State RegulationsOH specificDifficulty 2/5
A producer in Toledo tells a client that a verbal promise from the underwriter has changed the settlement option in her individual life policy. Under Ohio law, how may such a policy be validly modified?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
ORC 3915.12 requires that changes to an individual life policy be effected only by an agreement in writing that is endorsed on or attached to the policy. A verbal assurance from an underwriter — or anyone else at the insurer — has no legal effect, and the producer cannot create coverage terms outside the statutory channel. Clients should insist on seeing the written endorsement physically attached to the policy before relying on any change.
Why the other options are wrong
- A) Oral agreements never modify an Ohio individual life policy; ORC 3915.12 requires a writing endorsed on or attached to the policy.
- B) A producer's memo in the home-office file is not an endorsement on the policy and has no modifying effect under ORC 3915.12.
- D) Consent communicated through an agency newsletter fails the statutory form entirely; only a written endorsement on or attached to the policy modifies it under ORC 3915.12.
Memory hook
No paper, no change — endorsements on the policy or nothing.