Uniform Policy Provisions, Health Insurance

DEFINITION of 'Uniform Policy Provisions, Health Insurance '

A provision that states that insurance companies must use standard language when creating policies for individual health and accident insurance. The uniform policy provisions, health insurance, must be followed by policy writers, because of the Uniform Individual Accident and Sickness Policy Provisions Act. Companies are not forced to write their policy in an exact way, rather they are required to follow a certain guideline in areas such as proof of loss, medical examination, claims notice, claims forms, policy renewal and premium grace period.

BREAKING DOWN 'Uniform Policy Provisions, Health Insurance '

This provision protects customers looking to purchase health insurance, by reducing the confusion and uncertainty that can be caused by the use of inconsistent technical language. Insurance, in general, was created to reduce risk and losses when uncertainties occur. It is important to note that there is no exact form on how these policies are to be created. It is a strict guideline used to create some consistency in how the policies are written and understood.