Short-Term, Limited-Duration Insurance [Internal Revenue] Law and Legal Definition

Pursuant to 26 CFR 54.9801-2 [Title 26 Internal Revenue; Chapter I Internal Revenue Service, Department of the Treasury; Subchapter D Miscellaneous Excise Taxes; Part 54 Pension Excise Taxes], the term Short-Term, Limited-Duration Insurance means “health insurance coverage provided pursuant to a contract with an issuer that has an expiration date specified in the contract (taking into account any extensions that may be elected by the policyholder without the issuer's consent) that is less than 12 months after the original effective date of the contract.”