After a life insurance policy's contestable period has expired, the policy's incontestable clause generally will bar which of the following? I. A suit for reformation to correct a clerical error II. A contest of the validity of the policy's disability benefit provision when the provision is not specifically excluded in the policy's incontestable clause

• A. I only
• B. II only
• C. Both I and II
• D. Neither I nor II

Answer: (B)

The key idea is how the incontestable clause limits challenges to the policy after the contestable period. Once that period passes, the insurer typically cannot contest the policy’s validity based on misstatements that affected the risk, unless the clause excludes certain provisions. If a disability benefit provision is not expressly excluded, attempting to challenge its validity would be barred by the incontestable clause. On the other hand, a suit to reform a clerical error is an equitable remedy to make the written contract reflect the true terms; it isn’t a challenge to the policy’s validity, so the incontestable clause generally does not bar reform. Therefore, only the contest of the disability benefit provision would be barred, while reformation for a clerical error would not.