What provision in an insurance policy prevents denial of a claim due to misstatements after two years?

The provision that prevents denial of a claim due to misstatements after two years is known as the "time limit on certain defenses." This provision is designed to provide a level of protection for policyholders by ensuring that once a policy has been in force for two years, insurers cannot deny a claim on the basis of misstatements in the application unless those misstatements were intentional or fraudulent.

This provision is important as it encourages the insurer to diligently assess risks and complete underwriting processes at the time of application. It prevents insurers from denying claims based on information that could easily be misremembered or inaccurately conveyed, thereby promoting fairness in the handling of insurance claims.

In contrast, while grace periods relate to the time allowed for premium payment, waivers involve the relinquishing of a right or privilege, and reinstatement clauses deal with renewing coverage that has lapsed. These concepts do not specifically address the issue of misstatements and their impact on claims after a certain period. Therefore, the time limit on certain defenses is the key provision that directly impacts claims related to application discrepancies beyond the two-year mark.