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Ohio Insurance Regulation and Agent Licensing: Practice Questions

20 free practice questions with explanations. Pick an answer for each, then check your score.

Exam weight: Licensing, discipline and agent rules in the Insurance Regulation section (10%) on the Ohio Life, Accident and Health agent exam (11-35). Updated 2026-11-05.

Quick study guide

The superintendent

The superintendent of insurance heads the Department of Insurance and enforces Ohio's insurance laws (Ohio Rev. Code § 3901.011), with power to administer oaths and subpoena witnesses and records; a court of common pleas enforces a subpoena through contempt (§ 3901.04).

Who needs a license

No one may sell, solicit or negotiate insurance in Ohio without a license for that line; doing so is a first-degree misdemeanor (§§ 3905.02, 3905.99(D)). To solicit is to attempt to sell or to urge someone to apply for a particular kind of insurance from a particular insurer; to negotiate is to advise a buyer about a contract's substantive terms (§ 3905.01). A resident applicant must be at least 18, finish 20 hours of approved pre-licensing study per line unless exempt by an insurance degree or approved designation, pass the exam and submit fingerprints (§§ 3905.04, 3905.051, 3905.06). A nonresident needs a resident license in good standing at home (§ 3905.07).

Number	Rule
Birth month	Renew every 2 years by its last day; the first term runs 18 to 29 months (§ 3905.06(C); Ohio Adm. Code 3901-5-09(J))
24 hours	CE each renewal period, 3 of them ethics; up to 12 extra hours carry forward (§ 3905.481; 3901-5-01(E)(7))
30 days	Report a change of name, address, email or phone (§ 3905.061; 3901-5-09(D)(9)), or a criminal charge or another regulator's action (§ 3905.22)
180 days	Longest term of a temporary license (§ 3905.09); time to apply after passing the exam (3901-5-09(D)(3))
12 months	Reinstate a license suspended for nonrenewal (§ 3905.06(E))
90 days	A new resident licensed elsewhere applies without the exam (§ 3905.041)

Discipline

Grounds in § 3905.14(B) include forging an application or using a forged document ((B)(11), (26)), ignoring tax or workers' compensation payment orders ((B)(14)), not answering a department inquiry within 21 calendar days ((B)(21)) and skipping a scheduled interview ((B)(22)). After notice and an opportunity for a Chapter 119 hearing, the superintendent may fine up to $25,000 per violation, suspend, revoke or refuse a license, or accept a surrender for cause of at least 5 years (§ 3905.14(D), (E)). A cease-and-desist order binds on receipt, with a hearing within 15 days (§ 3905.14(H)), and a written settlement agreement may set one agreed penalty for a series of offenses (§ 3901.22(G)).

Appointments and money

An insurer files an appointment within 30 days after the agency contract is signed or the first application is submitted, whichever is earlier, and reports a termination within 30 days (§§ 3905.20, 3905.21). Surrender, suspension, revocation or requested inactivation voids all appointments (§ 3905.16(B)(1)). An unlicensed person may get only a flat per-referral fee that does not depend on a sale (§ 3905.18(D)), and no fee may be charged for taking an application for individual life or individual sickness and accident insurance (§ 3905.55(B)).

