What determines if an applicant's insurance coverage can be contested?

The capacity to contest an applicant's insurance coverage primarily revolves around the principle of utmost good faith and the accuracy of the information provided during the underwriting process. When evaluating the choices, the payment of the premium plays a crucial role in establishing an insurance policy's enforceability.

If the premium is paid, it typically indicates that the policy is in effect, and the insurer cannot deny a claim based on misstatements in the application unless they can conclusively demonstrate that such misrepresentations were material to the underwriting decision. This can create a binding contract between the insurer and the insured.

On the other hand, an incomplete application, the underwriter's decision, or the findings from an initial medical evaluation may influence the coverage's approval but do not ultimately determine whether it can be contested once the policy is in force and premiums are paid. If there are significant misrepresentations or fraud detected after the premium has been paid, the insurer may still contest the policy, but without the premium payment, the policy's status might not be secured, affecting the insurer's ability to uphold its terms effectively.