A characteristic of an accident-only policy is that it:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
An accident-only policy is the narrowest limited health product: benefits attach only to injuries resulting from accidents, and there is no coverage for sickness, disease, or other non-accidental causes. The definition of accident, a sudden, unforeseen, external event, is central to these policies because the entire benefit trigger depends on whether the injury fits that definition. Because the scope is so narrow, accident-only policies are inexpensive and are marketed as supplements to, rather than replacements for, comprehensive health coverage, and the applicant must understand that illness claims will be denied.
Why the other options are wrong
- B) An accident-only policy excludes sickness by design; illness is precisely what it never pays for, so covering both accidents and sickness with no exclusions would describe a broader contract, not accident-only coverage.
- C) Paying a death benefit regardless of cause describes a life insurance product, not an accident-only health policy, which requires an accidental cause for any benefit.
- D) Reimbursing all medical expenses, including those arising from illness, is the role of comprehensive major medical coverage, not an accident-only policy, which pays only for accidental injuries.
Memory hook
Accident-only = falls and crashes only. The flu, the tumor, the diagnosis: not covered.