Why is it important to ensure your life insurance policy includes an incontestability clause?
What will be an ideal response?
The incontestability clause is a provision in a life insurance policy that prevents the insurance company from revoking coverage because of alleged misstatements by the person insured after a specified period, usually about two years. Of course, this clause is not a license to commit fraud, and the discovery of fraud will lead the company to contest any claims and possibly pursue criminal charges. But this provision prevents the insurance company from not paying a claim based on a misstatement of a non-material fact with regard to a claim made by the person insured or the person's beneficiary. For example, a person may not disclose that their mother and grandmother both suffered from diabetes. If the insured dies of complications from diabetes during the first two years of coverage, the insurance company may be able to deny the claim–or at least reduce the benefit, since it could argue the insured should have paid more, or would not have been covered at those rates. If diabetes does not present itself and cause death until after two years, then the insurance company must pay the full claim.
You might also like to view...
Puffery is a term for a(n)________
A) straightforward promotional message B) claim of superiority that cannot be proven true or false C) emotional appeal to consumers D) subliminal appeal to consumers E) exaggerated claim that can be disproven
Which of the following best characterizes "utilitarianism"?
A) The belief that a person must decide what course of action is proper based on that person's own set of beliefs or feelings B) Determining which course of action produces the greatest amount of good for society C) Consultation of an outside source, such as a book or person, for guidance D) The belief that the moral rules should be determined by persons who have a "veil of ignorance" about their place or station in society
In a cause-effect relationship the changes in the outcome or ____________variable may be attributed to three types of variables.
a) Independent b) Dependent c) Extraneous d) Chance or random
A __________ attack is a bot attack on a computer system or network that causes a loss of service to users
A. spam B. phishing C. DDoS D. sniff