Rescission of a life policy at insured’s death

During the first 2 years following the date of issue, the insurance company may rescind the coverage for any material misrepresentation regardless of the cause of death. For example, if an applicant fails to disclose on the insurance application that he has diabetes but then dies from a heart attack, the company may rescind the coverage for failure to disclose the medical condition-diabetes at the time of the application.  Insurance company would refund any premiums paid since there was not coverage.