Medical Expense✓ Verified · outline & fact-checked · Sep 2026Difficulty 1/5
An extension of benefits clause in a group medical expense policy is designed to:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
An extension of benefits clause protects insureds who are disabled at the time a group policy is cancelled or not renewed. Without it, terminating the policy would cut off benefits precisely when the disabled person needs them most. The clause typically continues payment of benefits for covered expenses for a limited period after termination. It is a standard contract provision in group medical expense policies and among the terms tested in the A&H objectives.
Why the other options are wrong
- B) The window for new employees to join a group is the eligibility or enrollment period, unrelated to the extension of benefits clause.
- C) Grace periods deal with late premium payments; extension of benefits concerns coverage after policy termination.
- D) Extension of benefits is a limited continuation for disabled persons, not an indefinite extension for all dependents.
Memory hook
Extension of benefits = a bridge that keeps paying for the disabled worker after the group policy shuts down.