has been compliance with the requirements of this rule.

(2) The superintendent may issue to a rental car company that has complied with the requirements of this rule, a limited authority license that authorizes the rental car company to act as a rental car agent in accordance with the provisions of this rule, in connection with and incidental to rental agreements, on behalf of any insurer admitted to write such insurance in this state.

(E) Licensing rental car companies as rental car agents

(1) A rental car company may apply to be licensed as a rental car agent under the terms of this rule if it satisfies all of the requirements of this rule and if it submits to the superintendent an application for licensure in the form prescribed by the superintendent that includes an appointment by an admitted insurer.

(2) A limited authority license as a rental car agent is valid and authorizes the licensee to act as a limited authority agent to the extent permitted by law only so long as the licensee is appointed by at least one insurer that is authorized to write rental car insurance.

(F) Responsibilities of the appointing insurer

By appointing a rental car agent, an insurer certifies that the applicant is competent, financially responsible, and suitable to act as a rental car agent; that the insurer has reviewed the endorsee training and education program required by paragraph (G)(4) of this rule and believes that it satisfies the requirements of this rule; and that the insurer is responsible for the conduct of the rental car agent acting within the scope of its agency appointment.

(G) Rental car agent endorsees

(1) An endorsee of a rental car agent may identify the availability of and effectuate the placement of rental car insurance in accordance with this rule. Such activities, and any activities incidental thereto, shall not constitute any of the activities listed in section 3905.01 of the Revised Code when performed by an endorsee in accordance with this rule. An individual may be an endorsee if all of the following conditions are satisfied:

(a) The individual is eighteen years of age or older;

(b) The individual is an employee of a rental car agent or an authorized representative;

(c) the individual has completed a training and education program; and

(d) The rental car company maintains and, upon request, makes available to the superintendent a list of the names and addresses of all endorsees and the dates during which each endorsee was employed by the rental car company. Records must be maintained for five years following the termination of an endorsee's employment.

(2) A rental car agent's failure to maintain the records required by paragraph (G)(1) of this rule is a violation of division (B) of section 3905.14 of the Revised Code and constitutes grounds to refuse to renew, suspend or revoke its license.

(3) A rental car agent's endorsee may only act on behalf of the rental car agent in identifying the availability of and effectuating rental car insurance. A rental car agent is responsible for and is obligated to supervise all actions of its endorsees related to rental car insurance. The conduct of an endorsee acting within the scope of his or her employment in connection with products described in paragraph (C)(7) of this rule shall be deemed the conduct of the rental car agent for purposes of this rule and shall not constitute conduct requiring an agent's licensee under section 3905.01 of the Revised Code.

(4) Each rental car agent or the insurer that appoints the rental car agent is obligated to provide a training and education program for each endorsee prior to allowing an endorsee to identify the availability of and effectuate the placement of rental car insurance. The rental car agent is obligated to submit the program to the superintendent upon request. The training program shall meet the following minimum standards:

(a) Each endorsee receives instruction about the kinds of insurance specified in this rule that are offered to prospective renters;

(b) Each endorsee receives training about the requirements and limitations imposed on rental car agents and endorsees by this rule. That training includes specific instruction that the endorsee is prohibited by law from making any statement or engaging in any conduct, express or implied, that would lead a consumer to believe:

(i) That the purchase of rental car insurance is required in order for the renter to rent a motor vehicle;

(ii) That the renter does not have insurance policies in place that already provide the coverage being offered by the rental car company pursuant to this rule; or

(iii) That the endorsee is qualified to evaluate the adequacy of the renter's existing insurance coverages.

(5) The rental car agent shall retain for a period of one year from the date of each transaction records which enable it to identify the name of the endorsee involved in each rental transaction where a renter purchases rental car insurance.

(H) Rental car agent restrictions

No insurance may be offered, sold, or solicited pursuant to this rule unless:

(1) The rental period of the rental car agreement is less than thirty consecutive days.

