State RegulationsOH specificDifficulty 3/5
An Ohio employer wants to insure the lives of its employees for the employer's own benefit under an employer-sponsored arrangement. Under ORC 3911.091, what must the employer obtain from each insured employee?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
ORC 3911.091 allows an employer or employer-sponsored trust to insure employees for its own benefit only with the insured employee's prior written consent, and the employer must disclose in writing that coverage may continue after employment ends. The law also bars retaliation for refusal to consent, and employer control or affiliation is tested with 51% voting power.
Why the other options are wrong
- B) An internal board resolution does not substitute for the employee's written consent.
- C) Consent is required from every insured employee, not just management.
- D) Ownership of the policy does not eliminate the consent and disclosure requirements of ORC 3911.091.
Memory hook
Employer-owned life: written consent first, or no coverage.