State RegulationsOH specificDifficulty 2/5
A Toledo applicant reviews a long-term care policy but decides against adding inflation protection. How may the Ohio insurer properly document that decision?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under OAC 3901-4-01(M), inclusion of inflation protection is presumed unless the insurer obtains a signed rejection of inflation protection — executed in the application or on a separate form — after the applicant has reviewed the outline of coverage and comparison graphs. A properly signed rejection documents the informed decline and preserves the consumer's understanding of the trade-off.
Why the other options are wrong
- A) Silence or nonpayment is not a valid rejection; Ohio requires an affirmative signed rejection.
- B) Post-delivery paperwork cannot cure the absence of a signed rejection obtained at the time of purchase.
- C) Verbal notes do not satisfy the signed-rejection requirement of OAC 3901-4-01(M).
Memory hook
No signature, no rejection: declining inflation protection must be signed and informed.