What is the effect of an incontestability clause?

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Quizplus · Accepted Answer

An incontestability clause prevents the insurer from challenging the information in the application after a specified time. Typically, this time period is two years from the date of the policy issuance. After this time period, the insurer cannot cancel the policy or deny a claim based on any material misrepresentation in the application. However, the insurer can still deny a claim based on other factors, such as fraud or non-payment of premiums.

What Is the Effect of an Incontestability Clause