The declination process for surplus lines in Ohio often feels unnecessarily redundant to many of our members. Agents are required to seek written declinations for coverage they already know cannot be placed in the admitted market, because their carriers do not offer that coverage. Recently, the state of Florida enacted House Bill 1549, legislation that eliminated their “diligent effort” requirement for agents placing coverage in the surplus market. In this article, we will discuss the current law in Ohio, examine the law in Florida and other states that have eliminated their declination process, and make the case for why Ohio should consider following suit.
Ohio Revised Code Section 3905.33 establishes the rules governing non-domiciled insurers and the requirements for due diligence in our state. Current law requires that an agent contact at least five of the insurers that they represent, or as many insurers as the agent represents when seeking declinations. Unfortunately for our members, our state is an outlier in the number of declinations required of agents. According to the 2025 Excess and Surplus Lines Laws Manual, most states, including our neighbors in Pennsylvania, require three declinations from admitted insurers.
The most important element of the laws surrounding surplus lines are the requirements for agents to inform their insureds that they are placing coverage in the surplus market. Every state that has removed the due diligence requirement for agents still maintains strong consumer protection language that notifies insureds of the potential risks when their coverage is being placed with a non-domiciled insurer. Virginia maintains state oversight by requiring that their agents provide an affidavit to the Virginia State Corporation Commission affirming that they gave their client notice that they were placing their coverage with a surplus line.
Florida joined the states of Louisiana, Wisconsin, Mississippi, and Virginia when they eliminated their declination process for surplus lines. Florida’s law took effect on July 1, 2025. When the legislation (HB 1549) to enact this policy change was passed, it received a unanimous vote in the Florida House of Representatives and only one no vote in the State Senate before being signed into law. On top of removing the requirement for Florida agents to receive written declinations, the bill added additional consumer protection language to the required disclosure from an agent when they are exporting coverage to a surplus lines insurer. This language informs consumers that surplus line rates are not enacted by any Florida regulatory agency.
Ohio should consider taking legislative action to remove the declination process for surplus lines. Ohio agents want to protect their clients and place coverage with their admitted carriers. Agents should not have to rely on a time consuming and burdensome process when placing surplus line coverage. OIA Government Affairs looks forward to presenting this issue to members of the Ohio Legislature and exploring its potential as a policy initiative. Please reach out to George Christy at George@ohioinsuranceagents.com if you’d like to provide your support or feedback on this issue.
About the Author:
George Christy joined the Ohio Insurance Agents (OIA) as the new Government Affairs Manager, starting on January 6, 2025. George brings experience from his previous roles at the Ohio Department of Transportation (ODOT). At ODOT, he was part of the communications team, and he worked on legislative and regulatory issues with the Legislative Affairs team. George brings experience from his work on state legislative campaigns, his time as a Legislative Aide in the Ohio House of Representatives, and his roles at a state agency. George grew up in Delaware County and is a graduate of The Ohio State University where he studied Political Science and Economics.
Sources:
2025 Excess and Surplus Lines Laws Manual
Written by John N. Emmanuel and Zachary N. Lerner
Florida CS/HB 1549 – Financial Services
Prepared by Insurance & Banking Subcommittee and Rep. Maggard
