Minnesota Life Insurance License Practice Exam

Once a policy has been reinstated, how long must the insured wait before coverage for sickness is available?

1. 10 days

2. 30 days

3. 60 days

4. Immediate coverage

The correct answer is: 10 days

The correct answer reflects the standard waiting period after the reinstatement of a life insurance policy concerning coverage for sickness. Once a policy has been reinstated, there is typically a 10-day waiting period before coverage for illnesses becomes effective. This waiting period is designed to balance risk for the insurer, as it ensures that the individual does not immediately claim benefits for a pre-existing condition that may have arisen or been exacerbated right before reinstatement. It is essential for policyholders to be aware of such stipulations, as it impacts their coverage rights and responsibilities. The coverage may start immediately for other types of incidents, such as accidents, but for illness specifically, the 10-day period is a common requirement across many insurance policies. Therefore, understanding this provision is crucial for anyone preparing for the Minnesota Life Insurance License Exam, as it emphasizes the importance of policy terms in maintaining coverage continuity.