Common use of Rescission of Coverage Clause in Contracts

Rescission of Coverage. We reserve the right to Rescind coverage under this Contract or coverage for any person covered under this Contract as permitted by law. We may only Rescind the Contract or coverage of a person covered under the Contract if you or another person on your behalf commits fraud or you make an intentional misrepresentation of material fact in applying for coverage or benefits. Only fraudulent misstatements on the Enrollment Form may be used by us to void coverage or deny any claim for loss incurred or disability, if discovered after two years from your Effective Date. We will provide at least 45 days advance written notice to the Contractholder of our intent to Rescind coverage. Rescission of coverage is considered an Adverse Benefit Determination and is subject to the Adverse Benefit Determination review standards described in the CLAIMS PROCESSING section and the appeal procedures described in the APPEAL AND GRIEVANCE PROCESS section.