Ohio Revised Code
Chapter 3905 | Insurance Producers Licensing Act
Section 3905.50 | Terminating Independent Insurance Agent Contract.

Effective: September 1, 2002
Latest Legislation: Senate Bill 129, Senate Bill 138 - 124th General Assembly
(A)(1) Except as provided in division (A)(2) or (3) of this section, this section applies to every contract of agency between a property and casualty insurance company and an independent insurance agent which has been in effect for not less than two years.
(2) This section does not apply to a contract of exclusive employment by, or an exclusive agency contract with, a single insurer or group of insurers under common ownership or control.
(3) This section does not apply to an agent whose license has been suspended or revoked by the superintendent of insurance, an agent who has demonstrated gross incompetence, or an agent whose contract has been terminated for insolvency, abandonment, gross or willful misconduct, or failure to pay to the insurer, in accordance with the agency contract, moneys due to the insurer upon written demand of the insurer.
(B) No insurer shall terminate an independent insurance agent contract of agency except by mutual agreement of the parties or upon one hundred eighty days' written notice to the independent insurance agent.
(1) Such notice shall include specific reasons for the termination of the agent.
(2) Such notice shall be sent by certified mail, return receipt requested, to the last known address of the agency.
(C) During the one hundred eighty day notice period, an independent insurance agent shall not write or bind any new policies on behalf of an insurer without written approval from the insurer. However, during such period, an independent insurance agent, subject to the current underwriting rules, guidelines, commission rates, and practices of the insurer, may renew or effect any necessary changes or endorsements of outstanding policies of insurance that are in force prior to the date of receipt of the notice of termination.
(D) None of the following constitutes an acceptable reason for the termination of a contract of agency:
(1) Claims experience of the agent in a single year;
(2) Claims experience due to catastrophes of nature covered by a policy;
(3) Claims experience under uninsured and underinsured motorist coverages.
(E) An agent aggrieved by the conduct of an insurer in its breach or termination of a contract of agency may file with the superintendent a request that the superintendent review the action to determine whether it is in accord with this section and the lawful provisions of the contract of agency and send a copy of the request to the insurer at the address of the office issuing the notice of termination. Upon receipt of such a request, an insurer shall promptly provide the independent insurance agent and superintendent with documentation in support of the insurer's stated reason for termination.
(F) The superintendent shall promptly investigate the allegation. If the superintendent has reasonable cause to believe that this section or the lawful provisions of the contract of agency have been violated, the superintendent shall, within thirty days of receipt of a request for review, conduct an adjudication hearing subject to Chapter 119. of the Revised Code, held upon not less than ten days' written notice to the agent and the insurer. Pending a final order in the adjudication hearing, the superintendent may take such interim action as necessary to protect the parties or the public. During the pendency of the proceeding before the superintendent, the contract of agency subject to the proceeding continues in force and division (C) of this section applies. The superintendent shall, within thirty days following such hearing, issue an order approving or disapproving the action of the insurer. All final orders and decisions of the superintendent are subject to judicial review as provided in Chapter 119. of the Revised Code.
(G) An insurer shall not cancel or nonrenew any policy of insurance written through an agent upon the sole ground of the termination of the agency until the expiration of the policy term or the twelve-month period following the effective date of the termination of the contract of agency, whichever is earlier. However, during such period, an independent insurance agent may, subject to the current underwriting rules, guidelines, commission rates, and practices of the insurer, effect any necessary changes or endorsements to outstanding policies of insurance that are in force prior to the date of termination.
This section does not abridge, restrict, or supersede the rights of an agent to the ownership of expirations provided for in any contract with an insurer.
(H) Any information or documentation provided to an agent or the superintendent by an insurer under this section is confidential and shall be used by the superintendent only in the exercise of the proper functions authorized by this section. No insurer is liable for furnishing information or documentation in compliance with this section if the insurer acts without malice and in the reasonable belief that such information or documentation is warranted by this section.
(I) Notwithstanding division (H) of this section, the superintendent may do either of the following:
(1) Share the information or documentation that is the subject of this section with the chief deputy rehabilitator, the chief deputy liquidator, other deputy rehabilitators and liquidators, and any other person employed by, or acting on behalf of, the superintendent pursuant to Chapter 3901. or 3903. of the Revised Code, with other local, state, federal, and international regulatory and law enforcement agencies, with local, state, and federal prosecutors, and with the national association of insurance commissioners and its affiliates and subsidiaries, provided that the recipient agrees to maintain the confidential status of the confidential information or documentation and has authority to do so;
(2) Disclose any information or documentation that is the subject of this section in the furtherance of any regulatory or legal action brought by or on behalf of the superintendent or the state, resulting from the exercise of the superintendent's official duties.
(J) Notwithstanding divisions (H) and (I) of this section, the superintendent may authorize the national association of insurance commissioners and its affiliates and subsidiaries by agreement to share confidential information and documentation received pursuant to division (I)(1) of this section with local, state, federal, and international regulatory and law enforcement agencies and with local, state, and federal prosecutors, provided that the recipient agrees to maintain the confidential status of the confidential information or documentation and has authority to do so.
(K) Notwithstanding divisions (H) and (I) of this section, the chief deputy rehabilitator, the chief deputy liquidator, and other deputy rehabilitators and liquidators may disclose information and documentation that is the subject of this section in the furtherance of any regulatory or legal action brought by or on behalf of the superintendent, the rehabilitator, the liquidator, or the state resulting from the exercise of the superintendent's official duties in any capacity.
(L) Nothing in this section shall prohibit the superintendent from receiving information and documentation in accordance with section 3901.045 of the Revised Code.
(M) The superintendent may enter into agreements governing the sharing and use of information and documentation consistent with the requirements of this section.
(N)(1) No waiver of any applicable privilege or claim of confidentiality in the information and documentation that is the subject of this section shall occur as a result of sharing or receiving information and documentation as authorized in divisions (I)(1), (J), and (L) of this section.
(2) The disclosure of information or documentation in connection with a regulatory or legal action pursuant to divisions (I)(2) and (K) of this section does not prohibit an insurer or any other person from taking steps to limit the dissemination of the information or documentation to persons not involved in or the subject of the regulatory or legal action on the basis of any recognized privilege arising under any other section of the Revised Code or the common law.
The Legislative Service Commission presents the text of this section as a composite of the section as amended by multiple acts of the General Assembly. This presentation recognizes the principle stated in R.C. 1.52(B) that amendments are to be harmonized if reasonably capable of simultaneous operation.

