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17.1 Insurance Regulation

Licensing​

The insurance licensing process protects the public by ensuring that licensees are qualified, competent, and accountable for their professional conduct.

An insurance license is required to solicit, negotiate, or transact insurance. Licensed activities include:

  • Taking insurance applications
  • Quoting premiums
  • Discussing coverage
  • Writing or delivering renewal policies
  • Issuing binders

Qualifications for Licensing​

The Superintendent of Insurance will issue a resident insurance agent license to an Ohio resident who:

  • Is at least 18 years of age
  • Has not committed any act that would justify the denial, suspension, or revocation of a license
  • Has completed the required prelicensing education and licensing examination for each requested line of authority, when required
  • Is of good reputation and character, honest, trustworthy, and otherwise qualified to be licensed
  • Has consented to a criminal background check, with results satisfactory to the Superintendent
  • Is a U.S. citizen or has legal authorization to work in the United States

The Superintendent of Insurance will issue a resident insurance agent license to a business entity that:

  • Is domiciled in Ohio or maintains its principal place of business in Ohio
  • Has designated a licensed insurance agent to be responsible for compliance with Ohio insurance laws
  • Has not committed any act that would justify the denial, suspension, or revocation of a license
  • Has submitted any additional documents required by the Superintendent

An insurance agent license must include:

  • The licensee's name
  • The license number, issue date, and expiration date
  • The lines of authority granted
  • Any other information required by the Superintendent of Insurance

Insurance agent licenses may be issued for the following lines of authority:

Major Lines​

The following lines of authority are available for an insurance agent license:

  • Life: Insurance on human lives, including endowments, annuities, death benefits, and disability benefits
  • Accident and Health: Insurance covering sickness, bodily injury, accidental death, and disability benefits
  • Property: Insurance covering direct or consequential loss or damage to real or personal property
  • Casualty: Insurance covering liability for death, bodily injury, property damage, and disability
  • Personal Lines: Noncommercial property and casualty insurance for individuals and families
  • Variable Life and Variable Annuity: Insurance provided through variable life insurance and variable annuity products
    • Applicants for a Variable Products license must be registered with FINRA and have passed any required FINRA examination

Limited Lines​

Additional lines of authority include:

  • Surety Bail Bonds
  • Title Insurance
  • Credit Insurance
  • Portable Electronics Insurance
  • Self-Service Storage Insurance
  • Travel Insurance

Surplus Lines Broker​

A surplus lines broker may procure insurance in Ohio from unauthorized insurers and surplus lines insurers. To qualify for a surplus lines broker license, an applicant must:

  • Be a U.S. resident
  • Hold Property and Casualty insurance licenses
  • File a $25,000 surety bond

A surplus lines broker license expires on January 31 of the year following its issuance.

Before placing coverage with a nonadmitted insurer, a surplus lines broker must exercise due diligence by seeking coverage from three authorized insurers (or as many authorized insurers as the broker represents, if fewer than three). If coverage cannot be obtained from an admitted insurer within 10 days, the broker may place the risk with an unauthorized (surplus lines) insurer.

Prelicensing Requirements​

Before taking the Ohio insurance licensing examination, applicants must complete 20 hours of approved prelicensing education for each of the following lines of authority:

  • Life
  • Accident and Health
  • Property and Casualty
  • Surety Bail Bond
  • Personal Lines

The following applicants are exempt from Ohio prelicensing education requirements:

  • Individuals who have earned a bachelor's or associate's degree in insurance from an accredited institution
  • Individuals who have earned a professional designation approved by the Superintendent of Insurance

Prelicensing education is valid for 180 days. Applicants must pass the Ohio licensing examination within that 180-day period.

Application for Resident Insurance Agent License​

A license application may be submitted only after the applicant has passed the required licensing examination. The completed application must be filed within 180 days of passing the exam. An extension of this deadline may be granted if the applicant is deployed for active military service.

An applicant is not eligible for an insurance license until the Superintendent of Insurance receives a complete application, including:

  • The completed application form
  • A criminal background check
  • All required fees
  • Any additional information requested by the Superintendent

An incomplete application cannot be processed and may be returned to the applicant.

An individual applying for a resident insurance agent license must submit the Uniform Application (or another application approved by the Superintendent of Insurance) and certify that all statements in the application are true, correct, and complete to the best of the applicant's knowledge. A business entity applying for an insurance agent license must submit the Uniform Business Entity Application.

