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Incontestability Clause |
Also found in: Legal | 0.01 sec. |
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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. Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content. |
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