State RegulationsTN specificDifficulty 2/5
After the incontestable period of a Tennessee individual life policy has run, on which grounds may the insurer still contest the policy?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
T.C.A. § 56-7-2307(3) makes an individual life policy incontestable after not more than 2 years from its date, except for nonpayment of premium and for violations of rules relating to wartime military or naval service. Those two grounds survive the contestable window, and the Tennessee Department of Commerce & Insurance tests candidates on this exception pair because they are the only doors left open after 2 years.
Why the other options are wrong
- B) A suicide within the first 2 years is governed by the suicide-exclusion provision of T.C.A. § 56-7-2308, not by the incontestability exception, and after 2 years suicide is covered outright.
- C) Misstatement of age never voids the policy; under T.C.A. § 56-7-2307(5) the benefit is adjusted to what the premium would have purchased at the correct age.
- D) Aviation is a permitted policy exclusion, and a fare-paying passenger on a scheduled airline is protected; it is not a ground for contesting the policy after the contestable period.
Memory hook
After 2 years only two doors stay open: unpaid premium and wartime service.