All the following statements concerning the incontestable clause are correct EXCEPT:

• A. It waives most of the insurance company's rights to dispute the validity of the contract after a certain period of time.
• B. It is without counterpart in any other type of contract.
• C. It is no longer the source of much litigation today.
• D. It primarily applies to whether the terms or conditions of the contract have been fulfilled.

Answer: (D)

The incontestability clause is about protecting the policy once it has been in force for a set period by limiting the insurer’s ability to challenge the policy's validity based on misstatements in the application. After that period, the insurer usually cannot void the contract or deny a claim on grounds tied to those misstatements, with fraud and certain exceptions aside. This creates certainty for the insured and beneficiaries and is a feature most closely associated with life insurance.

That makes the statement about it primarily applying to whether the terms or conditions of the contract have been fulfilled inaccurate. The clause doesn’t focus on whether every term or condition has been met; it focuses on whether the contract itself remains valid in light of representations made when the policy was issued. The other statements fit: the clause waives most rights to dispute validity after the period, it is largely unique to life insurance, and it has reduced litigation over time, even though disputes can still arise in fraud or other limited circumstances.