Each applicant must consent to a criminal background check and submit a complete set of fingerprints to the Superintendent of Insurance. The Bureau of Criminal Identification and Investigation (BCII) conducts the criminal records check using the applicant's fingerprints. The Superintendent may also request criminal history information from the FBI. Any criminal record information obtained is confidential, is not subject to subpoena, and is not admissible in a private civil action.

An insurance license is issued in the applicant's legal name and is considered effective on the date the Superintendent approves the application.

Nonresident Licenses​

A nonresident insurance agent license is available to an agent whose home state is not Ohio. A home state is the state, territory, or district where the agent:

  • Maintains their principal residence or principal place of business, and
  • Is licensed as an insurance agent.

An individual may obtain an Ohio nonresident insurance agent or broker license without taking a written examination if the applicant:

  • Is currently licensed and in good standing in their home state, and that state grants nonresident licenses to Ohio residents on a reciprocal basis
  • Submits a license application and the NAIC Uniform Application (or a copy of the application filed in the home state)
  • Is trustworthy and of good character
  • Has not committed any act that would justify the denial, suspension, or revocation of a license

To obtain an Ohio nonresident business entity insurance license, a business must:

  • Submit a Nonresident Business Entity Application
  • Be authorized to do business in Ohio
  • Designate a licensed individual insurance agent who is responsible for ensuring compliance with Ohio insurance laws

The Superintendent of Insurance may revoke a nonresident license if the licensee fails to maintain a resident insurance license in another state. To verify an applicant's licensing status, the Superintendent may:

  • Use the NAIC Producer Database, or
  • Require a certification letter from the applicant's home state.

Temporary License​

The Superintendent of Insurance may issue a temporary insurance agent license for up to 180 days without requiring a written examination when necessary to ensure the continued servicing of insurance business. A temporary license may be issued to:

  • The surviving spouse or court-appointed representative of an agent who dies or becomes mentally or physically disabled, to allow time for the sale of the business, the agent's recovery or return, or the training and licensing of new personnel
  • A member or employee of a licensed business entity upon the death or disability of its sole remaining licensed agent
  • The designee of a licensed agent entering active duty in the U.S. Armed Forces
  • Any other person the Superintendent determines is in the public interest

A temporary insurance agent license must be sponsored by a licensed insurance agent or insurer, who is responsible for all acts of the temporary licensee. A temporary license terminates when the business being serviced under the temporary license has been disposed of.

The Superintendent of Insurance may limit the authority granted under a temporary insurance agent license and may revoke the license if continued licensure would endanger the interests of insureds or the public.

Exceptions to Education or Examination Requirements​

An individual who applies for an Ohio resident insurance agent license within 90 days of establishing a principal residence or principal place of business in Ohio is not required to complete prelicensing education or pass a written examination, provided all required fees are paid and one of the following applies:

  • The individual is currently licensed and in good standing in another state for the requested line(s) of authority; or
  • The individual was previously licensed in another state, applies for an Ohio resident license within 90 days after cancellation of the former home state license, and was in good standing for the requested line(s) of authority at the time the license was canceled.

An applicant for a temporary insurance agent license is not required to complete prelicensing education or pass a written licensing examination.

The Superintendent of Insurance may also exempt applicants for limited lines insurance licenses from the licensing examination requirement.

Maintenance and Duration​

Change in Name, Address, Email, Telephone Number​

An insurance agent must notify the Superintendent of Insurance of any demographic changes within 30 days, including changes to:

  • Name
  • Residence address
  • Business address
  • Mailing address
  • Email address
  • Telephone number

If a licensed insurance agent changes their home state, they must:

  • File a change of address with the Superintendent of Insurance
  • Provide certification from the new home state within 30 days of the change

If these requirements are met and the agent's Ohio license is in good standing, the license will be converted to a nonresident license without requiring an application or fee.

Renewal/Nonrenewal​

An Ohio resident insurance agent license must be renewed biennially (every 2 years) on or before the last day of the licensee's birth month. The Superintendent of Insurance will send a renewal notice to each licensee at least 1 month before the renewal date.

