Which term describes an insured whose condition is so severe they do not need to perform periodic exams?

The correct choice is presumptive disability. This term refers to a situation where an insured's condition is deemed so severe that it automatically qualifies for benefits without the need for periodic examinations to confirm the ongoing severity of the situation. In cases of presumptive disability, the insurer recognizes specific impairments—such as loss of limbs, vision, or hearing—as automatically qualifying the insured for benefits based on the assumption that these conditions should be considered permanently disabling.

Understanding this concept is crucial, especially in the context of insurance policies that define clear criteria for what constitutes a disability. Presumptive disabilities simplify the claims process for both the insured and the insurer by reducing the administrative burden involved in ongoing evaluations.