General Provisions, Department of Insurance

What this document is

Ohio Administrative Code Chapter 3901-1 - General Provisions, Department of Insurance (complete chapter, all 23 rules 3901-1-01 through 3901-1-67) is a regulation published by Ohio Legislative Service Commission (codes.ohio.gov). It is one of the Ohio documents that insurance license exam questions are written from, including ohio property & casualty, ohio personal lines practice questions. This page summarizes it and points to the official version, which is the text to rely on.

Sections cited in practice questions

Each practice answer shows the exact passage it comes from. These are sections of this document that questions cite, with a short excerpt from the source text.

• Ohio Admin. Code 3901-1-54(G)(6) (Unfair property/casualty claims settlement practices)

  “An insurer shall tender payment to a first party claimant no later than ten days after acceptance of a claim if the amount of the claim is determined and is not in dispute, unless the settlement involves a structured settlement, action by a probate court, or other extraordinary circumstances as...”

• Ohio Admin. Code 3901-1-54(I)(1)(b) (Settlement of claims under fire and extended coverage policies)

  “(b) When an interior or exterior loss requires replacement of an item and the replaced item does not match the quality, color or size of the item suffering the loss, the insurer shall replace as much of the item as to result in a reasonably comparable appearance.”

• Ohio Admin. Code 3901-1-23(C) (Inland marine risks)

  “(1) Inland marine risks shall be established by the nation-wide inland marine definition, approved and recommended by the "National Association of Insurance Commissioners" on December 9, 1976. (2) Any company wishing to deviate from the nation-wide inland marine definition shall make a formal...”

• Ohio Admin. Code 3901-1-54(I)(2)(a) (Unfair property/casualty claims settlement practices; actual cash value)

  “(a) The insurer shall determine actual cash value by determining the replacement cost of property at the time of loss, including sales tax, less any depreciation. Upon the insured's request, the insurer shall provide documentation detailing all depreciation deductions.”

• Ohio Admin. Code 3901-1-54(I)(1)(a) (Unfair property/casualty claims settlement practices; replacement cost)

  “(a) When a loss requires replacement of an item or part, any consequential physical damages incurred in making such repair or replacement not otherwise excluded by the policy, shall be included in the loss.”

• Ohio Admin. Code 3901-1-55(E) (Use of credit history and credit scores; credit cannot be the sole underwriting or rating factor)

  “Credit history or a credit score or any aspect thereof, either individually or collectively, may not be used without consideration of any other applicable underwriting or rating factor as the sole basis for: (1) Any underwriting decision; (2) Any total premium determination; or (3) Any adverse action.”

• Ohio Admin. Code 3901-1-55(I)(2) (Use of credit history and credit scores; rate factors for property and casualty insurance)

  “(2) Division (A) of section 3937.02 and division (C) of section 3935.03 of the Revised Code set forth the factors an insurer or rating organization may consider in establishing rates for property and casualty insurance. Division (C) of section 3937.02 of the Revised Code provides that risks may be...”

• Ohio Admin. Code 3901-1-22(F) (Maximum debit and credit)

  “A limit of twenty-five per cent maximum debit and credit shall be applied to the premium or rate based on the application of a risk modification plan. This limitation does not apply to any debit or credit applied to the premium or rate based on the application of an experience modification plan or...”

• Ohio Admin. Code 3901-1-54(F)(4) (Response to inquiry from the department)

  “(4) An insurer shall, within twenty-one days of receipt of an inquiry from the department regarding a claim, furnish the department with a reasonable response to the inquiry.”

• Ohio Admin. Code 3901-1-54(G)(7) (Non-negligent party property loss; multiple liability insurers)

  “(7) If a claim involves a non-negligent party's property loss and multiple liability insurers, the multiple liability insurers shall adjust the property loss within a reasonable time and pay the non-negligent party's loss in equal shares. After payment, the multiple liability insurers may then...”

• Ohio Admin. Code 3901-1-54(H)(1) (Written estimate for partial automobile losses)

  “(1) When partial losses will be settled on the basis of a written estimate prepared by or for an insurer, the insurer shall supply the claimant a copy of the estimate upon which the proposed settlement is based. If the claimant subsequently claims that necessary repairs will exceed the written...”

• Ohio Admin. Code 3901-1-54(C)(14) (Definition of practice)

  “(14) "Practice" means a type of activity or conduct engaged in by an insurer with such frequency as to constitute a customary procedure or policy routinely followed in the settlement of insurance claims. A single act is not a business practice. However, an act that is malicious, deliberate,...”

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