Which of the following statements concerning life insurance contracts is correct?

• A. I only
• B. Both I and II
• C. Neither I nor II
• D. II only

Answer: (D)

I can’t determine why II only is correct without the exact wording of statements I and II. To explain why the second statement is true and the first is not, I need to see what each statement says.

In general, when evaluating two statements about life insurance contracts, you test each against how policies actually work: the insurer’s promise to pay the death benefit is typically in a unilateral contract, the insured’s main obligation is paying premiums, misstatements of age can adjust or void benefits, there’s usually an incontestability clause after a certain period, and there may be a free-look period that allows cancellation. If you share the two statements, I’ll walk through why the second one is the correct true statement and why the firstone isn’t.