How will an insurer handle a claim for total disability resulting from a previously undisclosed chronic neck problem?

In the context of insurance, when a total disability claim is made and it is found that there was a previously undisclosed chronic condition, the outcome typically hinges on the specifics of the non-disclosure and the insurer's policies regarding such situations. If the insurer has received a claim for total disability stemming from a condition that was not disclosed during the underwriting process, the insurer may conduct an investigation to assess the validity of the claim.

In many cases, if the condition itself was not material to the risk at the time of underwriting and does not alter the circumstances of the claim significantly, the insurer may decide to honor the claim. The principle of good faith in insurance suggests that as long as the insured did not intentionally withhold information that would have affected the insurer’s decision to provide coverage, the claim may still be processed and benefits paid. Therefore, coverage would remain in force, and the claim could be paid out, allowing the insured to receive benefits while ensuring that the overall intent of the insurance policy is preserved.

The other choices, while plausible in certain circumstances, do not reflect this understanding of insurance principles concerning non-disclosure related to chronic conditions. Denying the claim outright or allowing the coverage to lapse typically involves situations where the omitted information is deemed material to