What term refers to limitations or exclusions in coverage regarding pre-existing conditions?

The term that refers to limitations or exclusions in coverage regarding pre-existing conditions is indeed "Restriction of coverage." This phrase is often used in insurance contexts to indicate that certain risks or conditions are not covered under a policy. In the case of pre-existing conditions, insurance providers may place restrictions to limit their liability for issues that existed prior to the coverage taking effect.

Understanding this terminology is essential, as it highlights how insurance contracts delineate what is and is not covered. This distinction is fundamental in managing expectations for policyholders and ensuring they understand the limitations of their insurance coverage. Clients should always be aware that policy terms may have exclusions, which can greatly affect their claims if issues arise.

The other responses provided do not accurately address the concept of limitations related to pre-existing conditions. Higher rates typically refer to an increase in premiums to account for risk but do not specifically denote exclusions. Declination is used when an insurance application is denied completely, and adverse selection pertains to the tendency of those with higher risks to seek insurance more than those with lower risks; neither of these concepts directly relates to the limitations or exclusions of coverage for existing conditions.