After a life insurance policy has been in force for 5 years the insured dies. During the claims process, the insurer discovers that the insured did not disclose material health information that had it known, would have caused the application to be rejected. What can the insurer do at this point in time?

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After a life insurance policy has been in force for 5 years the insured dies. During the claims process, the insurer discovers that the insured did not disclose material health information that had it known, would have caused the application to be rejected. What can the insurer do at this point in time?

A. The insurer can void the contract and refund any and all premium payments received plus interest

B. The insurer can contest the claim

C. The insurer must pay out the death benefit but can then take legal action against the beneficiary based on insurance fraud

D. The insurer must pay out the death benefit of the policy to the named beneficiary

Answer: D.

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