What Does Waiting Period Mean?

In its first meaning the expression refers to the amount of time between one’s registering an application statement to the SEC and the approval of this statement by the SEC. Another name of the same thing is the ‘quiet period’ or the ‘cooling-off period’.

However, waiting period also refers to the time one has to wait after filing an insurance claim and actually receiving the money as a result of the claim. This period is also referred to as an ‘elimination period’.

Waiting Period Explained

In its first meaning, waiting period is part of the so-called IPO process. This implies that as long as the period lasts, the issuing company must not make public announcements. This period might last from one to three months.

However, if one thinks about waiting period in the context of insurance claims, it is right to say that if the waiting period regarding such a claim lasts longer, then the insurance contract will be cheaper for the policyholder.