To renew an Ohio insurance agent license, the licensee must:

  • Submit a completed renewal application on the form required by the Superintendent of Insurance
  • Pay the required biennial renewal fee
  • Complete all continuing education (CE) requirements before submitting the renewal application
  • Not have committed any act that would justify the suspension, revocation, or refusal of a license
  • Submit any supporting documents reasonably required by the Superintendent to verify the information in the renewal application

After the initial license renewal, resident and nonresident individual insurance agent licenses expire on the last day of the licensee's birth month every 2 years. The period from initial licensure to the first license expiration must be at least 18 months and no more than 29 months.

Nonresident business entity insurance licenses must be renewed by September 30 of each odd-numbered year. Renewal is required every odd-numbered year thereafter.

Resident business entity insurance licenses must be renewed by September 30 of each even-numbered year. Renewal is required every even-numbered year thereafter.

Surety bail bond agent licenses must be renewed annually by the last day of February.

If an individual or business entity fails to renew a license by the renewal date, a late renewal application may be submitted, along with all required fees, before the first day of the second month following the renewal date. In addition to the license renewal fee, a $50 late renewal fee applies.

A license that is not renewed as required is automatically suspended for nonrenewal on the first day of the second month following the renewal date. A license suspended for nonrenewal may be reinstated within 12 months after the renewal deadline. To reinstate the license, the licensee must pay:

  • The required license renewal fee
  • A $100 reinstatement fee

A license suspended for nonrenewal that is not reinstated is automatically canceled after the applicable review or investigation is completed, unless the Superintendent of Insurance instead revokes the license.

Duty to Report Criminal Convictions and Administrative Disciplinary Actions​

An insurance agent must notify the Superintendent of Insurance of:

  • Any administrative action taken against the agent by another jurisdiction or by a governmental agency with professional, occupational, or financial licensing authority within 30 days after the final disposition of the matter. The notice must include a copy of the order, consent order, or other relevant legal documents.
  • Any criminal prosecution (other than a misdemeanor traffic offense) within 30 days after the agent's initial appearance before a judge or magistrate. The notice must include a certified copy of the charging document. Within 30 days after the final disposition, the agent must also provide a certified copy of the court's final order or entry and any other relevant legal documents.

Assumed Business Names​

An insurance agent who intends to conduct business in Ohio under an assumed name (other than the agent's legal name) must notify the Superintendent of Insurance before using the assumed name.

Continuing Education (CE)​

An insurance agent license cannot be renewed unless the licensee has completed all required continuing education (CE) requirements.

Property, Casualty, Personal Lines, and Accident & Health licensees must complete 24 hours of continuing education (CE) during each renewal period, including at least 3 hours of ethics training, before renewing their license.

A continuing education (CE) course may not be repeated during the same compliance period. However, the same course may be taken again during a subsequent compliance period.

Exemptions​

The 24-hour continuing education (CE) requirement does not apply to the following licensees:

  • Resident Title Insurance licensees, provided they complete 12 CE credits each renewal period, including 10 hours in title insurance and 2 hours in ethics
  • Resident Surety Bail Bond licensees
  • Licensees who hold only a limited lines license
  • Licensees who have been granted inactive status by the Superintendent of Insurance

CE Transcript and Renewal​

All required continuing education (CE) credits must be completed and posted to the licensee's record with the Ohio Department of Insurance before the license can be renewed.

The Superintendent of Insurance posts continuing education (CE) transcripts on the Ohio Department of Insurance website and sends a renewal notice indicating whether the resident agent has completed the required CE hours for the renewal period. If the CE transcript or renewal notice indicates that the required CE hours have not been completed, it is the agent's responsibility to:

  • Demonstrate compliance with the CE requirements, and
  • Renew the license only after all required CE hours have been successfully completed.

Failure to receive a license renewal notice does not relieve an insurance agent of the responsibility to:

  • Complete all required continuing education (CE) on time, or
  • Renew the license by the required renewal deadline.

Continuing education (CE) credits must be earned by the licensee and reported to the licensee's record by the continuing education provider or the Superintendent of Insurance. CE credit is considered earned on the date the course is completed, not on the date the credit is posted to the licensee's record.

Credits​

To qualify for continuing education (CE) credit, both the course and the course provider must be approved by the Superintendent of Insurance. The Superintendent may also grant CE credit for a course completed before formal approval was issued.

An insurance agent who moves to Ohio and becomes a resident insurance agent may not carry over any continuing education (CE) credits earned in their former home state.

If an insurance agent completes the same continuing education (CE) course more than once during a single renewal period, CE credit is granted only for the first completion.

