State RegulationsOH specificDifficulty 2/5
When drafting its Ohio individual life policy, an insurer wants to keep certain provisions outside the 2-year incontestability protection. Which provisions may be excepted at the company's option?
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 D is correct
ORC 3915.05(C) permits the insurer, at its option, to except total-and-permanent-disability and accidental-death provisions from the 2-year incontestability limit. Mandatory exceptions such as nonpayment of premiums apply automatically, but the disability and accidental-death benefits are the provisions whose carve-out is elective. An insurer that omits the carve-out leaves those provisions fully covered by the 2-year protection.
Why the other options are wrong
- A) The grace-period provision is a mandatory standard term and is not among the provisions ORC 3915.05(C) lets an insurer except by choice.
- B) Misstatement of age is handled by the required adjustment provision under ORC 3915.05(E), not by an optional incontestability carve-out.
- C) Payment of claims is a mandatory standard provision under ORC 3915.05(K) and is not an elective exception to incontestability.
Memory hook
Optional carve-outs: disability and accidental-death — the insurer's choice.