Which scenarios can an insurer use to contest a policy after the 2-year incontestability period?

The scenario where an insurer can contest a policy after the 2-year incontestability period primarily involves issues related to fraud or significant misrepresentation that affect the validity of the insurance contract. When circumstances like impersonation or lack of insurable interest arise, they signify a fundamental issue in the establishment of the policy, allowing the insurer to contest it despite the protective timeline of the incontestability clause.

Impersonation, for instance, involves a form of deception where one individual pretends to be another to secure a policy, which fundamentally undermines the trust required in insurance contracts. Likewise, lacking an insurable interest means that the insured party has no vested interest in the life or property being insured, which is a cornerstone requirement for any insurance contract to be valid. The claim of intent to murder is also a significant factor because insurance policies generally include provisions that void coverage if the insured has an intention to cause harm to the insured entity.

Other scenarios presented in the incorrect options typically either relate to administrative issues (like late payments) or do not directly imply fraudulent behavior or misrepresentation substantial enough to void the policy. Therefore, situations that indicate a betrayal of trust or legality—such as impersonation, lack of insurable interest, and intent to murder—provide