Fraudulent misrepresentation refers to a dishonest statement made by an applicant to induce an insurance company to issue coverage. If the company knew the truth, it would not accept the applicant. This gives a property and casualty insurance company grounds to terminate a policy at any time.
An incontestable clause is a provision within a life insurance policy that prevents the insurer from voiding the policy after a specified period, usually two years, due to misrepresentation or concealment by the insured.
A provision in an insurance policy that precludes the insurer from disputing the validity of the policy on the basis of fraud or mistake after a specified period, typically two years.
The principle that, having paid a claim, an insurer has the right to take over any other methods the policyholder may have for obtaining compensation for the same event.
