(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 | 171 |
lines broker's license to any natural person who is a resident of | 172 |
this or any other state or to a business entity that is organized | 173 |
under the laws of this or any other state. To be eligible for a | 174 |
resident surplus linelines broker's license, a person must have | 175 |
both a property license and a casualty license. To be eligible for | 176 |
a nonresident surplus linelines broker's license, a person must | 177 |
hold an active surplus linelines broker license in the person's | 178 |
home state. A nonresident surplus linelines broker shall obtain a | 179 |
nonresident license with a property and casualty line of authority | 180 |
in this state if the broker is or will be personally performing | 181 |
the due diligence requirements under section 3905.33 of the | 182 |
Revised Code. | 183 |
Sec. 3905.31. (A) No person not licensed under section | 190 |
3905.30 of the Revised Code shall take or receive any application | 191 |
for such insurance upon property or persons in this state, or | 192 |
receive or collect a premium or any part thereof for any | 193 |
unauthorized insurance company, or attempt or assist in any such | 194 |
act, or perform any act in this state concerning any policy or | 195 |
contract of insurance of any unauthorized insurance company | 196 |
provided that any duly licensed property and casualty agent may | 197 |
place business with an agent licensed under section 3905.30 of the | 198 |
Revised Code and may accept compensation therefor, if such | 199 |
insurance is written in conformity with the insurance laws of this | 200 |
state.
This | 201 |
ToUnless the superintendent of insurance enters into a | 215 |
multistate agreement or compact under division (E) of this | 216 |
section, the superintendent may establish the eligibility of an | 217 |
unauthorized insurer, the superintendent of insurance may request | 218 |
by requesting copies of the insurer's most recent financial | 219 |
statements; instruments such as domestic trust agreements, powers | 220 |
of attorney, and investment management contracts; biographies of | 221 |
the owners and managers of the insurer; and any other information | 222 |
the superintendent believes may be helpful in determining an | 223 |
insurer's suitabilityeligibility. The suitabilityeligibility of | 224 |
each unauthorized insurer is subject to the continuous scrutiny | 225 |
and discretion of the superintendent. | 226 |
Due diligence requires thean agent or surplus line broker to | 233 |
contact at least five of the authorized insurers the agent or | 234 |
surplus line broker represents, or as many insurers as the agent | 235 |
or surplus line broker represents, that customarily write the kind | 236 |
of insurance required by the insured. Due diligence is presumed if | 237 |
declinations are received from each authorized insurer contacted. | 238 |
If any authorized insurer fails to respond within ten days after | 239 |
the initial contact, the agent or surplus line broker may assume | 240 |
the insurer has declined to accept the risk. | 241 |
(C) AnExcept when exempt from due diligence requirements | 265 |
under division (B) of this section, an insurance agent who | 266 |
procures or places insurance through a surplus linelines broker | 267 |
shall obtain an affidavit from the insured acknowledging that the | 268 |
insurance policy is to be placed with a company or insurer not | 269 |
authorized to do business in this state and acknowledging that, in | 270 |
the event of the insolvency of the insurer, the insured is not | 271 |
entitled to any benefits or proceeds from the Ohio insurance | 272 |
guaranty association. The affidavit must be on a form prescribed | 273 |
by the superintendent. The agent shall submit the original | 274 |
originally executed affidavit to the surplus linelines broker | 275 |
within thirty days after the effective date of the policy. If no | 276 |
other agent is involved, the surplus linelines broker shall | 277 |
obtain the affidavit from the insured. | 278 |
(E) For the purpose of carrying out the "Nonadmitted and | 289 |
Reinsurance Reform Act of 2010," 15 U.S.C. 8201 et seq., 124 Stat. | 290 |
1589, or any successor or replacement law, the superintendent may | 291 |
enter into a multi-state agreement or compact for determining | 292 |
eligibility for placement of unauthorized insurance and for | 293 |
payment, reporting, collection, and allocation of the tax on | 294 |
unauthorized insurance. The multi-state agreement or compact also | 295 |
may include eligibility for placement of unauthorized insurance | 296 |
and payment, reporting, collection, and allocation of the tax on | 297 |
unauthorized insurance for risks that are not multi-state, and for | 298 |
independently procured insurance in the unauthorized market. | 299 |
(a) The person has obtained a bachelor's degree or a higher | 342 |
degree from an accredited college or university in risk | 343 |
management, business administration, finance, economics, or any | 344 |
other field determined by a state insurance commissioner or other | 345 |
state regulatory official or entity to demonstrate minimum | 346 |
competence in risk management, and either has three years of | 347 |
experience in risk financing, claims administration, loss | 348 |
prevention and insurance analysis, or purchasing commercial lines | 349 |
of insurance or has one of the following designations: | 350 |
Sec. 3905.34. Each person licensed under section 3905.30 of | 377 |
the Revised Code shall keep a separate account of the business | 378 |
done under the person's license. On or before the thirty-first day | 379 |
of
JanuaryMarch or when required under a multi-state agreement or | 380 |
compact entered into by the superintendent of insurance as | 381 |
authorized by division (E) of section 3905.33 of the Revised Code, | 382 |
each surplus linelines broker shall file with the superintendent | 383 |
of insurance the portion of that account that details of the | 384 |
business done during the preceding calendar year in the format | 385 |
prescribed by the superintendent. The account must show the amount | 386 |
of such insurance, the name of the insured, a brief description of | 387 |
the type of insurance, the location of the property, the gross | 388 |
premium charged, the name of the insurer, the date of the policy | 389 |
