State RegulationsTN specificDifficulty 3/5
A Tennessee long-term care policy has been in force for more than 2 years. The insurer learns that the applicant knowingly misrepresented her health history on the application, and separately discovers an honest but mistaken statement about a prior illness. Under Tennessee's tiered contestability rules, on what basis may the insurer now contest the policy?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
T.C.A. § 56-42-107(c) governs the final tier of Tennessee's tiered long-term care contestability rules: after the policy has been in force for 2 years, it may be contested only for knowing or intentional misrepresentations relating to health. The applicant's knowing misrepresentation of health history falls within that ground, while an honest, non-intentional mistake does not, so the insurer may act only on the intentional misrepresentation.
Why the other options are wrong
- A) Honest mistakes are not equated with intentional misstatements in the final tier; intent is what matters after 2 years.
- C) The claimed-condition standard belongs to the middle tier under T.C.A. § 56-42-107(b); after 2 years the test is knowing or intentional misrepresentation of health.
- D) The policy is not absolutely incontestable — a knowing or intentional health misrepresentation remains grounds to contest it.
Memory hook
After 2 years, only intentional health lies survive.