Bruce lied about his health history when he purchased a life insurance policy.He died 3 years after the policy was issued.Which life insurance policy provision will require the life insurer to pay the beneficiary even though Bruce lied on the application?

Question

Quizplus · Accepted Answer

The incontestable clause is a provision in a life insurance policy that states that after a certain period (usually 2 years), the insurer cannot contest the validity of the policy or refuse to pay the beneficiary on the grounds of misrepresentation or omission by the insured. Therefore, even though Bruce lied on his application, the insurer would still have to pay the beneficiary if the policy had been in force for more than 2 years due to the incontestable clause.

Bruce Lied About His Health History When He Purchased a Life