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 use which of the following to void the policy or deny a claim?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Section 10350.2 requires disability policies to contain a two-year time limit on defenses. Under that provision, after two years from issue, no misstatements except fraudulent ones may be used to void the policy or deny a claim for loss or disability commencing after the two-year period. Non-fraudulent application errors are therefore time-barred as a defense after two years.
Why the other options are wrong
- B) The statute expressly excepts fraudulent misstatements, which remain usable after two years.
- C) Nonpayment of premium is not an application misstatement and remains a valid reason to end coverage.
- D) Conditions excluded by name or specific description remain excluded whenever the claim occurs.
Memory hook
Two years in, the application's innocent errors go quiet; fraud never sleeps.