(2) At every location where rental agreements are executed, the rental car agent or endorsee provides or prominently displays brochures or other written materials to each renter who purchases rental car insurance that, clearly and conspicuously and in plain language:

(a) Summarize, clearly and correctly, the material terms, exclusions, limitations, and conditions of coverage offered to renters, including the identity of the insurer;

(b) Describe the process for filing a claim in the event the renter elects to purchase coverage, including a toll-free telephone number to report a claim;

(c) Provide the rental car agent's name, address, telephone number, and license number;

(d) Inform the consumer that the rental car insurance offered, sold, or solicited by the rental car agent may provide a duplication of coverage already provided by a renter's personal automobile insurance policy, homeowners insurance policy, or by another source of coverage;

(e) Inform the consumer that the purchase by the renter of the rental car insurance is not required in order to rent a rental car from the rental car agent; and

(f) Inform the consumer that neither the rental car agent nor the rental car agent's endorsees are qualified to evaluate the adequacy of the renter's existing insurance coverages.

(3) The brochures or other written materials provided or prominently displayed pursuant to paragraph (H)(2) of this rule shall be filed by the insurer with the department of insurance pursuant to the procedures of section 3937.01 of the Revised Code.

(4) The purchaser of rental car insurance acknowledges, in writing or electronically, the receipt or offer of the brochures or written materials required by paragraph (H)(2) of this rule.

(5) Evidence of the rental car insurance coverage is stated on the face of the rental agreement.

(6) All costs for the rental car insurance are separately itemized in the rental agreement.

(I) Rental car agent prohibitions

(1) A rental car agent shall not:

(a) Offer, sell, or solicit the purchase of rental car insurance except in conjunction with and incidental to rental car agreements.

(b) Advertise, represent, or otherwise portray itself or any of its employees, authorized representatives, or agents as an insurer.

(c) Pay any person, including a rental car agent endorsee, any compensation, fee, or commission that is dependent solely upon the placement of rental car insurance unless that person is a licensed rental car agent. Nothing in this rule shall prohibit production payments or incentive payments that are not dependent solely upon the sale of rental car insurance.

(d) Make any statement or engage in any conduct, express or implied, that would lead a customer to believe:

(i) That the insurance policies offered by the rental car agent may not provide a duplication of coverage already provided by a renter's personal automobile insurance policy, homeowners insurance policy, or by another source of coverage;

(ii) That the purchase by the renter of rental car insurance is required in order to rent a rental car from the rental car agent; and

(iii) That the rental car agent or the rental car agent's endorsees are qualified to evaluate the adequacy of the renter's existing insurance coverages.

(2) No licensee or endorsee shall provide any information or advice or make any representation as to what benefits or coverages a renter's personal or other insurance policies may provide.

(J) Enforcement

(1) In the event any provision of this rule is violated by a rental car agent or its endorsee, the superintendent may revoke, refuse to issue or renew, or suspend the license issued under this rule or impose any other sanctions provided by Chapter 3905. of the Revised Code in accordance with the provisions set forth in Chapter 119. of the Revised Code;

(2) If any person sells insurance in connection with or incidental to rental car agreements or holds self out as a rental car agent without satisfying either the requirements of this rule or the licensing provisions of Chapter 3905. of the Revised Code, the superintendent is authorized to issue a cease and desist order in addition to taking any other administrative action provided for in section 3901.22 and division (B) of section 3905.14 of the Revised Code.

(K) Trust accounts

A rental car agent shall not be required to treat moneys collected from renters purchasing rental car insurance as funds received in a fiduciary capacity, provided that:

(1) The charges for rental car insurance coverage are itemized and ancillary to a rental transaction; and

(2) The insurer has consented in writing, signed by an officer of the insurer, that premiums need not be segregated from funds received by the rental car agent.

(L) Severability

If any portion of this rule or the application thereof to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the rule or related rules which can be given effect without the invalid portion or application, and to this end the provisions of this rule are severable.

