Under which scenario can an insured's policy become contestable?

A policy can become contestable primarily because of a misstatement of age. When a policyholder provides incorrect information regarding their age, it can impact the premiums and the benefits payable under the policy. Insurers base their rates and coverage amounts on the age of the insured, as it significantly affects the risk assessment and the potential payouts. If the insurer discovers that the insured's age was misrepresented, they may contest the policy and potentially deny a claim or adjust the benefits based on what the premiums would have been had the correct age information been disclosed at the time of application.

In other scenarios like a mistaken beneficiary designation, non-payment of premiums, or a change of address without notifying the insurer, while these issues can lead to problems with the policy, they do not inherently make the policy contestable in the same manner that a misstatement of age does. Misstatements of age provide a clear ground for verification and potential adjustment or denial of benefit claims, as they directly relate to the insurer's underwriting practices and risk management.