State RegulationsOH specificDifficulty 1/5
An Ohio applicant applies for a life policy whose guaranteed level death benefit does not exceed $5,000. Under Ohio's life marketing rules, what satisfies the policy summary requirement for this sale?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under OAC 3901-6-03, when the policy's guaranteed level death benefit does not exceed $5,000, a written statement of specified data satisfies the policy summary requirement. The disclosure obligation is scaled down for very small policies but is not eliminated — failure to provide the required disclosure is an unfair or deceptive act under ORC 3901.21.
Why the other options are wrong
- A) The requirement is not waived; a written statement of specified data must still be provided under OAC 3901-6-03.
- C) An oral explanation does not satisfy the requirement; the substitute must be a written statement of specified data.
- D) A rider summary addresses optional benefits only and is not the mechanism OAC 3901-6-03 prescribes for small policies.
Memory hook
Small policy, lighter paperwork: written data statement, not full summary.