Under the time limit on defenses, which statement is true?

• A. The right to return an accident and health policy must be within 10 days of policy delivery
• B. After a stated period of time, claims cannot be denied due to material misrepresentation on the application
• C. All claims can be disputed after two years
• D. An insured cannot file a lawsuit within 90 days of the claim being filed

Answer: (B)

Incontestability protects the insured by limiting how long an insurer can contest a claim based on misstatements in the application. After the policy has been in force for the stated period (usually two years), the insurer generally cannot deny or reduce a claim solely because of a misrepresentation on the application. This means claims cannot be denied for those misstatements once that period has passed, providing stability for the insured. There are exceptions, such as issues related to nonpayment of premiums, but the core idea is that the time limit on defenses prevents retroactive denial of valid claims based on past misstatements after the contestable period. The other options either describe a separate provision (the free-look period), present an incorrect broad rule about disputes after two years, or mix in a timing requirement for lawsuits that isn’t part of the time limit on defenses.