State RegulationsOH specificDifficulty 1/5
When an application for an Ohio long-term care policy is taken, what must it include to protect the insured against an unnoticed lapse?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
OAC 3901-4-01(G) requires every LTC application to include a written designation of at least one third party who is to receive notice of lapse or termination of the policy, unless the applicant signs a waiver of the designation. This ensures a family member or other trusted person learns of a potential lapse so coverage can be saved before it is lost.
Why the other options are wrong
- A) No five-relative list is required; the rule asks for at least one designated third party or a signed waiver.
- C) Collateral pledges play no role in Ohio's lapse-protection scheme.
- D) Bank-draft authorization may be convenient but is not the required lapse-notice safeguard.
Memory hook
Name a watcher or sign a waiver — someone must see the lapse coming.