(A) Purpose
The purpose of this rule is to set forth standards to protect
consumers from dishonest, 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 adopted pursuant to the superintendent's authority
under sections 3901.041,
3901.19 to
3901.26, and
3905.14 of the Revised Code.
(C) Application and scope
This rule shall apply 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 shall limit the superintendent's authority
to enforce existing provisions of law.
(D) Definitions
(1) "Insurance agent" or "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" includes, but is not limited to, an agency that regulates insurers,
insurance agents, broker-dealers, investment advisers, or investment companies
as defined under the "Investment Company Act of 1940."
(3) "Health insurance" includes, without
limitation, 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
using the certification or designation 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 in order to maintain
the certificate or designation.
(F) Designations or professional
certifications from accredited entities
(1)
There is a rebuttable presumption that a certifying or designating organization
is not disqualified under this rule when the certification or designation
issued from the organization does not primarily apply to sales or marketing and
when the organization or the certification or designation in question has been
accredited by one of the following accrediting entities:
(a) The "American National Standards
Institute" ("ANSI");
(b) The
"National Commission for Certifying Agencies"; or
(c) Any organization that is on the U.S.
Department of Education's list entitled "Accrediting Agencies Recognized for
Title IV Purposes."
(G) Words or combinations of words implying
special training in advising or providing services to seniors
(1) In 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 a person
has special certification or training in advising or servicing seniors, factors
to be considered shall include:
(a) Use of
one or more words such as "senior," "retirement," "elder," 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
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 paragraph, subparagraph, term or provision of this rule
be adjudged invalid for any reason, such 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.
Notes
Ohio Admin. Code
3901-5-11
Five Year Review (FYR) Dates:
8/30/2018 and
08/30/2023
Promulgated
Under: 119.03
Statutory
Authority: 3901.041,
3905.28
Rule
Amplifies: 3901.19 to
3901.26,
3905.14(B)(9)
Prior Effective Dates:
07/01/2009
R.C. 119.032 review dates:
01/08/2014 and
08/31/2018
Promulgated
Under: 119.03
Statutory Authority: 3901.041, 3901.19 to 3901.26,
3905.14
Rule Amplifies: 3901.19 to 3901.26,
3905.14(B)(9)
Prior Effective Dates:
7/1/2009
