Fred bought life insurance five years ago. He forgot to tell them that he had a heart condition, and, as a result of that condition, he recently died. Which of the following provisions prevents the life insurance company from refusing to pay his beneficiaries because of his original fraudulent misrepresentation?

Question

Quizplus · Accepted Answer

The incontestability clause typically states that after a certain period of time (usually two years), the insurer cannot void the policy or refuse to pay the death benefit due to a misrepresentation made on the application, except for non-payment of premiums. Therefore, even if Fred's heart condition was not disclosed, the policy would be considered valid and his beneficiaries would still receive the death benefit.

Fred Bought Life Insurance Five Years Ago