State RegulationsOH specificDifficulty 2/5
An Ohio life insurer markets a policy entirely by mail and internet, with no agent involvement — a direct-response solicitation. Under Ohio's buyer's guide and policy summary rules, when must the buyer's guide and policy summary be provided for this sale?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
OAC 3901-6-03(E) sets a special timing rule for direct-response solicitations: the buyer's guide and policy summary must be provided prior to accepting the application. Because no agent is present to deliver disclosures face to face before premium changes hands, Ohio moves the disclosure point earlier in the transaction than the standard prior-to-premium rule that governs agent-assisted sales.
Why the other options are wrong
- A) Prior to accepting the initial premium is the standard rule for agent-assisted sales; direct-response sales require disclosure before the application is accepted.
- C) Delivery with the policy is allowed only under the unconditional refund exception and does not describe the direct-response timing rule.
- D) A post-application window is not provided; OAC 3901-6-03(E) requires disclosure prior to accepting the application in direct-response sales.
Memory hook
No agent? Disclose before the application, not just the premium.