What is the contestability period in a life insurance case?
What is this so-called contestability period in life insurance cases? Here’s what it is. If you die within two years of a life insurance policy being issued the insurance company has the right to go back and examine all the representations you made in that application. Once you get beyond three years that the policy’s been issued they can’t go back and examine any representations.
A lot of litigation that we have happens because the insurance somebody claimed that there was a misrepresentation within that two-year period it so happened to pass away. In those cases what we have been able to prove is that even though the insurance company claims a misrepresentation what we try to show is actually they didn’t really rely on that representation and they issued the policy knowing that the representation was iffy or may have been untrue in some shape or form.