(B) Any of the following acts in this state, effected by mail | 26 |
or otherwise, by any foreign or alien insurer not authorized to | 27 |
transact business within this state, any nonresident person acting | 28 |
on behalf of an insurer, or any nonresident insurance agent | 29 |
subjects the insurer, person, or agent to the exercise of personal | 30 |
jurisdiction over the insurer, person, or agent to the extent | 31 |
permitted by the constitutions of this state and of the United | 32 |
States: | 33 |
Any such act shall be considered to be the doing of an | 52 |
insurance business in this state by such insurer, person, or agent | 53 |
and shall be its agreement that service of any lawful subpoena, | 54 |
notice, order, or process is of the same legal force and validity | 55 |
as personal service of the subpoena, notice, order, or process in | 56 |
this state upon the insurer, person, or agent. | 57 |
(G) EachIf this state is the home state of the insured, each | 87 |
such insurer that does any of the acts set forth in division (B) | 88 |
of this section in this state by mail or otherwise shall be | 89 |
subject to a tax of five per cent on the gross premiums, | 90 |
membership fees, assessments, dues, and other considerations | 91 |
received on all contracts of insurance covering subjects of | 92 |
insurance resident, located, or to be performed within this state. | 93 |
Such insurer shall annually, on or before the first day of July, | 94 |
pay such tax to the treasurer of state, as calculated on a form | 95 |
prescribed by the treasurer of state. If the tax is not paid when | 96 |
due, the tax shall be increased by a penalty of twenty-five per | 97 |
cent. An interest charge computed as set forth in section 5725.221 | 98 |
of the Revised Code shall be made on the entire sum of the tax | 99 |
plus penalty, which interest shall be computed from the date the | 100 |
tax is due until it is paid. The treasurer of state shall | 101 |
determine and report all claims for penalties and interest | 102 |
accruing under this section to the attorney general for collection | 103 |
the requirements of section 3905.36 of the Revised Code. | 104 |
(B) The superintendent of insurance may issue a surplus line | 170 |
lines broker's license to any natural person who is a resident of | 171 |
this or any other state or to a business entity that is organized | 172 |
under the laws of this or any other state. To be eligible for a | 173 |
resident surplus linelines broker's license, a person must have | 174 |
both a property license and a casualty license. To be eligible for | 175 |
a nonresident surplus linelines broker's license, a person must | 176 |
hold an active surplus linelines broker license in the person's | 177 |
home state. A nonresident surplus linelines broker shall obtain a | 178 |
nonresident license with a property and casualty line of authority | 179 |
in this state if the broker is or will be personally performing | 180 |
the due diligence requirements under section 3905.33 of the | 181 |
Revised Code. | 182 |
Sec. 3905.31. (A) No person not licensed under section | 189 |
3905.30 of the Revised Code shall take or receive any application | 190 |
for such insurance upon property or persons in this state, or | 191 |
receive or collect a premium or any part thereof for any | 192 |
unauthorized insurance company, or attempt or assist in any such | 193 |
act, or perform any act in this state concerning any policy or | 194 |
contract of insurance of any unauthorized insurance company | 195 |
provided that any duly licensed property and casualty agent may | 196 |
place business with an agent licensed under section 3905.30 of the | 197 |
Revised Code and may accept compensation therefor, if such | 198 |
insurance is written in conformity with the insurance laws of this | 199 |
state.
This | 200 |
To establish the eligibility of an unauthorized insurer, the | 214 |
superintendent of insurance may request copies of the insurer's | 215 |
most recent financial statements; instruments such as domestic | 216 |
trust agreements, powers of attorney, and investment management | 217 |
contracts; biographies of the owners and managers of the insurer; | 218 |
and any other information the superintendent believes may be | 219 |
helpful in determining an insurer's suitability. The suitability | 220 |
of each unauthorized insurer is subject to the continuous scrutiny | 221 |
and discretion of the superintendentPursuant to the "Nonadmitted | 222 |
and Reinsurance Reform Act of 2010," 15 U.S.C. 8201 et seq., 124 | 223 |
Stat. 1589, or any successor or replacement law, where this state | 224 |
is the home state of the insured, an insurer shall be considered | 225 |
eligible to write insurance on an unauthorized basis in this state | 226 |
if either of the following are true: | 227 |
Due diligence requires thean agent or surplus line broker to | 246 |
contact at least five of the authorized insurers the agent or | 247 |
surplus line broker represents, or as many insurers as the agent | 248 |
or surplus line broker represents, that customarily write the kind | 249 |
of insurance required by the insured. Due diligence is presumed if | 250 |
declinations are received from each authorized insurer contacted. | 251 |
If any authorized insurer fails to respond within ten days after | 252 |
the initial contact, the agent or surplus line broker may assume | 253 |
the insurer has declined to accept the risk. | 254 |
(C) AnExcept when exempt from due diligence requirements | 278 |
under division (B) of this section, an insurance agent who | 279 |
