The implication being that after 2 years the immediate risk of death the insurance company wants to protect itself against did not come to pass, so the policy holder should not have the risk of losing their policy to a post mortem determination of fraud from the insurer despite believing they were insured.
Taken back to the fraud in interviews, you could make the same argument that after some time working on the job and not gettimg fired, the risk of getting someone not actually qualified did not come to pass, so its more useful to look at the employees current performance than their original fraudulent interview.
But the bar for firing is below the bar for hiring.
This is true not only because of status quo bias, sunk cost etc., but also because employers will often try really hard and be very patient, in the hope that an employee's performance will improve.
Taken back to the fraud in interviews, you could make the same argument that after some time working on the job and not gettimg fired, the risk of getting someone not actually qualified did not come to pass, so its more useful to look at the employees current performance than their original fraudulent interview.