Question

A policy owner suffers a covered accident and health insurance less on June 30 and submit the proof of loss July 10. If the policy owner canceled July 2 what's happens ?

Option 1: The policy owner will still receive insurance benefits for the covered accident.
Option 2: The policy owner will not receive any insurance benefits for the covered accident.
Option 3: The policy owner will receive a partial insurance benefit.
Option 4: The policy owner will receive the insurance benefit after paying a penalty.

Answer 1

If the policy owner cancels before the accident occurs, they will not receive any insurance benefits for the covered accident.

Step-by-step explanation:

If the policy owner canceled on July 2, they would not receive any insurance benefits for the covered accident. In this scenario, submitting the proof of loss on July 10 does not matter because the policy was already canceled before the accident occurred. Insurance benefits are only provided if the policy is active at the time of the covered event.