What Is the Effect of an Incontestability Clause

question 36

Multiple Choice

What is the effect of an incontestability clause?

• A) The insured cannot file a claim more than a specified time following the insured event.
• B) The insurer cannot challenge the information in the application after a specified time.
• C) The insured is required to not challenge the statements made by its own agent.
• D) The state is prevented from challenging any claim payment decisions of the insurer.
• E) The insurer is prevented from canceling an insurance policy due to nonpayment.

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Definitions:

Nuclear Family

A family group consisting of two parents and their children (biological or adopted), considered the basic social unit.

Multi-parent

A familial or parenting arrangement that involves more than two individuals contributing to the parenting roles and responsibilities for one or more children.

Single Parent

An individual who assumes the role of sole caregiver and provider for one or more children without the assistance of another parent in the household.

Extended Families

Family groups that extend beyond the nuclear family, including grandparents, aunts, uncles, and other relatives.