What is covered under a limited accident and health insurance policy?

• A. Losses that occur only in limited occupations
• B. Limited pre-existing conditions
• C. Losses that occur only in limited age groups
• D. Limited perils and amounts

Answer: (D)

Limited accident and health policies are defined by their restricted scope: they cover only specific perils and pay fixed benefits. They aren’t designed to provide broad medical coverage or a wide range of illnesses and expenses. Instead, the policy lists particular events (perils) it will pay for and the exact dollar amounts payable for those events. That’s why the correct concept is limited perils and amounts—the benefit structure is narrow and pre-set. The other descriptions describe different ideas (like coverage limited by occupation, pre-existing conditions, or age groups) that don’t capture how a limited policy defines its protections.