For classroom continuing education (CE) courses, the provider may award partial credit, rounded down to the nearest whole hour, at the provider's discretion.

An insurance agent who completes more than the required continuing education (CE) hours during a renewal period may carry over excess CE credit to the next renewal period.

  • A maximum of 50% of the required CE hours (12 hours) may be carried over.
  • Carryover CE credits are applied as general CE credit hours.

Continuing education (CE) hours completed during the late renewal or reinstatement period may be used to satisfy the CE requirements for that renewal.

Credit for Publication, Instruction, and Association Events​

An individual insurance licensee may earn up to 10 hours of continuing education (CE) credit per renewal period for authoring published articles or books on topics directly related to insurance. To receive credit, the licensee must submit a written request to the Superintendent of Insurance with proof of authorship and publication.

A licensee who authors instructional materials for an approved continuing education (CE) course may receive CE credit equal to the number of hours for which the course is approved, one time per course. To receive credit, the licensee must submit a written request to the Superintendent of Insurance with proof of authorship.

A licensee who teaches an approved continuing education (CE) course may receive CE credit once per course during each renewal period. The credit awarded equals twice the number of hours actually spent instructing the course.

A licensee who both authors instructional materials for and teaches the same approved continuing education (CE) course during a single compliance period may receive CE credit for either authoring or teaching, but not both.

An insurance agent may earn up to 4 continuing education (CE) credits per renewal period for active membership and participation in a local, regional, state, or national professional insurance association, provided the agent:

  • Has paid membership dues
  • Is a member in good standing
  • Belongs to an association approved as a CE provider
  • Participates in a course approved to award membership CE credit

Penalties​

Failure to satisfy continuing education (CE) requirements may result in license suspension. The suspension becomes effective 60 days after the Superintendent of Insurance mails the notice of suspension. During this 60-day period, the agent may submit proof of compliance with the CE requirements.

An insurance agent's license may be revoked if the agent fails to demonstrate compliance with the continuing education (CE) requirements within 1 year after the Superintendent of Insurance provides notice and an opportunity for a hearing.

An insurance agent whose license is revoked for failure to comply with continuing education (CE) requirements must apply for a new insurance agent license.

The following actions violate Ohio prelicensing education and continuing education (CE) laws and rules:

  • Knowingly using, submitting, or filing a false or deceptive document or record to satisfy education requirements or in response to an inquiry from the Superintendent of Insurance
  • Obtaining, accepting, or using proof of course completion from a provider without actually attending or completing the course
  • Cheating, using unauthorized materials, or receiving unauthorized assistance during an examination
  • Assisting another person in meeting education requirements when the individual knows or should know the assistance violates the law
  • Engaging in disruptive, threatening, or deceptive conduct during a course or examination, which may result in removal from the course or exam and the Superintendent's refusal to accept successful completion
  • Using unauthorized telecommunications devices, exam notes, study guides, or communicating with unauthorized persons during an examination

A single violation of the prelicensing education or continuing education (CE) laws and rules may result in:

  • A $500 fine, or
  • The Superintendent of Insurance refusing to issue a license.

Inactivity Due to Military Service or Extenuating Circumstances​

A licensee who is unable to comply with license renewal requirements or engage in the insurance business because of military service, long-term medical disability, or another extenuating circumstance may request a renewal extension.

  • The request must be submitted in writing.
  • The Superintendent of Insurance may decline to consider requests submitted after the license renewal date.
  • The Superintendent may waive additional license renewal fees.

License Surrender​

An Ohio insurance agent may voluntarily surrender any or all insurance licenses at any time, unless the agent is currently under investigation by the Superintendent of Insurance.

An attempted license surrender is invalid if the Superintendent of Insurance is:

  • Investigating an allegation of wrongdoing by the agent, or
  • Has initiated administrative proceedings and issued the agent a notice of hearing.

Inactive Status​

An individual insurance agent may petition the Superintendent of Insurance for inactive status if the agent:

  • Is no longer engaged in any insurance activity requiring a license, and
  • Does not intend to engage in any such activity for at least 24 months.

Business entities are not eligible for inactive status.

To qualify for inactive status, an insurance agent must, at the time of application:

  • Be in good standing with the Superintendent of Insurance, and
  • Be in compliance with all continuing education (CE) requirements.

Once an insurance agent is granted inactive status, the agent is exempt from continuing education (CE) requirements while the inactive status remains in effect.