Ohio Insurance Laws and Regulations Practice Exam

A life policy loan in Ohio cannot charge a fixed rate of interest higher than:

1. 5%

2. 6%

3. 8%

4. 10%

The correct answer is: 8%

In Ohio, life policy loans are subject to a maximum allowable interest rate, which means that the rate cannot exceed a certain limit. The fixed interest rate that can be charged on a life policy loan in Ohio is capped at 8%, making option C the correct answer. Option A of 5% is incorrect because it is lower than the maximum allowable interest rate of 8%. Option B of 6% is also incorrect as it is still below the maximum limit set by Ohio for life policy loan interest rates. Option D of 10% is incorrect as it exceeds the maximum allowable rate of 8%. Therefore, option C of 8% is the correct answer as it aligns with Ohio's regulations on life policy loan interest rates.