qualification period

qualification period definition - finance
A period of time during which an insurance company will not reimburse a new policyholder for a claim. This delay allows the insurance company time to discover any deception or fraud in the policyholderÂ’s application. The length of a qualification period varies between several weeks or several months, and often is associated with health or life insurance.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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