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Chapter 27 - Moratorium Underwriting (page 3)

C

Carmen

Active Member
Hello,

May I ask if I am understanding the mechanism of moratorium underwriting correctly? In the notes, there are two defined periods:
1. Period allowing for any claim except for pre-existing condition, often 5 years, before acceptance.
2. Waiver of exclusion after the 2nd defined period, usually 2-3 years, if policyholder receives no further treatment on pre-existing conditions, after the policy has been taken out.

My understanding of this timeline, assuming no claim on pre-existing conditions:
Period 1: 5 years before acceptance of the contract (no claims relating to pre-existing condition)
Period 2: Upon policy inception, continues with 0 claims relating to pre-existing condition, i.e. usually 2-3 years
Period 3: After Period 2, can claim for pre-existing but once claimed, status will return to moratorium exclusion, which is Period 2.

I'm confused on this section because I'm not sure if Period 1 is supposed to be a period when policyholder has entered the insurance contract, but my understanding is Period 1 isn't the time when the policyholder is being insured. Hence, I would like to confirm if this is the case.

Thank you in advance!
 
Period 1 is before the contract starts, so we probably shouldn't be talking about "claims" in this period. It would be more accurate to say "treatments", ie:

Period 1: 5 years before acceptance of the contract (no treatments relating to condition)

I hope this helps,

Anna
 
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