What type of insurance rider waives the insurer's liability for claims on a preexisting condition?

The type of insurance rider that waives the insurer's liability for claims on a preexisting condition is an exclusion rider. This specific rider is designed to limit coverage for any medical conditions that existed prior to the policy's effective date. When an exclusion rider is applied, it explicitly outlines that any claims arising from these preexisting conditions will not be paid by the insurer, thus protecting the insurance company from potential high claims related to health issues that the insured had prior to purchasing the policy.

Exclusion riders are crucial for insurers as they allow them to manage risk by excluding high-cost claims associated with known health issues. This helps maintain the overall health of the insurance pool by ensuring that only new conditions are covered while still providing insurance for a majority of other health-related incidents.

Other options, such as experience rating, extended term insurance, and express authority, do not pertain to waiving liability for preexisting conditions. Experience rating relates to the calculation of premiums based on an insured group’s past claims experience. Extended term insurance refers to a non-forfeiture option that allows the policyholder to extend their life insurance coverage for a limited time without premium payments but does not involve preexisting conditions. Express authority pertains to the specific powers granted to an insurance agent by the