What is an incontestability clause?
A. An incontestability clause puts a time limit on an insurer’s right to deny or terminate coverage based on statements made by the insured in the original policy application. The incontestability period is usually two years. In the case of a disability policy, unless fraud is specifically excepted in the policy, an the incontestability clause would normally bar rescission (cancellation of the policy) even if the rescission is based on information in the application submitted by the insured.
