Q: I need to file a claim with your company because one of your policyholder’s damaged my vehicle.
A: The Ohio Automobile Insurance Plan (OAIP) is NOT an insurance company. We don’t sell insurance so we can’t pay claims. Many times individuals will “make up” an insurance company name, like Ohio Automobile Insurance when law enforcement requires it at the crash scene. Insurance Identification cards often have a generic statement at the top of the card that reads “Ohio Automobile Insurance.” One must look for the actual insurance company name on an insurance identification card.
Q: I want a quote…I’m shopping for automobile insurance.
A: The OAIP is a “last resort” when consumers can’t obtain insurance coverage in the “voluntary” insurance marketplace. OAIP insurance rates are the highest in the state. Check the yellow pages for an insurance agent to investigate your automobile insurance options. You can shop for independent insurance agents by searching “insurance” in the yellow pages.
Q: I’ve moved out-of-state but need an SR 22 filing through Ohio before I can get my license where I live now. What should I do?
A: Contact an insurance agent in the state where you now live. The agent can submit an application for you through the Automobile Insurance Plan in the state where you now live. The agent must be sure you are assigned to an insurance company licensed to write auto insurance in both the state where you now live AND in Ohio. If this has been done, then your SR 22 filing can be made by your new insurance company.
Q: I want to submit an automobile application to Ohio Automobile Insurance Plan (OAIP).
A: Consumers cannot submit applications directly to the OAIP. If you’ve arrived at your last resort, contact a licensed Ohio insurance agent who can submit an application for you.
Q: I know that I’ve been assigned an insurance company through the OAIP. Who should I contact regarding coverage revisions and/or claims?
A: If you have been assigned an insurance company through the OAIP, once the confirmation letter is received, you need to contact that insurance company specified in your assignment letter for all issues.
Q: What are the eligibility requirements for an applicant to use the Ohio Automobile Insurance Plan (OAIP)?
Eligibility requirements for the OAIP follow:
- An applicant must have attempted, within 60 days prior to the date of application, to obtain automobile insurance and has been unable to obtain such insurance at rates equal to, or less than those of the OAIP.
- An applicant must have a valid operator’s license except where the license has been suspended or revoked, and can be restored upon the filing of proof of financial responsibility.
- An applicant’s automobile must be in a condition so as not to endanger public safety.
- An applicant is not eligible for physical damage insurance on a private passenger vehicle if the automobile is an antique auto (25 or more years old), or the automobile has an original cost new in excess of $25,000.
Q: Can you rate a risk for me?
It’s suggested that you visit and/or download the Ohio Automobile Insurance Plan Manual from the Web (http://aipso.com/OHManuals/) and rate the risk first. If you experience problems interpreting the information, contact our office for an estimated premium (614.221.2596).
Q: What personal automobile coverages are offered through the OAIP?
The OAIP offers the following coverages for personal automobiles:
- Bodily Injury Liability: 25,000/50,000; 50,000/100,000; or 100,000/300,000
- Property Damage Liability: 25,000; or 50,000
- Uninsured/Underinsured Motorists Liability: 25,000/50,000; 50,000/100,000; or 100,000/300,000
- Medical Payments: 500; 1,000 or 2,000
- Uninsured Motorists Property Damage: 7,500
- Comprehensive & Collision (deductibles must be the same): 250 or 500
Q: What commercial coverages are offered through the OAIP?
OAIP only offers Liability and Uninsured/Underinsured Motorists coverages for commercial vehicles. The OAIP offers state minimum coverage for commercial risks (75,500 CSL), except when higher limits are required by law, local ordinance or a filing. When higher than state minimum limits are required, proof for the increased limits must be submitted with the application (copy of law, local ordinance, etc.). Contact our office with questions about increased limits (614.221.2596).
Q: When does coverage become effective on risks assigned through the OAIP?
PERSONAL - Personal auto applications are effective 24 hours AFTER the completed and signed application and check are received by OAIP. COMMERCIAL - Coverage is not bound for 10 days AFTER the completed and signed commercial application and check are received by OAIP.
Q: I know payment must accompany applications submitted to the OAIP. How should checks be issued?
Checks must be made payable to: Ohio Automobile Insurance Plan. Checks from insurance agents are preferable; however an applicant’s money order or certified check is acceptable.
Q: What portion of the premium needs to accompany applications submitted to the OAIP?
40% of the estimated premium must accompany both personal and commercial applications submitted to OAIP.
Q: What payment options are available?
There are no payment plans offered. 40% of the estimated premium is due with the application. The balance will be billed by the assigned company when the policy is issued.
Q: Do you assign non-owned and hired or other similar risks (like pizza delivery and/or home health care providers)?
No. A stand-alone policy for non-owned or hired coverage cannot be written through the OAIP. Plan regulations require that owned autos must be scheduled before non-owned/hired coverage can be added.
Q: I don’t have an OAIP manual. How can I obtain a copy?
To have access to the Ohio Manual go to Home Page of website (www.assignedriskohio.com) and click on Register Online. This will take you to AIPSO website to register for the Ohio Manual. You then have the option of viewing it online or downloading it.
Q: I have a fleet of trucks and only one driver makes the risk ineligible. Can I place this driver and truck with the OAIP?
No. OAIP rules require that the entire fleet be submitted, or none at all.
Q: I’m an out-of-state agent. I have a commercial account that has vehicles garaged in Ohio. Can I place the account with the OAIP?
