Regarding replacing a policy, what may happen to pre-existing conditions?

Regarding replacing a policy, what may happen to pre-existing conditions?

• A. They will be automatically covered under the new policy.
• B. Pre-existing conditions may be excluded or require new waiting periods.
• C. They are never considered in replacements.
• D. They are always covered the same as the current policy.

Answer: (B)

When you replace a policy, the new contract sets its own underwriting rules. For pre-existing conditions, the new policy may exclude those conditions or require a new waiting period before they’re covered. This protects the insurer from covering conditions that existed before the new policy started, and it’s why coverage for pre-existing conditions is not automatically guaranteed in a replacement. Some plans may offer credits for prior coverage or other continuity features, but these are not universal and depend on the specific policy. Therefore, pre-existing conditions may be excluded or require new waiting periods.

When you replace a policy, the new contract sets its own underwriting rules. For pre-existing conditions, the new policy may exclude those conditions or require a new waiting period before they’re covered. This protects the insurer from covering conditions that existed before the new policy started, and it’s why coverage for pre-existing conditions is not automatically guaranteed in a replacement. Some plans may offer credits for prior coverage or other continuity features, but these are not universal and depend on the specific policy. Therefore, pre-existing conditions may be excluded or require new waiting periods.