Indiana State Life and Health Insurance Practice Exam

The correct answer is that statements made by an applicant on a health insurance policy can be contested for a period of 2 years according to Indiana law. This is consistent with many insurance regulations, which typically establish a time frame for insurers to contest claims based on misrepresentation or fraud. The 2-year period begins from the date the policy is issued.

This acceptance period is critical because it balances the interests of both the insurer and the insured. It allows insurers to verify the truthfulness and accuracy of the information provided without leaving them indefinitely vulnerable to future claims. Meanwhile, the applicant can feel assured that after two years, their statements are considered accepted as true, which promotes stability in their coverage.

In other contexts, options such as contesting claims "anytime" or during the "free-look period" don't align with standard practices or legal provisions. The free-look period refers to a timeframe during which a newly insured individual can review and potentially return the policy for a full refund, rather than a period for contesting statements made at application.