Life & Health Insurance Practice Exam

How is "Sickness or Illness" defined in disability policies?

1. Sickness contracted at any time

2. A disease appearing after a 30-day policy period

3. A continuous illness for more than 6 months

4. Any injury occurring while on the job

The correct answer is: A disease appearing after a 30-day policy period

In the context of disability policies, "Sickness or Illness" is typically defined as a disease that manifests after a specified waiting period, which in this case is often indicated as 30 days from the start of the policy. This definition is crucial for understanding how and when coverage begins for claimants. The rationale behind this waiting period is that it establishes a clear timeframe during which the insurance coverage is in effect, ensuring that claims made are for illnesses that occur after the policy has been activated. This definition differs from other options presented. For instance, a general reference to any sickness contracted at any time would not take into account the need for the policy to be active and the waiting period before coverage begins. A continuous illness lasting more than six months might describe the duration of a disability but does not address when the sickness must manifest for it to be covered. Injuries occurring while on the job pertain to worker’s compensation rather than disability policies, which typically focus on broader definitions of sickness or illness. Thus, defining "Sickness or Illness" as a disease appearing after a 30-day policy period aligns with standard practices in insurance policies, ensuring clarity on when coverage applies.