State RegulationsOH specificDifficulty 1/5
Among the standard provisions Ohio requires in individual life policies, which description corresponds to the payment-of-premiums provision?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
ORC 3915.05 lists the standard provisions every individual life policy must contain, and one of them is the payment-of-premiums provision, which describes the manner in which premiums are payable — the modes, due dates, and payment mechanics the policyholder must follow. The provision keeps premium obligations transparent and uniform; side deals or unilateral rate changes are not part of the required clause.
Why the other options are wrong
- A) No standard provision lets an agent alter premium terms verbally; modifications require the statutory written process, and ORC 3915.05 requires a fixed manner of payment instead.
- C) The provision describes how premiums are payable across the chosen mode; it does not force single lump-sum payment at issue.
- D) The payment-of-premiums provision fixes the manner of payment; it does not grant the insurer open-ended authority to raise rates at will.
Memory hook
Payment-of-premiums clause = the how-and-when of paying.