State RegulationsOH specificDifficulty 1/5
A charitable organization described in Section 501(c)(3) of the Internal Revenue Code wants to own life insurance on the life of a major donor. Under ORC 3911.09(B), what is the organization's position under Ohio law?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
ORC 3911.09(B) provides that religious, charitable, and educational institutions of the kind described in the cited Internal Revenue Code provisions may own or be the beneficiary of life insurance on individuals and have an insurable interest in each insured's life, so the qualifying charity can lawfully hold the coverage on the donor.
Why the other options are wrong
- A) ORC 3911.09(B) affirmatively grants the qualifying institution an insurable interest in each insured's life.
- B) No family-consent condition appears in ORC 3911.09(B) for a qualifying charitable institution to own the coverage.
- D) ORC 3911.09(B) expressly permits such institutions to own or be beneficiaries of life insurance on individuals.
Memory hook
A 501(c)(3) charity gets statutory insurable interest — it may own or benefit from the policy outright.