A Reminder Regarding Ohio s New Agent Licensing Laws

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1 An Update From The Ohio Department Of Insurance A Reminder Regarding Ohio s New Agent Licensing Laws John R. Kasich, Governor Mary Taylor, Lt. Governor/Director Ohio s New Agent Licensing Laws As a reminder, all insurance agents are required to renew their Ohio insurance licenses every two years by their license expiration date. Ohio s New Agent Licensing Laws In order to verify your license expiration date, please access the Agent/Agency locator, which can be found on the Department s website at: Ohio s New Agent Licensing Laws In order to be eligible to renew an insurance license, resident agents must first satisfy their continuing education requirement. As a reminder, title agents are required to take 12 hours of continuing education. 10 hours must be title specific and the remaining 2 hours must be Ethics related. Ohio s New Agent Licensing Laws **Important Note** Continuing education credits must be taken as well as posted to an agent s licensing record before an agent can renew their license. As continuing education vendors have 15 days to report credits to ODI, agents should not wait until the last few weeks of their birth month to take their continuing education.

2 Ohio s New Agent Licensing Laws In order to determine if you have satisfied your continuing education requirements, we encourage you to contact Prometric by telephone or view a copy of your most recent transcript at How To Renew Your Ohio Insurance License License Renewal Process If an agent does not renew their license on or before their license expiration date, the agent will have a one month grace period to complete any needed continuing education courses and submit their renewal application. The agent however, will have to pay a $ late filing fee. If the license is not renewed by the last day of the grace period, the agent s license will be suspended. License Renewal Process If an agent s license is suspended, they will have an eleven (11) month period in which they will be able to reactivate their license. In order to reactivate their license, the agent will need to: Complete any needed CE credits, if applicable. Pay a $ reinstatement fee. License Renewal Process If an agent fails to reactivate their license during the eleven month reinstatement period, and they are still interested in selling insurance in Ohio, they will be required to: Complete Ohio s pre-licensing education requirements. Take Ohio s licensing examination. Apply for a new license. Submit to a federal background check.

3 Reminder Post Cards LICENSE RENEWAL REMINDER Dear Ohio Insurance Agent, Your Ohio insurance license is scheduled to expire on the last day of your birth month. Ohio resident agents with a continuing education requirement must have their credit hours completed and posted to their licensing record before a renewal application can be submitted. Agents who fail to renew their license by their license expiration date will have a one month grace period to submit a renewal application; however, a $100 late filing fee will be assessed. Agents who fail to renew by the last day of the grace period will have their license suspended and all active appointments will be terminated. If a license is suspended for nonrenewal, the license can be reinstated within one year of the license expiration date. A $300 reinstatement fee will be assessed to all agents requesting the reinstatement of their license. Agents who fail to reinstate their license within one year of the license expiration date will be required to go through the agent licensing process as a new agent. Renewal applications are required to be submitted electronically through the National Insurance Producer Registry (NIPR). To renew your license electronically, please visit NIPR s website at For additional information about Ohio s license renewal requirements, please visit the Department s website at Business Entity License Renewal Procedures Biennial License Renewal Transition Resident Business Entity (Major Line of Authority, Limited Line of Authority or Title) License Year of Resident BE License Issuance Year of Renewal (September 30th) 2010 & Prior Online Resources Questions Contact Information Ohio Department of Insurance Fraud, Enforcement & Licensing Division 50 West Town Street, Suite 300 Columbus, OH (614) Enforcement Update

4 #1 Issue ODI Investigates Regarding Title Agents Title Agents Annual Review Filings Examine Annual Review Filing Forms Common Issues Identified Issues and Trends Objectives Five W s Of Annual Title Reviews WHO- All licensed title agents & agencies WHAT- ODI Form INS3283 WHEN- Due by January 15 th for previous year s compliance period of Sept. 1 st - Aug. 31 st Five W s Of Annual Title Reviews WHERE- Title.Filing@insurance.ohio.gov or The Ohio Department of Insurance Attn: Enforcement Division - Annual Title Insurance Filing 50 West Town Street - Suite 300 Columbus, OH WHY Pursuant to ORC and OAC Form INS3283- Section #1 Form INS3283 SECTION #1 AGENT/AGENCY CONTACT INFORMATION Checkmark Agent or Agency Filing Box Name National Producer Number Business Contact Information Residential Contact Information Preferred Mailing, and Phone

