What is a Contestability Clause?
Written by April Hill on November 28, 2010 – 9:22 pmQuestion: What is a Contestability Clause?
Answer:
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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Tags: Clause, Contestability Clause
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