State RegulationsOH specificDifficulty 2/5
At a community event in Cleveland, an unlicensed individual describes the benefits of a sickness and accident policy to an attendee, quotes a premium, and accepts a completed application with a premium check. Under Ohio law, this individual:
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under ORC 3905.02, selling, soliciting, or negotiating insurance requires a license, and describing benefits, quoting a premium, and accepting a completed application with a premium are classic solicitation and negotiation acts. Unlicensed transaction of insurance is a first-degree misdemeanor under ORC 3905.99(D), and no later countersignature or policy issuance cures the violation.
Why the other options are wrong
- A) There is no lawful countersign-later pathway; the solicitation itself is the unlicensed transaction under ORC 3905.02.
- B) Issuance of a policy is not the trigger; soliciting and negotiating already constitute transacting insurance.
- C) Whether the check clears is irrelevant; the license requirement attaches to the act of transacting, not to collection of payment.
Memory hook
If you solicit it, you need a license for it.