(A) Purpose
The purpose of this rule is to establish viatical
settlement education (VSE) requirements, criteria, standards and procedures and
fees for VSE providers, VSE courses and licensed viatical settlement brokers
pursuant to Chapter 3916. of the Revised Code.
(B) Authority
This rule is issued pursuant to the authority
vested in the superintendent under sections 3901.011, 3901.041, 3901.19 to
3901.26, 3916.03, and 3916.20 of the Revised Code.
(C) Application and scope
This rule applies to all persons applying to
provide, providing, or enrolled in a viatical settlement education course or
program to be offered pursuant to the requirements of division (G) of section
3916.03 of the Revised Code.
(D) Definitions
(1) "Authorized
provider official" is the person designated by a viatical settlement
education provider as the individual responsible for the conduct of the
provider's employees, monitors and instructors of the continuing viatical
settlement broker education course.
(2) "Compliance
period" means the period of time in which a viatical settlement individual
broker must complete the required continuing education (CE) credits pursuant to
division (G) of section 3916.03 of the Revised Code.
(3) "Provider"
or "viatical settlement education provider (VSE provider)" is any
person or entity who is permitted to offer viatical settlement broker education
courses pursuant to division (G) of section 3916.03 of the Revised
Code.
(4) "Viatical
Settlement Broker" or "licensee" means an individual or business
entity that has applied for and been granted a viatical settlement broker
license in this state.
(5) "Viatical
settlement education" or VSE means the viatical settlement education
required by division (G) of section 3916.03 of the Revised Code for individuals
licensed as a viatical settlement broker and this rule.
(E) Compliance period
requirements
(1) A viatical settlement
broker must complete VSE comprising fifteen hours of credit within a
twenty-four month compliance period as set forth in this rule.
(2) A viatical settlement
broker's compliance period shall be based upon the following
criteria:
(a) The initial compliance period for all individuals licensed as
a viatical settlement broker on or before December 31, 2010, begins on January
1, 2011, and ends on December 31, 2012, and shall continue every twenty-four
months as long as the license is in force;
(b) The initial compliance period for all individuals licensed as
a viatical settlement broker on or after January 1, 2011, shall begin on
January first immediately following the year of VSE licensure and end
twenty-four months later on December thirty-first and shall continue every
twenty-four months as long as the license is in force;
(c) Every subsequent twenty-four month period shall constitute a
compliance period. Each compliance period shall commence on January first
immediately following the preceding compliance period and shall end on December
thirty-first of the second year after the preceding compliance period;
and
(d) The compliance period for an individual whose viatical
settlement broker license has expired, and who applies for and is issued a new
viatical settlement broker license within one year of the prior license
expiration, shall be assigned the same VSE compliance period that the
individual would have been assigned if the individual's previous viatical
settlement broker license was timely renewed.
(i) In order to qualify
for a new viatical settlement broker license, the individual viatical
settlement broker applicant must complete all of the VSE credit requirements
that were not completed prior to the expiration of the individual's
previous viatical settlement broker license; and
(ii) The viatical
settlement broker applicant must pay the VSE extension fee if any VSE credits
were completed in order to reactivate the license and those credits were taken
beyond the previous VSE compliance period end date of December
thirty-first.
(iii) The viatical
settlement broker applicant must provide proof of completion of the required
number of approved VSE credits by submitting documentation acceptable to the
superintendent such as course completion certificates and/or course
rosters;
(iv) The effective date
of the new viatical settlement broker license shall be the date that the
"Department" processes and approves the license
application.
(F) VSE credit
(1) Resident licensees
shall complete only VSE courses that have been approved by the superintendent
of this state for the credits to satisfy their VSE requirement pursuant to
division (G) of section 3916.03 of the Revised Code.
(2) Non-resident
licensees may complete a VSE course approved by another state or may complete a
VSE course approved by the superintendent of this state to satisfy their VSE
requirement pursuant to division (G) of section 3916.03 of the Revised
Code.
(a) A non-resident licensee must provide proof of completion to
the superintendent of this state if the VSE course was not approved for VSE
credit in this state; and
(b) The non-resident licensee must also include the appropriate
CE participation fee for the number of credits being requested;
and
(c) The credit must be reported to the superintendent of this
state within thirty days of the date of course completion by the
licensee.
