L&HOhiomedium
An Ohio investor with no relationship to a senior consumer pays the senior to apply for a $1M life policy that will be assigned to the investor at issue. Under R.C. 3911.09, this arrangement is BEST characterized as:
AA permissible viatical settlement because the senior voluntarily applies for coverage
BA permissible third-party ownership arrangement
CA taxable but legal investment vehicle
STOLI — void for lack of insurable interest
Why this is the answer
The scenario describes stranger-originated life insurance (STOLI), in which a stranger procures a policy on another's life as an investment without insurable interest. Under R.C. 3911.09 such contracts are void as wagering agreements at inception.
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