Regarding Nari's Reliance on an Incontestability Clause If Typical State

question 79

Multiple Choice

Regarding Nari's reliance on an incontestability clause if typical state laws are in effect,which of the following is most likely true?

• A)Nari 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.
• B)Nari 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 Joon on the application.
• C)Nari 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)Nari is incorrect because the incontestability clause does not generally apply until coverage has been in effect for at least two years.
• E)Nari is incorrect because incontestability clauses were barred by federal law a number of years ago.

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