State RegulationsOH specificDifficulty 3/5
An Ohio issuer delivers a long-term care policy, but the application contains no inflation-protection election and the insurer never obtained a signed rejection of inflation protection. Under OAC 3901-4-01, what is the result?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
OAC 3901-4-01(M) requires every long-term care issuer to offer, at the time of purchase, an inflation-protection option no less favorable than the rule's standard options. Inclusion is presumed unless the insurer obtains a signed rejection of inflation protection, in the application or on a separate form, after reviewing the outline of coverage and comparison graphs with the applicant. Because no signed rejection was obtained here, the protection is presumed included.
Why the other options are wrong
- A) The failure does not void the policy; it shifts the default to inclusion of inflation protection.
- B) Silence by the applicant does not waive the protection; only a signed rejection does.
- D) The rule itself fixes the consequence, a presumption of inclusion, so no case-by-case superintendent determination is needed.
Memory hook
No signed LTC inflation rejection? It's included.