Insurers to save $11 million with Ohio rule change

File Photo.
File Photo.

COLUMBUS, Ohio (AP) — The state says insurance companies are expected to save more than $11 million annually under an Ohio rule change that recently took effect.

The Ohio Department of Insurance says the savings comes after a reduction in the fee companies pay to “appoint” insurance agents who can act on their behalf to sell insurance products.

A rule change that took effect on June 30 cuts the agent appointment fee to $15 from $20.

Insurers mostly pay the agent appointment fee. Though agents also could stand to benefit because insurance companies can pass the cost onto them.

The department trimmed other insurance industry-related fees in 2013, including those for renewing licenses late.

 

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