Final answer:
The insurer can void a life insurance policy during the contestable period for fraudulent misrepresentation. This is because honesty in disclosing personal information is critical when applying for life insurance. Other reasons given are generally not grounds to void a life insurance policy during the contestable period.
Step-by-step explanation:
The insurer can void a life policy during the contestable period for several reasons. Among the options given, fraudulent misrepresentation is a valid reason for an insurance company to void a life insurance policy. This is because when acquiring a life insurance policy, the policyholder is required to be truthful in the disclosure of relevant personal information such as medical history, age, occupation, and other risk factors. If the insurer discovers that the policyholder intentionally provided false or incomplete information, they have the grounds to void the policy.
Other reasons listed, such as non-payment of premiums, can lead to policy cancellation but are not directly associated with voiding a policy due to misrepresentation of facts. A change in beneficiary designation or a policyholder's relocation to a different state is typically not grounds to void a policy during the contestable period.
Life insurance is essential as it provides financial security for the beneficiaries in the event of the policyholder's death. It's important to be honest when applying for insurance to ensure that benefits are paid out without dispute.