What must policies state regarding recurrent disabilities?

The requirement for policies to state the terms for considering recurrent disabilities as either a new or existing claim is crucial because it delineates how insurance companies treat claims for disabilities that happen more than once. This clarification helps policyholders understand their benefits and what constitutes a continuation of a prior disability versus a new incident.

Different policies may have various stipulations regarding how long a period must pass before a recurrent disability can be classified as new, impacting the coverage available to the insured. This aspect is particularly important in life, accident, and sickness insurance, as it can significantly affect the claims process and the benefits payable to the policyholder.

The other aspects mentioned in the choices—such as whether recurrent disabilities are beneficial, types of treatments covered, and associated costs—while important, do not directly address the fundamental aspect of claims processing and benefit entitlement for recurrent disabilities. The clarity on how recurrent disabilities are categorized ensures that policyholders are adequately informed and can manage their expectations regarding their coverage.