KRS 304.17-060: Limitation on defenses -- Incontestability.

(1) (a) There shall be a provision as follows:

"Time Limit on Certain Defenses: After three (3) years from the date of issue

of this policy no misstatements, except fraudulent misstatements, made by the

applicant in the application for the policy shall be used to void the policy or to

deny a claim for loss incurred or disability (as defined in the policy)

commencing after the expiration of the three (3) year period."

(The foregoing policy provision shall not be so construed as to affect any legal

requirement for avoidance of a policy or denial of a claim during the initial

three (3) year period, nor to limit the application of KRS 304.17 -190 to

304.17-230, inclusive, in the event of misstatement with respect to age or

occupation or other insurance.)

A policy whic h the insured has the right to continue in force subject to its

terms by the timely payment of premium (a) until at least age fifty (50) or (b)

in the case of a policy issued after age forty-four (44) for at least five (5) years

from its date of issue, may contain in lieu of the foregoing the following

provision, from which the clause in parentheses may be omitted at the

insurer's option, under the caption "Incontestable":

"After the policy has been in force for a period of three (3) years during the

lifetime of the insured (excluding any period during which the insured is

disabled), it shall become incontestable as to the statements contained in the

application."

(b) No claim for loss incurred or disability as defined in the policy commencing

after two (2) years from the date of issue of this policy shall be reduced or

denied on the ground that a disease or physical condition not excluded from

coverage by name or specific description effective on the date of loss had

existed prior to the effective date of coverage of this policy.

(2) Paragraph (b) of subsection (1) of this section shall not apply to policies subject to

KRS Chapter 304, Subtitle 17A.