State RegulationsOH specificDifficulty 2/5
Which Ohio viatical scenario is lawful?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Chapter 3916 protects the sale of an existing policy by an owner with a life-threatening or chronic condition who contracts with a provider for their own benefit — the core lawful viatical settlement. Origination with resale intent is the prohibited scheme addressed by ORC 3916.16 and ORC 3916.05(B).
Why the other options are wrong
- A) Originating a policy solely to resell it is stranger-originated life insurance, prohibited under ORC 3916.05(B).
- B) Paying applicants to take out policies for immediate sale is promotion of purchase for the purpose of selling, barred by ORC 3916.16.
- D) Requiring applicants to certify an intent to resell evidences the prohibited purchase-for-resale purpose, not a lawful settlement.
Memory hook
Sell your own sick-bed policy: lawful. Birth a policy for investors: prohibited.