State RegulationsOH specificDifficulty 2/5
An Ohio applicant asks what a return-of-premium rider on a long-term care policy typically does. Which statement is accurate?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
A return-of-premium rider is an optional policy feature under which the insurer returns some or all premiums if the insured dies or cancels the policy without having received benefits, on the conditions stated in the rider. Ohio's LTC framework in ORC 3923.41 to 3923.50 and OAC 3901-4-01 governs how such features are marketed and disclosed, and the Ohio Department of Insurance requires their terms to be clearly explained to consumers.
Why the other options are wrong
- A) Riders typically condition the return on no benefits having been paid; a paid claim generally ends the return right.
- B) Medicaid eligibility triggers no state premium reimbursement under a private LTC rider.
- C) Return-of-premium features do not convert premiums into an annuity; that confuses two different products.
Memory hook
ROP = refund-if-unused: die or cancel with no claims, premiums come back.