(3) At the discretion of
the superintendent, credit may be given for a VSE course that is held prior to
the issuance of written approval of such course by the
superintendent.
(4) If a VSE course is
taken more than once in a compliance period by the same person, credit may be
given only for the first time the person completed the course.
(5) 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 to the student before or at the time of
registration; and
(b) If partial credit is given, the course participation fee must
be paid to the department or its designee in the amount required as if the
agent had attended the entire class.
(6) To qualify for VSE
credit, both the course and the provider must be approved by the
superintendent.
(7) Credit hours awarded
in one compliance period cannot be carried over or applied in any other
compliance period.
(8) Approved VSE courses
taken between the date of licensure and the beginning of the initial compliance
period may be applied towards the initial VSE continuing education
requirements.
(9) Credit earned for a
VSE course will count towards the general education credit requirement for
licensees who hold an active viatical settlement broker license in addition to
another license type that requires continuing education.
(10) Credit for
publication and instruction.
(a) An individual may receive up to seven hours VSE credit per
reporting period for the publication of articles or books authored by the
individual. Articles and books must deal with matters directly related to the
business of viatical settlements as defined in Chapter 3916. of the Revised
Code. An article must be published in a generally known and recognized state or
national publication. The extent to which credit may be given shall be at the
discretion of the superintendent. A request for 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.
(b) VSE credit may be allowed for the authors of written
materials used in approved VSE courses on a one-time per course basis. The
author will be allowed the number of VSE credit hours for which the course was
approved. If there are multiple authors of the written course materials, no
author will receive more than the author's pro rata share as determined by
the sponsor. 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.
(c) Instructors for approved VSE courses may receive VSE credit
for instructing courses. Credit may be given in an amount equal to two times
the number of hours actually spent instructing a course. Credit will be given
only once per course per compliance period.
(d) A person who authors materials for an approved course and
teaches the same course in a compliance period may receive credit for authoring
the written materials or instructing the course, but not for both activities in
any one compliance period, subject to this rule.
(e) An individual requesting credit for publication or
instructing a course must include the non-refundable payment of a dollar per
credit hour for each credit hour requested.
(G) Continuing education
transcripts
(1) Following the
completion of a licensee's twenty-four month compliance period, the
department shall make available a transcript to each licensee.
(2) If the transcript
indicates that a licensee has completed the required number of VSE credits for
that compliance period and is reported as being in compliance with the VSE
requirements of this state, no additional documentation or reporting is
necessary for that compliance period unless instructed by the
department.
(3) If the transcript
indicates that a licensee has not completed the required number of VSE credits
for that compliance period and is reported as being in non-compliance with the
VSE requirement of this state, it is the individual licensee's
responsibility to provide proof satisfactory to the superintendent that the
licensee actually completed the required VSE credits and to provide proof of
compliance with this rule.
(4) If the licensee
requests an extension, the licensee must provide all documentation required by
the department with the request.
(5) A licensee's
failure to receive the department's transcripts does not relieve the
licensee of the responsibility to timely complete the VSE
requirements.
(H) VSE extensions
(1) The superintendent
may grant a licensee a reasonable extension of time in which to complete the
minimum number of hours of viatical settlement continuing education if the
superintendent finds that the licensee is or was unable to do so as a result of
a disability or special circumstances.
(2) The superintendent
may grant a licensee a general extension from January first immediately after
the end of the VSE compliance period throughout the expiration date of the
viatical settlement broker license or if any credits are completed as a
prerequisite for re-licensure as a viatical settlement broker
license.
(3) It is the
licensee's. responsibility to request a VSE extension. The following
conditions and documentation are required if requesting a VSE
extension:
(a) The request for a VSE extension must be submitted in writing
and must be received by the superintendent prior to and not later than the time
of submission of the renewal application or initial application for an
individual whose viatical settlement broker license has expired and is applying
for a new viatical settlement broker license within one year of the prior
license expiration;
(b) The written request must include a statement setting forth
the reason the VSE extension is being requested;
(c) The request must include documentation that reflects the
completion of the required number of approved VSE credits during the extension
period. The documentation may consist of course completion certificates and/or
course rosters;
(d) The request must include the non-refundable VSE extension
fee. The VSE extension fee is in addition to any renewal or application
fees;
(e) The request must include any other documentation required by
the superintendent;
(f) It is the licensee's responsibility to determine whether
the credits completed during the extension period are sufficient to meet the
VSE compliance requirements; and
(g) The VSE extension request, fees and other requirements should
not be submitted to the department until all VSE credits are
completed.
