Policy Riders, Provisions, Options, and Exclusions
An insurer discovers a material misrepresentation during the contestable period and acts on it. What may it do?
Answer and explanation
Answer: A. Within the contestable period an insurer may contest the validity of the contract on a ground such as material misrepresentation, which is precisely what the period preserves. Unilaterally repricing an issued contract, adding an exclusion after issue, or compelling a fresh examination are not what the provision permits.Source: Fla. Stat. § 627.455 — 627.455, Contest within the period
More policy riders, provisions, options, and exclusions questions
- Where is the insurer's fundamental obligation to pay the death benefit upon receipt of proof of death set forth?
- Which beneficiary designation generally allows the owner to make a change without the beneficiary's consent?
- Which condition does federal guidance describe for the terminal illness exclusion for accelerated death benefits?
- Which description best identifies the coverage supplied by a term rider?
- Which exchange describes consideration in a life insurance contract?
- Which key details are summarized in the policy face page and insuring clause?
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