Ohio Revised Code
Chapter 3905 | Insurance Producers Licensing Act
Section 3905.36 | Taxing Firms Dealing With Unauthorized Foreign Insurers; Waiver of Penalty and Interest Charges; Surplus Lines Brokers.

Effective: September 10, 2012
Latest Legislation: House Bill 487 - 129th General Assembly
(A) Every insured association, company, corporation, or other person that enters, directly or indirectly, into any independent procurement or direct placement agreement with any insurance company, association, individual, firm, underwriter, or Lloyd's, not authorized to do business in this state, whereby the insured shall procure, continue, or renew contracts of insurance with such unauthorized insurance company, association, individual, firm, underwriter, or Lloyd's, for which insurance there is a gross premium, shall file the details of the transaction annually, on or before the thirty-first day of March, and shall at the same time pay to the treasurer of state, or to the superintendent of insurance upon the mutual agreement of the superintendent and the treasurer, a tax of five per cent of such gross premium, after a deduction for return premium, if any, as calculated in the prescribed format or in compliance with any requirements of the compact entered into by the superintendent pursuant to division (D) of section 3905.33 of the Revised Code. An insurer may submit the required details of the transaction and remit the tax payment on behalf of an insured.
All taxes collected under this section shall be paid into the general revenue fund. If the tax is not paid when due, the tax shall be increased by a penalty of twenty-five per cent. An interest charge computed as set forth in section 5725.221 of the Revised Code shall be made on the entire sum of the tax plus penalty, which interest shall be computed from the date the tax is due until it is paid. For purposes of this section, payment is considered made when it is received by the treasurer or the superintendent, irrespective of any United States postal service marking or other stamp or mark indicating the date on which the payment may have been mailed.
The superintendent of insurance, in the superintendent's sole discretion, may waive the twenty-five per cent penalty and interest charge thereon for a first-time, inadvertent nonpayment of the tax when due if the nonpayment is reported immediately upon discovery and the outstanding tax is thereafter immediately paid to the superintendent.
(B) Each person licensed under section 3905.30 of the Revised Code shall pay to the treasurer of state, or to the superintendent of insurance upon the mutual agreement of the superintendent and the treasurer, on or before the thirty-first day of March of each year, five per cent of the balance of the gross premiums charged for insurance placed or procured under the license after a deduction for return premiums in the prescribed format or in compliance with any requirements of the compact entered into by the superintendent pursuant to division (D) of section 3905.33 of the Revised Code. The tax shall be collected from the insured by the surplus lines broker who placed or procured the policy of insurance at the time the policy is delivered to the insured. No license issued under section 3905.30 of the Revised Code shall be renewed until payment is made. If the tax is not paid when due, the tax shall be increased by a penalty of twenty-five per cent. An interest charge computed as set forth in section 5725.221 of the Revised Code shall be made on the entire sum of the tax plus penalty, which interest shall be computed from the date the tax is due until it is paid. For purposes of this section, payment is considered made when it is received by the treasurer or the superintendent, irrespective of any United States postal service marking or other stamp or mark indicating the date on which the payment may have been mailed.
The superintendent, in the superintendent's sole discretion, may waive the twenty-five per cent penalty and interest charge thereon for a first-time, inadvertent nonpayment of the tax when due if the nonpayment is reported immediately upon discovery and the outstanding tax is thereafter immediately paid to the superintendent.
(C) This section does not apply to:
(1) An insured otherwise exempt from the payment of premium or franchise taxes under state or federal law;
(2) Attorneys-at-law acting on behalf of their clients in the adjustment of claims or losses;
(3) Transactions involving policies issued by a captive insurer. For this purpose, a "captive insurer" means any of the following:
(a) An insurer owned by one or more individuals or organizations, whose exclusive purpose is to insure risks of one or more of the parent organizations or individual owners and risks of one or more affiliates of the parent organizations or individual owners;
(b) In the case of groups and associations, insurers owned by the group or association whose exclusive purpose is to insure risks of members of the group or association and affiliates of the members;
(c) Other types of insurers, licensed and operated in accordance with the captive insurance laws of their jurisdictions of domicile and operated in a manner so as to self-insure risks of their owners and insureds.
(4) Professional or medical liability insurance procured by a hospital organized under Chapter 3701. of the Revised Code;
(5) Insurance with an initial policy period of more than three years and that is procured to cover known events related to environmental remediation that occurred prior to the effective date of that insurance;
(6) Insurance procured on behalf of an entity that manufactures, packages, and sells, as more than fifty per cent of the entity's business, pharmaceutical products for human use where the production, packaging, and sale of such products are subject to regulation by an agency of the United States;
(7) A political subdivision or any combination or consortium of two or more political subdivisions.
(D) As used in this section:
(1) "Political subdivision" means any county; municipal corporation; township; township police district; township fire district; joint fire district; joint ambulance district; joint emergency medical services district; fire and ambulance district; joint recreation district; township waste disposal district; township road district; community college district; technical college district; detention facility district; a district organized under section 2151.65 of the Revised Code; a combined district organized under sections 2151.65 and 2152.41 of the Revised Code; a joint-county alcohol, drug addiction, and mental health service district; a drainage improvement district created under section 6131.52 of the Revised Code; a union cemetery district; a county school financing district; a city, local, exempted village, cooperative education, or joint vocational school district; or a regional student education district created under section 3313.83 of the Revised Code, any public division, district, commission, authority, department, board, officer, or institution of any one or more of those political subdivisions, that is entirely or substantially supported by public tax moneys.
(2) "Municipal corporation" means all municipal corporations, including those that have adopted a charter under Article XVIII, Ohio Constitution.

