The Commonwealth of Massachusetts
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PETITION OF:
The Commonwealth of Massachusetts
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PETITION OF:
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In the Year Two Thousand and Seven.
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Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:
SECTION 1. Section 186 of chapter 175 of the General
Laws, as appearing in the 2004 Official Edition, is hereby amended by adding at
the end thereof, the following paragraph:-
Notwithstanding the
provisions of sections one hundred and eight and one hundred and thirty two of
this chapter, no company shall be barred by the passage of any period of time
from asserting as a defense to a claim under any insurance policy, or as
grounds for rescission, that the statements contained in the life or accident
or sickness insurance policy application, or any reinstatement application,
were fraudulent and made with actual intent to deceive and gain coverage that
the applicant or insured would not otherwise have qualified for. Said defense to a claim under this paragraph must be
pertinent to said policy; and, provided further, that inadvertent mistakes made
by an insured in the negotiation of a policy of insurance as set out in this
paragraph shall not constitute fraud. Any such action
for rescission hereunder must be brought within three years of the time that
the insurer discovered or reasonably should have discovered the fraud by the
applicant.
SECTION 2. This act shall apply to all life and accident and health policies hereafter delivered or issued for delivery in the Commonwealth, any contract provision notwithstanding, and to any policy of life or accident and health insurance that has not become incontestable by its terms prior to the effective date of this act.