State RegulationsOH specificDifficulty 2/5
A Columbus policyowner sells his life policy through a viatical settlement contract and receives the settlement proceeds. Under Ohio law, for how long may he rescind the contract?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
ORC 3916.08 requires every viatical settlement contract to give the viator an unconditional right to rescind for at least 15 calendar days after receipt of the proceeds. Ohio's 15-day period is deliberately shorter than the 30-day model used elsewhere, so an Ohio viator who wants to back out must act within 15 calendar days of receiving the money.
Why the other options are wrong
- A) 30 days is not Ohio's viatical rescission period; ORC 3916.08 sets it at 15 calendar days after receipt of proceeds.
- B) 20 days is not the Ohio viatical rescission period and appears nowhere in the viatical chapter.
- D) 10 days is the rescission period for an individual sickness and accident policy under ORC 3923.31, not for viatical settlements.
Memory hook
Viatical veto: 15 days after the money arrives.