Question

Christine has a health insurance policy that has been in force beyond the incontestable period. The insurer has discovered that a fraudulent statement was made on the application. What would the insurer have to pay on a claim, assuming this wasn't a guaranteed renewable policy?

- A) Full claim amount
- B) No payment
- C) Partial claim amount
- D) Deductible only

Answer 1

If a fraudulent statement was made on the application for Christine's health insurance policy, the insurer would not be obligated to pay the full claim amount. In this case, assuming the policy is not guaranteed renewable, the insurer would typically deny the claim and provide no payment.

Step-by-step explanation:

If a fraudulent statement was made on the application for Christine's health insurance policy, the insurer would not be obligated to pay the full claim amount. In this case, assuming the policy is not guaranteed renewable, the insurer would typically deny the claim and provide no payment. Due to the fraudulent statement, the insurer may also have the option to cancel the policy.