State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 3/5
A California individual life insurance policy has been in force for three years. The insurer now discovers that the insured made a fraudulent misstatement on the application. Under Section 10113.5, the insurer:
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Section 10113.5 makes the policy incontestable after it has been in force for two years during the insured's lifetime — and California's statute contains NO fraud exception. Even fraudulent misstatements cannot be used to void the policy after the two-year contestability period. The only exception is nonpayment of premiums. This is a distinguishing California rule.
Why the other options are wrong
- B) Fraud does not restart the clock in California; the two-year limit applies even to fraudulent statements.
- C) Age misstatement is handled by adjusting benefits to what the premium would have purchased at the correct age — not by contesting after two years.
- D) The policy cannot be rescinded at all after the period; there is no forced refund.
Memory hook
California incontestability = 2 years, no fraud loophole. After two years the policy is bulletproof — except for unpaid premiums.