Qualification Period

Qualification period

A period of time during the first few months or weeks of a new policy when an insurance company will not reimburse a policyholder for a claim in order to allow the insurance company time to find any fraudulent information in the application.

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Qualification Period

In insurance, a period of time during which a policyholder is making premium payments but during which the insurer is under no obligation to provide coverage. That is, during the qualification period, the policyholder and insurer have entered into a binding contract in which the insurer does not have to fulfill its end if an insured event occurs. The qualification period exists to give the insurer time to determine whether there is any fraud on the part of the policyholder, and to ensure that the policyholder will not abuse the policy. The qualification period usually lasts a few weeks or months.