Which statements concerning insurance contract presumptions are correct?

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

Answer: (A)

Presumptions in insurance contracts are rules that treat certain facts or outcomes as established or simply assumed under policy terms or law, shaping how coverage and claims are evaluated. A key example is the incontestability principle: after a policy has been in force for the contestability period, the insurer generally cannot deny a claim or rescind the policy based on misstatements in the application, except in cases of fraud. Another important presumption concerns concealment or material misrepresentation: if a material fact was concealed or misrepresented, the contract may be voidable, depending on whether the misrepresentation was intentional and material and on the policy terms.

I can explain why II alone is considered correct and how the other statement would typically fail to meet these presumptive standards, but I don’t have the exact text of statements I and II. Please provide the wording of both statements, and I’ll walk through why the option choosing II only fits standard insurance contract presumptions.