PLOhiomedium
Under Ohio producer compensation disclosure rules, when must a producer obtain written acknowledgment of compensation arrangements from a personal lines customer?
AOnly after a claim is denied
BNever — Ohio does not require any compensation disclosure to personal lines customers at any point in the transaction
Before purchase, when the producer represents the customer and receives a fee from the customer
DOnly every 5 years on a renewal application
Why this is the answer
Ohio's producer compensation disclosure rule requires that a producer who represents the customer (rather than the insurer) and also receives a fee directly from the customer must obtain the customer's documented written acknowledgment of the compensation arrangement before the sale closes. The disclosure must describe the amount or method of compensation from each source and any potential conflict of interest. This rule prevents undisclosed double compensation in personal lines placements.
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