In which of the following types of claim will insurer order an investigation?

A Early death claim
B Non-early claim
C Maturity claim
D Surrender

Correct Answer: Early death claim

In early death claim insurer order an investigation. Several situations can result in later payment of a claim. If the insured died within the first one to two years after the policy was issued, beneficiaries could face delays of six to 12 months. The reason: the one- to two-year contestability clause, says Huntley. “Most policies contain this clause, which allows the carrier to investigate the original application to ensure fraud was not committed.
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