Life License Qualification Program (LLQP) Practice Exam

The provision that addresses preexisting conditions in an Accident and Health policy is the one related to the time limit on certain defenses. This provision allows insurers to limit their ability to contest or deny claims for losses that relate to preexisting conditions after a specific time frame. Typically, this means that if a policyholder has been covered for a certain duration—often two years—insurers cannot use preexisting conditions as a reason to deny claims on those conditions. This is significant for consumers as it provides them with assurance that once they have been covered for a sufficient period, their claims will be honored without the risk of being denied due to health issues that existed prior to the policy's initiation. Understanding this provision is crucial for insured individuals, as it influences their coverage and rights regarding benefits for medical issues that may have existed before they obtained their policy. This provision reflects the balance between protecting insurers from fraud and providing fair access to benefits for policyholders.