Last updated November 16, 2023 at 8:30 AM

Supplemental Information

Authorized By: 3901.041, 3918.12
Amplifies: Chapter 3918.
Five Year Review Date: 8/31/2028

Rule 3901-5-11 | Use of senior-specific certifications and professional designations in the marketing, solicitation, negotiation, sale or purchase of a life or health insurance policy or annuity.

• Effective: November 16, 2023
• Promulgated Under: 119.03

(A) Purpose

The purpose of this rule is to set forth standards to protect consumers from dishonest, unfair, deceptive, misleading, and fraudulent trade practices with respect to the use of senior-specific certifications and professional designations in the marketing, solicitation, negotiation, sale, or purchase of, or advice made in connection with, life or health insurance, or an annuity product.

(B) Authority

This rule is promulgated pursuant to the authority vested in the superintendent under sections 3901.041, 3901.21, 3901.212, 3905.0611, and 3905.28 of the Revised Code.

(C) Application and scope

This rule applies to any marketing, solicitation, negotiation, or sale or purchase of, or advice made in connection with, a life or health insurance policy, or annuity product by an insurance agent in this state.

Nothing in this rule limits the superintendent's authority to enforce existing provisions of law.

(D) Definitions

(1) "Agent" or "insurance agent" means any person who, in order to sell, solicit, or negotiate life and health insurance and annuities, is required to be licensed under the laws of this state.

(2) "Financial services regulatory agency" means an agency that regulates insurers, insurance agents, broker-dealers, investment advisers, or investment companies as that term is defined in the "Investment Company Act of 1940," 15 U.S.C. 80a-3, as amended.

(3) "Health insurance" means any policy of individual or group sickness and accident insurance, long term care insurance, medicare advantage, medicare supplement, and medicare part D.

(E) Prohibited uses of senior-specific certifications and professional designations

(1) It is an unfair and deceptive trade practice under sections 3901.19 to 3901.26 of the Revised Code and a dishonest practice under division (B)(9) of section 3905.14 of the Revised Code for an insurance agent to use a senior-specific certification or professional designation that indicates or implies in such a way as to mislead a purchaser or prospective purchaser that the insurance agent has special certification or training in advising or providing services to seniors in connection with the marketing, negotiating, soliciting, selling, or purchase of a life or health insurance policy, or annuity product or in the provision of advice as to the value of or the advisability of purchasing of a life or health insurance policy or annuity product, either directly or indirectly, through publications or writings, or by issuing or promulgating analyses or reports related to a life or health insurance or annuity product.

(2) The prohibited use of senior-specific certifications or professional designations includes, but is not limited to, the following:

(a) Use of a certification or professional designation by an insurance agent who has not actually earned or is otherwise ineligible to use such certification or designation;

(b) Use of a nonexistent or self-conferred certification or professional designation;

(c) Use of a certification or professional designation that indicates or implies a level of occupational qualifications obtained through education, training or experience that the insurance agent did not complete or does not have; or

(d) Use of a certification or professional designation that was obtained from a certifying or designating organization that:

(i) Is primarily engaged in the business of instruction in sales or marketing;

(ii) Does not have reasonable standards or procedures for assuring the competency of its certificants or designees;

(iii) Does not have reasonable standards or procedures for monitoring and disciplining its certificants or designees for improper or unethical conduct; or

(iv) Does not have reasonable continuing education requirements for its certificants or designees to maintain the certificate or designation.

(F)

There is a rebuttable presumption that a certifying or designating organization is not disqualified under this rule when the certification or designation issued by the organization does not primarily apply to sales or marketing and has been accredited by one of the following accrediting entities:

(1) The "American National Standards Institute" ("ANSI");

(2) The "National Commission for Certifying Agencies"; or

(3) Any organization actively recognized as an accrediting agency by the U.S. Department of Education pursuant to 34 CFR part 602.

(G) Words or combinations of words implying special training in advising or providing services to seniors

(1) Factors to be considered when determining whether a combination of words or an acronym standing for a combination of words constitutes a certification or professional designation indicating or implying that an insurance agent has special certification or training in advising or servicing seniors include:

(a) Use of one or more words such as "senior," "retirement," "elder," "medicare," or like words combined with one or more words such as "certified," "registered," "chartered," "advisor," "specialist," "consultant," "planner," or like words, in the name of the certification or professional designation; and

(b) The manner in which those words are used or combined.

