Question

An insurer may contest the validity of a life insurance policy during the policy's first two years for all of these reasons EXCEPT?

1) The policyholder provided false information on the application
2) The policyholder failed to pay the premiums
3) The policyholder passed away within the first two years
4) The policyholder changed their mind and wants to cancel the policy

Answer 1

An insurer may contest the validity of a life insurance policy during the policy's first two years for several reasons, but not if the policyholder changes their mind and wants to cancel the policy.

Step-by-step explanation:

An insurer may contest the validity of a life insurance policy during the policy's first two years for all of these reasons EXCEPT:

1. The policyholder provided false information on the application
2. The policyholder failed to pay the premiums
3. The policyholder passed away within the first two years
4. The policyholder changed their mind and wants to cancel the policy

During the first two years of a life insurance policy, an insurer may contest its validity if the policyholder provided false information on the application, failed to pay the premiums, or if the policyholder passed away. However, the insurer cannot contest the validity of the policy if the policyholder simply changes their mind and wants to cancel it within the first two years.