Annuities become incontestable after how many years in force?

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

Answer: (B)

Two years. The incontestability provision means that once a policy has been in force for a two-year period, the insurer generally cannot contest the contract or deny a claim based on misstatements in the application, with fraud as the notable exception. This protects the policy owner after the contract has proven its reliability through time and paid premiums. During the first two years, the insurer can still scrutinize and potentially contest based on misstatements, but once that period passes, misstatements aren’t grounds to void the contract or deny claims (except in cases of fraud). This standard applies to annuities as well as other life, health, and accident or sickness policies.