A provision of many policies which allows medical coverage to be continued past the termination date of the policy for employees not actively at work and for dependents hospitalized on that date. Such extended coverage usually applies only to the specific medical condition that has caused the disability and continues only until the employee returns to work or the dependent leave the hospital.

A condition in the insurance policy which allows coverage to continue beyond the expiration date of the policy in the case of employees who are not actively at work or dependents who are hospitalized on that date. The extended coverage applies only where the employee or dependent is disabled as of that date and continues only until the employee returns to work or the dependent leaves the hospital.

Insurance policy provision that allows medical coverage to continue past termination of employments. See also COBRA.