What action can an insurer take if an individual health insurance applicant fails to disclose health information?

When considering the consequences of an individual health insurance applicant failing to disclose health information, it is important to understand the implications of statutes of limitations and how they apply to insurance contracts. In many jurisdictions, including Nebraska, there are specific time limits within which an insurer can take action regarding undisclosed health information.

After a certain period, typically four years, insurers may no longer be able to contest or void a policy based on misrepresentation or non-disclosure of health information. This is often based on the principle of finality, which provides that after a set period, the insured has a right to rely on the contract as is, and insurers cannot retroactively impose conditions that were not disclosed at the time of application.

This understanding helps ensure consumer protection, allowing policyholders to feel secure in their insurance coverage without the looming threat of being denied benefits due to past non-disclosures long after the policy has been issued and accepted.