Health · Chapter 18 · Exclusions & Limits
Impairment (Exclusion) Rider
Definition
Also called an exclusion rider, coverage waiver, or waiver for impairment: attached when a pre-existing condition is severe, it excludes coverage for a named illness/injury for a period of years or the life of the policy — letting the insurer issue coverage it might otherwise decline. May be issued with or without extra premium. Its limits must be explained at delivery, and the policyowner generally signs a statement acknowledging them.
In plain English
"We'll cover you — except THAT." Surgical exclusion instead of outright denial.
Example
An applicant with several left-knee surgeries gets a disability income policy with a rider excluding disability from any injury to that left knee.
Easy to confuse with
These are what this term gets tested against — if you can't tell them apart cold, drill the contrast.
Related terms