Understanding the Contestability Period in Florida Life Insurance Policies
When you buy a life insurance policy in Florida, there’s an important clause buried in the fine print known as the “contestability period.” This period—typically lasting two years from the date the policy takes effect—gives the insurance company the right to review the policy for any misstatements, omissions, or misrepresentations made during the application process.
Although it may seem like a routine clause, the contestability period often becomes the center of life insurance claim disputes, especially when beneficiaries face denials shortly after the insured’s death.
What Is the Contestability Period?
Under Florida law, most life insurance policies contain a two-year contestability clause. During this time, the insurer can investigate and, if necessary, deny or rescind coverage if it discovers that the policyholder provided inaccurate or incomplete information on the application.
Common issues insurers raise during this period include:
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Undisclosed medical conditions or treatments
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Smoking or substance use not reported on the application
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Misstated age or occupation
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Incorrect income or beneficiary details
If the insured dies within the first two years of the policy, the insurance company will almost always delay payment and conduct an investigation before approving the claim.
What Happens After the Two-Year Period Ends?
Once the two-year contestability period expires, the life insurance policy generally becomes “incontestable.” This means that even if the insurer later finds errors or omissions in the application, it cannot use them to deny a claim—unless fraud is proven.
Florida courts have recognized that this rule protects beneficiaries and encourages insurers to complete any underwriting diligence upfront. However, insurers may still attempt to invoke fraud exceptions to avoid paying a claim, making legal representation critical.
Can an Insurer Deny a Claim During the Contestability Period?
Yes—but only if the insurer can prove a material misrepresentation that affected its decision to issue the policy or the premium charged. For example, if the insured failed to disclose a heart condition that would have led to a higher premium or denial, the insurer can argue that the policy was issued under false pretenses.
However, not all mistakes justify a denial. Innocent errors, minor omissions, or questions that were answered truthfully based on the applicant’s knowledge at the time may not be sufficient grounds for rescission under Florida law.
What to Do If a Life Insurance Claim Is Denied
If a Florida life insurance company denies your claim during the contestability period:
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Request the denial letter in writing. It must specify the reason and evidence for the denial.
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Obtain the full policy and application. Compare the alleged misstatements to what was actually disclosed.
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Consult a Florida life insurance attorney. An attorney can determine whether the insurer’s denial complies with Florida statutes and case law, and whether a bad faith claim may also exist.
An experienced lawyer can help negotiate with the insurer, appeal the denial, or file a lawsuit if necessary.
Protecting Your Rights
The contestability period allows insurers to investigate—but it also imposes limits on their power to deny valid claims. If a loved one’s life insurance claim is delayed or denied within the first two years of the policy, you have legal rights and recourse under Florida law.
A knowledgeable Florida life insurance attorney can help ensure the insurer plays by the rules and that your family receives the benefits you’re entitled to.
Have you or someone you know been denied a life insurance claim? Contact Florida Life Insurance Claims Lawyer J.P. Gonzalez-Sirgo by dialing his direct number at (786) 272-5841, calling the main office at (305) 461-1095, or Toll Free at 1 (866) 71-CLAIM or email Miami Attorney Gonzalez-Sirgo directly at jp@yourattorneys.com or by text at (305) 929-8935.
