Disability insurance multiple exclusion rider

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PostPosted: Tue Oct 19, 2010 4:49 am   Post subject: Disability insurance multiple exclusion rider  

I've come to know that Disability insurance covers some of our sicknesses that come with age. Is that the purpose of a multiple exclusion rider?


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Chloecarter
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PostPosted: Wed Oct 20, 2010 3:15 am   Post subject:   

A multiple exclusion rider is going to exclude certain disabilities from coverage, probably by describing the specific causes of disability as excluding the resulting losses from claims. If it's not listed as an exclusion, then it's probably covered (unless excluded elsewhere in the policy, such as the standard exclusions for war, aviation, suicide/attempted suicide, hazardous occupations or hobbies, commission of a crime, intoxication, etc).



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MaxHerr
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PostPosted: Thu Oct 21, 2010 10:45 pm   Post subject:   

I was going through a note in this regard, and it says that if such riders are necessary the insured will be informed in writing. Can the insured have any say in this regard?


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anonymous00
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PostPosted: Fri Oct 22, 2010 8:40 am   Post subject:   

Insurance contracts are "contracts of adhesion", meaning the insurer writes the contract and the insured accepts it on a "take-it-or-leave-it" basis. There is almost no room for negotiation. About the only say a person has is "Yes" or "No".



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MaxHerr
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PostPosted: Mon Nov 01, 2010 3:01 am   Post subject:   

Exclusion riders are used to remove possible claims from a contract where there is a higher than average likelihood that the insurered will be eligible for claim for that specific condition.



E.g. if bob has a bad back and had knee and has been treated for it and he applies for disability insurance he might have all disabilities resulting from knee problems excluded from his policy.



This move allows the insurance company to issue coverage covering all conditions not related to the knee. The only other option would be to flat out deny all coverabe due to the high possibility of a knee problem that puts the insured on claim. So, because of a knee problem, the insurered would not be able to find coverage for other injuries or illness.



It's a very common practice in disability insurance policies. There's no negotiation but there are a few variations on how exclusion rider are issued. Some are permanent, they'll never go away. Others are conditional, they can be reviewed and possibly removed with good medical recording on the condition in question, and some are temporary, they have a definite time period until which they disapear (not very common).



As Max has stated, there rarely is an option to negotiate, but as is the usual case in life, we can never say never.

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