2005 Idaho Code - 41-2106 — TIME LIMIT ON CERTAIN DEFENSES

                                  TITLE  41
                                  INSURANCE
                                  CHAPTER 21
                        DISABILITY INSURANCE POLICIES
    41-2106.  TIME LIMIT ON CERTAIN DEFENSES. (1) There shall be a provision
as follows:
    "Time Limit on Certain Defenses:
    (a)  After two (2) years from the date of issue of this policy, no
misstatements, except fraudulent misstatements, made by the applicant in the
application for such policy shall be used to void the policy or to deny a
claim for loss incurred or disability, as defined in the policy, commencing
after the expiration of such two (2) year period.
    (b)  No claim for loss incurred or disability, as defined in the policy,
commencing after two (2) years from the date of issue of this policy shall be
reduced or denied on the ground that a disease or physical condition not
excluded from coverage by name or specific description effective on the date
of loss had existed prior to the effective date of coverage of this policy."
    (2)  The policy provision of (1)(a) above shall not be so construed as to
affect any legal requirement for avoidance of a policy or denial of a claim
during such initial two (2) year period, nor to limit the application of
sections 41-2118 through 41-2122, Idaho Code, in the event of misstatement
with respect to age or occupation or other insurance.
    (3)  Notwithstanding the provisions of section 41-2106(2), Idaho Code, if
an insurer elects to use a simplified application form, with or without a
question as to the applicant's health at the time of application, but without
any questions concerning the insured's health history or medical treatment
history, the policy must cover any loss occurring after twelve (12) months
from any preexisting condition not specifically excluded from coverage by
terms of the policy, and, except as so provided, the policy or contract shall
not include wording that would permit a defense based upon preexisting
conditions.
    (4)  A policy which the insured has the right to continue in force subject
to its terms by the timely payment of premium (a) until at least age fifty
(50) or, (b) in the case of a policy issued after age forty-four (44), for at
least five (5) years from its date of issue, may contain in lieu of the
foregoing, the following provision, from which the clause in parentheses may
be omitted at the insurer's option, under the caption, "Incontestable":
    "After this policy has been in force for a period of two (2) years during
the lifetime of the insured (excluding any period during which the insured is
disabled), it shall become incontestable as to any statements, other than
fraudulent statements, contained in the application."