Errors on an insurance application commonly occur in which area, for which the incontestable clause does NOT apply?

• A. Name
• B. Sex
• C. Age
• D. Occupation

Answer: (C)

The key idea is how the incontestable clause interacts with misstatements on the application. The incontestable clause protects the insurer from contesting a policy after it has been in force for a set period, based on statements in the application. However, age is the exception to that protection. Misstating age is not shielded by the incontestable clause, because age directly affects premium calculations and the amount of coverage. If the true age differs from what was stated, the insurer can adjust the policy benefits or premiums accordingly, or otherwise address the misstatement even after the policy has been in force.

Errors in name, sex, or occupation are typically covered by the incontestability rule, meaning those misstatements generally can’t be used to void or deny a claim after the incontestability period. Since age is the area where the clause does not apply, it’s the common source of misstatements that the clause doesn’t protect.