Practice questions

Under Ohio Rev. Code § 3905.01, which term means attempting to sell insurance, or asking or urging a person to apply for a particular kind of insurance from a particular insurer?
1. A.Negotiate
2. B.Transact
3. C.Sell
4. D.Solicit
Show answer
Answer: D. Section 3905.01(S) defines solicit as attempting to sell insurance, or asking or urging a person to apply for a particular kind of insurance from a particular insurer. Negotiate (3905.01(O)) means conferring directly with, or offering advice directly to, a purchaser about the substantive benefits, terms or conditions of a particular contract, by someone who sells insurance or obtains it for purchasers; sell (3905.01(Q)) means exchanging a contract of insurance for money or its equivalent on behalf of an insurer. Section 3905.02 bars anyone from selling, soliciting or negotiating insurance in Ohio without a license for that line of authority.
Source: Ohio 11-35 outline 1.2: Negotiate, sell, solicit (3905.01, .02); Ohio Rev. Code § 3905.01; Ohio Rev. Code § 3905.02
A man with no Ohio insurance license sells several life insurance policies to his coworkers, and the licensed agent who places the business pays him part of her commission. Which statement is correct under Ohio law?
1. A.Only the agent has violated the law, because licensing duties fall on whoever submits the application
2. B.His selling is a first-degree misdemeanor, and the law bars both his accepting and her paying the commission
3. C.He violates the law only if he sells more than five policies in a calendar year
4. D.No violation occurs, because a licensed agent submitted the applications to the insurer
Show answer
Answer: B. Section 3905.02 bars any person from selling, soliciting or negotiating insurance in Ohio without a license for that line, and section 3905.99(D) makes a violation a misdemeanor of the first degree. Section 3905.181 forbids a person who must be licensed but is not from accepting a commission or other consideration for selling, and section 3905.18(A) forbids an insurer or agent from paying it. Routing the business through a licensed agent does not cure the problem, and knowingly accepting business from an unlicensed individual is itself a ground for discipline (3905.14(B)(13)).
Source: Ohio 11-35 outline 1.2: Acts constituting insurance transactions (3901.17; 3905.02, 3905.42); Ohio Rev. Code § 3905.99; Ohio Rev. Code § 3905.181; Ohio Rev. Code § 3905.18
Dana has no insurance degree or professional designation and wants an Ohio license for both Life and Accident and Health. Under Ohio Rev. Code § 3905.04, what must she do before she is admitted to the licensing exam?
1. A.Complete 20 hours of approved study for each of the two lines, by classroom, online or self-study
2. B.Complete 40 hours of approved study for each line, at least half of it in a classroom
3. C.Nothing, because Ohio requires pre-licensing study only for the property and casualty lines
4. D.Complete 20 hours of approved study in total, covering both lines in a single course
Show answer
Answer: A. Section 3905.04(C)(1) admits an individual to the exam only if she has a bachelor's or associate's degree in insurance, holds a professional designation approved by the superintendent, or has completed 20 hours of approved study for each line of authority applied for, which may include classroom, online and self-study courses. Ohio Adm. Code 3901-5-09(D)(2)(a) lists 20 hours each for Life and for Accident and Health, so she needs 40 hours in all. After the exam, she may not submit her application until she has passed all required exams, and must submit it within 180 calendar days of passing (3901-5-09(D)(3)).
Source: Ohio 11-35 outline 1.1: Licensing requirements (3905.02, .04, .041, .05, .051, .06; 3901-5-09); Ohio Rev. Code § 3905.04; Ohio Adm. Code 3901-5-09
An Ohio agent submits her first application to a life insurer on March 10, and the insurer signs her agency contract on March 25. Under Ohio Rev. Code § 3905.20, by when must the insurer file her notice of appointment?
1. A.Within 15 days after March 10, and before any commission is paid to her
2. B.Within 30 days after March 10, because the deadline runs from the earlier of the two dates
3. C.By the next July 1, when all Ohio appointments are filed and renewed together
4. D.Within 30 days after March 25, because the deadline always runs from the contract date
Show answer
