A period of time, usually 2 years from the date of issue of the policy, during which the life insurance company can reserve the right to contest the validity of the policy or any claims made based on material misrepresentations or omissions (i.e. concealment) made by the applicant about the insured.
After the contestability period is over, the life insurer cannot cannot challenge any claims or misrepresentations, even if those misrepresentations would have affected a decision to issue the policy or set premium rates. A life insurer may, however, continue to challenge any fraudulent misstatements made by the applicant or insured.
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