(4) When an extension is
granted, it applies only to that compliance period. If the disability or
special circumstances continue to exist up to the beginning of a subsequent
compliance period, another extension must be requested. Permanent conditions
are not eligible for an indefinite extension.
(I) "VSE Provider
Application"
(1) An initial VSE
provider application shall be made on a form prescribed by the superintendent
and shall include the following:
(a) Information regarding the applicant's designated
authorized provider official;
(i) An authorized
provider official is the individual responsible for obtaining continuing
education provider approval, course approvals, verifying the qualifications of
instructors, providing course schedules, monitoring classroom 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; and
(ii) An authorized
provider official may cause a facsimile signature stamp to be created and used
for the purpose of providing signatures on provider rosters and completion
certificates. An original signature and an example of the facsimile stamp must
be provided to the department where it will be maintained on file. A facsimile
stamp will only be accepted by the department when it is in an ink color other
than black.
(b) Application fee; and
(c) Any additional information requested by the
superintendent.
(2) If the applicant
submits an application that is incomplete or if the application lacks
information deemed necessary by the department, the department will return the
application with a letter indicating areas which must be addressed in order for
the department to continue the approval process. If the department does not
receive a reply by the requested response date, the filing may be considered
terminated. All fees are non-refundable and non-transferable.
(3) The provider will be
notified in writing of an approval as a VSE provider at the time the
provider's first course is approved and will be assigned a provider
number. A provider is approved from the date of approval until December
thirty-first of the same year in which the provider was approved.
(4) The provider must be
renewed on an annual basis in order for the provider to continue offering VSE
courses. The following information must be submitted to the superintendent by
November thirty of each year in order for the superintendent to consider
renewing a provider:
(a) A renewal application shall be made on a form prescribed by
the superintendent;
(b) Applicable renewal fee paid; and
(c) Any other documents required by the
superintendent.
(J) "VSE Course
Application"
(1) All requests for
approval of a VSE course shall be submitted in the manner prescribed by the
superintendent and shall include the following items:
(a) A description of:
(i) 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;
(ii) The purpose or
objective of the course and how the material offered will increase the
knowledge of Chapter 3916. of the Revised Code and the rules promulgated
thereunder and related subjects for the participants; and
(iii) The course tuition
and the provider's refund policy.
(b) A detailed content outline that contains a description of
each topic to be covered by the VSE course. This outline must specify the time
components spent on each topic and sufficient details to justify the request
for each credit hour. The outline shall contain:
(i) The proposed time
components;
(ii) The specific
material to be covered in each time component;
(iii) The method of
presentation employed for each component; and
(iv) The justification
for the time allotted to each component to teach or instruct that
component.
(c) A description of materials to be employed by the instructor
in teaching the VSE course, including a copy of the promotional brochures
currently in use or proposed to be used for the VSE course once approved by the
department. All promotional material must include:
(i) The level of the VSE
course (e.g. introductory, intermediate, or advanced); and
(ii) Information about
the experience and qualifications of each instructor. In lieu of including this
information in the materials, a provider may make it available upon request to
any person.
(d) A description of how the course is to be administered
including:
(i) The criteria used by
the provider in selecting instructors;
(ii) The method of
verification of attendance or completion of the VSE course; and
(iii) Other formats as
approved by the superintendent.
(e) VSE course application fee, if appropriate.
(f) Any other information the superintendent may
request.
(K) Review of VSE course
application
(1) In order for a course
to be approved by the Ohio department of insurance as an acceptable viatical
settlement broker education course, at a minimum, the course must:
(a) Be offered by an approved provider;
(b) Use the most recent versions of laws and rules;
(c) Have significant intellectual or practical content that
enhances and improves the licensee's knowledge or professional competence.
