The 'extension of benefits' provision in a medical expense policy provides that...
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
The extension of benefits provision protects an insured whose policy terminates while a covered illness or injury is already in progress. Under the provision, benefits continue for that specific condition for a stated period after termination, commonly a limited number of days, so that a disabling episode underway at cancellation is not abruptly cut off. This is one of the standard contract provisions tested under individual medical contract issues in the A&H outline. It does not extend the policy generally, revive coverage limits, or govern dependent eligibility; its narrow purpose is to finish paying for treatment of a condition that began before the policy ended.
Why the other options are wrong
- B) Extension of benefits applies only to a condition already in progress, not to a broad one-year policy renewal.
- C) Unused maximums do not carry forward; the extension covers a condition in progress, not unused limits.
- D) Dependent continuation after a stated age is governed by conversion or COBRA-type rules, not extension of benefits.
Memory hook
Extension of benefits keeps paying for care in progress when the policy ends.