Department Assures Third-Party Title Escrow Accounts Are Safe for Ohio Consumers

COLUMBUS – Ohio Department of Insurance Director Mary Jo Hudson announced, today, that Ohio consumers can feel protected because of a recent interpretation of federal law by the Federal Deposit Insurance Corporation (FDIC).

The FDIC has granted account guarantee program coverage to Ohio Interest on Trust Accounts (IOTA) by determining that IOTA accounts had the same status as Ohio Interest on Lawyers’ Trust Accounts (IOLTA). This positively impacts consumers because title agents routinely deposit client funds into their IOTA accounts on a temporary basis during real estate transactions. Those funds will now be protected while in the bank or depository institution in the same way that the consumer’s checking, savings, and certificate of deposit funds are protected, but will not be subject to the $250,000 maximum limitation.

This result may or may not apply to accounts maintained by title insurance companies in other states.

Anyone with questions about their insurance should call the Department’s consumer hotline at 1-800-686-1526 and visit www.insurance.ohio.gov for information.

Ohio Department of Insurance Contacts:

Robert Denhard, Public Information Officer (614) 644-3366
Jarrett Dunbar, Public Information Officer (614) 644-2475