Question 86

A period of time must elapse before pre-existing conditions are covered.

In Accident and Health insurance, a waiting period for pre-existing conditions indicates that there is a specific timeframe that must pass before the insurer will provide coverage for those conditions.

A) coverage for pre-existing conditions is permanently excluded by a new insurer

This option is incorrect because a waiting period does not mean that coverage for pre-existing conditions is permanently excluded. Instead, it implies that coverage will eventually be available after the waiting period has elapsed.

B) coverage for pre-existing conditions starts at the inception of the new policy

This option is incorrect as it contradicts the definition of a waiting period. If coverage for pre-existing conditions started at the inception of the policy, there would be no waiting period.

C) payment for expenses resulting from pre-existing conditions is held in escrow

This option is also incorrect because a waiting period does not involve holding payments in escrow. Instead, it refers to the time before coverage for pre-existing conditions becomes effective.

D) a period of time must elapse before pre-existing conditions are covered

This option accurately reflects the meaning of a waiting period in Accident and Health insurance, indicating that there is a designated duration during which coverage for pre-existing conditions will not be provided.

Conclusion

The correct answer, D, precisely describes the function of a waiting period in Accident and Health insurance, which is to enforce a delay before coverage for pre-existing conditions activates. All other options fail to capture this critical aspect, either misrepresenting the nature of the waiting period or suggesting incorrect provisions regarding coverage.