Which clause prevents the insurer from contesting the policy after a specified period?

• A. Contract of adhesion
• B. Principle of indemnity
• C. Valued policy
• D. Incontestable clause

Answer: (D)

The incontestable clause is a provision that, after the policy has been in force for a specified period (typically two years), prevents the insurer from contesting the validity of the policy or denying a claim based on misstatements in the application. This gives the insured stability and predictability in coverage, though it still allows the insurer to deny for nonpayment, fraud, or certain material misrepresentations that fall outside the protections once the period has passed. The other options describe different ideas (adhesion contracts, indemnity principles, or valued policies) and do not address the insurer’s ability to contest or void a policy after a set time.