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To legally transact surety business in Ohio, the Ohio Department of Insurance must issue a certificate of authority. This certificate serves as an official recognition that the entity has met specific regulatory requirements and complies with the state's laws governing surety bonds. It essentially authorizes the business to operate legally within the state, ensuring that it adheres to standards regarding financial stability, ethical practices, and ongoing regulatory requirements.

Operating without this certificate would mean that a business is not complying with state regulations, which can lead to penalties and the inability to conduct business in Ohio. Therefore, obtaining a certificate of authority is a fundamental step for any surety provider in order to ensure legal and streamlined operations in the insurance environment.