Bill > S503

This bill aims to prevent fraud in life, accident, and health insurance policies. It allows insurance companies to assert a defense against claims or seek rescission of a policy if the application contained fraudulent statements made with the intent to gain coverage the applicant would not have otherwise qualified for. However, inadvertent mistakes by the insured do not constitute fraud. The insurance company must bring any action for rescission within three years of discovering the fraud. The bill applies to all life, accident, and health insurance policies delivered or issued in the Commonwealth after the effective date, as well as any policies that have not become incontestable prior to the effective date.

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https://malegislature.gov/Bills/190/S503