# OH Orders PC Co‘s to Pay Up 

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The Ohio Department of Insurance ordered 23 property and casualty companies to pay money owed to insurance customers and submit corrective actions plans after market conduct examinations revealed that the companies were not properly documenting and/or calculating automobile loss claims. 

The Department‘s examinations reviewed claim procedures regarding automobile total loss settlements focusing on each company‘s calculation of actual cash value and payment of applicable sales taxes on automobile total loss settlements. 

According to the Ohio Administrative Code, when an insurer chooses to make a cash settlement in payment of a total loss claim on an automobile, the company is obliged to pay the claimants‘ sales tax on the actual cash value of the claim if the insured replaces the vehicle within 30 days. The companies allegedly did not consistently pay the required sales tax on these losses.

Sources:
- Insurance Journal (http://www.insurancejournal.com/html/ijweb/breakingnews/regional/Midwest/mw1001/mw1018012.htm)