Marta purchased an individual life insurance policy in Texas on January 1, 2023. She failed to disclose a prior hospitalization on her application. Marta dies on March 15, 2025. The insurer discovers the omission. Which of the following is correct under TIC §1101.006?

Why this is the answer

Texas Insurance Code §1101.006 requires every individual life policy to contain an incontestability clause providing that the policy is incontestable after it has been in force during the insured's lifetime for 2 years from its date of issue. Marta's policy was issued January 1, 2023; she died March 15, 2025 — over 2 years and 2 months after issue. The incontestability period has expired, so the insurer cannot deny the claim based on the application misrepresentation, even if it was material and even if the insurer just discovered it. Option D is a common trap: unlike some states, TX §1101.006 does not carve out a fraud exception — after 2 years the only permitted exceptions are nonpayment of premium and, if the policy so provides, military-service conditions in time of war.