An insured in Dayton dies 4 years after his individual life policy was issued, having let his last two premiums lapse unpaid before his death. What may the insurer still rely on despite the policy now being incontestable?

Why B is correct

ORC 3915.05(C) makes the policy incontestable after 2 years during the insured's lifetime, but expressly excepts nonpayment of premiums along with war or military-service and aeronautics conditions. Because this insured died with premiums unpaid, the insurer may still assert nonpayment even though the contestability period has long passed. Innocent misstatements, by contrast, can no longer be raised once the policy is incontestable.

Why the other options are wrong

• A) The age-misstatement adjustment operates during the contestability window and is not an exception that lets the insurer deny a claim after incontestability attaches under ORC 3915.05(C).
• C) Innocent misstatements are exactly what incontestability bars; only nonpayment and the specified conditions survive under ORC 3915.05(C).
• D) A change of beneficiary by the insured is a normal policyowner right and supplies no ground for the insurer to contest the claim under ORC 3915.05(C).

Memory hook

Incontestable after 2 years — but unpaid premiums are always a live defense.