Sept 07 5(ii) - Deferred Period

[Always Trying]

Hello potential repondees,

This question states with reference to IP:
'State, where the notification of claim occurs after the end of the deferred period, six approaches that the insurer may use to treat such an event in accordance with policy conditions.'

This question confuses me since the definition of deferred period is:
'The period of incapacity before any benefit is paid.'

Surely this means that is it impossible for the notification of claim to come at the end of the deferred period.

Doesn't the notification of claim trigger the start of the deferred period? Or am I missing something?

Thanks

Always Trying

 

[Always Trying]

Is it because if a policyholder notifies the insurer of the illness maybe 8 weeks after he has fallen ill, but has a policy with a 12 week deferred period, he might expect to receive the benefit 12 weeks from falling ill, not 12 weeks from notifying the insurance company of his claim?

 

[Anna Walklate]

Yes, that's right - the deferred period starts from the date of sickness, NOT the date of claim notification.

Note that this question is actually just bookwork - it's testing the glossary definition of "Claims - late notification (IP)".

 

[Always Trying]

Thanks a lot for your help