What Is Contestability Period?
A limited time frame, typically two years, during which an insurer may challenge the validity of an insurance contract based on misstatement or material misrepresentation. After this period expires, the insurer cannot rescind the policy except for fraud.
Contestability Period across 2 exams
Contestability Period appears on the following exams. Each defines it in the context candidates are tested on:
- Life Insurance
- A limited time frame, typically two years, during which an insurer may challenge the validity of an insurance contract based on misstatement or material misrepresentation. After this period expires, the insurer cannot rescind the policy except for fraud.
- Health-Only Insurance
- A limited time after policy issuance during which the insurer can review the application and deny claims if material misstatements or omissions are discovered. After this period expires, the policy is considered incontestable.