A course should be an organized program of learning dealing with matters
directly related to Chapter 3916. of the Revised Code and the rules promulgated
thereunder, including professional competence, and fiduciary duties and ethical
obligations. The VSE courses may be comprised of the following
topics:
(i) Ethics in the
viatical or life settlement market, which shall include topics directly related
to maintaining ethical business practices for viatical settlement brokers and
their role in viatical or life settlements, the prohibition of accepting
payments from anyone other than viator/policyowner, the viatical settlement
broker's fiduciary duty to viator/policyowners, including study of
sections 3916.031 and 3916.04 of the Revised Code and the rules promulgated
thereunder;
(ii) Suitability of
viatical or life settlements, including study of due diligence, best execution
and training and supervision and applicable "FINRA" rules and
"Notices to Members" federal, and state personal and estate tax
consequences, loss of government benefits, and loss of
insurability;
(iii) Violations and
penalties set forth in Chapter 3916. of the Revised Code and the rules
promulgated thereunder, including special attention to sections 3916.171,
3916.172, 3916.173, 3916.18, 3916.19, 3916.20, and 3916.21 of the Revised Code
and the rules promulgated thereunder;
(iv) General overview of
Chapter 3916. of the Revised Code and the rules promulgated thereunder to
enable the student to be familiar with the text and requirements of the
viatical or life settlement act, including study of the definitions in section
3916.01 of the Revised Code;
(v) History of viatical
or life settlements, including developments in current law, and including study
of Ohio cases;
(vi) Privacy of
information, including medical records and protection of the viator/seller and
insured's identity; contact with insured; and required disclosures,
including studying divisions (A) and (B) of section 3916.06, and sections
3916.07, 3916.08, 3916.10, and 3916.13 of the Revised Code and rules
promulgated thereunder;
(vii) The business of
viatical or life settlements, including the structure of settlements, and
premium financing, including study of sections 1321.76 and 1321.78 of the
Revised Code and the rules promulgated thereunder;
(viii) Best business
practices, under sections 3916.031, 3916.04, 3916.05, 3916.09, 3916.11,
3916.12, 3916.14, 3916.16, 3916.17, and 3916.18 of the Revised Code and rules
promulgated thereunder;
(ix) The life insurance
policy contract, including standard provisions, including, without limitation,
period of contestability, assignment, accelerated benefits, conversion rights,
and types of insurance, including without limitation, term, whole life, and
universal life.
(d) Meet all other criteria set forth in this rule.
(2) If the VSE provider
submits a course application which is incomplete or if the application lacks
information deemed necessary, the department may return the application with a
letter indicating the areas which must be addressed in order for the department
to continue the approval process. The course filing fee is non-refundable and
non-transferable. If the department does not receive an acceptable response
from the applicant including the required information by the requested date,
the filing may be terminated.
(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 and
renewal fee shall be submitted to the department by November thirty each year.
A course may only be renewed if there are no changes to the content of the
course.
(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.
(5) The instructional
method of a VSE course may be presented either by a classroom-instructed course
or a self-study course.
(6) A self-study course
is defined for purposes of this section as any VSE course which is completed by
self study and which does not require a licensee to attend organized classes. A
self-study course may be:
(a) An interactive on-line course which has at the end of each
chapter or section a series of questions 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.
Interactive on-line courses must be designed
so that the actual amount of time a student spends completing the VSE course
equals, at minimum, the amount of credit hours approved for the course.
(b) A non-interactive on-line course which has a scored on-line
final examination, or
(c) A non-interactive, on-line or paper-based course which has a
mail-in final examination.
(d) Any type of self study program with a proctored final
examination.
(e) Other types of self study courses as the superintendent may
approve.
(7) 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 department,
and a copy of the answer key for the sample questions; or
(b) For a course that requires a final examination, the number of
examination questions that will appear on the student's examination,
references from the examination back to the text, if requested by the
department, 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.
(8) The following are
minimum requirements for on-line interactive chapter/section questions or final
examinations:
(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 or
examination;
(e) Questions shall be clearly written;
(f) Answers to the questions may not be in a pattern;
and
(g) Questions shall adequately cover the course material set out
in the course outline.
(9) 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 per cent of each chapter's/section's questions correctly;
or
(b) Receive a grade of seventy per cent or greater on the final
examination.
