A Cleveland insurer refuses to issue a disability income policy to an applicant solely because she is a full-time household manager with no outside employment. Under Ohio law, this refusal is:

Why B is correct

ORC 3901.21(N) makes it an unfair practice to refuse to issue disability income coverage solely because the applicant manages a household. The statute exists precisely so that non-working household managers cannot be shut out of disability coverage on that basis alone, and violations expose the insurer to action by the Ohio Superintendent of Insurance under ORC 3901.22.

Why the other options are wrong

• A) The statute forecloses this reasoning: household occupation cannot be the sole basis for refusing disability income coverage, regardless of the product's usual design.
• C) Offering a reduced benefit at a surcharge does not cure the violation; the refusal based solely on household status is itself the unfair practice under ORC 3901.21(N).
• D) The prohibition does not depend on the insurer's internal guidelines; a written guideline authorizing the refusal would not make the practice lawful.

Memory hook

Household managers can't be refused DI — that's Ohio's rule.