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Expert Surety Bonds Since 2004
Need assistance? +1 815-826-6324 (815-8-BondAI) phil@AmericasSuretyBonds.com
Expert Surety Bonds Since 2004
Ohio will not issue or renew an abbreviated adult driver training school license until the authorizing official certifies that a continuous bond or escrow account is in place. A surety bond meets that requirement without parking cash in escrow, and the minimum grows with every school you add, so get the count right before the bond is written.
Under Ohio Administrative Code 4501-8-08, an abbreviated adult driver training enterprise must keep a continuous performance bond or escrow account of at least $10,000 for its first licensed school plus at least $2,000 for each additional licensed school. The bond names the Ohio Department of Public Safety and the State of Ohio as obligees and protects students who pay for training that is never supplied. Schools that do not charge for training, and schools run under the authority of the state or an approved political subdivision, are exempt.
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Most applicants assume the bond is a flat $10,000. OAC 4501-8-08 sets $10,000 as the floor for the first licensed school under the enterprise and adds at least $2,000 for each additional licensed school. An enterprise with three licensed schools needs at least $14,000. The rule also says the amount must be sufficient to reimburse students for training and services not supplied, so $10,000 is a minimum, not a cap.
The bond backs the enterprise's promise to its students. If a school stops providing classroom or behind the wheel training that students have paid for, the bond is there to reimburse them. It must show the enterprise name, the bond amount, the effective date and the period it covers, and it names the Department of Public Safety and the State of Ohio as obligees. The director must be notified ten days before the bond expires, is cancelled for any reason or is reduced in value.
Two kinds of schools do not need the bond: schools that do not charge for training, and schools operated under the authority of the State of Ohio or a political subdivision approved by the director. Every fee charging private enterprise posts it, including online abbreviated adult providers.
Ohio Revised Code 4507.21(C) requires a first time license applicant who is 21 or older and has failed the road or maneuverability test to complete the abbreviated adult driver training course before testing again, unless they completed a driver training course in the previous twelve months.
Licenses are issued by the Director of Public Safety through the Ohio Traffic Safety Office driver training program. The original application fee is $250 for each school location, or $850 for an online abbreviated adult school. Applications are filed in DETS, and the Abbreviated Adult Driver Training Enterprise Application (DTO 0119) asks for the company that holds your bond. A license expires December 31 of the year it is issued. Renewal materials must be postmarked no later than November 30, with a $50 renewal fee.
Schools that use vehicles must also carry liability insurance under the same rule: $100,000 per person and $300,000 per crash for bodily injury, $25,000 property damage and $5,000 medical payments per occupant with matching uninsured motorist coverage, or a $400,000 combined single limit with the same medical payments and uninsured motorist coverage. The insurance covers crashes. The bond covers students who paid for training they did not receive.
Only for a single school. OAC 4501-8-08 requires at least $10,000 for the first licensed school and at least $2,000 more for each additional school under the same enterprise. The amount must also be enough to reimburse students for training not supplied.
Yes. The rule accepts either a continuous performance bond or an escrow account. A surety bond satisfies the requirement without setting the cash aside.
Schools that do not charge for training, and schools operated under the authority of the State of Ohio or a political subdivision approved by the director.
No. The insurance and the bond are separate requirements in the same rule. The insurance covers crashes during training. The bond covers students who paid for training they did not receive.
The director must be notified ten days before the bond terminates or is reduced. A license will not be renewed without a continuous bond or escrow account, and failing to maintain required coverage can lead to suspension or revocation of the enterprise license.
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