State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
Under CIC Section 10350.2, after a disability policy has been in force for two years, the insurer generally may NOT:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
CIC Section 10350.2 requires disability policies to contain a time-limit-on-certain-defenses provision: after two years from the date of issue, no misstatement by the applicant, except a fraudulent misstatement, may be used to void the policy or deny a claim for loss incurred or disability commencing after the two-year period. The provision also bars denial based on a preexisting disease or condition not excluded by name or specific description on the effective date of loss. Noncancellable policies may use an incontestable form under the same section.
Why the other options are wrong
- B) Renewability terms depend on the policy's renewability provision, not on Section 10350.2's two-year defense limit.
- C) Occupation-class change procedures are governed by other policy terms; this section addresses contestability of application statements.
- D) Premium payment remains the insured's obligation; the two-year rule does not excuse premiums.
Memory hook
Two years in, the application's past is closed, except for fraud. The policy stands on its own.