OIA receives many inquiries about insurance licensing. One member recently inquired about whether it would be necessary to obtain an agency license (a.k.a. business entity license) if he changed from a sole proprietor to an LLC? The answer is that yes, an agency license must be secured if a switch is made from a sole proprietor to an LLC. This is because any business entity (corporations, limited liability companies, limited liability partnerships, general partnerships) conducting the business of insurance in Ohio, must be licensed by the Ohio Department of Insurance (ODI).
ODI has a great resource on their website called “Business Entity Frequently Asked Questions” that answers many questions about agency licensing.
For agencies that already have a business entity license, it is important to ensure that you keep your license information up to date as any change in a business entity name, address, email address, licensed agents, officers, directors, members or owners, with a 10% or more voting interest in the agency, must be reported within 30 days of such change. Agents can report changes to their business entity using ODI’s CN-65 form.
Contact Carolyn Mangas.