A reduction in the fee insurance companies pay to appoint agents is expected to result in a savings for insurers of $11.3 million, the Ohio Department of Insurance announced.
An amended rule took effect on June 30 that reduces the agent appointment fee 25 percent from $20 to $15. The department said increased operational efficiencies from updated technology systems have reduced the resources needed to effectively monitor company and agent appointments.
The department previously reduced other fees related to agent appointments. A $5 appointment termination fee was eliminated in 2013, while those who renew licenses late now pay $50 instead of $100. The license reinstatement fee was also dropped from $300 to $100.
Insurers will see direct costs savings because they mostly pay the agent appointment fee. However, agents and agencies will also benefit because the fee can be passed onto them by the insurance companies, the insurance department said.
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