State RegulationsFL specificDifficulty 1/5
An applicant knowingly denies a serious heart condition on a life insurance application to obtain a lower premium. In Florida, this is:
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under Chapter 626, Florida Statutes, knowingly presenting materially false information in connection with an insurance application is insurance fraud, and the Department of Financial Services' Division of Insurance Fraud investigates such conduct. The incontestability period limits when an insurer may raise policy defenses, but it does not make a knowingly false statement lawful.
Why the other options are wrong
- A) The absence of a medical exam does not make false answers lawful; a knowingly false material statement is still fraud.
- B) Rescission is a civil remedy the insurer may have, but a knowing material misrepresentation made for a lower premium is also insurance fraud.
- D) The incontestability period limits the insurer's ability to contest the policy later; it does not convert a fraudulent misstatement into a permissible one.
Memory hook
Lie on the app to save a buck - that is fraud.