Arkansas Life and Health Insurance Practice Exam

Incontestable clause in life insurance policies means the policy cannot be contested after how many years, except for fraud?

1. 2 years

2. 3 years

3. 4 years

4. 5 years

The correct answer is: 2 years

The correct answer is A. The incontestable clause in life insurance policies typically states that after a certain period of time, usually 2 years from the policy's effective date, the policy cannot be contested by the insurance company except in cases of fraud. This clause provides assurance to the policyholder that once this period has passed, the insurance company cannot challenge the validity of the policy for reasons other than fraud. It gives the policyholder peace of mind and security regarding the coverage provided by the policy.