For how long may an insurer contest fraudulent misstatements made in a health insurance application?

An insurer may contest fraudulent misstatements made in a health insurance application for as long as the policy is in force. This means that if a policyholder is found to have committed fraud in their application, such as providing false information related to health conditions or prior medical history, the insurer has the legal right to challenge the validity of the policy at any point while that policy is active.

The reasoning behind this is that fraudulent behavior undermines the foundational principle of insurance, which is based on trust and accuracy in the information exchanged between the insurer and the applicant. Allowing an insurer to contest fraudulent statements indefinitely as long as the policy remains in force helps to protect the insurer from financial losses that could arise from covering individuals who misrepresent their health status at the time of application.

Other options present limitations on the timeframe within which an insurer could contest a policy based on misstatements. However, they do not align with the principle of holding individuals accountable for fraudulent behavior throughout the life of the policy.