The normal rule is that after a specified period of time, insurance companies cannot contest the validity of a life insurance policy for any reason except nonpayment of premiums. Do you think this rule encourages people to hide facts from the insurance company until their policy is incontestable? And is it ethical to hide facts that would otherwise invalidate an insurance policy? Support your answer with an example. What do you think is the reason for this rule?

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ISBN:9781337406659
Author:WINSTON, Wayne L.
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The normal rule is that after a specified period of time, insurance companies cannot contest the validity of a life insurance policy for any reason except nonpayment of premiums.

Do you think this rule encourages people to hide facts from the insurance company until their policy is incontestable? And is it ethical to hide facts that would otherwise invalidate an insurance policy? Support your answer with an example.

What do you think is the reason for this rule?

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