The _____ clause is a provision in a life insurance policy that prevents the insurer from...

The _____ clause is a provision in a life insurance policy that prevents the insurer from avoiding or revoking the coverage after a certain number of years of premium payments on the policy, even if the insured committed fraud in applying for the policy.

concealment

subrogation

no-fault

incontestable

insurable interest

Solutions

Expert Solution

The correct answer is Incontestable

The incontestability clause protects the client who may have misrepresented while filling the original application for the life insurance.The company gets two years to investigate the insured from the date of application and in that period if the client dies and the company proves that he lied,then the claim can be denied however, if more than two years have elapsed,then the company cannot revoke the coverage, even if the insured committed fraud.

Rahul Sunny answered 1 year ago

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