A Toledo viator receives viatical settlement proceeds. Five days later — while the rescission period is still open — the insured dies. Under Ohio law, what happens to the viatical settlement contract?

Why D is correct

ORC 3916.08 provides that if the insured dies during the rescission period, the viatical settlement contract is deemed rescinded, subject to repayment of the proceeds, and ownership of the policy reverts to the viator or the viator's estate. This ensures the death benefit flows to the policy's rightful owner rather than to the provider when death occurs before the rescission window closes.

Why the other options are wrong

• A) No additional death benefit is owed by the provider; the statute instead unwinds the contract by deeming it rescinded.
• B) The viator has no election to keep the proceeds — ORC 3916.08 makes the rescission automatic when the insured dies during the period.
• C) Payment of proceeds does not make the contract irrevocable during the rescission period; the contract is deemed rescinded.

Memory hook

Death inside the 15 days unwinds the deal automatically.