An insurance agent shall not act as an agent of an insurer unless the insurance agent is appointed as an agent of the insurer. An insurance agent acts as an agent of an insurer when the insurance agent sells, solicits, or negotiates any product of the insurer and is compensated by the insurer. An insurer shall file a notice of appointment, with the Department, not later than thirty days after the date of the agency contract is executed or the first insurance application is submitted, whichever is earlier.
An insurer that terminates the appointment, employment, contract, or other insurance business relationship with an insurance agent shall notify the Department within thirty days after the effective date of the termination. If the termination of an insurance agent is for any of the reasons set forth in division (B) of section 3905.14 of the Ohio Revised Code, the insurer shall promptly notify the Department by completing an Agent Termination For Cause Form.
Companies are invoiced on a monthly basis for agent appointments processed by the Department of Insurance the previous month. Due to a recent law change initiated by Lieutenant Governor and Department of Insurance Directory Mary Taylor, initial appointments with an effective date of June 30, 2014 and later will be invoiced at the reduced rate of $15.00 per appointment. Appointments effective prior to June 30, 2014 will be invoiced at the old rate of $20.00 per appointment.
Appointments are automatically renewed annually on July 1st. Companies receive an invoice each August for all agent appointments renewed. The cost of each appointment renewed July 1, 2014 and after is $15.00.
The 25% reduction of the initial and renewal appointment fees is expected to result in $11.3 million in reduced annual costs to the insurance industry.
The Department will only accept insurance agent and agency appointments and terminations electronically. Any paper appointments or terminations received by the Department, will be returned unless an exception has been approved. Electronic processing of appointments and terminations is mandated by Ohio Administrative Code 3901-5-09(K).
Exception: Any insurer that annually appoints or terminates 25 or fewer agents or agencies will be exempt from filing electronically. However, the Department strongly encourages electronic filing. Agent appointments and terminations must be processed through NIPR or any one of its authorized business partners. You can contact NIPR at (816) 783-8468 or http://www.nipr.com.
You may submit a paper entry as instructed below only if your company qualifies for exemption or if an electronic entry has been rejected. If you are submitting a paper request because of a rejected transaction, documentation of the rejected transaction must be included with the request.
Instructions for Appointment/Cancellation Procedure
Sample of Appointment Form
Sample of Cancellation Form