(2) For purposes of this rule, a job title within an organization that is licensed or registered by a state or federal financial services regulatory agency is not a certification or professional designation unless it is used in a manner that would confuse or mislead a reasonable consumer, when the job title:

(a) Indicates seniority or standing within the organization; or

(b) Specifics an individual's area of specialization within the organization.

(H) Penalties

A violation of this rule is an unfair and deceptive trade practice under sections 3901.19 to 3901.26 of the Revised Code and a dishonest practice under division (B)(9) of section 3905.14 of the Revised Code.

(I) Severability

If any portion of this rule or the application thereof to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the rule or related rules which can be given effect without the invalid portion or application, and to this end the provisions of this rule are severable.

Last updated November 16, 2023 at 8:31 AM

Supplemental Information

Authorized By: 3901.041, 3901.21, 3901.212, 3905.0611, 3905.28
Amplifies: 3901.19 to 3901.26, 3905.14(B)(9)
Five Year Review Date: 8/31/2028

Rule 3901-5-12 | Misconduct by insurance license applicants and licensees.

• Effective: November 3, 2016
• Promulgated Under: 119.03

(A) Purpose

The purpose of this rule is to implement statutes setting forth standards of conduct and responsibility applicable to insurance license applicants, licensees, and/or companies licensed or authorized to transact the business of insurance by the superintendent of insurance.

(B) Authority

This rule is promulgated pursuant to the authority vested in the superintendent under sections 3901.041, 3901.21, and 3905.01 to 3905.14 of the Revised Code.

(C) The following conduct by individuals warrants suspension, revocation, or refusal to issue or renew an insurance license, assessment of a civil penalty, or imposition of any other sanctions authorized under Title 39 of the Revised Code:

Whenever it is shown, in accordance with the Revised Code, that an individual has solicited, procured, or placed additional or replacement health or sickness and accident insurance coverage where he or she knew or should have known that the insured or potential insured:

(1) Was and would continue to be covered by substantially duplicative insurance coverage, where the additional coverage will either not pay additional benefits to those offered by the existing coverage or will provide minimal benefits in relation to the cost to that individual of maintaining such coverage; or

(2) Would not be entitled to the benefits of that coverage, because of existing health conditions, where the agent had caused that individual to believe that he or she would be entitled to such benefits; or

(3) Intended to replace existing insurance coverage but would not be entitled to receive benefits from the replacing insurance coverage until he or she had completed some waiting period, which the agent had not disclosed to the insured or potential insured.

(D) Responsibility of insurance company and/or agent for conduct of a licensed insurance agent or an employee.

An insurance company and/or agent may be found to have engaged in an unfair or deceptive practice, whenever any of the following is shown:

(1) The insurance company or the managing or principal agent of an insurance agency knew or should have known of the misconduct of its licensed agent or employee, as set forth in paragraph (C) of this rule, and has adopted a practice whereby it has:

(a) Expressly ratified, encouraged, or tolerated such misconduct; or

(b) Failed to notify the Ohio department of insurance on those occasions where it has reasonable cause to believe that there has been a violation or is a continuing violation of this rule, and the details thereof which are known by the company or agent. Such information shall be treated as confidential by the department of insurance in accordance with the statutes and rules contained in Chapter 3901. of the Revised Code and agency 3901 of the Administrative Code; or

(c) Failed, upon the request of the department of insurance, to make a reasonable investigation to determine if such misconduct has occurred.

(2) An insurance company has refused to refund an insured's or potential insured's premium payment, insurance distribution or refund, or to issue insurance coverage to that person, at that person's election, where the company's agent has violated any insurance law or rule.

