What should Larry's policy elimination period be if he is covered by a two-month wage continuation benefit?

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Prepare for the Wisconsin Accident and Health Insurance Exam. Study with interactive questions, including hints and explanations. Optimize your chances of success and achieve your certification!

In the context of wage continuation benefits, the elimination period refers to the amount of time that must pass after an employee becomes disabled before they can begin receiving benefits. If Larry is covered by a two-month (or 60 days) wage continuation benefit, it would be typical for the elimination period to align with the benefit duration.

The elimination period often serves as a waiting period during which no benefits are paid, and once this period concludes, the benefit payments begin for the specified duration of the coverage. Since Larry's coverage lasts for two months, having a 60-day elimination period fits logically. This means that after becoming disabled, Larry would need to wait 60 days before he could start to receive his wage continuation benefits. This setup ensures that the benefits are provided for the duration that they are intended, without any overlap that could create confusion regarding when payments start.

In scenarios where shorter or longer elimination periods are chosen, they would typically align with different benefit durations designed to either initiate payments earlier or later, depending on the insurance plan. Hence, a 60-day elimination period correctly corresponds with the two-month benefit duration Larry is entitled to under his policy.

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