State RegulationsOH specificDifficulty 3/5
Under Ohio's rules on fees charged by agents, an agent may charge a separate fee for:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
ORC 3905.55 permits an agent to charge a separate fee only under strict conditions: it must be disclosed separately from the premium, may not be a percentage of the premium, must not be refunded or offset by commission, must be disclosed as charged by the agent and nonrefundable, and must be consented to by the consumer. A fee is specifically allowed for services on a no-commission policy with prior disclosure, because the agent would otherwise receive no compensation for that work.
Why the other options are wrong
- B) ORC 3905.55 bars charging any fee for taking or submitting the initial application on individual life coverage, along with the other listed lines.
- C) ORC 3905.55 prohibits fees for processing claims on the listed lines, which include individual sickness and accident policies.
- D) A fee calculated as a percentage of the premium is expressly barred by ORC 3905.55; a permissible fee is separate from and not a percentage of premium.
Memory hook
Fees pass only with disclosure — and never on the first application.