Key Takeaways
- Ohio requires a 10-day free look period for individual life insurance policies (30 days for seniors 60+)
- Life insurance policies must include a 2-year incontestability clause under Ohio law
- Ohio requires a 2-year suicide exclusion clause in life insurance policies
- Standard policy provisions are mandated by Ohio Revised Code Section 3915
- Insurers must provide policy summaries and required disclosures at delivery
Ohio Life Insurance Policy Requirements
Ohio law imposes specific requirements on life insurance policies sold in the state. These requirements protect consumers and ensure policy standardization.
Free Look Period
Ohio provides free look periods for life insurance:
| Policy Type | Free Look Period |
|---|---|
| Standard Life Policy | 10 days |
| Senior Citizens (60+) | 30 days |
| Replacement Policy | 10 days |
| Annuities | 10 days (30 for seniors 60+) |
During the free look period, the policyholder can:
- Review the policy
- Return it for a full refund of premiums paid
- No questions asked, no penalty
Exam Tip: Ohio provides 30 days for senior citizens age 60 or older. This extended protection for seniors is frequently tested.
Incontestability Clause
Ohio requires a 2-year incontestability clause in all life insurance policies:
- After 2 years from issue, the insurer cannot contest the policy based on misstatements in the application
- Exceptions: Fraud, non-payment of premiums, or violation of policy conditions
- The clause protects beneficiaries from having claims denied due to application errors
Ohio Specific Rules
- Incontestability period begins from the issue date
- If policy lapses and is reinstated, a new 2-year period begins
- Does not protect against material fraud
Suicide Clause
Ohio limits the suicide exclusion:
- Suicide exclusion cannot exceed 2 years from policy issue
- After 2 years, death by suicide is covered
- If policy is reinstated, new 2-year period may apply
- Applies to both term and permanent life insurance
Standard Policy Provisions (ORC Section 3915)
Ohio Revised Code Section 3915 requires specific provisions in life insurance policies:
Required Provisions
| Provision | Requirement |
|---|---|
| Grace Period | Minimum 31 days for premium payment |
| Incontestability | 2 years maximum |
| Entire Contract | Policy and application are entire contract |
| Misstatement of Age | Adjustment of benefits, not voidance |
| Reinstatement | Must allow reinstatement within 3 years |
| Nonforfeiture | Required for whole life policies |
Grace Period
- Minimum 31 days for annual or semi-annual premium
- Minimum 10 days for monthly premium
- Coverage continues during grace period
- Policy lapses if premium not paid by end of grace period
Entire Contract Clause
- Policy and attached application constitute the entire contract
- No statements by insured can be used against them unless in written application
- Application must be attached to policy
- Prevents adding terms after issue
Nonforfeiture Options
Ohio requires nonforfeiture options in whole life policies:
Available Options
| Option | Description |
|---|---|
| Cash Surrender Value | Lump sum payment upon surrender |
| Reduced Paid-Up Insurance | Lower death benefit, no more premiums |
| Extended Term Insurance | Same death benefit for limited time |
| Automatic Premium Loan | Loan from cash value to pay premium |
Exam Tip: Remember the three standard nonforfeiture options and what each provides to the policyholder.
Policy Delivery Requirements
Ohio requires:
- Policy delivered within 60 days of issue
- Delivery must include policy summary
- Receipt should be obtained
- Electronic delivery permitted with consent
How long is the free look period for a life insurance policy purchased by a 65-year-old in Ohio?
What is the maximum length of the incontestability period for life insurance in Ohio?