PSI Ohio Insurance Practice Exam 2025 - Free Ohio Insurance Practice Questions and Study Guide

The incontestability provision in insurance policies provides that after a certain period, typically two years, insurers cannot contest the validity of a policy based on misstatements or omissions made by the policyholder. This provision aims to protect policyholders from having their claims denied due to issues that could have been corrected within a reasonable time after the policy was issued.

Fraudulent misstatements are exempt from this protection because such actions involve intentional deceit by the policyholder. If a person provides fraudulent information when applying for insurance, the insurer retains the right to contest the claim at any time, even after the incontestability period. This serves as a deterrent against dishonesty and upholds the integrity of the insurance process.

Other scenarios, such as non-payment of premium or misrepresentation of age, typically do not carry the same burden of deceit. While non-payment of premiums can lead to policy lapse, it doesn't involve misleading information at the policy's inception. Misrepresentation of age may be contestable within the limits set by the incontestability clause, depending on whether the misrepresentation was intentional or accidental. Claims made after the policy has lapsed are also generally not valid, as the coverage is no longer in effect. However, fraudulent misstatements sit