An insurer organized in another state wants to market accident and health policies to Ohio consumers. To lawfully conduct this business in Ohio, the company must first:

Why B is correct

An out-of-state insurer is admitted in Ohio only after it obtains a certificate of authority from the Ohio Superintendent of Insurance, as required under ORC 3907.08, with the qualification framework for foreign insurers set out in ORC 3909.01 and the related admission statutes. Once admitted, the insurer may lawfully transact its accident and health business in this state through licensed producers; selling before admission is unlawful.

Why the other options are wrong

• A) Registering with the Secretary of State handles corporate existence in Ohio, but it is not the insurance-law authorization; admission to transact insurance requires the Superintendent's certificate of authority.
• C) There is no mechanism allowing an insurer to simply notify the Ohio Department of Insurance within 30 days of a first sale; authorization must precede the business, not follow it.
• D) A producer license authorizes the selling of insurance by a person or entity; the insurer itself needs a certificate of authority, and a home-state license has no force in Ohio.

Memory hook

Foreign insurer visiting Ohio: no certificate of authority, no business.