and term thereof, and a report in the same detail of all such | 390 |
policies canceled and the gross return premiums thereon. | 391 |
Sec. 3905.36. (A) Except as provided in divisions (B) and | 392 |
(C) of this section, everyEvery insured association, company, | 393 |
corporation, or other person that enters, directly or indirectly, | 394 |
into any agreementsindependent procurement or direct placement | 395 |
agreement with any insurance company, association, individual, | 396 |
firm, underwriter, or Lloyd's, not authorized to do business in | 397 |
this state, whereby the insured shall procure, continue, or renew | 398 |
contracts of insurance covering subjects of insurance resident, | 399 |
located, or to be performed within this state, with such | 400 |
unauthorized insurance company, association, individual, firm, | 401 |
underwriter, or Lloyd's, for which insurance there is a gross | 402 |
premium, membership fee, assessment, dues, or other consideration | 403 |
charged or collected, shall file the details of the transaction | 404 |
annually, on or before the thirty-first day of March, return to | 405 |
the superintendent of insurance a statement under oath showing the | 406 |
name and address of the insured, name and address of the insurer, | 407 |
subject of the insurance, general description of the coverage, and | 408 |
amount of gross premium, fee, assessment, dues, or other | 409 |
consideration for such insurance for the preceding calendar year | 410 |
and shall at the same time pay to the treasurer of state a tax of | 411 |
five per cent of such gross premium, fee, assessment, dues, or | 412 |
other consideration, after a deduction for return premium, if any, | 413 |
as calculated on a formin the prescribed by the treasurer of | 414 |
state. Allformat or in compliance with any requirements of a | 415 |
multi-state agreement or compact entered into by the | 416 |
superintendent pursuant to division (E) of section 3905.33 of the | 417 |
Revised Code. An insurer may submit the required details of the | 418 |
transaction and remit the tax payment on behalf of an insured. | 419 |
All taxes collected under this section by the treasurer of | 420 |
state shall be paid into the general revenue fund. If the tax is | 421 |
not paid when due, the tax shall be increased by a penalty of | 422 |
twenty-five per cent. An interest charge computed as set forth in | 423 |
section 5725.221 of the Revised Code shall be made on the entire | 424 |
sum of the tax plus penalty, which interest shall be computed from | 425 |
the date the tax is due until it is paid. For purposes of this | 426 |
section, payment is considered made when it is received by the | 427 |
treasurer of state, irrespective of any United States postal | 428 |
service marking or other stamp or mark indicating the date on | 429 |
which the payment may have been mailed. | 430 |
(C) In transactions that are subject to sections 3905.30 to | 476 |
3905.35 of the Revised Code, eachEach person licensed under | 477 |
section 3905.30 of the Revised Code shall pay to the treasurer of | 478 |
state, on or before the thirty-first day of March of each year, | 479 |
five per cent of the balance of the gross premiums charged for | 480 |
insurance placed or procured under the license after a deduction | 481 |
for return premiums, as reported on a formin the prescribed by | 482 |
the treasurer of stateformat or in compliance with any | 483 |
requirements of a multi-state agreement or compact entered into by | 484 |
the superintendent pursuant to division (E) of section 3905.33 of | 485 |
the Revised Code. The tax shall be collected from the insured by | 486 |
the surplus
linelines broker who placed or procured the policy | 487 |
of insurance at the time the policy is delivered to the insured. | 488 |
No license issued under section 3905.30 of the Revised Code shall | 489 |
be renewed until payment is made. If the tax is not paid when due, | 490 |
the tax shall be increased by a penalty of twenty-five per cent. | 491 |
An interest charge computed as set forth in section 5725.221 of | 492 |
the Revised Code shall be made on the entire sum of the tax plus | 493 |
penalty, which interest shall be computed from the date the tax is | 494 |
due until it is paid. For purposes of this section, payment is | 495 |
considered made when it is received by the treasurer of state, | 496 |
irrespective of any United States postal service marking or other | 497 |
stamp or mark indicating the date on which the payment may have | 498 |
been mailed. | 499 |
(1) "Political subdivision" means any county; municipal | 507 |
corporation; township; township police district; township fire | 508 |
district; joint fire district; joint ambulance district; joint | 509 |
emergency medical services district; fire and ambulance district; | 510 |
joint recreation district; township waste disposal district; | 511 |
township road district; community college district; technical | 512 |
college district; detention facility district; a district | 513 |
organized under section 2151.65 of the Revised Code; a combined | 514 |
district organized under sections 2151.65 and 2152.41 of the | 515 |
Revised Code; a joint-county alcohol, drug addiction, and mental | 516 |
health service district; a drainage improvement district created | 517 |
under section 6131.52 of the Revised Code; a union cemetery | 518 |
district; a county school financing district; a city, local, | 519 |
exempted village, cooperative education, or joint vocational | 520 |
school district; or a regional student education district created | 521 |
under section 3313.83 of the Revised Code, any public division, | 522 |
district, commission, authority, department, board, officer, or | 523 |
institution of any one or more of those subdivisions, that is | 524 |
entirely or substantially supported by public tax moneys. | 525 |
(B) Sections 3905.36 to 3905.38, inclusive, of the Revised | 537 |
Code do not extend to private citizens, firms, or corporations, | 538 |
residents of this state, who seek to provide indemnity among | 539 |
themselves, from fire loss or other casualty, by exchange of | 540 |
private contracts for protection only and not for profit, nor | 541 |
apply to life or accident and sickness insurance. Sections 3905.30 | 542 |
through 3905.37, inclusive, of the Revised Code do not apply to | 543 |
ocean marine insurance when placed by licensed agents of this | 544 |
state. | 545 |