State RegulationsOH specificDifficulty 2/5
A Dayton resident sells several life insurance policies to neighbors and keeps the commissions, without ever holding an insurance license. Under Ohio law, this unlicensed activity is:
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
ORC 3905.02 prohibits selling, soliciting, or negotiating insurance without the required license, and ORC 3905.99(D) classifies violating that prohibition as a misdemeanor of the first degree. The classification applies regardless of whether the coverage was placed with an admitted insurer, so an unlicensed seller in Ohio faces real criminal exposure, not merely an administrative warning or civil slap on the wrist.
Why the other options are wrong
- A) The conduct is not a minor civil matter resolved by a warning letter; ORC 3905.99(D) makes unlicensed selling a criminal offense classified as a misdemeanor of the first degree.
- B) Placing the coverage with an admitted insurer does not cure the licensing violation; the offense attaches to the unlicensed selling, soliciting, or negotiating itself.
- D) The conduct is not classified as a felony; under ORC 3905.99(D) it is a misdemeanor of the first degree.
Memory hook
No license, no sale: unlicensed selling in Ohio is a first-degree misdemeanor.