When drafting its Ohio individual life policy, an insurer wants to keep certain provisions outside the 2-year incontestability protection. Which provisions may be excepted at the company's option?

Why D is correct

ORC 3915.05(C) permits the insurer, at its option, to except total-and-permanent-disability and accidental-death provisions from the 2-year incontestability limit. Mandatory exceptions such as nonpayment of premiums apply automatically, but the disability and accidental-death benefits are the provisions whose carve-out is elective. An insurer that omits the carve-out leaves those provisions fully covered by the 2-year protection.

Why the other options are wrong

• A) The grace-period provision is a mandatory standard term and is not among the provisions ORC 3915.05(C) lets an insurer except by choice.
• B) Misstatement of age is handled by the required adjustment provision under ORC 3915.05(E), not by an optional incontestability carve-out.
• C) Payment of claims is a mandatory standard provision under ORC 3915.05(K) and is not an elective exception to incontestability.

Memory hook

Optional carve-outs: disability and accidental-death — the insurer's choice.