What is the definition of Time Limit on Certain Defenses Provision?

The Time Limit on Certain Defenses Provision states that the insurance company can only contest a claim or the contract itself within that time limit. This gives the insurance company the right to cancel a policy, reduce a claim or even deny the claim once it is discovered that the claims springs from a preexisting condition.

Once the specified time has passed, the insurance policy cannot use preexisting condition and the act of misrepresentation as defenses against rejecting a claim or cancelling the policy.

The time limit is usually two years and is also called the contestability period.

This provision is applicable for misstatement or misrepresentation of key insurance facts, such as the insured person's health condition, his age, and so on.

• Insolvency
• Misstatement of Age or Sex Provision
• Modified Premium Policies
• Moral Hazard
• Comprehensive Coverage