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Incontestability Clause
(redirected from Incontestability Clauses)

   Also found in: Legal 0.01 sec.
Incontestability clause
Clause in a life insurance contract preventing the insurer from revoking the policy after it has been in force for a year or two. If the life insurance company discovers any important facts that the policyholder may have concealed, such as experiencing a stroke, within that period, the insurer could revoke the policy.

Incontestability Clause
A provision in some life insurance policies preventing the insurance company from canceling a policy after a certain period of time, usually one or two years. An incontestability clause protects the policyholder from being dropped if he/she develops an illness or health problem that is likely to shorten his/her life, which would be detrimental to the insurance company.


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Most life insurance policies include a number of incontestability clauses.
Life insurance policies contain incontestability clauses that limit the time in which an insurer may contest the validity of an insurance policy based on material misrepresentations made by the insured during the application process.
The California Supreme Court unanimously reversed, finding that Galanty was covered because state law required that incontestability clauses in disability policies not only bar misrepresentation defenses but also defenses based on preexisting conditions once the policy had been in effect more than two years.
 
 
 
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