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Insurance Test Practice
New Jersey
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Question 1 of 327
Life Insurance
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A New Jersey applicant for life insurance fails to disclose a prior heart condition on the application. The insurer issues the policy. Two years later the insured dies of a heart attack. Which of the following best describes the insurer's options?
A
The insurer must pay the full death benefit because the contestability period has expired.
B
The insurer may deny the claim because the misrepresentation was fraudulent.
C
The insurer may reduce the death benefit proportionally.
D
The insurer must refund all premiums and deny the claim.
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