Final answer:
A life insurance policy can be contested by the insurer only during the first two years of the contract, which is referred to as the contestability period.
Step-by-step explanation:
The period during which a life insurance policy can be contested by the insurer is typically known as the 'contestability period. After the first two years, known as the contestability period, the insurer ability to contest or deny a claim due to misstatements or omissions in the insurance application is significantly limited.
During this time the insurance company may scrutinize the policyholder application and medical history to ensure that there was no fraud or significant misrepresentation that would affect their decision to provide coverage. If such discrepancies are found within the first two years, the insurer may have the right to void the policy and deny claims.