Arkansas Life and Health Insurance Practice Exam 2025 – The Comprehensive All-in-One Guide for Exam Success!

Question: 1 / 400

Which provision in health insurance policies ensures that the insurer can only contest the contract under certain conditions for a limited period?

Automatic premium loan

Grace period

Incontestability clause

The correct answer is the incontestability clause. This provision in health insurance policies limits the insurer's ability to contest the contract after a certain period of time has elapsed since the policy was issued. This protection is important for policyholders as it provides them with certainty and peace of mind that their coverage cannot be challenged by the insurer after the specified time frame.

The other options are not directly related to limiting the insurer's ability to contest the contract.

- The automatic premium loan is a provision that allows the insurer to use the policy's cash value to pay overdue premiums.

- The grace period gives policyholders extra time to pay their premium after the due date without losing coverage.

- The reinstatement clause outlines the conditions under which a lapsed policy can be reinstated.

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Reinstatement clause

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