No. The OAIP can only accept commercial applications for accounts whose corporate offices are located in the state of Ohio.
Q: I’m an out-of-state agent but am licensed to write business in the state of Ohio. Can I submit an application?
If you are not a resident Ohio agent, you must broker the account with an Ohio agent.
Q: Is the policy a six month or an annual policy?
Policies written through the OAIP are issued on an annual basis only.
Q: Can the OAIP make an assignment for a motor home?
Yes, the OAIP can assign motor homes that are registered as a motor home with the Ohio Bureau of Motor Vehicles.
Q: Can the OAIP make an assignment for a “converted” motor home?
The OAIP can make assignments in certain situations. Contact our office with questions regarding converted motor homes (614.221.2596).
Q: My insured has not received a policy yet. What should I do?
Contact the insurance company assigned by the OAIP directly.
Q: Can the OAIP make an assignment for motorcycles?
The OAIP can assign 2- or 3-wheel motorcycles. Submit these risks on the personal auto application.
Q: Is there commission on an OAIP assigned risk?
Yes. The OAIP commission schedule is 10% for PERSONAL assignments, and 5% for COMMERCIAL assignments.
Q: I have not received my agent’s commission from the insurance company? Who owes me the commission payment?
Contact the insurance company assigned by the OAIP directly.
Q: Can the OAIP make an assignment for an applicant with an international driver’s license?
Yes, an international driver’s license is valid and the applicant is eligible.
Q: Can OAIP make assignments for golf carts?
Yes, as long as the golf cart is licensed for road use.
Q: Can an agent issue a certificate of insurance for an assigned risk applicant?
No. Certificates must be issued by the assigned company.
Q: When should we expect the annual Ohio Automobile Insurance Plan (OAIP) assessment?
OAIP’s annual assessment is sent in the fourth quarter of the year.
Q: The assessment charge is incorrect.
Please contact the Ohio Automobile Insurance Plan offices at 614.221.2596, if there are any questions concerning assessment charges.
Q: Why did we receive an assessment from the OAIP? We did not write any auto coverages for the year assessed.
If an insurance company is licensed to write automobile coverage in the state, Ohio law requires an assessment regardless whether the insurer wrote automobile coverage for the specified year (Ohio Revised Code - section 4509.70)
Q: What is the percentage for the Ohio Limited Assignment Distribution (LAD) buy-out for 2017?
The LAD 2017 buy-out percentage is 15%
Introduction of Ohio Personal Automobile Insurance Procedure (PAIP)
Effective January 1, 2020, the Personal Automobile Insurance Procedure (PAIP), a pooling mechanism, replaces direct assignment of private passenger applications. Direct assignment of private passenger risks and the Limited Assignment Distribution Procedure (LAD) will terminate on December 31, 2019. Quotas will no longer be calculated. The implementation of PAIP has been approved by the Ohio Governing Committee and the Ohio Department of Insurance.
What is PAIP?
Under PAIP, the Plan will issue and service Plan personal auto policies on behalf of Plan subscribers. In Ohio, AIPSO will act as a service provider and issue Plan personal auto policies. AIPSO will issue policies, provide policyholder service, and handle claims. Policies will be issued in the name of the Ohio Automobile Insurance Plan with the Plan as the insurance company. Operating results will be shared among companies (“member companies”) writing voluntary private passenger automobile liability insurance in the state.
Participation in PAIP
Each company is liable for their share of the fiscal year assessment based on their proportion of Automobile Liability Written Premium for the first prior calendar year to the statewide total of Private Passenger Automobile Liability Written Premiums of all companies in the state. “Private Passenger Automobile Liability Written premium” means the automobile premiums shown on the Exhibit of Premiums and Losses (Statutory Page 14 Data) of each company’s Annual Statement for Private Passenger No-Fault and Other Private Passenger Auto Liability, Lines 19.1 and 19.2, excluding business written on a non-admitted surplus basis. Annual statement premium acquired from the NAIC will not be subject to adjustments or corrections.
The Plan may periodically, but not less than annually, settle the operating results and fund the procedure. Assessment shares will be determined based on participation ratios developed using the NAIC data described above.
An initial assessment will be issued in December 2019 and a true-up of calendar year 2020 results will be issued in September 2021.
Recording of PAIP Results
All member companies must record their share of PAIP operating results on their books as a Boards and Bureaus Expense. Member companies should not book their share of PAIP operating results as direct business.
Ohio Private Passenger and Commercial Plan Assessments
The Ohio private passenger Plan assessment will continue to be based on Voluntary Private Passenger Nonfleet Net Direct Written Car Years while the commercial Plan assessment will continue to be based on Voluntary All Other Automobile Liability Net Direct Written Premium reported to statistical agents.
In-Force Policies prior to December 31, 2019
Companies with in-force Ohio Plan personal auto policies with effective dates of December 31, 2019 or prior will non-renew those policies on the first anniversary following the January 1, 2020 effective date.
At least 45 days prior to the expiration date of each in-force Plan policy, the assigned company shall notify the insured and producer that the Plan policy will not be renewed. The notice will advise the insured to contact their producer to determine whether they may be eligible for coverage in the voluntary market. If the insured is unable to obtain coverage in the voluntary market, the insured may re-apply to the Plan for coverage provided they are eligible.
For further information regarding PAIP, please refer to the Ohio Automobile Insurance Plan Manual located on www.aipso.com.