A limited accident and health policy covers what?

• A. All health conditions
• B. Limited perils and amounts
• C. Hospital daily benefits only
• D. Comprehensive medical care

Answer: (B)

A limited accident and health policy is defined by its narrow scope: it covers only a defined set of events (perils) and pays fixed benefits (amounts) for those events, rather than reimbursing all medical costs. Because of that, it won’t cover every health condition or provide broad, comprehensive medical coverage. For example, it might pay a specific dollar amount for an accident injury or for hospital confinement, but it won’t cover all illnesses or the full range of medical expenses. This focus on limited perils and fixed benefit levels is what sets it apart from more comprehensive plans.