The maximum amount of liability of the Insurer under an insurance policy. The premium rate is applied to the sum insured to determine the policy premium.
Facebook
Linked In
Instagram
Contact Us
News
Calculators
Resource Center
Incontestable Clause
A clause in a policy providing that after a policy has been in effect for a given length of time (two or three years), the insurer shall not be able to contest the statements contained in the application. A Health Insurance provision also states that after that time no claim shall be denied or reduced on the grounds that a condition not excluded by name at the time of issue, existed prior to the effective date. In Life policies, if an insured lied as to the condition of his health at the time the policy was taken out, that lie could not be used to contest payment under the policy if death occurred after the time limit stated in the incontestable clause.