Non Contestability Clause Law & Legal Definition
A non-contestability clause is an insurance policy provision which requires the insurance company to challenge any statement in the application for the insurance within a specific time. This prevents the company from denying coverage on the basis of fraud or error in the application when a claim is made by the policyholder.
Non-contestability may refer to a will provision, under which anyone who challenges the will will be disinherited. The validity of a trust is more difficult to challenge than the validity of a will. As stated above, a trust is merely a contract. There is no heightened level of capacity or intent necessary to formulate a contract. A will requires a higher level of mental capacity by the individual executing the will and the absence of undue influence.
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