Monday, February 14, 2011

What is a Contestability Clause? - Insurance


A contestability clause is language within a life insurance policy that allows an insurance company to review the medical records of a deceased policyholder, within the first two years the policy is in-force, for evidence that the application contained a material misrepresentation. However, more commonly, life insurance policies have non-contestability clauses that limit a company's ability to contest a claim after a certain number of years.

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