(10) A final examination
shall be administered only upon completion of the self-study
course.
(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
must confirm the identity of students by a government-issued identification
with photograph.
(12) Details on how the
examination materials are to be secured and returned to the provider shall be
included in the instructions.
(13) The department shall
review each application within thirty days of the date of receipt of a complete
application and appropriate fees.
(14) The effective date
of a course approval shall be within the superintendent's
discretion.
(L) VSE course 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 post
graduate degree in insurance or law from an accredited university and a minimum
of seven years experience working with viatical settlements as a federal or
state regulator or federal or state law enforcement officer.
(b) Qualification two: the instructor or speaker has a minimum of
seven years of continuous experience working with viatical settlements, and
holds one or more of the following designations in good standing:
(i) "Certified
Financial Planner" (CFP);
(ii) "Certified
Public Accountant" (CPA);
(iii) "Chartered
Life Underwriter" (CLU);
(iv) "Chartered
Financial Consultant" (ChFC);
(v) "Fellow Life
Management Institute" (FLMI);
(vi) "Life
Underwriting Training Council Fellow" (LUTCF).
(c) Qualification three: the instructor or speaker has been a
licensed viatical settlement broker in good standing for a continuous period of
not less than five years, and has been registered in good standing with
"FINRA" as an investment advisor or broker-dealer for a minimum of
five years.
(d) Qualification four: the instructor or speaker has a minimum
of seven years of experience in the business of insurance or the business of
viatical settlements, or a combination thereof, and a degree from an accredited
institution of higher education in business, finance, or law.
(e) Qualification five: the instructor or speaker is either a
full-time or adjunct faculty of an accredited university and teaches a viatical
settlement related curriculum course at a university.
(2) A provider shall
verify each instructor's relevant qualifications and shall be prepared to
provide evidence of such qualifications to the department upon
request.
(3) Instructors must be
knowledgeable in the subject that they teach in a VSE course.
(4) Instructors must be
of good character and reputation.
(M) VSE provider required
practices
(1) A course must be
offered and presented as approved. The failure to do so may result in a denial
of VSE credit for the course.
(2) A provider must
inform the department, in writing, of any change in a course's location,
date or time no later than fifteen calendar days prior to the course. Written
notice of any other changes to a provider or course application must be given
to the department no later than fifteen calendar days subsequent to the
effective date of the change.
(3) Providers may not
change a course's content or outline without prior written approval of the
department. Failure to obtain such written approval in advance of the course
may result in a denial of VSE 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 and proper notification of any change
is given to the department in accordance with this rule.
(5) If an approved course
is cancelled, or if a licensee 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) If a course is
postponed to a later date or moved to a different location, the provider must
offer each licensee who is scheduled to attend the option of a full refund in
lieu of attending the class.
(7) A provider will
comply with all federal and state laws, including without limitation, equal
employment opportunity and disability protection laws.
(8) Facilities must be
large enough to comfortably accommodate all attendees and instructors and must
be conducive to the education process.
(9) Each provider shall
maintain accurate attendance records for each course.
(a) Providers must obtain signatures of licensees at time of
arrival and departure from a course;
(b) Attendance verification forms shall be printed with the name
of provider, the name of the instructors, the course title, the number of
credit hours, and the dates of instruction;
(c) Providers must have each licensee who completes a self-study
course certify that the course was completed by the licensee and that the
examination, if applicable, was taken without assistance. If the examination is
monitored, the provider or proctor must confirm the identity of students by a
government-issued identification with photograph.
(10) Within fifteen
calendar days after completion of a course, the provider shall file an
attendance roster or other documentation acceptable to the superintendent,
which identifies each licensee who completed the course. The roster must
include the name, address, and national producer number (NPN) of each licensee.
If partial credit is being given, the provider must note on the attendance
roster the actual number of credits to be given to that licensee. The
participation fee amount must be equal to the number of credits approved for
the course.
(11) Any instructor for
whom VSE 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.
(12) The provider's
failure to timely file an attendance roster, or other acceptable documentation,
may result in a denial of VSE credit for those licensees who attended the
course.
