What term refers to the period after which an insurer cannot dispute a claim based on application information?

The correct term is the incontestability period. This refers to a specific timeframe, typically two years from the policy's issue date, during which an insurer cannot challenge the validity of a policy or deny a claim based on misstatements or omissions in the insurance application. The intent behind this provision is to provide policyholders with a level of security and assurance that, after a reasonable period, their coverage cannot be questioned, thus encouraging individuals to maintain their insurance without fear of unexpected disputes.

Incontestability serves to protect consumers from potential practices that could undermine their claims after they have relied on the policy for coverage. Once the incontestability period has elapsed, the insurer is generally bound to honor the policy and cannot cite issues with the application to dispute claims, fostering trust in the insurance process.

The other terms do not correctly describe this concept. The exemption period typically relates to specific conditions or situations that are excluded from coverage. Claim adjustment periods are concerned with reviewing and processing claims rather than the validity of the policy itself. The underwriting period pertains to the assessment and evaluation process before issuing the policy.