How long is a long-term care policy typically contestable based on misrepresentation?

A long-term care policy is generally contestable for a period of two years based on misrepresentation. This two-year period is consistent with guidelines established by many regulatory frameworks governing insurance practices. During this time, insurers have the right to investigate claims for accuracy and can deny a claim if they find that a policyholder misrepresented information during the application process. This provision aims to ensure that insurance products are issued based on truthful and accurate information, thereby protecting both the insurer and consumers in the long-term care market.

The two-year contestability period strikes a balance between allowing insurers to mitigate fraud and ensuring that policyholders have some assurance that their coverage will be honored after a reasonable period. By providing a specific timeframe for contestability, it helps establish clear expectations for both parties involved, ultimately contributing to the stability and trust in long-term care insurance.