Run-out protection is primarily concerned with which timing of claims?

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Multiple Choice

Run-out protection is primarily concerned with which timing of claims?

Run-out protection is about what happens after the plan year ends. It covers the period during which claims incurred in that year can still be submitted and paid, helping ensure late submissions or retroactive charges are processed even though the year has closed. This protects the accuracy and completeness of the year's expense experience by allowing a window for claim reconciliation beyond the year-end. It isn’t about processing claims during the year, before the year begins, or at policy inception, which wouldn’t address the issue of settling year‑end claims.

Run-out protection is about what happens after the plan year ends. It covers the period during which claims incurred in that year can still be submitted and paid, helping ensure late submissions or retroactive charges are processed even though the year has closed. This protects the accuracy and completeness of the year's expense experience by allowing a window for claim reconciliation beyond the year-end. It isn’t about processing claims during the year, before the year begins, or at policy inception, which wouldn’t address the issue of settling year‑end claims.

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