Barry's life insurance company is refusing to pay his beneficiaries because they say he never disclosed the fact that he was a smoker when he purchased his policy 20 years ago. Do Barry's beneficiaries have grounds to sue the insurance company?

Question

Quizplus · Accepted Answer

The incontestable clause typically prevents an insurance company from denying a claim after a policy has been in force for a certain period, usually two years, even if there was a misrepresentation by the insured. Since Barry's policy was purchased 20 years ago, the beneficiaries likely have grounds to sue based on this clause.

Barry's Life Insurance Company Is Refusing to Pay His Beneficiaries