An insurance company has a period of how many years to contest information on an accident and health application?

The appropriate time frame for an insurance company to contest or deny a claim based on misrepresentation or inaccuracies in an accident and health application is indeed two years. This two-year period is designed to provide a balance between allowing insurers to investigate and contest fraudulent activities while also protecting policyholders from being indefinitely subject to claim denials based on errors or omissions.

In practice, this means that if an insurance company discovers that an applicant provided false information or omitted significant details on their application, they have up to two years to initiate a contest of the policy. Beyond this two-year mark, the insurer typically cannot contest the validity of the policy based on matters disclosed in the application, which reinforces the principle that once coverage is established, policyholders can rely on the security of that coverage.

This provision is aligned with the intent to promote fairness in the insurance process, ensuring that both parties—the insurer and the insured—are afforded rights and responsibilities.