Incontestable Clause of Life Insurance, Part 2
More Life Insurance Company Provisions
However, this can cause a lot of "seedy characters" to take a life insurance company policy that is in fact fraud, hold it for more than two years and then claim insurance. Insurance companies have no liability or claim against that. This runs contrary to the law of contracts, which states that fraud makes any contract null and void. In addition, it goes counter to the actual law, which states that agreements that do not make contracts null and void if they are fraud are null and void themselves.
Therefore, because of these stipulations, these laws are only reserved for life insurance companies.
 Let us define the actual legalities of the provision. What is a contest? By law, a contest is defined as taking any kind of action to make void an existing contract. So, if a life insurance company were to take an insurance policy to trial and state that the contract was void because of fraud, that would be illegal according to the life insurance company provisions.
Grace Period
Incontestable Clause
Incontestable Clause, Part 2
Incontestable Clause, Part 3
Incontestable Clause, Part 4
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