State RegulationsMA specificDifficulty 3/5
An individual accident and health policy issued in Massachusetts contains the required 'time limit on certain defenses' provision. Which statement correctly describes its effect?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
The time-limit-on-certain-defenses provision required by M.G.L. c. 175, § 108(3)(a) closes the window on application misstatements: once the policy has remained in force beyond the contestable period stated in the provision, the insurer can no longer use misstatements in the application as a basis for contesting claims, with nonpayment of premiums preserved as the standing exception. The provision balances the insurer's need to underwrite on honest answers against the insured's need for lasting security after the contestable period passes.
Why the other options are wrong
- A) Perpetual contestability defeats the provision's purpose; M.G.L. c. 175, § 108(3)(a) requires that the defenses lapse after the stated in-force period.
- C) The provision is narrow — it limits misstatement defenses only, and nonpayment of premiums remains a basis for contest throughout.
- D) The provision concerns the applicant's statements in the application; producer remarks were never the insurer's contractual defense.
Memory hook
Misstatements expire, nonpayment never does — that is the defense time limit.