Answer: B. Section 3905.20(B)(1) requires an insurer to file a notice of appointment no later than 30 days after the agency contract is executed or the first insurance application is submitted, whichever is earlier, so the clock started on March 10. July 1 is when existing appointments renew automatically unless the insurer terminates them (Ohio Adm. Code 3901-5-09(K)(3)), not the deadline for new ones. An appointment is not effective unless the agent is licensed for that line (3901-5-09(K)(4)), and while it is in force the insurer is bound by the agent's acts within her actual and apparent authority (3905.20(B)(3)).
Source: Ohio 11-35 outline 1.2: Agent appointment (3905.20; 3901-5-09(K)); Ohio Rev. Code § 3905.20; Ohio Adm. Code 3901-5-09
An Ohio resident agent born in August receives her first license in May. Under Ohio Rev. Code § 3905.06 and Ohio Adm. Code 3901-5-09(J), how does her license renewal work?
1. A.She renews every year by the last day of August, after a first term of 12 to 18 months
2. B.She renews every three years by June 30, when her appointments also come up for renewal
3. C.She renews by the last day of August every two years, after a first term of 18 to 29 months
4. D.She renews every two years on the anniversary of the May date her license was issued
Show answer
Answer: C. Section 3905.06(C)(1) requires an individual to apply for renewal biennially, on or before the last day of the licensee's birth month, and the superintendent sends a renewal notice at least one month before the renewal date. Under Ohio Adm. Code 3901-5-09(J)(2) and (3), the first period from initial licensing to first expiration is no less than 18 and no more than 29 months, and expiration falls on the last day of the birth month every two years after that. A May license for an August birthday therefore first expires at the end of August a little over two years later. Her continuing education must be completed before she renews (3905.06(C)(2)).
Source: Ohio 11-35 outline 1.1: Maintenance and duration; renewal (3905.06; 3901-5-09(J)); Ohio Rev. Code § 3905.06; Ohio Adm. Code 3901-5-09
An Ohio agent's license renewal date is March 31, and she misses it. Under Ohio Rev. Code § 3905.06 and Ohio Adm. Code 3901-5-09(J), what happens next?
1. A.She has a 90-day grace period in which she may renew at no extra cost and keep selling
2. B.She may renew at any time in the next 12 months for a $50 late fee, with no suspension at all
3. C.She may file a late renewal with a $50 extra fee by April 30; on May 1 the license is suspended
4. D.Her license is canceled on April 1, and she must pass the licensing exam again to be relicensed
Show answer
Answer: C. Under section 3905.06(D) a late renewal application may be filed with all fees before the first day of the second month after the renewal date, here May 1, and Ohio Adm. Code 3901-5-09(J)(1)(d)(ii) adds a $50 late renewal fee. On May 1 the license is automatically suspended for nonrenewal (3905.06(E)); she may then apply for reinstatement within 12 months after the date the license should have been renewed, paying an extra $100 (3901-5-09(J)(1)(d)(iii)). A license that is not reinstated is automatically canceled (3905.06(F)), and she would then have to apply as a new agent (3905.16(B)(2)).
Source: Ohio 11-35 outline 1.1: Renewal/nonrenewal (3905.06; 3901-5-09(J)); Ohio Rev. Code § 3905.06; Ohio Adm. Code 3901-5-09; Ohio Rev. Code § 3905.16
An Ohio resident agent in good standing moves her home to Kentucky and becomes licensed there. Under Ohio Rev. Code § 3905.061, what happens to her Ohio license?
1. A.It becomes a nonresident license, and its renewal date resets to two years from the change
2. B.Nothing changes until her next Ohio renewal, when she reports her new address
3. C.She files a change of address and Kentucky certification within 30 days, and it becomes nonresident at no fee
4. D.She must surrender the Ohio license and apply again as a nonresident, paying the full license fee
Show answer
Answer: C. Section 3905.061(B) requires a licensee who changes her home state to file a change of address within 30 days and provide certification from the new home state; if she is in good standing, the license is changed to a nonresident license and no fee or license application is required. The change does not alter the renewal date set at initial licensing. Any change of name, address, email or phone number must be reported within 30 days (3905.061(A); Ohio Adm. Code 3901-5-09(D)(9)), and failing to comply with 3905.061 is a class B offense under 3905.14(G)(2). As a nonresident she must keep her Kentucky resident license for the lines she holds in Ohio (3905.07(C)(2)).
Source: Ohio 11-35 outline 1.1: Resident/nonresident; change in name, address, email, telephone number (3905.061, 3905.071; 3901-5-09); Ohio Rev. Code § 3905.061; Ohio Rev. Code § 3905.07; Ohio Adm. Code 3901-5-09
