During the first two years a life insurance policy is in force, the insurer may contest a policy for all of the following reasons EXCEPT

During the first two years a life insurance policy is in force, the insurer may contest a policy for all of the following reasons EXCEPT

• A. Misstatement of age in the application
• B. Material misrepresentation
• C. Concealment of information
• D. Inaccurate height or weight

Answer: (A)

The main idea is the contestability period. In life insurance, there’s a two-year window after issue during which the insurer can challenge the policy if the applicant gave false or incomplete information that affected underwriting. After that period, the policy is generally incontestable except for nonpayment or fraud. Misstatement of age in the application is treated differently from other misstatements. If the age was misstated, the remedy is typically to adjust the benefit or premiums to reflect the correct age rather than rescind the policy, so this misstatement is not a ground for contestability within the first two years in this context. The other issues—concealment of information, material misrepresentation, and inaccuracies in height or weight—are considered misstatements of risk that the insurer can contest during the two-year period because they directly affect the insurer’s assessment of risk at underwriting.

The main idea is the contestability period. In life insurance, there’s a two-year window after issue during which the insurer can challenge the policy if the applicant gave false or incomplete information that affected underwriting. After that period, the policy is generally incontestable except for nonpayment or fraud.

Misstatement of age in the application is treated differently from other misstatements. If the age was misstated, the remedy is typically to adjust the benefit or premiums to reflect the correct age rather than rescind the policy, so this misstatement is not a ground for contestability within the first two years in this context. The other issues—concealment of information, material misrepresentation, and inaccuracies in height or weight—are considered misstatements of risk that the insurer can contest during the two-year period because they directly affect the insurer’s assessment of risk at underwriting.