State RegulationsOH specificDifficulty 1/5
Under ORC 3905.55, which requirement applies to a fee an Ohio producer charges a consumer in addition to the premium?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
ORC 3905.55 permits an agent-charged fee 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, is identified as charged by the agent rather than required by law, is consented to by the consumer, and is nondiscriminatory. The consumer consent and separate-disclosure requirements are enforced by the Ohio Department of Insurance.
Why the other options are wrong
- A) The statute says the opposite: a fee structured as a percentage of the premium is specifically prohibited under ORC 3905.55.
- C) The statute treats the fee as charged by the agent, distinct from the premium the insurer collects; insurer collection is not a condition of validity.
- D) Full refundability on renewal is not a requirement; the statute instead prohibits conditioning the fee on a future event such as renewal.
Memory hook
Agent fees: separate, flat, disclosed — never a cut of the premium.