Rescission of life insurance policy during contestability period

Insurance companies routinely try to find a reason to rescind a policy.  The reason rescission is a favorite tactic is because it is so powerful.  Why fight over whether a particular claim is covered if the insurance company can simply obtain a finding that the entire policy never existed?

Generally a life insurance company can rescind a policy purchased within two years of the insured's death if it proves the application contained a misrepresentation.  However, under the Texas Insurance Code, it must be shown that such misrepresentation:

(1) is of a material fact; and

(2) affects the risks assumed
Texas Insurance Code: Section 705.051
You should immediately contact an experienced life insurance attorney if you have a claim denied or contested due to an alleged policy misrepresentation.