3.1 Disciplinary Actions, Hearings, Cease-and-Desist Orders, and Penalties
Key Takeaways
- The Superintendent may assess a civil penalty of up to $25,000 per violation of ORC 3905.14, plus administrative costs, suspension, revocation, or refusal to issue or renew (ORC 3905.14(E)).
- Failing to give ODI a written response within 21 calendar days after receiving a written inquiry, or failing to appear for a scheduled interview, is a disciplinary ground (ORC 3905.14(B)(21)-(22)).
- Before most discipline, the licensee gets Chapter 119 notice and may request a hearing within 30 days of service; objections to a hearing officer's report are due within 10 days.
- A cease-and-desist order takes effect immediately upon notice, with a hearing set no more than 15 days after the order (ORC 3905.14(H); ORC 3901.221).
- While suspended or revoked, a former bail agent may not be employed by a bail agent or hold any ownership or financial interest in a bail bond business (ORC 3905.94).
Last updated: September 2026
The Vocabulary of Discipline (ORC 3905.14(A))
| Term | Meaning |
|---|---|
| Refusal to issue or renew | ODI decides not to process an initial or renewal application |
| Suspension | Termination of all authority to hold any agent license for a specified or indefinite period, on terms ODI sets |
| Revocation | Permanent termination of all authority to hold any agent license in Ohio |
| Surrender for cause | Voluntary termination of all licensing authority in lieu of revocation or suspension |
"Insurance agent" in these sections expressly includes a surety bail bond agent (3905.14(A)(1)).
Grounds for Discipline (ORC 3905.14(B)) Most Relevant to Bail Agents
The statute lists 39 grounds. These are the ones most likely to appear in bail questions:
| Ground | Example in a bail office |
|---|---|
| (1) Incorrect, misleading, incomplete, or materially untrue application information | Omitting a pending charge from the license application |
| (2) Violating any insurance law, rule, subpoena, consent agreement, or order | Filing bonds in a court without required registration |
| (4) Improperly withholding, misappropriating, or converting money or property | Using an indemnitor's cash collateral to cover payroll |
| (6) and (7) Felony conviction or plea; certain misdemeanors involving theft, fraud, dishonesty, fiduciary breach, or moral turpitude | Pleading no contest to felony theft |
| (9) Fraudulent, coercive, or dishonest practices, or incompetence, untrustworthiness, or financial irresponsibility | Threatening an indemnitor with jail to collect a premium note |
| (11) and (26) Forgery, or using a document known to contain a forged writing | Altering a power of attorney's face amount |
| (13) Knowingly accepting insurance business from an unlicensed person | Paying a "runner" for jail referrals |
| (14) Failing to comply with an official invoice, notice, assessment, or order to pay federal, state, or local income tax, state or local sales tax, or workers' compensation premiums | Ignoring a tax assessment |
| (21) Failing to give ODI a written response within 21 calendar days after receiving a written inquiry, absent a granted extension | Ignoring a complaint letter |
| (22) Failing to appear to answer questions after written notice of a scheduled interview, absent a granted extension | Skipping an ODI interview |
| (32) Failing to fulfill a refund obligation in a timely manner | Sitting on a refund owed to a customer |
| (33) For a surety bail bond license, rebating or offering to rebate, or unlawfully dividing or offering to divide, any commission, premium, or fee | "Bring me cash and I'll knock 3% off the filed premium" |
| (39) Knowingly aiding and abetting another's violation of insurance law | Letting an unlicensed employee sign bonds |
Due Process: Chapter 119 Hearings
Before denying, revoking, suspending, or refusing a license, or imposing a penalty under 3905.14, the Superintendent must give notice and an opportunity for hearing under ORC Chapter 119 (3905.14(D)(1)).
