For how long may an insurer deny claims based on misstatements in an application from the policy's date of issue?

The correct duration for which an insurer may deny claims based on misstatements in an application from the policy's date of issue is two years. This two-year period is commonly referred to as the "incontestability period." During this time, insurers have the right to investigate the accuracy of the information provided in the application and can deny coverage if they find that misstatements materially affected the issuance of the policy.

After the contestability period has passed, insurers are typically barred from denying claims based on misstatements, unless the misstatement was intentional or constituted fraud. This protects policyholders by providing them assurance that their claims cannot be denied without sufficient basis after the two-year period, thereby promoting fair treatment in the insurance industry.