An Ohio issuer structures its Medicare supplement producer commissions so agents earn substantially less when selling to open-enrollment applicants, leaving agents reluctant to serve those consumers. Under OAC 3901-8-08, this practice is:

Why A is correct

OAC 3901-8-08(R) forbids issuers from discouraging open-enrollment sales, and it reaches the mechanics that make such sales unattractive: compensation structures, preexisting-condition waiting periods, rating practices, and plan availability must not disadvantage open enrollees. A commission schedule that undercuts agent pay for open-enrollment sales produces exactly the discouragement the rule targets, so the structure itself is a violation even though no individual sale was refused.

Why the other options are wrong

• B) Producer compensation freedom stops where it dampens open-enrollment sales; the Ohio rule expressly covers compensation structures.
• C) Limiting plans for open enrollees is itself prohibited — all plans made available must be offered to them.
• D) Open-enrollment applicants are accepted without health underwriting, so no risk-based justification exists, and the rule permits no such discouragement.

Memory hook

Thin commissions on open enrollment = unlawful discouragement, not smart compensation.