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ex3-2 leo

Assume the look-back period in Leo's disability policy is two years and pre-existing conditions will be covered once the policy is in effect for one year. Further, assume Leo was treated for a knee injury six months before the policy went into effect. Although Leo has had no problems associated with the knee injury since his initial treatment, nine months after the policy is issued, his knee injury flares up. Because Leo is a telephone lineman who must be able to climb, he is unable to work as a result of the injury. The pre-existing conditions exclusion in Leo's policy stipulates that he cannot receive disability benefits for a pre-existing condition because not enough time has passed. If the recurrence of the knee injury had occurred after the policy was in effect for at least one year, the pre-existing conditions exclusion would not apply and Leo would be eligible to receive disability benefits after the expiration of the policy's elimination period.