Which provision would permit an insurer to delay a covered disability policy claim?

• A. Elimination period
• B. Grace period
• C. Benefit period
• D. Waiting period

Answer: (A)

The elimination period is the time you must wait after becoming disabled before any disability benefits start. It acts like a deductible for a disability policy: the longer the elimination period, the longer you go without benefits, and typically the lower the premium. If you’re disabled and the elimination period is set at 90 days, no benefits are paid during those first 90 days; once that period passes, benefits begin (for the remainder of the disability, up to the policy’s benefit period). This is how an insurer can delay a covered claim. The other terms have different roles: a grace period covers late premium payments, a benefit period is how long payments continue once they begin, and a waiting period can refer to various delays before coverage or benefits in different contexts, but the delaying of the claim itself is governed by the elimination period.