(13) The provider shall
maintain the attendance verification forms and course rosters for a minimum of
four years and be able to produce them at the superintendent's
request.
(14) A provider shall
provide a certificate of completion to each licensee within seven calendar days
of the conclusion of a course. The certificate of completion shall contain the
name and national producer number of the licensee, the name and identification
number of the course, the date(s) the course was held, the number of credit
hours completed by the licensee and the name and identification number of the
provider. The instructor and a representative of the provider shall sign each
certificate.
(N) VSE course advertising
(1) All VSE 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 VSE credit hours for which the course is
approved; and
(d) Level of course instruction (e.g., introductory,
intermediate, or advanced).
(2) A provider may not
represent that a course has been approved for VSE credit in Ohio until the
superintendent issues written approval of the course. A provider may represent
that an application for VSE 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 approve the course for fewer hours
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) If several approved
courses are offered together, all advertising and promotional materials must
separately identify each approved course and the respective number of VSE
credit hours for which each course is approved.
(5) 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.
(6) A provider's
refund policy must be clearly and conspicuously disclosed in all advertising
and on all printed promotional materials.
(O) Audit and records
retention
(1) All forms required by
this rule may be obtained from the Ohio department of insurance and are located
on the department's website. The forms may be duplicated for use by VSE
providers, but may not be used for resale purposes.
(2) Each provider shall
retain all records that pertain to its Ohio VSE activities for a minimum of
four years.
(3) A provider must be
able to verify who attended and completed each course for a minimum of four
years following the completion of such course.
(4) The superintendent
may audit a provider's records and courses at any time without prior
notice. The instructors at an approved course may be required to provide proof
of identity to the superintendent's representative during an audit of a
course.
(P) Violations of viatical settlement
broker education requirements
(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 is approved or any
other statement about a course or provider. The penalty for a single violation
is five hundred dollars.
(2) Failing to maintain
all necessary records for the required time periods. The penalty for a single
violation is one hundred dollars.
(3) The use, submission
or filing of any document for the purpose of complying with the viatical
settlement broker education statutes and rules, or in responding to any inquiry
from the department concerning VSE education, when the provider knows or should
have known that the document, or any part of it, is false or deceptive. The
penalty for a single violation is one thousand dollars.
(4) Failure to use the
approved course outline. The penalty for single violation is two hundred
dollars.
(5) Failure to notify the
department of allowable changes to any course, previously approved, within the
fifteen day period of such changes. The penalty for a single violation is one
hundred dollars.
(6) Failure to conduct
the approved course for the full time, as specified in the course application.
The penalty for a single violation is five hundred dollars.
(7) Failure to monitor
course attendance. The penalty for a single violation is five hundred
dollars.
(8) Failure to comply
with applicable federal or state laws, including without limitation, equal
employment opportunity or disability protection laws. The penalty for a single
violation is five hundred dollars.
(9) Failure to provide
timely refunds to participants when required. The penalty for a single
violation is one hundred dollars.
(10) Failure to timely
file any form or other required information. The penalty for a single violation
is one hundred dollars.
(11) Failure to file any
form or other required information. The penalty for a single violation is five
hundred dollars.
(12) Failure to
appropriately monitor an examination. The penalty for a single violation is one
hundred dollars.
(13) Obtaining the
attendance or enrollment of licensees or students by actual or implied
coercion. The penalty for a single violation is five hundred
dollars.
(14) 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 five hundred
dollars.
(15) Failure to
accurately report the actual number of course hours attended for each
individual. The penalty for a single violation is five hundred
dollars.
(16) Knew or should have
known by reasonable inquiry, that a person attending a classroom course or
taking a self-study course is not the person who signed up to take the course.
The penalty for a single violation is five hundred dollars.
(17) Failure by any
course attendee to comply with verbal or written instructions from a VSE course
provider addressing the attendee's unacceptable or disruptive behavior
while attending the course shall be sufficient grounds for the VSE course
provider to dismiss the attendee from the course and refuse to submit credit
for all or any part of the course from which the attendee was
dismissed.
(18) Obtaining, accepting
or using any certificate of completion or certificate of attendance from a
provider when the licensee has not attended the course or the number of hours
identified on the certificate shall be sufficient grounds for the
superintendent to suspend, revoke, or refuse to issue any licenses as a
viatical settlement broker.
