PSI Ohio Insurance Practice Exam 2026 – All-in-One Guide to Exam Success

Question: 1 / 400

What is the time limit on certain defenses after which the policy becomes incontestable?

1 year.

2 years.

The correct choice indicates that the time limit for certain defenses after which a life insurance policy becomes incontestable is two years. This means that after this period, the insurer cannot contest the validity of the policy based on material misrepresentations or omissions made by the insured in the application. The two-year period is designed to provide a balance between protecting the insurer's interests in screening for risks and the rights of policyholders, ensuring that consumers are not held indefinitely liable for their statements made at the time of application.

This two-year period does not apply to policy violations resulting from fraud, which can be contested at any time. Therefore, the two-year period serves as a reassurance for policyholders that as long as they maintain their policy for that time frame, their beneficiaries will receive the death benefit regardless of disputes related to the application information.

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3 years.

5 years.

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