After the contestability period, which statement about disputing the policy's validity is correct?

• A. The insurer can still challenge misrepresentation after the contestability period.
• B. The insurer cannot dispute misrepresentation after the contestability period, except for non-disclosures or fraud.
• C. The policy becomes incontestable for all reasons including new evidence.
• D. The policy may be canceled at any time regardless of the period.

Answer: (B)

Contestability after issue is the time window insurers use to review the application for misstatements or omissions. Once that period ends, misstatements about age, health, or other stated facts generally cannot be used to deny a claim or cancel the policy because the policy becomes incontestable for those issues. The key exception is if there was nondisclosure or fraud—these carve-outs let the insurer challenge the policy even after the contestability period.

So the correct idea is that the insurer cannot dispute misrepresentation after the period, except for non-disclosures or fraud. This protects the insured from having a policy voided years later for honest mistakes, while still allowing the insurer to respond if material facts were deliberately hidden or falsified.