What is a surplus lines broker
3905.30 Resident and nonresident surplus lines broker's license.
(A) As used in sections 3905.30 to 3905.38 of the Revised Code:
(1) Notwithstanding section 3905.01 of the Revised Code, "home state" means the state in which an insured maintains its principal place of business or, in the case of an individual, the individual's principal residence except in the case of either of the following:
(a) If one hundred per cent of the insured risk is located out of the state in which an insured maintains its principal place of business or principal residence as described in division (A)(1)(a) of this section, "home state" means the state to which the greatest percentage of the insured's taxable premium for that insurance contract is allocated.
(b) If more than one insured from an affiliated group are named insureds on a single unauthorized insurance contract, "home state" means the state in which the member of the affiliated group that has the largest percentage of premium attributed to it under such insurance contract.
(2) "Principal place of business" means the state where the insured maintains the insured's headquarters and where the insured's high-level officers direct, control, and coordinate the business activities of the insured.
(B) The superintendent of insurance may issue a surplus lines broker's license to any natural person who is a resident of
this or any other state or to a business entity that is organized under the laws of this or any other state. To be eligible for a resident surplus lines broker's license, a person must have both a property license and a casualty license. To be eligible for a nonresident surplus lines broker's license, a person must hold an active surplus lines broker license in the person's home state. A nonresident surplus lines broker shall obtain a nonresident license with a property and casualty line of authority in this state if the broker is or will be personally performing the due diligence requirements under section 3905.33 of the Revised Code.
(C) A surplus lines broker's license permits the person named in the license to negotiate for and obtain insurance, other than life insurance, on property or persons in this state from insurers not authorized to transact business in this state. Each such license expires on the thirty-first day of January next after the year in which it is issued, and may be then renewed.
Amended by 129th General AssemblyFile No.5, HB 122, §1, eff. 6/17/2011.
Amended by 128th General AssemblyFile No.18, HB 300, §1, eff. 5/26/2010.
Effective Date: 09-01-2002
Related Legislative Provision: See 128th General AssemblyFile No.18, HB 300, §6
See 128th General AssemblyFile No.18, HB 300, §3Source: codes.ohio.gov