Massachusetts Life Producer Practice Exam

A life insurance policy can be contested by the insurer only during the first ____ years of the contract.

1. 1

2. 2

3. 3

4. 5

The correct answer is: 2

Life insurance policies in most jurisdictions, including Massachusetts, typically have a contestability period, which is a timeframe during which the insurer can challenge the validity of the policy. This period is generally set at two years from the policy's effective date. During this contestability period, the insurer can investigate and potentially deny claims based on misrepresentations, omissions, or concealment of facts by the insured. After this two-year period, the policy generally becomes "incontestable," meaning the insurer cannot dispute the validity of the policy or the claims made against it, except for non-payment of premiums. Understanding the contestability period is crucial for both agents and policyholders because it defines the window of time where the insurer has greater latitude to contest claims based on underwriting concerns. After this period, the emphasis shifts more significantly toward honoring the terms of the policy, unless there are legitimate issues related to premium payment.