Structure Ohio Revised Code

Ohio Revised Code

Title 39 | Insurance

Chapter 3905 | Insurance Producers Licensing Act

Section 3905.01 | Insurance Producers Licensing Act Definitions.

Section 3905.02 | License Required.

Section 3905.03 | Exceptions to Licensing Requirement.

Section 3905.04 | Written Examination of Applicant for Agent License.

Section 3905.041 | Exceptions to Program of Insurance Education or Examination Requirement.

Section 3905.05 | Application for Resident Insurance Agent License.

Section 3905.051 | Criminal Records Check; Fingerprinting; Confidentiality.

Section 3905.06 | Issuance and Contents of License - Lines of Authority.

Section 3905.061 | Agent to File of Change of Address.

Section 3905.062 | Portable Electronics Insurance.

Section 3905.063 | Self-Service Storage Insurance; License Required.

Section 3905.064 | Travel Insurance Definitions.

Section 3905.065 | Travel Insurance Agent License; Travel Protection Plans; Policy Requirements.

Section 3905.066 | Travel Retailers.

Section 3905.067 | Unfair and Deceptive Acts or Practices.

Section 3905.068 | Tax on Travel Insurance Premiums.

Section 3905.069 | Travel Administrators.

Section 3905.0610 | Classification of Travel Insurance; Eligibility and Underwriting Standards.

Section 3905.0611 | Rules.

Section 3905.07 | Nonresident Insurance Agent or Surplus Lines Broker License; Renewal.

Section 3905.071 | Nonresident to File Change of Address.

Section 3905.072 | Nonresident Limited Lines Insurance Agent License.

Section 3905.08 | Reciprocity.

Section 3905.081 | Waiving Licensing Requirement for Nonresident Persons in Violation of Federal Reciprocity Requirements.

Section 3905.09 | Temporary Insurance Agent License.

Section 3905.11 | Agent's Use of Assumed Name.

Section 3905.12 | Rules.

Section 3905.14 | Disciplinary Actions.

Section 3905.15 | Hearing to Determine Administrative Action Modification.

Section 3905.16 | Surrender of License.

Section 3905.18 | Paying Unlawful Consideration.

Section 3905.181 | Accepting Consideration Without License.

Section 3905.182 | Sale of Shares of Capital Stock of Life Insurance Company or Agency.

Section 3905.20 | Appointment of Insurance Agent to Act as Agent of Insurer.

Section 3905.201 | Limited Line Credit Insurance Program of Instruction.

Section 3905.21 | Notice of Terminating Relationship With Insurance Agent.

Section 3905.211 | Immunity.

Section 3905.212 | Sanctions.

Section 3905.22 | Agent to Provide Notice of Administrative Action or of Prosecution and Disposition.

Section 3905.24 | Confidentiality of Records and Information - Exceptions.

Section 3905.26 | Centralized Agent License Registry.

Section 3905.28 | Rules.

Section 3905.29 | Mutual Protective Associations Exempted.

Section 3905.30 | Resident and Nonresident Surplus Lines Broker's License.

Section 3905.31 | Prohibitions.

Section 3905.32 | License Fees.

Section 3905.33 | Unauthorized Insurers; Applicability and Construction of Federal Provisions; Due Diligence.

Section 3905.331 | Exempt Commercial Purchasers; Qualifications; Qualified Risk Managers.

Section 3905.332 | Designation as Domestic Surplus Lines Insurer.