Structure Ohio Revised Code

Ohio Revised Code

Title 39 | Insurance

Chapter 3905 | Insurance Producers Licensing Act

Section 3905.01 | Insurance Producers Licensing Act Definitions.

Section 3905.02 | License Required.

Section 3905.03 | Exceptions to Licensing Requirement.

Section 3905.04 | Written Examination of Applicant for Agent License.

Section 3905.041 | Exceptions to Program of Insurance Education or Examination Requirement.

Section 3905.05 | Application for Resident Insurance Agent License.

Section 3905.051 | Criminal Records Check; Fingerprinting; Confidentiality.

Section 3905.06 | Issuance and Contents of License - Lines of Authority.

Section 3905.061 | Agent to File of Change of Address.

Section 3905.062 | Portable Electronics Insurance.

Section 3905.063 | Self-Service Storage Insurance; License Required.

Section 3905.064 | Travel Insurance Definitions.

Section 3905.065 | Travel Insurance Agent License; Travel Protection Plans; Policy Requirements.

Section 3905.066 | Travel Retailers.

Section 3905.067 | Unfair and Deceptive Acts or Practices.

Section 3905.068 | Tax on Travel Insurance Premiums.

Section 3905.069 | Travel Administrators.

Section 3905.0610 | Classification of Travel Insurance; Eligibility and Underwriting Standards.

Section 3905.0611 | Rules.

Section 3905.07 | Nonresident Insurance Agent or Surplus Lines Broker License; Renewal.

Section 3905.071 | Nonresident to File Change of Address.

Section 3905.072 | Nonresident Limited Lines Insurance Agent License.

Section 3905.08 | Reciprocity.

Section 3905.081 | Waiving Licensing Requirement for Nonresident Persons in Violation of Federal Reciprocity Requirements.

Section 3905.09 | Temporary Insurance Agent License.

Section 3905.11 | Agent's Use of Assumed Name.

Section 3905.12 | Rules.

Section 3905.14 | Disciplinary Actions.

Section 3905.15 | Hearing to Determine Administrative Action Modification.

Section 3905.16 | Surrender of License.

Section 3905.18 | Paying Unlawful Consideration.

Section 3905.181 | Accepting Consideration Without License.

Section 3905.182 | Sale of Shares of Capital Stock of Life Insurance Company or Agency.

Section 3905.20 | Appointment of Insurance Agent to Act as Agent of Insurer.

Section 3905.201 | Limited Line Credit Insurance Program of Instruction.

Section 3905.21 | Notice of Terminating Relationship With Insurance Agent.

Section 3905.211 | Immunity.

Section 3905.212 | Sanctions.

Section 3905.22 | Agent to Provide Notice of Administrative Action or of Prosecution and Disposition.

Section 3905.24 | Confidentiality of Records and Information - Exceptions.

Section 3905.26 | Centralized Agent License Registry.

Section 3905.28 | Rules.

Section 3905.29 | Mutual Protective Associations Exempted.

Section 3905.30 | Resident and Nonresident Surplus Lines Broker's License.

Section 3905.31 | Prohibitions.

Section 3905.32 | License Fees.

Section 3905.33 | Unauthorized Insurers; Applicability and Construction of Federal Provisions; Due Diligence.

Section 3905.331 | Exempt Commercial Purchasers; Qualifications; Qualified Risk Managers.

Section 3905.332 | Designation as Domestic Surplus Lines Insurer.

Section 3905.34 | Separate Accounts.

Section 3905.35 | Bond.

Section 3905.36 | Taxing Firms Dealing With Unauthorized Foreign Insurers; Waiver of Penalty and Interest Charges; Surplus Lines Brokers.

Section 3905.37 | Prohibited Acts.

