State RegulationsOH specificDifficulty 2/5
An insured in Toledo dies one week into the grace month with the premium still unpaid. Under the Ohio standard provisions, how is this claim handled?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
ORC 3915.05(B) keeps the insurance in force during the grace of one month, so death during the grace month is a covered death despite the unpaid premium. The statute further allows the policy to stipulate that if the insured dies during the grace month, the overdue premium is deducted from any settlement. The beneficiary therefore collects, and the insurer recovers the missed premium out of the proceeds rather than denying the claim.
Why the other options are wrong
- A) Denial contradicts ORC 3915.05(B), which keeps coverage in force throughout the grace month.
- B) The statute does not condition payment on a separate reimbursement; it permits deducting the overdue premium directly from the settlement.
- C) The policy is not voided retroactively; coverage continued during the grace month under ORC 3915.05(B).
Memory hook
Die in the grace month: claim paid, premium skimmed from proceeds.