State RegulationsOH specificDifficulty 2/5
A licensed viatical settlement broker encourages healthy seniors in Youngstown to buy new policies with the understanding that they will sell them to a provider as soon as possible. Under ORC 3916.16, how is this practice treated?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
ORC 3916.16 prohibits promoting the purchase of a life policy for the purpose of selling it — the promotion-of-STOLI offense; a broker's license does not authorize it, and who pays the premiums or whether a provider stands ready to buy is irrelevant to the violation.
Why the other options are wrong
- B) Premium payment arrangements do not matter; ORC 3916.16 bars promoting policies bought primarily to be sold.
- C) A valid license authorizes lawful brokering, not the promotion of purchase-for-resale schemes barred by ORC 3916.16.
- D) A provider's advance agreement to buy makes the resale purpose clearer, not lawful, under ORC 3916.16.
Memory hook
Buy-to-sell promotion is a named offense: ORC 3916.16 stops the scheme before it starts.