I have been told that the two year incontestability provision does not apply to health insurance. Is that true?
Total Comments: 3
Posted: Mon Jun 09, 2008 08:52 am Post Subject:
No dear, most of the states have statutes which necessitate an incontestability clause for both the life as well as the health policies. This clause is there for both the life as well as health polices & stops the insurer to process a claim due to any false information presented by the policy holder (intentionally) during signing up for it. The period for such a restriction may stand up to 2 years as per my knowledge.
Regards,
Plasmahectic
Posted: Mon Jun 09, 2008 10:03 am Post Subject:
Hi,
Hope you have mixed up certain things..its true that a majority of the incontestability clauses bear a provision that mandates the contestability period to be covered before the insured dies. Under circumstances, if the insured passes away before the contestability period gets over, then the insurer gets a chance to fight against the claims. At least the insurer could establish his point towards limiting the benefits to be offered to the claimant's heir...
Blockbird$s
Posted: Mon Jun 09, 2008 10:17 am Post Subject:
This clause is there for both the life as well as health polices & stops the insurer to process a claim due to any false information presented by the policy holder (intentionally) during signing up for it.
yea, but there are some such clauses that has an exception for frauds. This is there since frauds are a misrepresentation of facts made up to cause financial damage to another party. But as we know, there could be such circumstances in some cases wherein misrepresentations may not be intentionally directed to cause such damages.
BilltheHunter
Posted: Mon Jun 09, 2008 08:52 am Post Subject:
No dear, most of the states have statutes which necessitate an incontestability clause for both the life as well as the health policies. This clause is there for both the life as well as health polices & stops the insurer to process a claim due to any false information presented by the policy holder (intentionally) during signing up for it. The period for such a restriction may stand up to 2 years as per my knowledge.
Regards,
Plasmahectic
Posted: Mon Jun 09, 2008 10:03 am Post Subject:
Hi,
Hope you have mixed up certain things..its true that a majority of the incontestability clauses bear a provision that mandates the contestability period to be covered before the insured dies. Under circumstances, if the insured passes away before the contestability period gets over, then the insurer gets a chance to fight against the claims. At least the insurer could establish his point towards limiting the benefits to be offered to the claimant's heir...
Blockbird$s
Posted: Mon Jun 09, 2008 10:17 am Post Subject:
This clause is there for both the life as well as health polices & stops the insurer to process a claim due to any false information presented by the policy holder (intentionally) during signing up for it.
yea, but there are some such clauses that has an exception for frauds. This is there since frauds are a misrepresentation of facts made up to cause financial damage to another party. But as we know, there could be such circumstances in some cases wherein misrepresentations may not be intentionally directed to cause such damages.
BilltheHunter
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