CMFAS M9 Underwriting, Servicing & Claims question: insurer contest the policy despite the incontestability clause

A life insured dies two and a half years after the policy was issued. In assessing the claim the insurer discovers that, at application, the owner had deliberately and fraudulently concealed a serious pre-existing heart condition. Can the insurer contest the policy despite the incontestability clause?

• A No — after two years the incontestability clause bars the insurer from contesting the policy for any reason
• B Yes — fraud is an express exception to the incontestability clause, so the insurer may void the policy
• C No — the insurer must pay because the death occurred from an unrelated cause
• D Yes — but only if the fraud is reported to the police first