What is the contestable period for a life insurance policy in Maryland?

The contestable period for a life insurance policy in Maryland is set at two years. This is a significant timeframe during which the insurer has the right to investigate and contest the validity of the policy if there are any discrepancies or misrepresentations in the application. After this two-year period, the policy typically becomes incontestable, meaning that the insurer cannot contest the validity of the policy based on misstatements or omissions made by the policyholder, except in cases of fraud. This provision is designed to provide policyholders with protection and stability, ensuring that they cannot be unjustly denied benefits long after the policy has been issued.

Understanding this period is crucial for both insurers and policyholders, as it clarifies the expectations regarding the validity of the coverage and the obligations to disclose accurate information when securing life insurance.