Which statement best defines a contest of a life insurance policy?

• A. A defensive action in court to deny benefits by the insurer
• B. A suit by the insurer to rescind the policy in a court of appropriate jurisdiction
• C. Both statements describe a contest
• D. Neither statement describes a contest

Answer: (C)

In life insurance, a contest is when the insurer takes legal action to defeat or void coverage. This can show up as denying a claim in court or suing to rescind the policy because of misrepresentation or fraud. Both described actions are ways the insurer contests the contract or the claim, so they both fit the concept of a contest. It helps to recall the contestability idea—the insurer’s opportunity to review and challenge the validity of the policy or the claim—though fraud can lead to contesting beyond the initial period as well.