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Short-term, limited-duration insurance refers to a type of health insurance that is designed to provide coverage for a specific, limited period. According to federal regulations, this insurance must have a specified expiration date in the contract, which is less than 12 months from the original effective date. Policyholders may have the option to extend coverage, but this extension cannot exceed the initial 12-month limit without the issuer's consent.
Table of content
Legal Use & context
This term is primarily used in the context of health insurance regulations. Short-term, limited-duration insurance is often utilized by individuals who need temporary health coverage, such as those transitioning between jobs or waiting for other insurance to begin. Legal practitioners may encounter this term in civil law, particularly in cases involving health insurance disputes or regulatory compliance. Users can manage their insurance needs using legal templates available on platforms like US Legal Forms.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: A recent college graduate secures short-term, limited-duration insurance while searching for a full-time job. The policy provides coverage for six months, with the option to extend for an additional three months if needed.
Example 2: A person who is between jobs purchases a short-term plan to bridge the gap until their new employer's health insurance begins. The coverage lasts for three months and is clearly defined in the policy.
State-by-state differences
State
Coverage Duration
Extension Options
California
Up to 12 months
Limited extensions available
Texas
Up to 11 months
No extensions allowed
New York
Up to 12 months
Extensions allowed with issuer consent
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
Comparison with related terms
Term
Definition
Key Difference
Short-Term Health Insurance
Coverage for a limited time, typically under 12 months.
Focus on temporary coverage.
Long-Term Health Insurance
Coverage designed for extended periods, often years.
Focus on long-term care needs.
Comprehensive Health Insurance
Coverage for a wide range of health services without a limited duration.
Not limited by time; includes ongoing care.
Common misunderstandings
What to do if this term applies to you
If you find yourself needing short-term, limited-duration insurance, consider the following steps:
Evaluate your health coverage needs and duration.
Research available plans to find one that meets your requirements.
Utilize legal form templates from US Legal Forms to assist with any necessary documentation.
If your situation is complex, consult a legal professional for tailored advice.
Find the legal form that fits your case
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