2. Once a dependent child is no longer eligible under the parents' health insurance policy, most policies contain what provision?
Answer: D
The privilege to convert without establishing insurability.
Once a dependent child is no longer eligible under their parents' health insurance policy, most policies provide the privilege to convert to an individual policy without having to establish insurability. This means that the child can obtain a new policy regardless of their health status at the time of conversion.
A) The right for a child to remain on the policy for increased premium charge.
This option is incorrect because most health insurance policies do not allow a dependent child to remain on the parent's policy solely by paying an increased premium once they are no longer eligible. The typical provision is to allow conversion to an individual policy instead.
B) The right for a child to remain on the policy for increased premium charge, if they are in reasonably good health.
This choice is also incorrect, as it implies that health status can influence the ability to stay on a parent's policy by paying a higher premium. Generally, policies do not offer this option, emphasizing the ability to convert to an individual policy without regard to health.
C) The option to convert to his/her own policy if they can pass a rigorous physical.
While this option mentions conversion, it is incorrect because it stipulates that the child must pass a rigorous physical examination. Most policies allow conversion without such requirements, making this option inaccurate.
D) The privilege to convert without establishing insurability.
This option is correct, as it accurately reflects the common provision in health insurance policies. It allows the dependent child to convert to an individual policy without needing to prove their health status, which is a significant benefit.
Conclusion
The correct answer is definitively D, as it aligns with the standard provisions found in health insurance policies regarding dependent children transitioning to individual coverage. Options A, B, and C fail to accurately represent the common practices of health insurance regarding eligibility and conversion rights. Thus, D stands out as the most appropriate choice based on policy provisions.