State RegulationsOH specificDifficulty 2/5
An Akron producer persuades a client to let an existing life policy lapse and buy a new one by overstating the new policy's benefits and hiding that coverage would restart a new contestability period, all to earn a fresh commission. Under Ohio law this is:
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
ORC 3901.21(A) reaches twisting: any misrepresentation or incomplete comparison of policy terms made to induce a person to purchase, amend, lapse, forfeit, change, or surrender insurance. Overstating the new policy's benefits while concealing the new contestability period is precisely such an incomplete comparison, and it is also discipline-worthy under ORC 3905.14(B) as intentionally misrepresenting policy terms.
Why the other options are wrong
- A) No premium rebate, dividend favor, or extra-contractual valuable consideration was offered; the vice here is the deceptive comparison, not an inducement paid out of the producer's pocket.
- B) Defamation targets false statements about the financial condition of an insurer or person in the insurance business; the producer made false claims about policy terms, not about a competitor's solvency.
- C) Unfair discrimination concerns unequal treatment of individuals of the same class in rates, dividends, or benefits; a single misleading sales pitch does not classify or differentiate applicants.
Memory hook
Twisting = spinning the comparison to make the old policy lapse.