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34
The Incontestable Clause
Dan M. McGill
Revised by Edward E. Graves

Chapter Outline

NATURE AND PURPOSE OF THE CLAUSE
Effect of Fraud
Meaning of a Contest
Inception of the Contestable Period
TYPES OF INCONTESTABLE CLAUSES
MATTERS EXCLUDED FROM INCONTESTABLE CLAUSE
Nonpayment of Premiums
Disability and Accidental Death Benefits
RELATIONSHIP TO OTHER POLICY PROVISIONS
Excepted Hazards
Conditions Precedent
Misstatement of Age (or Sex)
Reformation
Reinstatement

This chapter will consider the incontestable clause. This clause, without counterpart in any other type of contract, was once the source of considerable misunderstanding and litigation. A commonly held opinion is that no other provision of a typical life insurance contract has been the center of so much "controversy, misinterpretation, and legal abuse" as the incontestable clause. While the incontestable clause is no longer the source of much litigation, the provision has a vital bearing on the protection afforded by a life insurance contract, and it is worthy of careful study.

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