From a contractual position, the carrier has a right to revisit any application where they discover (after the fact) that statements on the application do not agree with the facts.
Proving intent to misrepresent or defraud the carrier is another matter.
Having spent 20+ years on the carrier side I can tell you most do not want a public battle and will often pay the claim and move on rather than being the lead story on the 6 o'clock news.
Rescission's do happen but the carrier generally feels they have a very strong case of intent to defraud. If they can prove the agent encouraged and/or participated in the fraud they have a stronger case.
Proving intent to misrepresent or defraud the carrier is another matter.
Having spent 20+ years on the carrier side I can tell you most do not want a public battle and will often pay the claim and move on rather than being the lead story on the 6 o'clock news.
Rescission's do happen but the carrier generally feels they have a very strong case of intent to defraud. If they can prove the agent encouraged and/or participated in the fraud they have a stronger case.
