Truthfully Informing Obligation And Incontestability Clause In Insurance Law

Insurance contract is referred as the" contract of utmost good faith", especially demands that the Policy-holder must inform truthfully. Insurers’ legal rescission right of insurance contract is part of importance but complications in the insurance law.Insurers would have legal rescission right once the policyholders hadn’t fulfiled the duty of disclosure, however, the phenomenon of insurers legal rescission right of insurance contract being abused is outstanding, and incontestability clause is exactly the restriction on insurers’ abuse, so that insurers’ moral risk could be restrained, and policyholders’ interest be protected, furthermore, the development of insurance industry could be promoted. Latest amendment of Insurance Law of PRC put into effect on October1,2009which include complete incontestability clause has caused wide public concern and academic discussion, the argue focus on incontestability clause’s application and exception, stiffening and the beginning date of cont-estable period. Solving the controversial problem to make the incontestability clause work better is of great significant and necessity.