Which clause allows a major medical insurance company to refuse a claim if the insured commits suicide within a specified period?

The clause that permits a major medical insurance company to deny a claim if the insured commits suicide within a specified period is the Suicide Exclusion Clause. This clause is designed to prevent potential abuse of the insurance policy, where individuals might take their own lives shortly after obtaining coverage in order to provide a financial benefit to their beneficiaries. The specified time period varies by insurance policy but typically ranges from one to two years from the policy's effective date.

This clause is crucial in the context of underwriting and risk management for insurance companies, as it helps them mitigate the financial risk associated with suicide claims that occur shortly after the policy begins. Understanding this clause is essential for both insurance professionals and policyholders because it defines the limitations of coverage regarding mental health-related incidents, specifically suicide.