An Ohio agent who runs a one-person agency is called to active service in the U.S. armed forces. Under Ohio Rev. Code § 3905.09, how may her business be serviced while she is away?
1. A.Her designee may get a temporary license of up to one year, renewable for the length of her service
2. B.Her designee may get a temporary license, but only after passing the Ohio licensing exam
3. C.Her designee may sell under her license number, without a license, until she returns from service
4. D.Her designee may get a temporary license for up to 180 days, with a licensed agent or insurer as sponsor
Show answer
Answer: D. Section 3905.09(A)(3) lets the superintendent issue a temporary license to the designee of a licensed agent entering active service in the U.S. armed forces when it is needed to service the business. Under 3905.09(B) and (D) the license lasts no more than 180 days, and the temporary licensee must be sponsored by a licensed agent or insurer that is responsible for all of the licensee's acts. No pre-licensing education or exam is required for a temporary license (3905.041(B)), and the superintendent may limit or rescind one by order without a Chapter 119 hearing (3905.09(C), (E)).
Source: Ohio 11-35 outline 1.1: Temporary license (3905.09); Ohio Rev. Code § 3905.09; Ohio Rev. Code § 3905.041
An Ohio agent is charged with felony theft and makes her first appearance before a judge. She has not been convicted. Under Ohio Rev. Code § 3905.22, what must she do?
1. A.Notify the superintendent within 30 days with a certified copy of the charge, then report the outcome
2. B.Disclose the charge on her next renewal application, where the department asks about criminal history
3. C.Notify the superintendent within 10 days, since a theft charge involves the misuse of money
4. D.Nothing for now, because only a conviction or a guilty plea has to be reported to the superintendent
Show answer
Answer: A. Section 3905.22(B) requires an agent to notify the superintendent of any criminal prosecution in any jurisdiction, other than misdemeanor traffic, within 30 days after the initial appearance before a judge or magistrate, with a certified copy of the charging document, and within 30 days after disposition to send a certified copy of the court's final entry or order. The duty starts with the charge, not a conviction, and is not limited to theft or insurance crimes. Section 3905.22(A) likewise requires notice of an administrative action taken in another jurisdiction or by another licensing agency within 30 days after its final disposition, and pleading guilty or no contest to a felony is a ground for discipline (3905.14(B)(6)).
Source: Ohio 11-35 outline 1.1: Duty to report criminal convictions and administrative disciplinary actions (3905.22); Ohio Rev. Code § 3905.22; Ohio Rev. Code § 3905.14
An Ohio agent licensed under her legal name, Laura Mendez, wants to do business as "Lakeshore Benefit Advisors." Under Ohio Rev. Code § 3905.11, what must she do?
1. A.Obtain written consent from every insurer that has appointed her
2. B.Notify the superintendent before she starts using the assumed name
3. C.Report the assumed name to the superintendent at her next license renewal
4. D.Nothing, as long as her legal name also appears on her business cards
Show answer
Answer: B. Section 3905.11 requires an agent who intends to do business in Ohio under any name other than her legal name to notify the superintendent before using the assumed name. Licenses are issued in the applicant's legal name (Ohio Adm. Code 3901-5-09(D)(7)), and commissions for licensed activity must be paid in the licensee's legal name as it appears in the superintendent's records or in a trade name registered under section 3905.11 (3901-5-09(N)(1)). Waiting for renewal is too late, and the statute calls for notice to the superintendent, not insurer consent.
Source: Ohio 11-35 outline 1.1: Assumed business names (3905.11); Ohio Rev. Code § 3905.11; Ohio Adm. Code 3901-5-09
During her current renewal period an Ohio resident Life and Accident and Health agent completes 40 hours of approved continuing education, including 3 hours of ethics. Under Ohio Adm. Code 3901-5-01(E)(7), how many of the extra hours can she apply to her next renewal period?
1. A.12 hours, carried over as general credit
2. B.None, because Ohio does not let extra hours carry over
3. C.16 hours, every hour beyond the 24 required
4. D.12 hours, including up to 3 hours of ethics credit
Show answer
