sherryinde1

First, I'd like to say hello to all of you. I've been a lurker here for awhile and enjoy reading this forum. I am a licensed insurance agent for one of the Big 3 Insurance Companies. Here's some information you may find useful in deciding how to answer some questions on a life application. Life insurance policies generally contain an "Incontestable Clause". This clause states that for the initial two years of the policies existance, the insurer may contest any statements made by the applicant on the application, if the insurer wishes to deny coverage. In other words, after the contract has been in effect for a specific length of time, the insurance company agrees not to challenge any statements made by the applicant on the application. The existence of this clause is unique to insurance contract since it is contrary to general fraud laws. It simply states that an insurer, following the contestable period, may not claim that any misstatements in the application were made with the intent of the policywoner/insured to defraud. The Incontestable clause also assures that a named beneficiary will not have to substantiate any statements which were made on the application several years after the policy has been issued. In this situation, it would be extremely difficult for the named beneficiary and others to supply or substatiate information if the insurer contested the contract at the time of the insureds death. Hope this sheds some light on your question. Sherry