Pre-Existing Conditions

<body topmargin=0 leftmargin=0 marginheight=0 marginwidth=0> <table cellpadding=0 cellspacing=0 border=0><tr> <td valign="top" colspan=2 height=90 BGCOLOR="#006699" TEXT="#080000" bgproperties="fixed" background="122285a1erlcgo.gif"> <div> <FONT SIZE="5" COLOR="#FFCC66" FACE="Arial" ><B>Disability Income Insurance</B></FONT><B>     |     </B><A HREF="index.htm" TARGET="_top" TITLE="Disability Income Insurance"><U><B>home</B></U></A></div> <div> back to  <A HREF="id3.htm" TARGET="_top" TITLE="Chapter 2"><U><B>Chapter 2</B></U></A></div> <div> </div> </td> </tr><tr> <td valign="top" width=210 BGCOLOR="#FFCC66" TEXT="#080000" background="121d2c00dkelyh.gif"> <div> <A HREF="mailto:instructor@wallstreetinstructors.com" TARGET="_top" TITLE="mailto:instructor@wallstreetinstructors."><U><IMG SRC="12aaf630.gif" border=0 width="175" height="99" ALIGN="BOTTOM" HSPACE="0" VSPACE="0"></U></A></div> <div> <TABLE BORDER="2" CELLPADDING="2" CELLSPACING="1" WIDTH="83" BORDERCOLORLIGHT="#C0C0C0" BORDERCOLORDARK="#808080" FRAME="BOX" RULES="ALL" ALIGN="BOTTOM" HSPACE="0" VSPACE="0" > <tR> <tD VALIGN=TOP HEIGHT= 16 ><NOBR><div> <A HREF="mailto:instructor@wallstreetinstructors.com" TARGET="_top" TITLE="mailto:instructor@wallstreetinstructors."><U>Instructor</U></A></div> </NOBR></tD> </tR> </TABLE></div> <bR> <div> <A HREF="id10.htm" TARGET="_top" TITLE="Renewability"><U>Renewability</U></A></div> <div> <A HREF="id8.htm" TARGET="_top" TITLE="Definition of Disability"><U>Definition of Disability</U></A></div> <div> <B>Pre-Existing Conditions</B></div> <div> <A HREF="id25.htm" TARGET="_top" TITLE="Elimination Period"><U>Elimination Period</U></A></div> <div> <A HREF="id26.htm" TARGET="_top" TITLE="Benefit Period"><U>Benefit Period</U></A></div> <div> <A HREF="id27.htm" TARGET="_top" TITLE="Exclusions Waivers"><U>Exclusions & Waivers</U></A></div> <div> <A HREF="id28.htm" TARGET="_top" TITLE="Premium Waiver"><U>Premium Waiver</U></A></div> <div> <A HREF="id29.htm" TARGET="_top" TITLE="NonDisabling Injuries"><U>Non-Disabling Injuries</U></A></div> <div> <A HREF="id30.htm" TARGET="_top" TITLE="Rehabilitation Benefits"><U>Rehabilitation Benefits</U></A></div> <div> <A HREF="id31.htm" TARGET="_top" TITLE="Chapter 2 Review"><U>Chapter 2 Review</U></A></div> <bR> </td> <td valign="top" height=390 BGCOLOR="#FFFFFF" TEXT="#080000"> <div> <B>Pre-Existing Conditions</B></div> <bR> <bR> <div> Let's move on from our definitions of disability to the principal cause of denied claims -- pre-existing conditions.  In most disability income insurance policies, a pre-existing condition is defined as a sickness or physical condition for which:</div> <bR> <div> <IMG BORDER="0" SRC="Symb075c00b700f000000000.gif" HEIGHT="16" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">medical advice or treatment was recommended by or received from a physician, or</div> <div> <IMG BORDER="0" SRC="Symb075c00b700f000000000.gif" HEIGHT="16" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">symptoms existed which would cause a prudent person to seek diagnosis or treatment</div> <bR> <div> in the two-year period preceding the effective date of the policy.  </div> <bR> <div> Disability income insurance policies generally do not pay benefits for disabilities resulting from pre-existing conditions during the first two years that the policy is in force unless two conditions are met:</div> <bR> <div> <IMG BORDER="0" SRC="Symb075c00b700f000000000.gif" HEIGHT="16" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">The pre-existing condition was disclosed in the application for the policy <I>and</I></div> <div> <IMG BORDER="0" SRC="Symb075c00b700f000000000.gif" HEIGHT="16" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">The insurance company did not specifically exclude the pre-existing condition.</div> <bR> <div> Of course, after the policy has been in force for 2 years, undisclosed, pre-existing conditions are covered just like any other condition.</div> <bR> <bR> <div> <TABLE BORDER="2" CELLPADDING="1" CELLSPACING="1" WIDTH="97" BORDERCOLORLIGHT="#C0C0C0" BORDERCOLORDARK="#808080" FRAME="BOX" RULES="ALL" ALIGN="BOTTOM" HSPACE="0" VSPACE="0" BGCOLOR=#FFCC66 > <tR> <tD VALIGN=CENTER HEIGHT= 38 WIDTH="87"><div> <A HREF="id25.htm" TARGET="_top" TITLE="Elimination Period"><U><B><U>NEXT</U></B></U></A></div> </tD> </tR> </TABLE></div> <bR> </td> </tr></table></body>