A contract term that applies only for inpatient claims requires which type of extension?

A contract term that applies only for inpatient claims requires which type of extension?

• A. Pricing
• B. Selection
• C. Group
• D. Stopping

Answer: (B)

When a contract term only applies to a specific subset of claims, the term is defined by selecting which claims it covers. An extension that narrows its applicability to inpatient claims is a selection extension, because it designates a particular group of claims (inpatient) to which the term applies. This is distinct from a pricing extension (which changes amounts across all claims), a group extension (which relates to a group of insureds), or a stopping extension (which ends coverage). So, applying a term only to inpatient claims is best described as a selection extension.

When a contract term only applies to a specific subset of claims, the term is defined by selecting which claims it covers. An extension that narrows its applicability to inpatient claims is a selection extension, because it designates a particular group of claims (inpatient) to which the term applies. This is distinct from a pricing extension (which changes amounts across all claims), a group extension (which relates to a group of insureds), or a stopping extension (which ends coverage). So, applying a term only to inpatient claims is best described as a selection extension.