Ohio has 6 major lines of authority:
- Accident & Health: Insurance coverage for sickness, bodily injury, or accidental death, and may include benefits for disability income.
- Casualty: Insurance coverage against legal liability, including coverage for death, injury, or disability or damage to real or personal property.
- Life: Insurance coverage on human lives, including benefits of endowment and annuities, and may include benefits in the event of death or dismemberment by accident and benefits for disability income.
- Personal: Is property & casualty insurance coverage sold to individuals and families for noncommercial purposes.
- Property: Insurance coverage for the direct or consequential loss or damage to property of any kind.
- Variable Life and Variable Annuity products: Insurance coverage provided under variable life insurance contracts and variable annuities.
Securities Registration for Variable Insurance Products
The Securities and Exchange Commission considers variable products (variable annuities and variable life insurance) to be securities. Variable products and those who sell them are subject to federal regulations as well as to state insurance regulations. Securities requirements of broker/dealer firms and registered representatives selling variable products are in addition to, and not instead of, insurance department requirements. Registered representatives who sell variable products must be dually licensed/registered to sell securities products and licensed to sell insurance products.
Licensing Requirements For Variable Annuity Products:
An insurance agent, in order to sell variable annuity products in Ohio, must be licensed with a variable products qualification. Ohio’s agent licensing laws do not make a distinction between group and individual variable products.
Additionally, Ohio Administrative Code (“O.A.C.”) section 3901-6-02(K) provides that an agent may not solicit an offer to buy or a sale of life insurance in correlation with the sale of shares of a mutual fund or other security unless he is licensed and appointed as a life insurance agent and is also licensed to sell securities by the Department of Commerce, Division of Securities in accordance with Chapter 1707 of the Ohio Revised Code. Whether an Ohio securities license is necessary depends upon the specifics of the product being sold – if it is a registered security or a life insurance product being solicited or sold in correlation with a mutual fund or other security.
- Ohio Revised Code 3905
- Ohio Administrative Code 3901-5-01 thru 3901-5-09