procures or places insurance through a surplus linelines broker | 280 |
shall obtain an affidavit from the insured acknowledging that the | 281 |
insurance policy is to be placed with a company or insurer not | 282 |
authorized to do business in this state and acknowledging that, in | 283 |
the event of the insolvency of the insurer, the insured is not | 284 |
entitled to any benefits or proceeds from the Ohio insurance | 285 |
guaranty association. The affidavit must be on a form prescribed | 286 |
by the superintendent. The agent shall submit the original | 287 |
originally executed affidavit to the surplus linelines broker | 288 |
within thirty days after the effective date of the policy. If no | 289 |
other agent is involved, the surplus linelines broker shall | 290 |
obtain the affidavit from the insured. | 291 |
(D) For the purpose of carrying out the "Nonadmitted and | 299 |
Reinsurance Reform Act of 2010," 124 Stat. 1589, 15 U.S.C. 8201 et | 300 |
seq., or any successor or replacement law, the superintendent | 301 |
shall conduct a fiscal analysis of the impact of entering into a | 302 |
multi-state agreement or compact for determining eligibility for | 303 |
placement of unauthorized insurance and for payment, reporting, | 304 |
collection, and allocation of the tax on unauthorized insurance. | 305 |
If the fiscal analysis indicates that entering into a multi-state | 306 |
agreement or compact is advantageous to this state, the | 307 |
superintendent may enter into the surplus lines insurance | 308 |
multi-state compliance compact adopted by the national conference | 309 |
of insurance legislators and known as "SLIMPACT," as amended on | 310 |
December 21, 2010, and including any subsequent amendment; or, if | 311 |
it is in this state's financial best interest, the superintendent | 312 |
shall request that the general assembly authorize the | 313 |
superintendent to enter into a different multi-state agreement or | 314 |
compact. | 315 |
(a) The person has obtained a bachelor's degree or a higher | 361 |
degree from an accredited college or university in risk | 362 |
management, business administration, finance, economics, or any | 363 |
other field determined by a state insurance commissioner or other | 364 |
state regulatory official or entity to demonstrate minimum | 365 |
competence in risk management, and either has three years of | 366 |
experience in risk financing, claims administration, loss | 367 |
prevention and insurance analysis, or purchasing commercial lines | 368 |
of insurance or has one of the following designations: | 369 |
Sec. 3905.34. Each person licensed under section 3905.30 of | 397 |
the Revised Code shall keep a separate account of the business | 398 |
done under the person's license. On or before the thirty-first day | 399 |
of
JanuaryMarch or when required under the compact entered into | 400 |
by the superintendent of insurance as authorized by division (D) | 401 |
of section 3905.33 of the Revised Code, each surplus linelines | 402 |
broker shall file with the superintendent of insurance the portion | 403 |
of that account that details of the business done during the | 404 |
preceding calendar year in the format prescribed by the | 405 |
superintendent. The account must show the amount of such | 406 |
insurance, the name of the insured, a brief description of the | 407 |
type of insurance, the location of the property, the gross premium | 408 |
charged, the name of the insurer, the date of the policy and term | 409 |
thereof, and a report in the same detail of all such policies | 410 |
canceled and the gross return premiums thereon. | 411 |
Sec. 3905.36. (A) Except as provided in divisions (B) and | 412 |
(C) of this section, everyEvery insured association, company, | 413 |
corporation, or other person that enters, directly or indirectly, | 414 |
into any agreementsindependent procurement or direct placement | 415 |
agreement with any insurance company, association, individual, | 416 |
firm, underwriter, or Lloyd's, not authorized to do business in | 417 |
this state, whereby the insured shall procure, continue, or renew | 418 |
contracts of insurance covering subjects of insurance resident, | 419 |
located, or to be performed within this state, with such | 420 |
unauthorized insurance company, association, individual, firm, | 421 |
underwriter, or Lloyd's, for which insurance there is a gross | 422 |
premium, membership fee, assessment, dues, or other consideration | 423 |
charged or collected, shall file the details of the transaction | 424 |
annually, on or before the thirty-first day of March, return to | 425 |
the superintendent of insurance a statement under oath showing the | 426 |
name and address of the insured, name and address of the insurer, | 427 |
subject of the insurance, general description of the coverage, and | 428 |
amount of gross premium, fee, assessment, dues, or other | 429 |
consideration for such insurance for the preceding calendar year | 430 |
and shall at the same time pay to the treasurer of state a tax of | 431 |
five per cent of such gross premium, fee, assessment, dues, or | 432 |
other consideration, after a deduction for return premium, if any, | 433 |
as calculated on a formin the prescribed by the treasurer of | 434 |
state. Allformat or in compliance with any requirements of the | 435 |
compact entered into by the superintendent pursuant to division | 436 |
(D) of section 3905.33 of the Revised Code. An insurer may submit | 437 |
the required details of the transaction and remit the tax payment | 438 |
on behalf of an insured. | 439 |
