Term, whole life, universal, variable and the other policy types are explained in the national Types of Life Insurance Policies guide. Ohio's state questions on this topic come from its group life law (R.C. 3917.06), the variable products license, and viatical settlements (R.C. Chapter 3916).

Group life provisions (R.C. 3917.06)

• Conversion when coverage ends: an individual policy without evidence of insurability if the application and first premium are made within 31 days after termination (3917.06(H)).
• Conversion when the group policy ends: available to people insured for at least five years before the termination (3917.06(I)).
• Total disability: the policy must let a totally disabled insured continue coverage on a premium-paying basis for six months (3917.06(K)).

Variable life and variable annuities

Ohio issues a separate variable life and variable annuity line of authority. The applicant must be registered with FINRA after passing an approved exam such as the Series 6 or 7, and each insurer needs a separate appointment for variable products (R.C. 3905.06, 3905.20).

Viatical settlements and STOLI (R.C. Chapter 3916)

• An agent licensed for life insurance for at least five years may act as a viatical settlement broker when it's incidental to the agent's insurance business (3916.02(C)(2)).
• A policy generally can't be settled within five years of issue unless the owner certifies a listed condition, such as terminal or chronic illness, death of a spouse, divorce or retirement (3916.16(B)).
• Terminally ill means expected to die within 24 months. Chronically ill means unable to perform at least two activities of daily living for at least 90 days, or severe cognitive impairment needing substantial supervision (3916.01).
• Insurers must include application questions designed to detect stranger-originated life insurance, and promoting a policy for the purpose of selling it is a violation (3916.05, 3916.16).

Common exam traps

• Group conversion: 31 days, no evidence of insurability.
• Group policy ending: five years of prior coverage required to convert.
• Disabled insureds: six months of continued group coverage on a premium-paying basis.
• Viatical brokers: life agents licensed five years may act incidentally.
• Five-year waiting period before most viatical settlements.