State RegulationsOH specificDifficulty 2/5
A Cleveland producer tells prospective clients that the policies she sells are extra safe because the Ohio Life and Health Insurance Guaranty Association stands behind them, using the statement to encourage purchases. Under Ohio law, this practice is:
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
ORC 3956.18 prohibits any person from using the existence of the Ohio Life and Health Insurance Guaranty Association for the purpose of sales, solicitation, or inducement to purchase insurance. The association is a safety net for policyholders of failed insurers, not a selling point. Separately, member insurers must deliver the association's approved summary document prior to or at the time of policy delivery — but that neutral disclosure obligation is not license for sales talk about the association.
Why the other options are wrong
- A) Accuracy does not matter; ORC 3956.18 bans invoking the association for sales or inducement regardless of whether the statement is true.
- C) There is no approval mechanism under ORC 3956.18 that would permit marketing use of the association's existence.
- D) The only required delivery is the association's approved summary document by the member insurer; producers are not required to tout the association, and doing so to induce purchase is banned.
Memory hook
The guaranty fund is a safety net, never a sales pitch.