An individual life policy lapses and is later reinstated. Under CIC §10113.5, the insurer may contest the policy because of misrepresentations material to the reinstatement:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
CIC §10113.5(a) provides that, upon reinstatement, the policy may be contested on account of fraud or misrepresentation of facts material to the reinstatement for the same period following reinstatement, and with the same conditions and exceptions, as the policy provides with respect to contestability after original issuance — in practice a fresh two-year contestability period for reinstatement-related statements. This protects the insurer because reinstatement requires the applicant's statements of insurability. The option is not 90 days, is not never, and does not merely reuse the leftover original period, because the reinstatement application raises new representations.
Why the other options are wrong
- B) No 90-day reinstatement contestability window exists in California law. Under CIC §10113.5 the period following reinstatement mirrors the same contestability conditions as after original issuance, which is two years.
- C) Reinstatement does not extinguish contestability. The insurer may contest the policy for fraud or misrepresentation material to the reinstatement itself during the fresh period.
- D) The reinstatement application contains new representations of insurability, so the contestability period restarts after reinstatement rather than merely continuing the original period.
Memory hook
Back in force doesn't mean back in the clear — reinstatement opens a fresh two-year contest window.