State RegulationsOH specificDifficulty 2/5
A Toledo manufacturer wants to insure the lives of several key employees for the company's own benefit. Before purchasing the policies, what must the employer do with respect to each insured employee under ORC 3911.091?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
ORC 3911.091 lets an employer (or an employer-sponsored trust) insure employees, directors, and retired employees for the employer's own benefit only with the insured employee's prior written consent, and the employer must disclose in writing that the coverage may continue after employment ends. An employee who refuses to consent is protected from retaliation.
Why the other options are wrong
- A) Verbal consent does not satisfy ORC 3911.091; the statute requires prior written consent plus a written post-employment coverage disclosure.
- C) The written-consent requirement applies to every insured employee, not only to employee-shareholders.
- D) The employer's insurable interest under ORC 3911.091 is conditioned on the employee's prior written consent; it is not automatic.
Memory hook
Employer-owned life needs ink: prior written consent plus written disclosure that coverage can outlast the job.