Final answer:
A life policy can no longer be canceled for non-fraudulent misstatements after the contestability period, which is typically 2 years from the date of issue.
Step-by-step explanation:
A life policy can no longer be canceled for non-fraudulent misstatements after a certain period of time called the contestability period. The contestability period is typically 2 years from the date of issue of the policy. During this period, the insurance company has the right to cancel the policy or deny a claim if the insured made material misrepresentations on the policy application.
However, after the contestability period expires, the insurance company can no longer cancel the policy or deny a claim based on non-fraudulent misstatements made by the insured.
For example, if a policy was issued on January 1, 2020, the contestability period would usually end on January 1, 2022. After that date, the policy cannot be canceled for non-fraudulent misstatements.