ALBANY — The Court of Appeals ruled against the insurance industry on an important policy issue yesterday, holding that the standard “incontestability clause” bars insurers from denying benefits to policyholders who knowingly failed to disclose a preexisting medical condition when they bought their policy.
Insurance companies are actively litigating the issue nationally and the New Jersey Supreme Court has ruled in their favor. But New York’s high court found that allowing insurers to challenge claims after the two-year incontestability period expires would undermine the Legislature’s intent in requiring carriers to put incontestability provisions in all of their life, health and accident policies.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]
