incontestability clause
incontestability clause. Insurance. An insurance-policy provision (esp. found in a life-insurance policy) that prevents the insurer, after a specified period (usu. one or two years), from disputing the policy’s validity on the basis of fraud or mistake; a clause that bars all defenses except those reserved (usu. conditions and the payment of premiums). • Most states require that a life-insurance policy contain a clause making the policy incontestable after it has been in effect for a specified period, unless the insured does not pay premiums or violates policy conditions relating to military service. Some states also require similar provisions in accident and sickness policies. — Also termed noncontestability clause; incontestable clause; uncontestable clause. Cf. CONTESTABILITY CLAUSE. [Cases: Insurance 3121. C.J.S. Insurance § 1636.]