5 National Producer Number Common Errors SECTION #1 AGENT/AGENCY CONTACT INFORMATION One filing is submitted for both Agent and Agency Submitter fails to provide NPN on form Form is submitted on an unlicensed entity/individual Submitter fails to provide contact information Address Phone Number Address Form INS3283- Section #2 Form INS3283 SECTION #2 SUPPLEMENTARY INSURANCE INFORMATION Errors and Omission Insurance Coverage Maintain in own name Covered under employer s coverage Do not have E&O Exempt due to being employed by an underwriter Surety Bond Coverage Not required to maintain Maintain in own name Do not have Surety Bond Coverage Common Issues & Errors SECTION #2 SUPPLEMENTARY INSURANCE INFORMATION Form INS3283- Section #3 Part 1 Submitter leaves all sections blank Submitter provides an actual copy of the E&O declarations page and/or a copy of the whole policy Submitter fails to certify Section #2 of the filing

6 Form INS3283 SECTION #3 Depository Account Information Part 1 Title agent/agency does not maintain an IOTA because: No non-directed escrow funds are handled by the agent All escrow funds are handled through an IOTA maintained by an Ohio licensed title agency Form INS3283 SECTION #3 Depository Account Information Part 2 Listing of all depository accounts used by agent/agency Name of Account Account Type (Directed Funds, IOTA, Non-IOTA, Premium Trust, Operating, Other) Account Number Depository Institution and Address Date Opened and Closed Explanation Form INS3283- Section #3 Part 2 Common Issues & Errors SECTION #3 Depository Account Information Part 1 & 2 Submitter leaves all sections blank Submitter lists depository accounts in the name of the agency on their own individual filing Submitter fails to certify Section #3 of the filing Form INS3283- Section #4 Form INS3283 SECTION #4 Determination of Filing Status Questions to Determine Status 1. Do you handle funds that are required to be deposited into an IOTA in your name? 2. If yes, have you had an audit by one of your underwriters? 3. Provide name of underwriter that completed audit. 4. Did you average five or less Ohio transactions per month during the review period?

7 Form INS3283 SECTION #4 Determination of Filing Status EXEMPT STATUS 1. Handle funds that are deposited into an IOTA which isn't in your name. 2. Handle funds that are deposited into an IOTA which is in your name AND one of your underwriters completed an audit on your IOTA AND you average five or less Ohio transactions per month. Form INS3283 SECTION #4 Determination of Filing Status If you are not exempt, you are required to submit an Independent Annual Review. Must be completed by a CPA Must include a copy of the CPA Report of the Agreed Upon Procedures as outlined in OAC Common Issues & Errors SECTION #4 Determination of Filing Status Submitter leaves all sections blank Form INS3283- Section #5 SECTION #5 Agent/Agency Explanations All findings in the CPA Report should be fully explained in Section 5A. Submitter claims they are exempt when in fact they are not Submitter fails to certify Section #4 of the filing Form INS3283- Section #5 SECTION #5 Agent/Agency Explanations All other issues in the filing should be explained in Section 5B. Common Issues & Errors SECTION #5 Agent/Agency Explanations Submitter does not properly explain any/all findings in the CPA Report o No explanations = Automatic Enforcement Investigation Submitter fails to certify Section #5 of the filing

8 Independent Annual Review Independent Annual Review Independent Annual Review Independent Annual Review Filing Tips AKA CPA Report AKA CPA Report Independent Annual Review Filing Tips AKA CPA Report ODI Website

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10 Questions Contact Information Ohio Department of Insurance Fraud, Enforcement & Licensing Division 50 West Town Street, Suite 300 Columbus, OH (614)