All taxes collected under this section by the treasurer of | 440 |
state shall be paid into the general revenue fund. If the tax is | 441 |
not paid when due, the tax shall be increased by a penalty of | 442 |
twenty-five per cent. An interest charge computed as set forth in | 443 |
section 5725.221 of the Revised Code shall be made on the entire | 444 |
sum of the tax plus penalty, which interest shall be computed from | 445 |
the date the tax is due until it is paid. For purposes of this | 446 |
section, payment is considered made when it is received by the | 447 |
treasurer of state, irrespective of any United States postal | 448 |
service marking or other stamp or mark indicating the date on | 449 |
which the payment may have been mailed. | 450 |
(B) Each person licensed under section 3905.30 of the Revised | 457 |
Code shall pay to the treasurer of state, on or before the | 458 |
thirty-first day of March of each year, five per cent of the | 459 |
balance of the gross premiums charged for insurance placed or | 460 |
procured under the license after a deduction for return premiums | 461 |
in the prescribed format or in compliance with any requirements of | 462 |
the compact entered into by the superintendent pursuant to | 463 |
division (D) of section 3905.33 of the Revised Code. The tax shall | 464 |
be collected from the insured by the surplus lines broker who | 465 |
placed or procured the policy of insurance at the time the policy | 466 |
is delivered to the insured. No license issued under section | 467 |
3905.30 of the Revised Code shall be renewed until payment is | 468 |
made. If the tax is not paid when due, the tax shall be increased | 469 |
by a penalty of twenty-five per cent. An interest charge computed | 470 |
as set forth in section 5725.221 of the Revised Code shall be made | 471 |
on the entire sum of the tax plus penalty, which interest shall be | 472 |
computed from the date the tax is due until it is paid. For | 473 |
purposes of this section, payment is considered made when it is | 474 |
received, irrespective of any United States postal service marking | 475 |
or other stamp or mark indicating the date on which the payment | 476 |
may have been mailed. | 477 |
(C) In transactions that are subject to sections 3905.30 to | 523 |
3905.35 of the Revised Code, each person licensed under section | 524 |
3905.30 of the Revised Code shall pay to the treasurer of state, | 525 |
on or before the thirty-first day of March of each year, five per | 526 |
cent of the balance of the gross premiums charged for insurance | 527 |
placed or procured under the license after a deduction for return | 528 |
premiums, as reported on a form prescribed by the treasurer of | 529 |
state. The tax shall be collected from the insured by the surplus | 530 |
line broker who placed or procured the policy of insurance at the | 531 |
time the policy is delivered to the insured. No license issued | 532 |
under section 3905.30 of the Revised Code shall be renewed until | 533 |
payment is made. If the tax is not paid when due, the tax shall be | 534 |
increased by a penalty of twenty-five per cent. An interest charge | 535 |
computed as set forth in section 5725.221 of the Revised Code | 536 |
shall be made on the entire sum of the tax plus penalty, which | 537 |
interest shall be computed from the date the tax is due until it | 538 |
is paid. For purposes of this section, payment is considered made | 539 |
when it is received by the treasurer of state, irrespective of any | 540 |
United States postal service marking or other stamp or mark | 541 |
indicating the date on which the payment may have been mailed. | 542 |
(1) "Political subdivision" means any county; municipal | 544 |
corporation; township; township police district; township fire | 545 |
district; joint fire district; joint ambulance district; joint | 546 |
emergency medical services district; fire and ambulance district; | 547 |
joint recreation district; township waste disposal district; | 548 |
township road district; community college district; technical | 549 |
college district; detention facility district; a district | 550 |
organized under section 2151.65 of the Revised Code; a combined | 551 |
district organized under sections 2151.65 and 2152.41 of the | 552 |
Revised Code; a joint-county alcohol, drug addiction, and mental | 553 |
health service district; a drainage improvement district created | 554 |
under section 6131.52 of the Revised Code; a union cemetery | 555 |
district; a county school financing district; a city, local, | 556 |
exempted village, cooperative education, or joint vocational | 557 |
school district; or a regional student education district created | 558 |
under section 3313.83 of the Revised Code, any public division, | 559 |
district, commission, authority, department, board, officer, or | 560 |
institution of any one or more of those political subdivisions, | 561 |
that is entirely or substantially supported by public tax moneys. | 562 |
(B) Sections 3905.36 to 3905.38, inclusive, of the Revised | 574 |
Code do not extend to private citizens, firms, or corporations, | 575 |
residents of this state, who seek to provide indemnity among | 576 |
themselves, from fire loss or other casualty, by exchange of | 577 |
private contracts for protection only and not for profit, nor | 578 |
apply to life or accident and sickness insurance. Sections 3905.30 | 579 |
through 3905.37, inclusive, of the Revised Code do not apply to | 580 |
ocean marine insurance when placed by licensed agents of this | 581 |
state. | 582 |