COLUMBUS – A state of Ohio program established to collect past due taxes from insurance agents has surpassed the $20 million threshold, Ohio Department of Insurance Director Jillian Froment announced.
“While the vast majority of agents follow the law, this program helps to ensure a level playing field across the industry,” Froment said. “I am proud of how well our state partners have worked together in recovering these funds.”
Through a partnership established in 2011 with the Ohio Attorney General’s Office and the Ohio Department of Taxation, the Ohio Department of Insurance, on an annual basis, determines if agents are compliant with Ohio laws. Administrative action may be taken against an agent’s license if an outstanding judgment lien has been filed against the agent or their organization. A total of $20,064,075.40 in unpaid income tax, sales tax and workers’ compensation premium payments have been collected from more than 1,600 insurance agents or payment plans have been established. The vast majority of the nearly 220,000 agents licensed by the Ohio Department of Insurance are in good standing with the state.
Administrative penalties may include revoking, suspending, or refusing to issue an insurance license. Civil penalties can be imposed if an agent or agency fail to comply with any official invoice, notice, assessment, or order directing payment of state income tax, state sales tax or workers’ compensation premiums.
Agents not in compliance should contact the Ohio Attorney General’s Office at 1-888-301-8885. Agents can also contact the Ohio Department of Insurance at 614-644-2560 for assistance.