Which of the following is exempted from the incontestability provision in insurance policies?

The incontestability provision in insurance policies is a clause that prevents the insurer from disputing the validity of a policy after it has been in force for a specified period, typically two years. However, there are exceptions to this rule that allow insurers to contest a policy under certain circumstances.

Fraudulent misstatements are a recognized exception to the incontestability provision. This is because the integrity of the underwriting process relies on the truthfulness and accuracy of the information provided by the insured. If an individual commits fraud by providing false information intentionally—such as inflating their health status or falsifying their identity—the insurer retains the right to contest the policy at any time, regardless of how long it has been in force. This maintains fairness within the insurance system and protects insurers from potential exploitation.

The other circumstances listed, such as misrepresentation of age, nonsupport of claims, and claims not reported in time, generally do not fall under the category of fraudulent misstatements and may not provide the same grounds for contestation once the incontestability period has expired. Misrepresentation of age, for example, might affect benefits but often is adjusted instead of voiding the policy altogether. Consequently, fraudulent misstatements stand out as a crucial reason why a