Non-Contestability Clause Legal Meaning and Definition

Here is a simplified definition of the legal term Non-Contestability Clause.

Non-Contestability Clause (noun): A part of an insurance policy that limits the insurance company's ability to deny a claim due to incorrect information or dishonesty on the application. The clause generally only applies after the policy is in effect for a certain period of time, often two years. This means that even if false information was given when the policy was framed, the claim cannot be refused after this period, unless it's due to fraud.