Final answer:
The entire contract provision in a life insurance policy states that both the policy and a copy of the application form the contract between the policyowner and the insurer. This provision ensures that any statements or representations made by the policyowner in the application are considered part of the contract.
Step-by-step explanation:
The life insurance policy provision that states both the policy and a copy of the application form the contract between the policyowner and the insurer is known as the entire contract provision.
Under this provision, the policy document and the application form together form the complete agreement between the policyowner and the insurance company, and any statements or representations made by the policyowner in the application are considered representations that are part of the contract.
For example, if the policyowner made a misrepresentation on the application, such as providing false information about their health, the insurance company may have the right to contest a claim based on that misrepresentation.