Florida Health Insurance Terms:
Explain -- Incontestability Clause?":
A life insurance policy provision that states after the policy has been in force for a specified period of time, the company cannot deny a claim based on a material misrepresentation made in the application. The typical period of time for the clause is two years.
Example: Let's say after a few years the insurance carrier finds out that someone on your policy has cancer. After a few years of coverage they cannot cancel your coverage.
It prevents the insurer from revoking coverage because of alleged misstatements by the insured after a specified period... Of course, this is not a license to commit fraud.
More info on Ownership: Incontestability Article
Back to Resources |
Florida Health Insurance Homepage