| Step | Rule |
|---|---|
| Notice of opportunity for hearing | States the charges and the law involved; the party is entitled to a hearing if requested within 30 days of service (ORC 119.07) |
| Hearing date | Set within 15 days, but not earlier than 7 days, after the request, unless both sides agree otherwise (ORC 119.07) |
| Hearing notices and routine papers | Sent by ordinary mail to the party and the party's attorney (3905.14(D)(2)) |
| Hearing subpoenas | Served by certified mail, return receipt requested (3905.14(D)(3)) |
| Hearing officer's report and recommendation | The party may file written objections within 10 days of service (ORC 119.09) |
| Appeal of the final order | Notice of appeal within 15 days after service of the order. Appeals of license denials, suspensions, and revocations go to the common pleas court of the county where the licensee's place of business is located or where the licensee resides (ORC 119.12) |
The Sanctions Menu (ORC 3905.14(E))
If ODI finds a violation, it may:
- assess a civil penalty up to $25,000 per violation;
- assess administrative costs of the investigation and hearing;
- suspend all licenses for all lines, for a set or indefinite time, on conditions;
- permanently revoke all licenses;
- refuse to issue a license;
- refuse to renew a license;
- prohibit the person from working in insurance in any capacity and from holding any financial interest in an insurance agency, company, surety bail bond business, or third-party administrator;
- order corrective actions instead of or in addition to other penalties, which can suspend a penalty while the licensee complies (a probation-style result); or
- accept a surrender for cause, which lasts at least five years and bars applying for any Chapter 3905 license during that time.
ORC 3905.14(F) lists factors ODI may weigh, including good faith, restitution, harm, the vulnerability of those affected, prior actions, self-reporting and cooperation, obstruction, concealment, and remedial steps. ORC 3905.14(G) sorts violations into class A (the full menu) and class B (for example, late written responses under (B)(21) and missed address or prosecution reports, which carry only penalties, costs, corrective orders, or surrender for cause).
Consent Agreements
Many cases end in a settlement. Under ORC 3901.22(G), when a person consents in writing to a settlement agreement that assures correction and future compliance, the Superintendent may impose a single penalty in whatever amount the parties agree is justified.
Cease-and-Desist Orders
- ORC 3905.14(H): If a 3905.14 violation has caused, is causing, or is about to cause substantial and material harm, ODI may order the person to cease and desist. Notice goes by certified mail or other permitted service. The order sets a hearing date no more than 15 days after the order, and the person must comply immediately upon receiving notice. ODI issues a final order within 15 days after objections to the hearing officer's report, and the final order is appealable under 119.12.
- ORC 3901.221 provides the same kind of immediate order for unfair or deceptive practices under 3901.20.
- Violating an order: ODI may ask the Attorney General to sue. A court may impose up to $25,000 per violation of a 3905.14 order (3905.14(I)). For a 3901.22 cease-and-desist order, the penalty is up to $10,000 per violation (3901.22(F)(2)).
Bail-Specific Consequences
- Associates who knowingly participate: When a bail agent's license is suspended or revoked, ODI may likewise suspend or revoke any agent employed by or associated with that agent who knowingly took part in the act (3905.14(J)(1)).
- Bankruptcy: ODI may revoke a bail license if the licensee is adjudged bankrupt (3905.14(J)(2)).
- ORC 3905.94: During a suspension or revocation, the person may not be employed by any surety bail bond agent, own any interest in a bail business, or have a financial interest of any type in one.
Criminal Penalties to Know
| Violation | Penalty |
|---|---|
| Selling, soliciting, or negotiating insurance without a license (3905.02) | First-degree misdemeanor (3905.99(D)) |
| Violating the collateral rules of 3905.92 (3905.92(F)) | First-degree misdemeanor (3905.99(D)) |
| Furnishing bond supplies to unlicensed or unappointed persons (3905.931(A)) | First-degree misdemeanor (3905.99(D)) |
| Acting as a bail agent without being qualified, licensed, and appointed (3905.84) | First-degree misdemeanor on a first or second offense; third-degree felony on each later offense (3905.99(E)) |
| Illegal bail bond agent practices, such as unauthorized apprehension or calling oneself a bounty hunter (2927.27) | First-degree misdemeanor; a third-degree felony if the offender has two or more prior violations of the same division (2927.27(C)) |
Test Your Knowledge
ODI mails a licensed bail agent a written inquiry about a consumer complaint. She receives it on May 1 and does not respond or request an extension. At what point has she committed a disciplinary violation under ORC 3905.14(B)(21)?
A
B
C
D
Test Your Knowledge
What is the maximum civil penalty the Superintendent may assess per violation under ORC 3905.14(E)(1)?
A
B
C
D
Test Your Knowledge
A licensee receives a hearing officer's report recommending revocation. Under ORC 119.09, how long does she have to file written objections with the agency?
A
B
C
D
Test Your Knowledge
An agent accepts ODI's offer of a surrender for cause instead of a revocation. Under ORC 3905.14(E)(9), what is the minimum duration of the surrender?
A
B
C
D