State RegulationsOH specificDifficulty 2/5
A policyholder in Akron let her individual life policy lapse 2 years ago and now wants it back. Her agent says she can simply pay the missed premiums. What does Ohio law actually require for reinstatement?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
ORC 3915.05(J) conditions reinstatement within the 3-year window on two things the agent's shortcut ignored: payment of all arrears of premium with interest, and evidence of insurability satisfactory to the company (with the nonforfeiture insurance still in force and the policy not surrendered). Notably, Ohio states arrears are due with interest but imposes no statutory cap on that interest — the 6% figure comes from other regimes, not this statute.
Why the other options are wrong
- B) Arrears alone are insufficient; ORC 3915.05(J) also requires interest on the arrears and evidence of insurability satisfactory to the company.
- C) Ohio requires arrears with interest but states no 6% cap; adding such a ceiling misreads ORC 3915.05(J).
- D) Evidence of insurability is never waived by the age of the lapse; ORC 3915.05(J) requires it throughout the 3-year reinstatement window.
Memory hook
Back premiums with interest AND proof of insurability — no 6% ceiling in Ohio.