An agent shall be deemed to be the agent of the company for purposes of paragraph (D)(2) of this rule whenever it is shown that:

(a) The agent is appointed by the company and has solicited sold or negotiated insurance to the insured or potential insured on behalf of the company; or

(b) The agent is not appointed by the company, or has been terminated as an agent of the company, but has been given or permitted to retain copies of the company's applications, receipts, rate books, or other supplies and has solicited and sold insurance coverage to the insured or potential insured who has justifiably relied on the agent's apparent authority to act on behalf of the company. The company shall not be deemed to be responsible for such agent's conduct, for the purposes of this rule, if it has made a good faith effort to recover its applications, receipts, rate books or other supplies.

(E) 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, but the remaining paragraphs, terms and provisions shall be and continue in full force and effect.

Last updated October 11, 2023 at 1:52 PM

Supplemental Information

Authorized By: 3901.041
Amplifies: 3901.041, 3905.14, 3905.85(D)
Five Year Review Date: 8/31/2026

Rule 3901-5-13 | Insurance navigator certification and agent exchange requirements.

• Effective: July 1, 2023
• Promulgated Under: 119.03

(A) Purpose

The purpose of this rule is to set forth procedures and requirements for the certification of insurance navigators as recognized by the department as both an individual and business entity, and the requirements for agents who sell health coverage on the exchange.

(B) Authority

This rule is promulgated pursuant to the authority vested in the superintendent under sections 3901.041, 3905.12, 3905.47 to 3905.473 of the Revised Code.

(C) Insurance navigator certification

(1) An individual applying for certification as an insurance navigator must comply with the requirements contained in section 3905.471 of the Revised Code.

(2) An individual applying for certification shall do all of the following:

(a) Complete at least twenty-four hours of pre-certification education requirements including all of the following, but not limited to;

(i) Compliance with the Health Insurance Portability and Accountability Act of 1996, Pub. L. No. 104-191, 110 Stat. 1955, 42 U.S.C.A. 300gg, as amended, and any regulation adopted thereunder;

(ii) Ethics;

(iii) Provisions of the Patient Protection and Affordable Care Act (ACA), 124 Stat. 119, 42 U.S.C. 18031 (2011);

(iv) Levels of coverage available under the ACA;

(v) Eligibility requirements to purchase qualified health plans;

(vi) Means of appeal and dispute resolution;

(vii) Conflict of interest and impartiality;

(viii) Exchange privacy policies and requirements;

(ix) Individual eligibility requirements for medicaid;

(x) Advanced premium tax credits and cost sharing reductions;

(xi) Publicly funded health care (children's health insurance program, medicaid); and

(xii) Eligibility requirements for employers to make insurance available to their employees through the "Small Business Health Options Program" (SHOP) created by division (b)(1)(B) of section 1311 of the ACA.

(b) Successfully complete a criminal background check pursuant to section 3905.051 of the Revised Code with satisfactory results upon review by the superintendent. Any applicant with a conviction notes in the background check may submit information to the superintendent on why the conviction does not impact their fitness to perform as a navigator.

(c) Successfully complete a comprehensive exam including pertinent information that is included within the required education credits. This requirement will be met by the successful completion of an examination administered under the regulations implemented by the secretary of health and human services.

(d) Submit an application and disclosure form by which the insurance navigator shall disclose any potential conflicts of interest based upon the regulations implemented by the secretary of health and human services to avoid conflicts of interest.

(3) If the applicant has met the required education standards set forth by the exchange as defined in division (X) of section 3905.01 of the Revised Code, the applicant shall have subsequently met all education requirements listed in this rule.

(4) A certified insurance navigator must notify the department of a criminal conviction within thirty days of a court ruled conviction.

