A&H Policy ProvisionsQuestion 28 of 315
Sergio's individual health policy was issued four years ago. The insurer discovers that on the application he deliberately concealed a prior cancer diagnosis to obtain coverage. May the insurer rescind the policy?
a.No, the two-year contestable period has passed
b.No, the three-year contestable period has passed
c.Only if the misstatement was material to the loss
d.Yes, fraudulent misstatements may be contested at any time
Explanation
The incontestability provision does not protect fraudulent statements. Even after the two-year window, an insurer may rescind a policy issued in reliance on a deliberately false answer.
Law Reference: Cal. Ins. Code §10350.2Practice all 315 questions free — no signup required.
Related questions on this topic
- Which California law sets the standardized required and optional provisions that every individual accident and health policy must follow?
- Under the Time Limit on Certain Defenses provision, after how many years from issue can the insurer no longer rescind an A&H policy for a non-fraudulent misstatement on the application?
- An individual A&H policy is paid on a monthly mode. What is the length of the required grace period?
- An A&H policy is reinstated on June 1. The insured suffers a covered injury on June 2 and is diagnosed with a covered sickness on June 7. Which loss(es) will the reinstated policy cover?
- Within how many days after a covered loss must written notice of claim be given to the insurer under the standard required provision?
- After receiving a notice of claim, within how many days must the insurer furnish claim forms to the claimant?
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