When Jose Morales applied for a life insurance policy from Amex, he lied on the application form and denied having the AIDS virus. As a part of the application process, Amex required him to have a medical examination. Instead, an impostor claiming to be Morales gave blood and urine samples. Amex issued Morales a life insurance policy containing a two-year incontestability clause. 

Two-and-one-half years later, Morales died of AIDS-related causes. The company then conducted an investigation and denied the claim for the policy proceeds. The beneficiary of the policy argued that any fraud perpetrated by Morales was now excused by the policy’s incontestability clause. Does the incontestability clause make the insurer liable on the policy? Explain.