In order to effectively advocate on behalf of independent insurance agents, OIA’s first step is identifying a problem that impacts our members. Through direct feedback from our members, OIA has recognized the challenges that agents face when dealing with the excess & surplus (E&S) lines market. The team has worked to better understand the situation in Ohio and has actively engaged the Ohio General Assembly to pursue solutions. Fortunately, legislation has been introduced in the Ohio House of Representatives, House Bill 792, that directly addresses these concerns with the due diligence and declination process.
House Bill 792 is legislation that modernizes how independent agents access the E&S lines market. At its core, the legislation reduces the number of required declinations from five to one and establishes a state-approved export list through the Ohio Department of Insurance (ODI). These changes represent a pragmatic and balanced approach to an issue that has long impacted independent agents and their clients.
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 from their admitted carriers. According to the 2025 Excess and Surplus Lines Law Manual, Ohio and Puerto Rico share the unfortunate distinction of having the highest declination requirement in the country.
The requirement for agents to receive declination letters from their admitted carriers is viewed by many as outdated and inefficient. In practice, agents are often required to seek declinations for coverage they already know cannot be written in the admitted market. This requirement has led to administrative burdens and delays for clients being placed with necessary coverage.
House Bill 792 addresses this inefficiency while preserving important guardrails. By reducing the declination requirement from five to one, the bill acknowledges the professional judgment of insurance agents. Independent agents know their markets, their carriers, and most of all their clients’ needs. Our members have strong relationships with their admitted carriers and overwhelmingly prefer to place coverage in the admitted market whenever possible. However, when coverage is unavailable in the admitted market, the process of accessing the E&S Market should be streamlined so that agents can better serve and protect the interests of their insureds.
The bill stops just short of fully eliminating the declination requirements altogether which some states have implemented. Last year, Florida law removed their “due diligence” requirement for agents and allows them to directly access the surplus lines market without first seeking declinations. Louisiana, Virginia, and Wisconsin have also eliminated their requirement for agents to obtain declination letters from their admitted carriers. It is encouraging to see states recognize the administrative burden agents face while going through the due diligence process. Though HB 792 does not fully eliminate the declination requirement, it takes a balanced approach by significantly reducing the burden on agents and allowing for the creation of an export list.
House Bill 792 includes language that would allow the ODI to create and maintain an export list. An export list identifies specific categories of coverage that typically include risks where the admitted market lacks capacity or appetite, such as some specialized commercial exposures. In Pennsylvania, independent agents can utilize their export list to identify specific coverage that can be placed directly in the surplus lines market without first shopping the admitted market. Ohio’s legislation would give agents the same liberties to utilize the export list for certain approved coverage. By recognizing these gaps, export lists provide efficiency for agents while maintaining key regulatory oversight.
House Bill 792 effectively blends two ways to approach regulatory reform in the E&S market. The bill reduces friction by lowering the declination threshold, while also creating an export list that reflects real market conditions. This pragmatic approach ensures that Ohio remains competitive with other states while preserving appropriate consumer protections. Ultimately, this legislation recognizes a key truth: independent agents should be trusted to do their jobs. Our members are licensed professionals operating in a highly regulated environment. By modernizing Ohio’s surplus lines framework, this legislation empowers agents, improves efficiency, and enhances the overall responsiveness of the insurance marketplace.
The OIA Government Affairs team stands ready to advocate further for House Bill 792. We will push for this legislation through the committee process and continue to express to the Ohio Legislature why this issue is so important. House Bill 792 is a thoughtful and balanced solution. We believe this bill will help ensure that agents can help their clients access the coverage they need without unnecessary delay. For further information on this topic or other legislative updates, reach out to George Christy, OIA’s Government Affairs Manager at george@ohioinsuranceagents.com or by calling 614-929-8237.
About the Author:
George Christy joined the Ohio Insurance Agents (OIA) as the new Government Affairs Manager in January 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.
