Which statement about the incontestable clause is true?
I.It protects the beneficiary if the insurer tries to deny a claim years after the policy is issued.
II.If protects the insurer from having to pay a claim during the first two years if the insured made a material misrepresentation or concealed material information in the application.

Question

Quizplus · Accepted Answer

The incontestable clause serves two main purposes: it protects the beneficiary by limiting the insurer's ability to contest the validity of the policy after it has been in force for a certain period (typically two years), and it also protects the insurer by allowing them to contest claims within that initial period if there was a material misrepresentation or concealment of material information by the insured during the application process.

Which Statement About the Incontestable Clause Is True