Limited
Health Exposures and Insurance
Contracts
There are a variety of special health insurance policies providing
limited coverage.
To ensure that the insured has sufficient notice that the coverage
is
limited, every policy that provides limited coverage must, by law,
state plainly
on the first page of the policy: “THIS
IS A LIMITED POLICY.”
The
following
is a list of the main types of limited health policies:
- Travel accident insurance provides coverage for death or injury
resulting from accidents occurring while the insured is a fare-paying
passenger on a common carrier.
- Specified disease or dread disease insurance provides
a variety of benefits for only certain diseases, usually cancer
or heart disease.
- Hospital income insurance pays a specified sum on a daily,
weekly, or monthly basis while the insured is confined to a hospital.
The amount of
the benefit is not related to expenses incurred or to wages lost
while the insured is hospitalized.
- Accident only insurance provides coverage for injury from
accident and excludes sickness. Benefits may be paid for all or
any of the following: death, disability, dismemberment, or hospital
and medical expenses.
- Credit insurance is listed here because of the limited nature
of its coverage.
This policy is issued only to those who are in debt to a creditor.
The coverage is limited to the total amount of the debtor’s
indebtedness.
- Blanket insurance is a form of group insurance. Often the
individual’s
name is not known because the individuals come and go. Such groups
include students, campers, passengers of a common carrier, volunteer
groups, and sports teams. Unlike group insurance the individuals
are automatically covered under the blanket policy, and they do
not receive certificates of insurance.
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