Section 3905.38 | Exemptions.

Section 3905.39 | Continuation of Certificates and Licenses.

Section 3905.40 | Fees Paid to Superintendent of Insurance.

Section 3905.401 | Valuation Fee Not Applicable to Reinsurance Ceded to Affiliated Companies.

Section 3905.41 | Accounts for Fees.

Section 3905.42 | Insurance Business Must Be Authorized.

Section 3905.421 | Vehicle Protection Product Warranty.

Section 3905.422 | Homes Service Contract Are Consumer Transactions.

Section 3905.423 | Consumer Goods Contracts to Be Covered by Reimbursement Insurance.

Section 3905.424 | Waiver of Customer Obligation Not Insurance Matter.

Section 3905.426 | Requirements for Ancillary Product Protection Contracts.

Section 3905.43 | Advertising Limitations.

Section 3905.44 | Limitation Upon Domestic Companies.

Section 3905.45 | Payment of Funeral or Burial Expenses Policy.

Section 3905.451 | Funeral or Burial Goods or Services Coverage Not Subject to Preneed Provisions.

Section 3905.46 | Application of Law.

Section 3905.47 | Agent Training Programs.

Section 3905.471 | Insurance Navigator Certification.

Section 3905.472 | Qualified Health Benefit Plans.

Section 3905.473 | Exchange Listings.

Section 3905.474 | Qualifications for In-Person Assisters.

Section 3905.481 | Continuing Education Requirements.

Section 3905.484 | Establishing Criteria for Course or Program of Study for License Examination.

Section 3905.485 | Establishing Schedule of Fees for Course or Program of Study for License Examination.

Section 3905.486 | Adoption of Rules.

Section 3905.49 | Prohibiting False Representation as Independent Agent.

Section 3905.50 | Terminating Independent Insurance Agent Contract.

Section 3905.53 | Effect of Child Support Default on License.

Section 3905.55 | Agent Fees.

Section 3905.56 | Compensation by Public Entity for Placement of Insurance.

Section 3905.61 | Controlled Insurers Definitions.

Section 3905.62 | Application of Sections.

Section 3905.63 | Limits on Business Placed With Controlled Insurer by Controlling Producer.

Section 3905.64 | Notice to Prospective Insured by Controlling Producer.

Section 3905.65 | Remedies for Noncompliance.

Section 3905.71 | Managing General Agent Definitions.

Section 3905.72 | Managing General Agent License Requirement.

Section 3905.73 | Responsibilities of Managing General Agent.

Section 3905.74 | Independent Financial Examination of Each Managing General Agent.

Section 3905.75 | Acts of Agent Deemed Acts of Insurer - Examinations.

Section 3905.76 | Prohibition.

Section 3905.77 | Penalties for Violations.

Section 3905.78 | Rights Not Limited or Restricted.

Section 3905.79 | Rules.

Section 3905.81 | Reinsurance Intermediary-Broker or Intermediary-Manager License Required - Rules.

Section 3905.83 | Surety Bail Bond Agent Definitions.

Section 3905.84 | Surety Bail Bond Agent to Be Qualified, Licensed, and Appointed.

Section 3905.841 | Persons or Classes of Persons Not to Act as Agents.

Section 3905.85 | Surety Bail Bond Agent License.

Section 3905.851 | No Imposition of Local Licensing Fees.

Section 3905.86 | Appointment of Agent by Insurer.

Section 3905.861 | Extending Appointments to Affiliated Agents.

Section 3905.862 | Expiration or Cancellation of Appointment; Fee.

Section 3905.87 | Registration of Agent With Court Clerks; List of Court-Registered Surety Bail Bond Agents.

Section 3905.88 | Continuing Education.

Section 3905.89 | Notice of Change of Principal Business Address or Telephone Number.

Section 3905.90 | Records of Surety Bonds to Be Maintained - Furnishing of Information.

Section 3905.901 | Determination of Direct Written Premiums for Bail Bonds.

Section 3905.91 | Build-Up Funds.

Section 3905.92 | Requirements for Acceptance of Collateral Security or Other Indemnity.

Section 3905.921 | Discharge of Bond Where Collateral Security or Other Indemnity Accepted.

Section 3905.93 | Bail Bond - Charges and Fees.

Section 3905.931 | Furnishing of Forms and Other Supplies.

Section 3905.932 | Prohibited Acts.

Section 3905.933 | Signing or Countersigning Agent's Name to a Bond.

Section 3905.934 | Advertising Requirements.

Section 3905.94 | License Suspension or Revocation.

Section 3905.941 | Designation of Successor Agent.

Section 3905.95 | Rules.

Section 3905.99 | Penalty.