Answer: A. Section 3905.481 requires each resident agent to complete at least 24 hours of approved continuing education per renewal period, including at least 3 hours of approved ethics. Under Ohio Adm. Code 3901-5-01(E)(7), hours beyond the requirement may be applied to the next period up to 50% of the hours required for that period, and they carry over as general credit hours. Half of 24 is 12, so 12 of her 16 extra hours carry forward, and none of them counts toward the next period's ethics hours. Credit for active membership in professional insurance associations is capped at 4 hours per period and never counts as ethics (3901-5-01(F)(5)).
Source: Ohio 11-35 outline 1.1: Continuing education (3905.06, 3905.481; 3901-5-01); Ohio Adm. Code 3901-5-01; Ohio Rev. Code § 3905.481
An Ohio resident agent is deployed on active military duty and cannot complete her license renewal by her renewal date. Under Ohio Rev. Code § 3905.06(G), what may she do?
1. A.Nothing, because the licenses of deployed service members renew automatically while they serve
2. B.Make a written request, with documentation, to extend her renewal date before that date passes
3. C.Ask one of her appointing insurers to renew the license for her without any continuing education
4. D.Let the license lapse and, when she returns, apply as a new agent and pass the exam again
Show answer
Answer: B. Section 3905.06(G) lets a resident agent who cannot comply with renewal procedures, and cannot engage in the business of insurance because of military service, a long-term medical disability or another extenuating circumstance, request an extension of the renewal date by a written request with supporting documentation; the superintendent may decline to consider a request made after the renewal date. Under Ohio Adm. Code 3901-5-09(J)(1)(d)(iv) the superintendent waives the late renewal and reinstatement fees because of active military service and may waive them for a long-term medical disability or other extenuating circumstance. Nothing renews automatically, and an insurer cannot renew an agent's license.
Source: Ohio 11-35 outline 1.1: Inactivity due to military service or extenuating circumstances (3905.06(G); 3901-5-09(J)); Ohio Rev. Code § 3905.06; Ohio Adm. Code 3901-5-09
An Ohio agent was granted inactive status when she stopped selling insurance. Two years later she wants to return to active status. Under Ohio Adm. Code 3901-5-09(L), what must she do?
1. A.Nothing, because her appointments stayed in force and simply resume when she starts selling again
2. B.Complete 24 hours of approved CE, 3 in ethics, within the preceding 12 months and pay a $50 reactivation fee
3. C.Pass the licensing exam again, because an inactive license expires after 24 months
4. D.Pay a $100 reinstatement fee; no continuing education is needed after a period of inactive status
Show answer
Answer: B. Under 3901-5-09(L)(8) an inactive agent returns to active status by notifying the superintendent, completing approved CE for the license type (24 hours, 3 of them ethics, for a major line license) or a pre-licensing course within the preceding 12 months, paying a $50 reactivation fee and being otherwise suitable. While inactive she was exempt from CE (Ohio Rev. Code § 3905.16(C)(2); 3901-5-09(L)(7)). Her appointments were canceled automatically when inactive status was granted, and she had to notify each appointing insurer within 10 days (3901-5-09(L)(4)). Doing licensed work while inactive can bring suspension, revocation or a civil penalty of up to $25,000 (3901-5-09(L)(5)).
Source: Ohio 11-35 outline 1.1: Continuing education exemptions; inactivity (3905.06(G); 3901-5-09(J), (L)(7)); Ohio Adm. Code 3901-5-09; Ohio Rev. Code § 3905.16
The Ohio Department of Insurance sends an agent a written inquiry about a consumer complaint. Under Ohio Rev. Code § 3905.14(B)(21), unless she asks for and is granted an extension, how long does she have to respond in writing?
1. A.30 days after the date the inquiry was mailed
2. B.21 calendar days after she receives the inquiry
3. C.10 business days after she receives the inquiry
4. D.15 days after the inquiry is mailed to her
Show answer
Answer: B. Section 3905.14(B)(21) makes it a ground for discipline to fail to give the department a written response within 21 calendar days after receiving any written inquiry, unless a reasonable extension was requested and granted. It is a class B offense, for which the superintendent may impose a civil penalty, administrative costs or a corrective action order, or accept a surrender for cause, but not a suspension or revocation (3905.14(G)(2)). Failing to appear for a scheduled interview after written notice ((B)(22)) and ignoring an official notice or order to pay income tax, sales tax or workers' compensation premiums ((B)(14)) are class A offenses that allow any penalty.
