After an annuity has been in force for how many years is it considered incontestable?

After an annuity has been in force for how many years is it considered incontestable?

• A. 1 year
• B. 3 years
• C. 4 years
• D. 2 years

Answer: (D)

Two years. The incontestability clause means once the annuity has been in force for a two-year period, the insurer generally cannot challenge the contract or deny a claim based on misstatements in the application. This protects the contract after premiums have been paid and the information has stood for a while. There are exceptions, such as fraud or nonpayment, but for standard misstatements, the policy becomes incontestable after two years.

Two years. The incontestability clause means once the annuity has been in force for a two-year period, the insurer generally cannot challenge the contract or deny a claim based on misstatements in the application. This protects the contract after premiums have been paid and the information has stood for a while. There are exceptions, such as fraud or nonpayment, but for standard misstatements, the policy becomes incontestable after two years.