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8.1 General Definitions

TermDefinition
Accident & Health InsurancePolicy covering the perils of injury and sickness
Accidental InjuryA spontaneous event, unforeseen and unintended, resulting in injury
Accident (Injury)One of the following may be used: Accidental Results – Requires only that the injury be unintended and unforeseen. Accidental Means – Requires both the injury and the cause of the injury to be unintended and unforeseen; considered more restrictive. This definition is not allowed in some states.
CoinsuranceThe cost sharing between the insurer and the insured stated as a percentage of the claim amount, payable after the deductible has been met
CopaymentA stated dollar amount that applies per claim in addition to any other cost-sharing
DeductibleThe initial amount payable by the insured before insurance benefits apply
Morbidity TableTable showing the mathematical probability of a loss due to a sickness or injury. This table is used to help determine premiums for accident and health insurance. The morbidity table is comparable to the mortality table used for life insurance rating.
Pre-existing ConditionsPrior medical conditions for which the applicant has received, or should have received, medical advice or treatment within a specified period before the effective date of a policy
Probationary PeriodSpecified period of time after the effective date and before new coverage goes into effect for specified conditions, such as losses due to a sickness or pre-existing conditions; probationary period is at least 30 days
SicknessAn illness or disease that is contracted after the probationary period has ended
SubrogationTransfers an insured’s legal right of recovery to the insurer that has paid a claim. This prevents the insured from collecting twice for the same loss and holds the responsible 3rd party accountable for the loss