Question

A disability income policyowner recently submitted a claim for a chronic neck problem that has now resulted in total disability. the original neck injury occurred before the application was taken 5 years prior. the neck injury was never disclosed to the insurer at the time of application. how will the insurer handle this claim

Answer 1

The answer is "Claim will be paid and coverage will remain in force".

After a policy has been in force for 2 (some of the time 3) years, it enters the incontestable period, in which the insurer may not deny a claim in view of data not uncovered at the time of application.  

An Occurrence policy shields you from any secured episode that "happens" amid the policy time frame, paying little heed to when a claim is documented.