What is required for surplus lines insurance in Ohio?

Surplus lines insurance in Ohio must be placed through a licensed surplus lines broker. This requirement is essential because surplus lines are used to cover risks that licensed insurers in the state are unable or unwilling to insure. The involvement of a licensed surplus lines broker ensures that the insurance placement adheres to the regulations set forth by the Ohio Department of Insurance, thereby providing a mechanism for monitoring and compliance with state laws.

Licensed surplus lines brokers have the expertise and authority to facilitate these specialized types of insurance transactions, ensuring that consumers receive appropriate protection for unique or high-risk situations. The broker's role includes conducting the necessary due diligence to verify that the surplus lines insurer is authorized to operate in Ohio, which helps maintain regulatory standards and consumer protections.

Options that suggest other alternatives, such as allowing any licensed agent to sell surplus lines insurance or stating that it doesn't require a broker, are not consistent with Ohio's legal framework governing surplus lines. The necessity for state approval is also misrepresented, as while surplus lines insurance does not go through the standard state approval process for admitted carriers, it still requires adherence to specific regulatory guidelines overseen by a licensed broker.