Insurers often protect themselves from providing insurance to people who are already ill by inserting which type of clause into a health insurance contract?

The correct response to the question highlights the use of a waiting period in health insurance contracts, which serves a specific purpose related to pre-existing conditions. A waiting period is a specified timeframe during which certain conditions or services are not covered by the insurance policy. This means that if an individual seeks coverage for a health issue that developed prior to obtaining the insurance or during the waiting period, the insurer will not provide benefits for that issue or related treatments during that time.

This practice helps insurers manage risk by ensuring that they do not face immediate losses from insuring individuals who are already ill when they enroll in the plan. Waiting periods can help discourage individuals from obtaining insurance only when they know they need medical care, thus supporting the overall stability of the insurance pool and keeping premium costs manageable for all policyholders.

In contrast, other options do not address the specific concern of existing health conditions. A pre-existing condition clause typically defines and limits coverage for health issues that were present before the insurance coverage began, while an exclusion clause outright excludes certain types of events or conditions from coverage. A deductible clause refers to the amount a policyholder must pay out of pocket before coverage kicks in, which is unrelated to pre-existing illnesses.