Policies to increase contestability in markets
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Policies to increase contestability in markets
There are a number of different policies that might be used to stimulate an increase in market contestability for different goods and services. The crucial factor affecting contestability is the level of sunk cost.
Feb 11, 2019
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Most life insurance policies have something called a two year contestability period. This means during the first two years after a policy starts, the insurance company can review and investigate information on the application if a death claim happens. This is not about denying claims for no reason. It is about verifying accuracy. If everything on the application was truthful and complete, the policy typically pays as expected. If major information was left out or misrepresented, the company can
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