How will an insurer handle a claim for total disability due to a chronic neck problem that was not disclosed during the application process?

The correct answer indicates that the claim for total disability due to a chronic neck problem will be paid, and the coverage will remain in force. In the context of life and health insurance, there are some key considerations.

Typically, an insurer may initially assess the validity of the claim based on the information provided during the application process. If a chronic condition was not disclosed, it could raise questions about whether the insurer would honor the claim. However, the nuances of health insurance may mean that a claim can still be validated if the condition does not directly relate to the cause of the total disability being claimed.

In cases where a chronic condition does not trigger an exclusion under the policy, or if it had no bearing on the coverage chosen, the insurer may proceed to pay the claim while not retroactively canceling or voiding the policy. This situation may occur particularly if the insurer did not make it explicitly clear that the undisclosed condition was material to the risk assessed when issuing the policy.

The other options imply different handling of the claim that typically results in denial or cancellation. For example, denying the claim outright based on pre-existing conditions is a common approach but not the only option, particularly if the condition in question is not directly related to the claim.