Washington Life Producer Practice Exam

An error was made on Mary's life insurance application. Which of the following areas do errors commonly occur on applications and for which the incontestable clause does NOT apply?

1. Occupation

2. Age

3. Gender

4. Health history

The correct answer is: Age

Errors on life insurance applications can commonly occur in various areas, but the incontestable clause does not apply to age. The incontestable clause provides that after a certain period, usually two years, the insurer cannot void the policy for misstatements or omissions, except in cases of fraud. When it comes to age, insurers rely heavily on the applicant's declared age to determine premiums and eligibility for coverage. An incorrect age declaration can significantly impact the risk assessment and pricing of the policy. If an application contains an error regarding the applicant's age, the insurer has the right to adjust the coverage or premiums at any time, making it a unique exception to the protections offered by the incontestable clause. In contrast, while errors regarding occupation, gender, and health history can also affect underwriting decisions, inaccuracies in these areas are typically covered by the incontestable clause after the two-year period, unless the insurer can demonstrate deceitful intent or fraud. This distinction highlights the importance of accurately reporting one's age on a life insurance application, as it directly correlates to the policy's terms and conditions.