An Ohio life producer persuades a client in Akron to change the beneficiary of a new policy from the client's daughter to the producer's own son, even though the producer is not the insured. Under ORC 3905.14, this conduct:

Why A is correct

ORC 3905.14(B) makes it a disciplinary ground for a producer to cause a policyholder to name the producer, or the producer's spouse, parent, child, or sibling, as policy beneficiary, unless that relative is the insured. The rule targets self-dealing that places the producer's interest in conflict with the client's; the client's signature on the change form does not legitimize the producer's inducement.

Why the other options are wrong

• B) The policyholder's signature does not cure the violation; the ground attaches to the producer's causing the designation, whatever paperwork was signed.
• C) No commission needs to change hands; the beneficiary designation itself is the discipline trigger under ORC 3905.14(B).
• D) This is squarely an Ohio disciplinary matter enforced by the superintendent through ORC 3905.14; it is not governed by federal privacy law.

Memory hook

Family gets the benefit? Only if family is the insured.