Insurable interest, underwriting, the application and policy delivery are covered in the national basics guides. This guide covers Ohio's statutes on insurable interest, employer-owned coverage, backdating, the buyer's guide and illustrations.

Insurable interest

• In life insurance, insurable interest is needed when the policy is issued, not at death. For employer-owned coverage, Ohio's statute says the policy's effective date, not the date of death or claim, determines insurable interest (R.C. 3911.091(E)).
• A married person may insure the life of a spouse (R.C. 3911.11).
• Charitable, religious, educational and similar tax-exempt organizations have an insurable interest in each insured and may enforce the policy (R.C. 3911.09).
• Employers have an insurable interest in employees, but need the employee's prior written consent, with written disclosure that the employer may keep the coverage after employment or retirement benefits end (R.C. 3911.091(B)).
• STOLI lacks insurable interest and is prohibited (R.C. 3916.05, 3916.16).

The application

• Application statements are representations, not warranties, absent fraud (R.C. 3915.05(D)).
• A false answer defeats recovery only if it was willfully false, fraudulent, material, induced the policy and wasn't known to the agent or company (R.C. 3911.06).
• Backdating: a policy can't be dated more than six months before the application if that lowers the premium below the rate for the insured's age at application (R.C. 3915.13).

Buyer's guide and illustrations

• The buyer's guide and policy summary go to the applicant before the initial premium is accepted, or with the policy if it has an unconditional 10-day refund provision (O.A.C. 3901-6-03(E)). Annuities, credit life, group life, ERISA plan policies and variable life are exempt from this rule.
• The required illustration notice tells the owner to contact the state insurance department if a requested current illustration doesn't arrive within 30 days (O.A.C. 3901-6-04).

Common exam traps

• Insurable interest is measured when the policy takes effect, not at death.
• Employer-owned life insurance needs the employee's written consent and disclosure that coverage can continue after employment ends.
• Backdating limit: six months.
• Buyer's guide before the first premium, unless there's a 10-day refund provision.