Qualification period

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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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
Van Commenee said: "The changes to qualification periods are welcomed as athletes will have more opportunity to meet our standards, which are not easy to achieve, to produce the best from our team.
UK Athletics head coach Charles van Commenee has welcomed the extension of the IAAF's qualification period for the London 2012 Olympics.
Athletes finishing in the top two at the Olympic trials next June will be selected provided they hold the "A" standard qualifying mark or finish in the top eight in Daegu, with further selections possible through meeting "A" or "B" standards during the qualification period.
The qualification periods should account for "every day" that the member is qualified.
The Pennsylvania experiment tested four different bonus offers based on two alternative bonus amounts and two alternative qualification periods (Table 1).
The Washington experiment tested six different bonus offers based on three alternative bonus amounts and two alternative qualification periods. As in the Pennsylvania experiment, the three bonus amounts in Washington were tied to the claimant's weekly benefit amount (WBA).
The largest impacts were estimated for the most generous bonus offers with the longest qualification periods - PT4 reduced UI receipt by 0.84 weeks or 133, and WT6 reduced UI receipt by 0.80 weeks or 146.7
The estimated reductions in weeks of UI receipt generated by the other bonus offers ranged from 0.04 weeks for WTI (low bonus/short qualification period) to 0.63 weeks for PT1 (low bonus/short qualification period) and 0.71 weeks for WT3 (high bonus/short qualification period).
Despite the differences between the New Jersey and Illinois bonus structures, the impacts of the bonus offers on the UI exit rates were similar during the bonus qualification periods. The impact of both offers was greatest in the second week of the qualification period, increasing the conditional exit rate by between 1.5 and 2.0 percentage points.
Despite the differences between the structure and size of the bonus offers in New Jersey and Illinois and the different populations of claimants who were served in the two experiments, the impacts of the bonuses on the UI exit rate during the bonus qualification periods were similar.
On the other hand, the impacts of the bonuses on UI exit rates after the bonus qualification periods differed substantially in the two experiments.
The Illinois bonus was constant over time, so that the bonus received did not depend on whether a claimant was reemployed earlier or later in the period during which the claimant could qualify for the bonus (the bonus qualification period).
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