(19) Cheating or using
unauthorized materials or receiving unauthorized assistance during an
examination, including the use of cellular phones or other handheld
communication device at any time while an examination is in progress, shall be
sufficient grounds for the superintendent to suspend, revoke, or refuse to
issue any licenses as a viatical settlement broker.
(20) Permitting a course
instructor or licensed agent to take an examination for a line of authority
that is equivalent to any line of authority already held by the course
instructor or agent. The penalty for a single violation is five hundred
dollars. A finding that a course instructor or agent has taken an examination
under these circumstances shall be sufficient grounds for the superintendent to
suspend, revoke, or refuse to issue any licenses as a viatical settlement
broker or insurance agent to the course provider or agent.
(21) The violation of any
provision of Chapter 3916. of the Revised Code, and the rules promulgated
thereunder.
(Q) Application of penalties
(1) The superintendent
may suspend, revoke, non-renew or deny authority to any viatical settlement
broker education provider who has committed multiple violations of this rule.
This penalty may be in addition to the penalties levied pursuant to paragraph
(P) of this rule.
(2) Once a violation of
this rule requiring a penalty has been found, the superintendent may, in the
superintendent's discretion, suspend all or part of such penalty, upon a
satisfactory showing of mitigating circumstances by the violator.
(3) A violation of this
rule involving falsifying records shall be grounds for immediate termination of
any authority to provide or instruct a viatical settlement program or course,
or if the viatical settlement broker falsified or knew or should have known, or
aided or abetted the falsification, no course work will be credited to the
viatical settlement broker and the superintendent shall take immediate action
to terminate the viatical settlement broker's license pursuant to Chapter
119. of the Revised Code.
(4) The making of any
misrepresentation, or any untrue, misleading or deceptive statement or
assertion in support of or in connection with a request for an extension is an
unfair and deceptive act or practice under sections 3901.19 to 3901.26 of the
Revised Code and a fraudulent viatical settlement act in the business of
viatical settlements and the superintendent shall take immediate action to
terminate the viatical settlement broker's license pursuant to Chapter
119. of the Revised Code.
(R) VSE provider and course - schedule of
fees
(1) Every VSE applicant
or provider shall pay the non-refundable fees established in this
rule.
(2) Fees are due at the
time of submission of the initial and renewal applications.
(3) Per-course fees,
where applicable, shall be submitted with the request for course approval.
Every potential continuing education provider shall submit at least one program
for approval with the application to be an authorized continuing education
provider.
(4) The VSE applicant
shall select one of the fees listed below. The fees are the same for initial
and renewal applications. 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 or future payments.
(a) Flat fee VSE provider. The fee is one thousand dollars per
year, which covers the application fee and the course approval fees for all
courses approved during the year.
(b) Individual fee VSE provider. The fee is one hundred dollars
for approval of the provider application, plus forty dollars for each course
approval.
(c) Limited fee VSE provider. The fee is twenty-five dollars for
approval of the provider application, plus twenty-five dollars for each course
approved. A provider electing this status is limited to offering no more than
three courses of no more than three hours each, during the year.
(5) VSE licensee
participation fee
Filing of VSE course roster or proof of VSE
education credit is one dollar per person/per course approved credit
hour.
(S) Miscellaneous fees
(1) Request for extension
of VSE credit requirements within allowable VSE extension period is one hundred
dollars.
(2) A processing charge
of thirty dollars will be charged for any fee payment submitted to the
superintendent by check, money order or other instrument, and which is
subsequently returned to the superintendent for insufficient funds, closed
account or for any other reason.
(3) The superintendent
may require a certified check from any licensee or provider whose check has
been dishonored.
(T) Deposit of fees
Any fee collected pursuant to this rule shall be
paid into the state treasury to the credit of the department of
insurance's operating fund pursuant to section 3901.021 of the Revised
Code.
(U) Severability
If any paragraph, subparagraph, term or provision
of this rule is adjudged invalid for any reason, the judgment shall not affect,
impair, or invalidate any other paragraph, subparagraph, term or provision of
this rule, but the remaining paragraphs, subparagraphs, terms and provisions
shall be and continue in full force and effect.
