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Flashcards in RESCISSION Deck (6)
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1

GROUNDS FOR RECISSION

A. Concealment
B. Misrepresentation
C. Breach of material warranty
D. Breach of a condition subsequent

E. ALTERATION OF THE THING INSURED

2

TRUE OR FALSE

 

THE INSURER CAN EXERCISE THE RIGHT TO RESCIND THE CONTRACT BEFORE OR AFTER THE INSURED HAS FILED AN ACTION TO COLLECT THE AMOUNT OF INSURANCE

FALSE

 

THE INSURER MUST EXERCISE THE RIGHT TO RESCIND THE CONTRACT BEFORE THE INSURED HAS FILED AN ACTION TO COLLECT THE AMOUNT OF INSURANCE

3

REQUISITES OF INCONTESTABILITY

1. Life insurance policy
2. Payable on the death of the insured
3. It has been in force during the
lifetime of the insured for a period
of at least 2 years from the date
of its issue or of its last
reinstatement

4

EFFECTS WHEN POLICY BECOMES INCONTESTABLE

 

THE INSURER MAY NOT USE THE FOLLOWING DEFENSES 

1. Policy is void ab
initio

2. Policy is
rescindable by
reason of the
fraudulent
concealment or
misrepresentation of
the insured or his
agent

5

DEFENSES NOT BARRED BY INCONTESTABILITY CLAUSE 

1. That the person
taking the insurance
lacked insurable
interest as required
by law;
2. That the cause of
the death of the
insured is an
excepted risk;
3. That the
premiums have not
been paid (Secs. 77,
227[b], 228[b],
230[b]);
4. That the
conditions of the
policy relating to
military or naval
service
have been
violated (Secs.
227[b], 228[b]);
5. That the fraud is
of a particularly
vicious type;
6. That the
beneficiary failed to
furnish proof of
death
or to comply
with any condition
imposed by the
policy after the loss
has happened; or
7. That the action
was not brought
within the time
specified.

6