Seems that someone is getting pre-ex and contestability confused, which considering democrats often conflated and confused the two, really doens't surprise me.Originally Posted by iguanaman
Ha, ha, you crack me up. Everybody has some pre-existing condition and ins. companies often use any little illness you might have forgotten to deny coverage for major illness that was not pre-existing. It is racket they use to get rid of sick people and increase profit.
For the insurance company to legally and properly break the contract under the contestability clause, the insured must not be making statements that are untrue and those untrue statements must be material to the issuance of the contract. I.e. the contract would not have been issued had the insured not lied on the application.
Pre-ex just means that the insurance company will not cover a condition that pre-existed te contract for the first year or two of the policy being inforce. After those first 2 years (on average) the insurance policy will even cover pre-ex conditions.
There are special rules when the insurance policy was issued as a group policy by a company the insured works for.
NOw, there have been some insurance companies that incorrectly rescinded a contract of insurance during the contestability period. Those companies have faced fines and lawsuits - as they should.