To embed, copy and paste the code into your website or blog: An insured applies for a life insurance policy, answering “no” to all medical and health-related questions. She dies within two years of her application, and the insurer discovers she was in fact diagnosed with cancer two months before she applied. This, unfortunately, is an all-too-common scenario insurers face. Increasingly, however, insurers are facing another predicament. An insured has a disability insurance policy and makes a claim for benefits alleging she suffered an accident rendering her disabled. During the claim investigation, the insurer discovers the insured made material misrepresentations in her claim presentation. The insurer denies the claim, but is the remainder of the contract still valid?