State RegulationsOH specificDifficulty 3/5
Under Ohio's annuity suitability rule, what constitutes a 'material conflict of interest' for a producer recommending an annuity?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
OAC 3901-6-13 defines a material conflict of interest as a financial interest that a reasonable person would expect to influence the producer's impartiality; ordinary cash compensation for the sale is not itself a material conflict. Insurers and intermediaries must maintain systems to supervise recommendations and report violations.
Why the other options are wrong
- A) Cash compensation by itself is expressly not a material conflict under the rule.
- C) Multiple carrier appointments are normal in the business and are not by themselves a conflict.
- D) Office location has no bearing on the conflict standard, which turns on financial interest.
Memory hook
Material conflict = money that could bend your advice, not your paycheck.