A&H Policy ProvisionsQuestion 28 of 716
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.Yes, fraudulent misstatements may be contested at any time
b.No, the three-year contestable period expired before the discovery
c.No, the two-year incontestability clause now bars any rescission
d.Only if the concealed condition was material to the claimed loss
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 §10350.2This topic, taught in full in the California Life & Health Insurance Producer Exam guide. California Life & Health Insurance Producer Exam — Complete Study Guide (2026) — PDF + EPUB, $19.99 · 14-day refund →
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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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PrepPass team · Verified against California Life & Health Insurance License Exam · How we review
Reviewed by John Zihao Zhang — California-Licensed Life Insurance Agent (CA Dept. of Insurance License #4396095 — verify)