Question

All of the following are true about the probationary clause on a health policy, EXCEPT:

a) Coverage begins immediately
b) Eliminates coverage for pre-existing conditions initially
c) Typically has a specified waiting period
d) Intended to prevent adverse selection

Answer 1

The probationary clause on a health policy typically has a waiting period before coverage begins, except when coverage begins immediately.

Step-by-step explanation:

The probationary clause on a health policy typically has a specified waiting period to provide coverage. This waiting period is a period of time after the policy is purchased before the coverage begins. Therefore, option a) Coverage begins immediately is not true about the probationary clause on a health policy.