If I recall accurately it was pointed out that the claim was based on quotes out of context and that in other discourse he refuted that claim.
Hagee, Falwell Deny Belief in \"Dual Covenant\" Theology | ICEJ International
" HAGEE, FALWELL DENY BELIEF IN "DUAL COVENANT" THEOLOGY
Evangelical leaders refute claims made in Jerusalem Post
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Hagee, Falwell Deny Belief in "Dual Covenant" Theology
Prominent American Evangelical Pastors Jerry Falwell and John Hagee have both denied previous reports in the The Jerusalem Post that they believe in "dual covenant" theology - a belief maintaining that Jews can be saved through their own special covenant relationship with God and a faith in Jesus is not a requirement for salvation.
Hagee told the Post that neither he nor pastor Falwell "believe or teach dual covenant". "We remain friends in support of the State of Israel as required by scripture," the Texas-based televangelist said.
In a statement on his website, Falwell said that he believes "all people - Baptists, Methodists, Pentecostals, Jews, Muslims, etc- must accept Jesus in order to enter heaven." The Southern Baptist leader went on to "reaffirm that I am a Zionist in terms of Israel's entitlement to its homeland. I continue to pray daily for the peace of Jerusalem, as the Bible instructs Christians to do. And I have dedicated my life and ministry to working for the peace of Israel."
Falwell reiterated that "I have been on record all 54 years of my ministry as being opposed to dual covenant theology... I simply cannot alter my deeply held belief in the exclusivity of salvation through the Gospel of Christ for the sake of political or theological expediency. Like the Apostle Paul, I pray daily for the salvation of everyone, including the Jewish people."