Section 3905.34 | Separate Accounts.

Section 3905.35 | Bond.

Section 3905.36 | Taxing Firms Dealing With Unauthorized Foreign Insurers; Waiver of Penalty and Interest Charges; Surplus Lines Brokers.

Section 3905.37 | Prohibited Acts.

Section 3905.38 | Exemptions.

Section 3905.39 | Continuation of Certificates and Licenses.

Section 3905.40 | Fees Paid to Superintendent of Insurance.

Section 3905.401 | Valuation Fee Not Applicable to Reinsurance Ceded to Affiliated Companies.

Section 3905.41 | Accounts for Fees.

Section 3905.42 | Insurance Business Must Be Authorized.

Section 3905.421 | Vehicle Protection Product Warranty.

Section 3905.422 | Homes Service Contract Are Consumer Transactions.

Section 3905.423 | Consumer Goods Contracts to Be Covered by Reimbursement Insurance.

Section 3905.424 | Waiver of Customer Obligation Not Insurance Matter.

Section 3905.426 | Requirements for Ancillary Product Protection Contracts.

Section 3905.43 | Advertising Limitations.

Section 3905.44 | Limitation Upon Domestic Companies.

Section 3905.45 | Payment of Funeral or Burial Expenses Policy.

Section 3905.451 | Funeral or Burial Goods or Services Coverage Not Subject to Preneed Provisions.

Section 3905.46 | Application of Law.

Section 3905.47 | Agent Training Programs.

Section 3905.471 | Insurance Navigator Certification.

Section 3905.472 | Qualified Health Benefit Plans.

Section 3905.473 | Exchange Listings.

Section 3905.474 | Qualifications for In-Person Assisters.

Section 3905.481 | Continuing Education Requirements.

Section 3905.484 | Establishing Criteria for Course or Program of Study for License Examination.

Section 3905.485 | Establishing Schedule of Fees for Course or Program of Study for License Examination.

Section 3905.486 | Adoption of Rules.

Section 3905.49 | Prohibiting False Representation as Independent Agent.

Section 3905.50 | Terminating Independent Insurance Agent Contract.

Section 3905.53 | Effect of Child Support Default on License.

Section 3905.55 | Agent Fees.

Section 3905.56 | Compensation by Public Entity for Placement of Insurance.

Section 3905.61 | Controlled Insurers Definitions.

Section 3905.62 | Application of Sections.

Section 3905.63 | Limits on Business Placed With Controlled Insurer by Controlling Producer.

Section 3905.64 | Notice to Prospective Insured by Controlling Producer.

Section 3905.65 | Remedies for Noncompliance.

Section 3905.71 | Managing General Agent Definitions.

Section 3905.72 | Managing General Agent License Requirement.

Section 3905.73 | Responsibilities of Managing General Agent.

Section 3905.74 | Independent Financial Examination of Each Managing General Agent.

Section 3905.75 | Acts of Agent Deemed Acts of Insurer - Examinations.

Section 3905.76 | Prohibition.

Section 3905.77 | Penalties for Violations.

Section 3905.78 | Rights Not Limited or Restricted.

Section 3905.79 | Rules.

Section 3905.81 | Reinsurance Intermediary-Broker or Intermediary-Manager License Required - Rules.

Section 3905.83 | Surety Bail Bond Agent Definitions.

Section 3905.84 | Surety Bail Bond Agent to Be Qualified, Licensed, and Appointed.

Section 3905.841 | Persons or Classes of Persons Not to Act as Agents.

Section 3905.85 | Surety Bail Bond Agent License.

Section 3905.851 | No Imposition of Local Licensing Fees.

Section 3905.86 | Appointment of Agent by Insurer.

Section 3905.861 | Extending Appointments to Affiliated Agents.

Section 3905.862 | Expiration or Cancellation of Appointment; Fee.

Section 3905.87 | Registration of Agent With Court Clerks; List of Court-Registered Surety Bail Bond Agents.

Section 3905.88 | Continuing Education.

Section 3905.89 | Notice of Change of Principal Business Address or Telephone Number.

Section 3905.90 | Records of Surety Bonds to Be Maintained - Furnishing of Information.

Section 3905.901 | Determination of Direct Written Premiums for Bail Bonds.

Section 3905.91 | Build-Up Funds.

Section 3905.92 | Requirements for Acceptance of Collateral Security or Other Indemnity.

Section 3905.921 | Discharge of Bond Where Collateral Security or Other Indemnity Accepted.

Section 3905.93 | Bail Bond - Charges and Fees.

Section 3905.931 | Furnishing of Forms and Other Supplies.

Section 3905.932 | Prohibited Acts.

Section 3905.933 | Signing or Countersigning Agent's Name to a Bond.

Section 3905.934 | Advertising Requirements.

Section 3905.94 | License Suspension or Revocation.

Section 3905.941 | Designation of Successor Agent.

Section 3905.95 | Rules.

Section 3905.99 | Penalty.