Source: Ohio 11-35 outline 1.1: Failure to provide department with a written response (3905.14(B)(21)); Ohio Rev. Code § 3905.14
After notice and a hearing, the Ohio superintendent finds that an agent signed an applicant's name on a life insurance application without the applicant's knowledge. Under Ohio Rev. Code § 3905.14, what is the largest civil penalty the superintendent may assess for the violation?
1. A.$25,000, and the superintendent may also suspend or revoke all of the agent's licenses
2. B.$10,000, and only if the agent's license is not also suspended or revoked
3. C.$1,000, because a first violation by an agent is limited to a warning-level fine
4. D.$5,000, because the forged application did not cause the applicant any loss
Show answer
Answer: A. Forging or causing the forgery of an application ((B)(11)) and submitting or using a document the agent knew or should have known was forged ((B)(26)) are grounds for discipline and class A offenses, which allow any penalty in 3905.14(E) (3905.14(G)(1)). Division (E)(1) allows a civil penalty of up to $25,000 per violation, and the superintendent may also assess administrative costs, suspend or permanently revoke all licenses, refuse to issue or renew, bar the person from the insurance business or accept a surrender for cause of at least five years ((E)(9)). Before imposing any of these, the superintendent must give notice and an opportunity for a hearing under Chapter 119 (3905.14(D)(1)).
Source: Ohio 11-35 outline 1.1 and 1.2: Penalties and fines (3905.14(B), (D), (E)); policy/application signature (3905.14(B)(11), (26)); Ohio Rev. Code § 3905.14
The Ohio superintendent finds that an agent's ongoing violation of § 3905.14 is causing substantial and material harm and issues a cease-and-desist order. Under Ohio Rev. Code § 3905.14(H), which statement is correct?
1. A.The order lasts 15 days and then expires unless a court of common pleas extends it
2. B.She may keep operating until a hearing is held, which she must request within 30 days
3. C.The order takes effect only after a hearing held at least 30 days after she receives notice of it
4. D.She must comply as soon as she receives notice, and the notice sets a hearing no more than 15 days after the order
Show answer
Answer: D. Section 3905.14(H) lets the superintendent order a person to cease and desist when a violation has caused, is causing or is about to cause substantial and material harm. Notice goes by certified mail or other permitted service, the person must comply immediately on receiving it, and the notice sets a hearing on continuing or revoking the order no more than 15 days after the order's date; the superintendent issues a final order within 15 days after objections to the hearing officer's report, appealable under section 119.12. Section 3901.221 sets out a parallel order, with the same 15-day hearing date, for unfair trade practice violations. If an order is violated, the attorney general may sue, and the court may impose a civil penalty of up to $25,000 per violation (3905.14(I)).
Source: Ohio 11-35 outline 1.1: Cease and desist orders (3901.221; 3905.14(H), 3901.22(D)); Ohio Rev. Code § 3905.14; Ohio Rev. Code § 3901.221
A witness served with the Ohio superintendent's subpoena in an insurance investigation refuses to appear and testify. Under Ohio Rev. Code § 3901.04, how is the subpoena enforced?
1. A.The superintendent may fine the witness up to $25,000 for each day the refusal continues
2. B.It cannot be enforced, because a subpoena from the superintendent is only a request to appear
3. C.On the superintendent's application, a court of common pleas may compel obedience through contempt proceedings
4. D.The superintendent holds the witness in contempt and sets a fine without going to any court
Show answer
Answer: C. Section 3901.04(B)(2) lets the superintendent administer oaths, subpoena witnesses and require the production of books and papers; if a person disobeys, the court of common pleas of the county where venue is appropriate may, on the superintendent's application, compel obedience by attachment proceedings for contempt. The superintendent may also require sworn written reports and may start criminal proceedings by presenting evidence to a county prosecuting attorney (3901.04(B)(1), (4)). Section 3901.011 makes the superintendent the chief executive officer of the Department of Insurance, charged with seeing that the insurance laws are executed and enforced.
Source: Ohio 11-35 outline 1.2: Director's general duties and powers (3901.01, 3901.011, .04, .041; 3905.12); Ohio Rev. Code § 3901.04; Ohio Rev. Code § 3901.011
