Which of the Following Is Most Likely True Regarding Sally's

question 34

Multiple Choice

Which of the following is most likely true regarding Sally's reliance on an incontestability clause if typical state laws are in effect?

• A) Sally is correct, and the insurance has been in effect over one year, a sufficient length of time for the incontestability clause to bar any defense by the insurer based on her failure to mention Bobby on the application.
• B) Sally is incorrect because the incontestability clause does not generally apply until coverage has been in effect for at least two years.
• C) Sally is incorrect because the incontestability clause operates to deny her the right to dispute inaccuracies on the application, not as a bar against the insurer.
• D) Sally is correct because the incontestability clause acts to bar an insurer from denying coverage in cases in which any driver with permission is driving an insured's vehicle.
• E) Sally is incorrect because incontestability clauses were barred by federal law a number of years ago.

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Definitions:

Social Roles

Expected behaviors and responsibilities associated with particular positions within a society or group.

Achievement

The accomplishment of a goal or attainment of higher skill levels through effort or skill.

Erikson

Erik Erikson was a developmental psychologist and psychoanalyst known for formulating the theory of psychosocial development outlining 8 stages that describe how individuals evolve through the lifespan.

Psychosocial Development

A theory that describes the stages an individual goes through in the development of personality, emotions, and social relationships.