PREMIUM FINANCE COMPANIES

Forms

 

The Division of Financial Institutions regulates insurance premium finance companies in Ohio pursuant to Sections 1321.20, 1321.71 to 1321.83 and 1321.99 of the Ohio Revised Code.

LICENSING

A person wishing to become an insurance premium finance company must submit an application, a fingerprint card, a license fee and an investigation fee. The Division must investigate the financial condition, responsibility, competence, reputation and experience of the applicant, including requesting a criminal background check. The applicant must have a net worth of at least fifty thousand dollars.

Licenses must be renewed annually by filing a renewal application and paying an annual license fee. Each insurance premium finance company location must be individually licensed. If an office is to be relocated, the licensee must obtain a new license from the Division prior to conducting business at the new location.

COMPLIANCE

Licensees must comply with specific recordkeeping, advertising and business practices as outlined by statute or rule. For example, all insurance premium finance company locations must be licensed, the insurance premium finance company must provide written contracts containing specific disclosures to all customers, the interest rates and fees that may be charged on loan contracts are limited, procedures for the return of unearned premiums to insurance premium finance companies and consumers are established, and certain records must be maintained for two years.

The Division can investigate licensees, including issuing subpoenas, to ensure compliance with the law. The Division may revoke or suspend a license subject to the Administrative Procedures Act.