noncontestability clause

noncontestability clause
A clause in an insurance contract that prevents the insurer from contesting a policy due to mistake or fraud after a specified period of time.

The Essential Law Dictionary. — Sphinx Publishing, An imprint of Sourcebooks, Inc. . 2008.

noncontestability clause
An insurance policy provision that requires an insurance company to challenge a statement made in an application for the insurance within a specific time. Thus an insurer cannot deny coverage on the basis of fraud or error if the insurer finds the allegedly fraudulent statement or error after that period of time has ended.
Category: Personal Finance & Retirement

Nolo’s Plain-English Law Dictionary. . 2009.

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