I've been practicing insurance law, including life insurance law for 25 years in NY. Your answer "No" is a misrepresentation. If you were to die within two years of the policy being issued, the carrier might be able to avoid payment because of that misrepresentation, however, the fact that you disclosed that you were a "hepatitis B. virus carrier" in all probability negates the misrepresentation, and I think it would be really hard for for a carrier to avoid liability because of that. You are not going to be prosecuted criminally for this mis-statement. Worst case is you die within two years, and the carrier refunds your premium rather than paying the benefit.
Technically, you may have filed a false instrument, specifically if you signed and swore to the truth of the statements. I would call the insurance company and ask if its possible to change an answer on your application.
If you have hepatitis and you answered NO that was a false answer and the carrier can file criminal charges against you. Most likely the carrier will just deny you coverage given you put them on notice that you are a hepatitis carrier.
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