[Dan40]

Let's say you are playing hold 'em. Board has 3 Q's an Ace and a 3. You have 2 Aces in the hole and you SAW one of your opponents hole cards, ANOTHER QUEEN.
He goes ALL IN with his 4 ladies. KNOWING THAT, do you call him with 3 aces? You can't bluff, the hand is dealt and he IS all in.
So you fold.

That is insurance. If there is not a bet, it is not insurance. People have somehow come to BELIEVE that an insurance company is an alternative PAYER. They are not. They are betting that you WILL NOT get sick. YOU, strangely enough, are betting them you WILL get sick. Your past medical history IS showing your hole card. And if it shows the insurance company they cannot win the bet, same as you above, they fold.
And they CANNOT cancel a policy because you get sick. Once a policy is in force past the incontestability period. If you get sick with anything, they are stuck with you up to the limits of the policy. The horror stories that people like to cite, especially obummer, are about NEW policies being canceled because the person got sick while still in the period where the insurance company can still research an insureds past. And it is ALWAYS because there is something IN the records that WAS NOT put on the insurance application.
REMEMBER THAT ELECTED POLITICIANS REGULATE INSURANCE COMPANIES THROUGHLY. Your elected politicians tell the insurance companies what they can and cannot do and say. Amazing that these same politicians then turn around and blame the insurance companies for doing what the politicians said they can, OR MUST do.