State RegulationsOH specificDifficulty 2/5
An Ohio agent uses a compliant life insurance illustration, prepared under OAC 3901-6-04, when presenting a policy to an applicant. What effect does this have on the policy summary requirement?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under OAC 3901-6-03(E)(1)(a) and OAC 3901-6-04, if a compliant illustration is used in the sale of a life insurance policy, a policy summary need not be provided — the illustration fulfills that disclosure function. The buyer's guide obligation is a separate requirement and is not eliminated by the use of an illustration.
Why the other options are wrong
- A) Delivering both is not required; the rule expressly excuses the policy summary when a compliant illustration is used.
- C) The illustration is not displaced by the policy summary; it is the illustration that substitutes for the summary.
- D) Only the policy summary requirement is satisfied by the illustration; the buyer's guide must still be provided.
Memory hook
Illustration in, policy summary out — buyer's guide stays.