Definitions for "PRUDENT PERSON RULE"
An investment standard. In some states the law requires that a fiduciary, such as a trustee, may invest money only in a list of securities selected by the custody state—the so-called legal list. In other states the trustee may invest in a security if it is one which would be bought by a prudent person of discretion and intelligence who is seeking a reasonable income and preservation of capital.
Principle of law which expects each person to behave like a prudent person by following those ordinary considerations that guide human affairs.
The standard adopted by some states to guide those fiduciaries with responsibility for investing money of others. Such fiduciaries must act as a prudent man would be expected to act, with discretion and intelligence, to seek reasonable income, preserve capital, and, in general, avoid speculative investment.
Keywords:  sought, enrolling, exclude, pre, prior
Individual health plans only; a rule that allows insurers to exclude as pre-existing any condition for which most people would have sought care or treatment prior to enrolling in an individual health plan.