New Jersey Life Insurance Exam Practice Question
One area in which errors are commonly made on life insurance applications and for which the incontestable clause does NOT apply is
Correct Answer: B
Rationale: Errors related to age on life insurance applications are significant because they directly impact the risk assessment and premium calculations. If an applicant misstates their age, it can lead to a policy being issued at an incorrect rate, which may not reflect the true risk. The incontestable clause does not cover this error, allowing insurers to contest claims if age discrepancies are found.
In contrast, errors in occupation, education level, or state of residence generally do not have the same immediate impact on the policy's terms and are often covered under the incontestable clause, making them less critical in this context.
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