Key Takeaways
- Ohio requires a 10-day free look period for disability insurance policies
- Individual disability policies must meet minimum standards for coverage
- Ohio Long-Term Care Partnership Program provides Medicaid asset protection
- LTC policies must offer inflation protection options and nonforfeiture benefits
- Ohio requires specific training for producers selling LTC insurance
Ohio Disability and Long-Term Care Insurance
Ohio has specific regulations for disability income insurance and long-term care insurance that protect consumers and ensure adequate coverage.
Disability Income Insurance
Free Look Period
Ohio requires a 10-day free look period for individual disability insurance:
- Policyholder can return for full premium refund
- Begins when policy is delivered
- Applies to individual policies
Required Policy Provisions
Ohio disability policies must include:
| Provision | Requirement |
|---|---|
| Grace Period | Minimum 31 days for annual premium |
| Reinstatement | Must allow reinstatement |
| Notice of Claim | 20 days after loss begins |
| Time to Pay Claims | Immediately upon receipt of proof |
| Legal Actions | No earlier than 60 days after proof of loss |
Cancellation Requirements
For guaranteed renewable policies:
- Cannot cancel for health reasons
- Can only cancel for nonpayment of premium
- Must provide notice before cancellation
Types of Disability Coverage
Short-Term Disability
- Benefits typically 13-26 weeks
- Usually 60-70% of income
- Shorter elimination periods
Long-Term Disability
- Benefits after STD exhausted
- May pay to age 65 or longer
- Longer elimination periods (90-180 days)
Long-Term Care Insurance
Ohio has comprehensive LTC insurance regulations:
Free Look Period
- 30-day free look for LTC policies
- Applies to all individual LTC policies
- Policyholder can return for full refund
Required Provisions
| Provision | Requirement |
|---|---|
| Renewability | Must be guaranteed renewable |
| Pre-existing Conditions | Max 6-month look-back |
| Elimination Period | Must disclose clearly |
| Inflation Protection | Must offer option |
| Nonforfeiture | Must offer option |
Inflation Protection Options
Insurers must offer at least one inflation protection option:
- Compound inflation (3% or 5%)
- Simple inflation
- Consumer Price Index adjustment
- Future purchase option
Ohio Long-Term Care Partnership Program
Ohio participates in the Long-Term Care Partnership Program:
How It Works
- Purchase a Partnership-qualified LTC policy
- Use benefits for care
- If benefits exhaust, apply for Medicaid
- Asset protection - Keep assets equal to benefits received
Example
| Without Partnership | With Partnership |
|---|---|
| Spend down to $2,000 | Protect assets up to benefits paid |
| May lose home equity | May keep home and assets |
| Standard Medicaid rules | Enhanced asset protection |
Producer Requirements
To sell LTC insurance in Ohio:
- Complete 8 hours of LTC-specific training initially
- Complete 4 hours of LTC CE each renewal period
- Must complete training before selling
- ODI-approved training providers only
How long is the free look period for long-term care insurance in Ohio?
What is the primary benefit of purchasing an Ohio Partnership-qualified long-term care policy?
How many hours of initial LTC-specific training must Ohio producers complete before selling LTC insurance?