State RegulationsOH specificDifficulty 1/5
Under the reinstatement provision of an Ohio individual sickness and accident policy, what is the effect of the insurer accepting a premium after the due date without requiring an application for reinstatement?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
ORC 3923.04(D) provides that, in the absence of a condition to the contrary, acceptance of a premium after the due date without requiring an application for reinstatement reinstates the policy. The late payment itself restores the coverage when the insurer takes it without further underwriting.
Why the other options are wrong
- A) Wrong because accepting the premium is what reinstates the policy under ORC 3923.04(D); the insurer cannot take the money and deny the reinstatement.
- B) Wrong because a retroactive lapse is the opposite of the statutory result; the policy is back in force, not voided.
- D) Wrong because reinstatement continues the existing contract; no new policy is issued.
Memory hook
Take the money without an application, take the policy back.