State RegulationsOH specificDifficulty 1/5
In an Ohio individual A&H insurance contract, what constitutes the insured's consideration?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under the consideration clause of an individual accident and sickness policy, the insured's consideration is the payment of premiums together with the statements contained in the application. The insurer's consideration is its promise to pay benefits as set out in the policy. This two-sided exchange is what makes the contract binding under the Ohio Revised Code framework, and the Ohio Department of Insurance expects candidates to identify both the premium and the application statements as the insured's side of the bargain.
Why the other options are wrong
- A) The insurer's promise to pay is the insurer's consideration, not the insured's.
- C) A medical examination is part of underwriting, not a legal consideration supporting the contract.
- D) Policy delivery completes issuance mechanics; the contract's consideration is the premium and the application statements.
Memory hook
You pay and tell the truth; they promise to pay.