State RegulationsOH specificDifficulty 1/5
Under the Ohio standard provisions for individual life policies, when must a policy include a provision allowing the insured to borrow on the policy's loan value?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
ORC 3915.05(G) requires the policy-loan provision once premiums for 3 full years have been paid. After that threshold, the policy must permit borrowing against the loan value, and related protections in ORC 3915.09(A) keep the insurer from forfeiting coverage over a loan while the indebtedness stays below the loan value. Before the 3-year mark, Ohio does not compel the loan feature.
Why the other options are wrong
- B) The loan provision is not mandated at issue; ORC 3915.05(G) ties the requirement to 3 years of paid premiums.
- C) The trigger is 3 years of premiums, not 5 years of coverage.
- D) The provision is a statutory requirement after 3 years' premiums under ORC 3915.05(G), not an optional add-on dependent on a written request.
Memory hook
Three years of premiums unlocks the policy-loan clause.