Ohio Insurance Laws and Regulations Practice Exam

How long after its effective date will an individual life insurance policy become incontestable?

1. 1 year

2. 2 years

3. 3 years

4. 5 years

The correct answer is: 2 years

An individual life insurance policy typically becomes incontestable two years after its effective date. This means that after two years, the insurance company cannot deny a claim or cancel the policy due to any misrepresentations made by the insured on the application. This provision is in place to protect the insured and their beneficiaries. Option A, 1 year, is incorrect because the incontestability clause typically states that the policy becomes incontestable after two years. Option C, 3 years, is incorrect because the correct answer is two years. Option D, 5 years, is incorrect because the incontestability clause is typically only in effect for the first two years of the policy. After that, the policy is considered incontestable. The insurance company can still deny a claim or cancel the policy after five years if there is evidence of fraud or intentional misrepresentation.