What term refers to the insurance company's reserved right to adjust claims based on prior conditions?

The term that refers to the insurance company's reserved right to adjust claims based on prior conditions is known as an exclusion rider. An exclusion rider is a specific provision added to an insurance policy that outlines certain conditions or circumstances that are not covered by the policy. This means that if an event or condition falls under the exclusions stated in the rider, the insurer has the right to deny a claim related to that event or condition.

When an insurer includes an exclusion rider, it essentially protects the company from covering claims that arise from known issues or risks that the insured may have had prior to the policy being issued. This is important for the insurer as it helps manage risk and prevent losses associated with claims that should not have been accepted under the policy terms.

Other terms provided do not accurately capture the concept of adjusting claims based on prior conditions. Claims adjustment authority generally refers to the insurer's capacity to manage and resolve claims without any specific reference to prior conditions. Standard coverage parameters define the guidelines for what is typically covered in a policy but do not address adjustments based on previous conditions. A premium percentage increase relates to how much insurance rates may rise over time but does not pertain to claims handling or exclusions.