Ohio § 3905.18 Paying unlawful consideration

Ohio Statutes

§ 3905.18 — Paying unlawful consideration

Ohio § 3905.18

Title 39Insurance

Ch. 3905Insurance Producers Licensing Act

This text of Ohio § 3905.18 (Paying unlawful consideration) is published on Counsel Stack Legal Research, covering Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ohio Rev. Code Ann. § 3905.18 (2026).

Text

(A)Neither an insurer nor an insurance agent shall pay a commission, service fee, brokerage fee, or other type of consideration to a person for selling, soliciting, or negotiating insurance in this state, if the person is required to be licensed by the superintendent of insurance under this chapter but is not so licensed. However, renewal or other deferred commissions may be paid to such a person for selling, soliciting, or negotiating insurance in this state if the person was required to be licensed under this chapter at the time of the sale, solicitation, or negotiation and was so licensed at that time.

(B)An insurer shall not pay a commission, service fee, brokerage fee, or other type of consideration to an insurance agent for selling, soliciting, or negotiating insurance in this sta

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(A) Neither an insurer nor an insurance agent shall pay a commission, service fee, brokerage fee, or other type of consideration to a person for selling, soliciting, or negotiating insurance in this state, if the person is required to be licensed by the superintendent of insurance under this chapter but is not so licensed. However, renewal or other deferred commissions may be paid to such a person for selling, soliciting, or negotiating insurance in this state if the person was required to be licensed under this chapter at the time of the sale, solicitation, or negotiation and was so licensed at that time.

(B) An insurer shall not pay a commission, service fee, brokerage fee, or other type of consideration to an insurance agent for selling, soliciting, or negotiating insurance in this state, if the insurance agent is required to be appointed by the insurer but is not so appointed.

(C) An insurer or insurance agent may pay or assign a commission, service fee, brokerage fee, or other type of consideration to an insurance agency or to any person who does not sell, solicit, or negotiate insurance in this state, unless the payment or assignment is prohibited by division (B)(7) of section3901.211or by section3911.20,3933.01, or3999.22of the Revised Code.

(D) No insurer or insurance agent shall pay a commission, referral fee, or other compensation to an unlicensed person for any referral unless the compensation is a fixed dollar amount for each referral and does not depend on whether the person referred purchases an insurance product.

Association of Banks in Insurance, Inc. American Bankers Association Insurance Association Ohio Bankers Association Huntington National Bank v. Harold T. Duryee, Superintendent of Ohio Department of Insurance, Independent Insurance Agents of Ohio, Inc. Ohio Association of Life Underwriters Ohio Association of Professional Insurance Agents, Inc. Ohio Land Title Association Independent Insurance Agents of America, Inc. National Association of Life Underwriters National Association of Professional Insurance Agents, Inc., Intervenors/defendants-Appellants

270 F.3d 397 (Sixth Circuit, 2001)

15 case citations

Ohio Ass'n of Life Underwriters, Inc. v. Duryee

642 N.E.2d 1145 (Ohio Court of Appeals, 1994)

9 case citations

Ass'n of Banks in Insurance v. Duryee

270 F.3d 397 (Sixth Circuit, 2001)

6 case citations

Association of Banks in Ins., Inc. v. Duryee

55 F. Supp. 2d 799 (S.D. Ohio, 1999)

4 case citations