How to Obtain Your Ohio Title Agent License
Are you considering launching an insurance title agent business in Ohio? If you’re looking into this endeavor, you first need to get acquainted with the legal requirements that have to be satisfied. This is how you can ensure that you can operate in full compliance with state laws.
Any individual or business that wants to engage in handling escrow, settlement or closing for real estate transactions not involving the issuance of title insurance in the state has to obtain an Ohio title agent license. In order to get licensed, you need to meet a list of criteria, which involves providing an Ohio title agent bond.
In the current guide, you can gain the essential information about the licensing and bonding procedures, so that you’re prepared to go through them seamlessly.
The licensing requirements for Ohio title agents
The licensing authority that oversees the activities of insurance title agents in Ohio is the Department of Insurance. It has established a procedure that all applicants have to complete so that they are granted the right to operate in the state.
You have to fill in the Individual Title Agent License Application form. You need to provide personal and business details, including:
- Demographic information (including personal details)
- Business entity data (address, contacts)
- Employment history for the past five years
- Insurance agency affiliations – company names, FEIN (Federal Employer Identification Number), and National Producer Number (NPN)
- Answers to background questions
For a resident license, you have to successfully pass the Ohio title examination. You also need to complete both state and federal criminal background check.
The application fee is $10 and should be paid together with submitting the application form. The licensing has to be renewed every two years. You have to fulfill specific continuing education requirements before each renewal.
All applicants also have to meet the surety bond requirement, which is explained in the next section.
Ohio title agent surety bond requirement
The Ohio Department of Insurance requires all title agents to provide a $150,000 surety bond in the official form. The purpose of the bond is to protect the interests of the customers of licensed agents. Thus, it guarantees that title agents operate in compliance with the Ohio Revised Statutes, Title 39, Chapter 3953.
The bond ensures that if a party suffers damages from theft, misappropriation, fraud, or other failure to properly disburse settlement, closing, or escrow funds in a real estate transaction, proper compensation can be obtained. This can be done through a claim against the title agent’s surety bond. The claimant can demand reimbursement up to the penal sum of the bond.
In order to get bonded, you have to pay a premium, which is a fraction of the required bond amount. It is determined on the basis of your personal and business finances. The stronger they are, the lower the perceived bond risk, and thus the lower the cost. If your profile is strong, the rates you can expect are between 0.75% and 5%.
Do you have further questions about the Ohio title agent bond requirement? Don’t hesitate to contact us at 877.514.5146.