(D) Business entity insurance navigator certification

Pursuant to section 3905.471 of the Revised Code, an insurance navigator business entity applying for certification must comply with the following requirements:

(1) Complete a business entity application and provide information required by the superintendent;

(2) The applicant has designated a certified insurance navigator who will be responsible for the applicant's compliance with the insurance navigator laws of this state and has certified there are no conflicts of interest, as defined in the regulations implemented by the secretary of health and human services;

(3) Certify that all applicants have met the required training, background check, and disclosure standards;

(4) Maintain a list of every individual insurance navigator who is affiliated with the entity;

(5) Provide an assigned federal identification number as well as proof of federal funding under division (i) of section 1311 of the ACA;

(6) If the business entity ceases to exist as a corporate or other legal entity, its insurance navigator certification may be revoked;

(7) Report any change in its name, address, email address, certified insurance navigators, officers, directors, and members or owners with ten per cent or more voting interest in the certified entity to the superintendent within thirty days of such change;

(8) Apply for certification under the legal name of the applicant as registered with the Ohio secretary of state. The superintendent may deny the use of a name that is too similar to a name already in use by another business entity or a name that may be misleading to the public;

(9) Be authorized to do business in the state of Ohio by the Ohio secretary of state if so required by section 1703.03, 1705.54, or 1775.64 of the Revised Code;

(10) Each business entity applicant for certification as an insurance navigator shall pay an initial application fee of two hundred dollars and an annual certification renewal fee of one hundred dollars for each renewal thereafter.

(11) Be found suitable to be certified by the superintendent.

(E) Certification renewal requirements

(1) Individual and business entity insurance navigator certifications expire annually on October thirty-first.

(a) Certified insurance navigators must annually submit a renewal application on or before October thirty-first. That includes all of the following, but not limited to:

(i) Proof of completion of continuing education which can be demonstrated by completing renewal requirements of the federally-facilitated exchange under the regulations implemented by the secretary of health and human services; and

(ii) A renewal application.

(b) A business entity insurance navigator certification must be renewed annually. The renewal application needs to include all of the following, but not limited to:

(i) A renewal application; and

(ii) Pay the renewal fee as prescribed in paragraph (D)(10) of this rule.

(c) If an individual or business entity does not apply for the renewal of the individual or business entity's insurance navigator certification on or before the certification renewal date specified in paragraph (E)(1) of this rule, the individual or business entity may submit a late renewal application along with a fifty dollar fee prior to December first. Failure to submit a late renewal application along with a fifty dollar fee prior to December first, will result in cancellation of the insurance navigator certificate on December first.

(2) The superintendent has the authority to waive any fees required by this rule or reinstate any insurance navigator certificate cancelled pursuant to this rule, due to military service, a long term medical disability, or some other special or extenuating circumstance.

(F) A contracted third party acting under the authority of an entity described in paragraph (F)(1), (F)(2), (F)(3) or (F)(4) of this rule, to provide information on the entity's premises to persons not covered under a health benefit plan, or persons acting within the scope of their employment for a:

(1) Licensed health care provider or a hospital registered with the Ohio department of health;

(2) Federally qualified health center or a federally qualified health center look-alike as defined in section 3701.047 of the Revised Code;

(3) Non-profit organization whose primary purpose is the distribution of food stuffs, groceries, donated goods or purchased goods in their community or surrounding communities, to meet the emergency needs of the communities or participating outlets; and

(4) An agency of the state or a political subdivision as defined in division (D) of section 3905.36 of the Revised Code.

That is not holding itself out as a person or an entity serving as an insurance navigator, are exempt from the requirements of sections 3905.47 to 3905.474 of the Revised Code and this rule.

(G) Agent exchange requirements

(1) Pursuant to section 3905.47 of the Revised Code, a licensed insurance agent that wishes to sell, solicit, or negotiate a qualified health plan through the exchange must first complete a training program required by the exchange. If the applicant has met the education standards set forth by the exchange, the applicant has met all initial education requirements.

(2) A non-resident applicant who has taken substantially similar courses in exchange training within their home state will be deemed to be in compliance with paragraph (G)(1) of this rule.

(H) Severability

If any portion of this rule or the application thereof to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the rule or related rules which can be given effect without the invalid portion or application, and to this end the provisions of this rule are severable.

Last updated July 27, 2023 at 9:02 AM

Supplemental Information

Authorized By: 3905.471, 3905.47, 3905.12, 3901.041
Amplifies: 3905.471
Five Year Review Date: 8/31/2027