State RegulationsFL specificDifficulty 2/5
A Florida life insurer drafts a policy containing an incontestability provision that gives the insurer more time to contest the policy than Fla. Stat. 627.455 allows. What is the effect under Florida law governing policy provisions?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under Chapter 627, Florida Statutes, an individual life policy may not contain any provision that reduces the protections of the standard provisions, here the incontestability rule of Fla. Stat. 627.455, which bars contesting the policy after 2 years from issue except for nonpayment of premiums and, at the company's option, disability and accidental-death benefit provisions. A provision stretching that period is prohibited; the insurer may only be more generous to the insured.
Why the other options are wrong
- A) Contestability is bounded by the 2-year statutory framework; the insurer may be more generous, never less.
- B) An applicant's signature cannot validate a provision that is less favorable than the statutory standard.
- D) Filing does not save a provision that conflicts with the statute's minimum protections.
Memory hook
Standard provisions are floors, not ceilings: never below 2 years.