State RegulationsOH specificDifficulty 2/5
Under ORC 3924.04, a small employer's premium rate in Ohio must:
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
ORC 3924.04 governs how carriers set small-employer premium rates: rates are subject to Ohio's rating limits, which constrain the degree to which rates may vary among comparable small employers, rather than leaving pricing wholly free or forcing one uniform statewide price. The rating framework works together with guaranteed issue under ORC 3924.03 — carriers must take the group, but they price it within the statutory limits.
Why the other options are wrong
- A) Unbounded discretionary pricing is precisely what the rating limits in ORC 3924.04 prevent.
- B) A single identical premium for all small employers is not required; ORC 3924.04 permits variation within limits.
- D) Premium rates under ORC 3924.04 do not depend on employee-by-employee approval.
Memory hook
Small-group rates: not free, not flat — variation only inside Ohio's limits.