Which type of fraud remains contestable indefinitely by insurers?

Individual health insurance fraud is considered contestable indefinitely by insurers because it involves false statements or misrepresentations made by an applicant when applying for coverage. The nature of individual health insurance contracts allows insurers to investigate and contest claims related to fraud at any time, as the integrity of the application process is directly tied to the risk the insurer takes on.

When an insurance company discovers that an applicant has intentionally provided false information or concealed material facts during the application process, it has the right to challenge the validity of the policy. This perpetual contestability helps protect insurers from risks associated with fraudulent representations, ensuring that claims are based on honest disclosures.

In contrast, other options, such as life insurance fraud or group health insurance fraud, typically have certain time limits or statutes of limitations that apply to contestability. Life insurance policies, for instance, often have a two-year contestability period after which the insurer cannot contest based on misrepresentation unless there are allegations of fraud. This nuance highlights the particular nature of individual health insurance fraud, making it unique regarding how long an insurer can contest claims that they suspect involve fraudulent activities.