Protection After Two-Year Period in Life Insurance Policies
- Life insurance policies payable upon the death of the insured that have been in force for two years during the insured's lifetime cannot be declared void from the beginning (void ab initio) or rescinded by the insurer due to fraudulent concealment or misrepresentation by the insured or their agent.
Incontestability Clause After Two Years
- Policies include a provision making them incontestable after two years from the date of issue while the insured is alive.
- Exceptions to the incontestability include:
- Nonpayment of premiums.
- Violation of policy conditions related to military or naval service during wartime.
Application and Effectivity
- The amendments take effect immediately upon approval.
- They apply to all existing contracts of life or endowment insurance at the time of enactment.