After how many years from the date of issue can a policy no longer be canceled by the insurer for misstatements (except for fraud)?

In South Carolina, an insurance policy cannot be canceled by the insurer for misstatements made in the application after a period of two years from the date of issue, except in cases of fraud. This two-year limitation is a safeguard for policyholders to ensure that once the policy has been in force for this duration, they have a degree of protection against the insurer retracting coverage based on information that may not have been disclosed accurately at the time of application.

Essentially, this provision is designed to encourage both insurers and insured parties to maintain truthful applications while providing a sense of security to policyholders that their coverage will remain valid after they have held the policy for a reasonable amount of time. Other timeframes, such as one year or three years, do not align with the established law in South Carolina regarding the cancellation of policies for misstatements. Thus, two years is the accurate and applicable period in this context.