After a disability policy has been in force for how many years is it considered incontestable?

• A. 1 year
• B. 4 years
• C. 3 years
• D. 2 years

Answer: (C)

The event being tested is the incontestability protection built into disability policies. An incontestability period is a window after which the insurer cannot challenge the validity of the policy based on information that appeared in the application. This protects the insured by providing stability: once the policy has been in force for a stated number of years, the insurer generally can’t dispute coverage or deny a claim simply because something in the original application was misstated, as long as there hasn’t been fraud or nonpayment of premiums.

In the context of disability policies, that period is three years. So after the policy has been in force for three years, the policy becomes incontestable; the insurer can’t contest the contract or deny a claim on the basis of statements in the application, except for issues like nonpayment or fraud. This gives the insured confidence that their coverage won’t be pulled years later over past misstatements, while still allowing the insurer to address serious problems like fraud.