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

• A. Full medical coverage
• B. Limited perils and amounts
• C. Medicare
• D. Dental and vision-only

Answer: (B)

Limited accident and health policies cover only a narrow set of risks and pay fixed benefit amounts rather than reimbursing all medical expenses. They specify the exact perils covered—such as certain accidental injuries or hospital stays—and the predetermined dollar amount the policy will pay for each covered event or day of confinement. Because benefits are limited and fixed, these plans aren’t designed to provide comprehensive medical coverage the way a major medical policy does. They aren’t Medicare, and they aren’t simply dental and vision insurance; they’re meant to help with specific, defined costs arising from the covered events.