Uniform Policy Provisions Health Insurance
Uniform policy provisions are clauses included in insurance policies. Each state has its own set of mandatory and optional provisions that must be included in an insurance policy. The state requires 12 mandatory provisions and gives insurance companies the discretion to include any of 11 optional provisions.
Key Takeaways:
– Uniform Policy Provisions are clauses included in health insurance policies.
– There are 12 mandatory and 11 optional provisions for insurance companies to use.
– Each state has its own uniform individual accident and sickness law that dictates the required and optional provisions.
Uniform policy provisions provide insurance carriers with a list of required and optional items to include in their policies. The National Association of Insurance Commissioners (NAIC) played a leading role in developing this list. Each state has its own version of the uniform individual accident and sickness law, which specifies the requirements for these provisions. The provisions appear as clauses in the insurance policy.
The 12 mandatory provisions include the rights and obligations of both the insurer and the insured. These provisions cover including relevant information in the policy, having a grace period for delinquent premium payments, and reinstating policyholders who miss the grace period. Policyholders are required to notify the insurer of a claim within 20 days, provide proof of loss, and update beneficiary information when necessary.
After the mandatory provisions, insurers may include any of 11 optional clauses in a policy. The policyholder and the insurer can negotiate which of these provisions will be included, but the insurer typically has the final say. The optional provisions place more burden on the insured, such as informing the insurer of changes in income or occupation. Any misstatements regarding age, illegal substances, or illegal occupations will affect the insured’s ability to collect on claims covered by the policy.
