Which statement best describes the effect of the incontestable clause?

• A. It prevents the insured from challenging the policy after issue.
• B. It bars the insurer from challenging the policy after a period due to stale evidence.
• C. It requires periodic re-evaluation of misstatements of age.
• D. It applies only to the death benefit, not other provisions.

Answer: (B)

The important idea is that an incontestable clause protects the insured by limiting the insurer’s ability to challenge the policy after a certain period. Once the policy has been in force for the specified duration (typically two years), the insurer generally cannot contest the policy or deny a claim based on misstatements in the application, because that evidence is considered stale. The major exception is fraud, which can still allow contesting the policy at any time.

So the statement that best describes the effect is that the insurer is barred from challenging the policy after a period due to stale evidence. This captures the essence of the clause: limiting post-period challenges based on past misstatements.

Why the other ideas aren’t right: the clause doesn’t prevent the insured from challenging the policy; misstatements aren’t reevaluated periodically after issue; and the incontestability protection typically applies to the policy as a whole, not just the death benefit.