P&COhiomedium
Before placing an Ohio risk in the surplus lines market under R.C. 3905.30 et seq., the licensed surplus lines broker generally must:
AObtain personal written approval from the Governor of Ohio before any surplus lines placement can proceed
Document a diligent search of the admitted market that has been unable to write the risk
CConfirm the unauthorized insurer is a member of OIGA and participates in the guaranty fund
DCharge a premium equal to the highest admitted-market quote received during the diligent search
Why this is the answer
R.C. 3905.30 et seq. requires the licensed surplus lines broker to make a diligent effort to place the risk with admitted Ohio insurers first and to document the search. Surplus lines insurers do not participate in OIGA — which is why the 5% surplus lines tax under R.C. 3905.36 applies instead of guaranty protection. The Governor is not involved, and premium is not set by reference to admitted quotes.
Studying for the Ohio Property & Casualty exam?
This question comes from our P&C bank. Take a free practice test — no signup.