20-1346. Time limit on defenses
A. There shall be a provision as follows: "Time limit on certain
defenses: (a) After two years from the date of issue of this policy no misstatements,
except fraudulent misstatements, made by the applicant in the application for such policy
shall be used to void the policy or to deny a claim for loss incurred or disability (as
defined in the policy) commencing after the expiration of such two year period."
"(b) No claim for loss incurred or disability (as defined in the policy) commencing
after two years from the date of issue of this policy shall be reduced or denied on the
ground that a disease or physical condition not excluded from coverage by name or
specific description effective on the date of loss had existed prior to the effective
date of coverage of this policy."
B. The policy provision set forth in (a) of subsection A of this section shall not
be so construed as to affect any legal requirement for avoidance of a policy or denial of
a claim during such initial two year period, nor to limit the application of sections
20-1358, 20-1359, 20-1360, 20-1361 and 20-1362 in the event of misstatement with respect
to age or occupation or other insurance.
C. A policy which the insured has the right to continue in force subject to its
terms by the timely payment of premium until at least age fifty or, in the case of a
policy issued after age forty-four, for at least five years from its date of issue, may
contain in lieu of (a) of subsection A of this section the following provision, from
which the clause in parentheses may be omitted at the insurer's option, under the caption
"Incontestable:" "After this policy has been in force for a period of two years during
the lifetime of the insured (excluding any period during which the insured is disabled),
it shall become incontestable as to the statements contained in the application."
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