An Ohio agent wants to pay a local gym owner, who has no insurance license, for each customer he refers to her. Under Ohio Rev. Code § 3905.18(D), when is this allowed?
1. A.Only if it is no more than 10% of the first-year commission on each policy that is sold
2. B.Only if it is a fixed dollar amount per referral that does not depend on whether the person buys
3. C.Never, because only licensed agents may receive anything of value connected with insurance
4. D.Only if the gym owner refers no more than 25 people to her in a calendar year
Show answer
Answer: B. Section 3905.18(D) bars an insurer or agent from paying a commission, referral fee or other compensation to an unlicensed person for a referral unless it is a fixed dollar amount for each referral and does not depend on whether the person referred buys an insurance product. A payment tied to a sale or to a share of commission would be paying an unlicensed person for selling, which 3905.18(A) forbids. Renewal or other deferred commissions, however, may be paid to a person who was licensed at the time of the sale (3905.18(A)), and an insurer may not pay commission to an agent it was required to appoint but did not (3905.18(B)).
Source: Ohio 11-35 outline 1.2: Commissions, compensations, fees (3905.18; 3905.181; 3901-5-09(N), 3905.55); Ohio Rev. Code § 3905.18
An Ohio agent wants to charge a $75 fee, separate from the premium, for taking and submitting a client's initial application for an individual life insurance policy on which she earns a commission. Under Ohio Rev. Code § 3905.55, may she?
1. A.Yes, if she discloses the fee in writing and the client consents before she takes the application
2. B.No; no fee may be charged for taking or submitting an initial application for individual life insurance
3. C.Yes, if she promises to refund the fee should the insurer decline the application
4. D.Yes, if the fee is no more than 10% of the first-year premium on the policy
Show answer
Answer: B. Section 3905.55(B) bars any fee for taking or submitting an initial application, or for processing a change, cancellation, claim or renewal, on listed personal lines policies, including individual life insurance, individual sickness or accident insurance and disability income policies. For other coverages a fee is allowed only if it is disclosed separately from the premium, is not a percentage of the premium, is not refunded or offset by commission, is not conditioned on a future event such as a declination, and the consumer consents after being told the insurer does not require it (3905.55(A)). On a policy issued on a no-commission basis, an agent may charge a fee for services disclosed in advance (3905.55(C)).
Source: Ohio 11-35 outline 1.2: Commissions, compensations, fees (3905.18; 3905.181; 3901-5-09(N), 3905.55); Ohio Rev. Code § 3905.55
An Ohio insurer ends an agent's appointment after finding that she misappropriated premiums, one of the grounds in § 3905.14(B), and notifies the superintendent within 30 days. Under Ohio Rev. Code § 3905.21, what else must the insurer do?
1. A.Within 15 days, mail her a copy of the notice by certified mail, return receipt requested, or by overnight carrier
2. B.Mail her a copy within 30 days by ordinary mail, since termination notices are routine
3. C.Get her written consent before the termination notice can become part of her file
4. D.Nothing more, because the superintendent informs the agent of every termination it receives
Show answer
Answer: A. Section 3905.21(A) requires the insurer to notify the superintendent within 30 days after the termination's effective date, and 3905.21(C)(1) requires it to mail the agent a copy within 15 days after notifying the superintendent; when the termination is for a 3905.14(B) reason, the copy goes by certified mail, return receipt requested, or by a nationally recognized overnight carrier. The agent then has 30 days after receiving it to file written comments with the superintendent, copying the insurer, and the comments stay in her file (3905.21(C)(2)). For such a termination Ohio Adm. Code 3901-5-09(K)(6) also requires a detailed statement of the facts and reasons within 30 days.
Source: Ohio 11-35 outline 1.2: Termination notification (3905.21); Ohio Rev. Code § 3905.21; Ohio Adm. Code 3901-5-09

Where these questions come from: Ohio Life, Accident and Health agent exam outline (series 11-35, PSI bulletin updated 24 Mar 2026), section 1.0: Insurance Regulation (10%), licensing, disciplinary, state regulation and agent regulation items. See how we write questions.