AD Banker Comprehensive Practice Exam

Accident and Health Insurance provides coverage for which two major categories of perils?

1. Driving under the influence and driving while intoxicated

2. On the job and off the job

3. Accidental injury and sickness

4. Automobile and home health care

The correct answer is: Accidental injury and sickness

Accident and Health Insurance primarily addresses the financial aspects of two significant areas of health-related issues: accidental injury and sickness. This insurance provides benefits when a policyholder is faced with unexpected medical expenses due to an accident or when they are diagnosed with an illness. Accidental injuries can include a wide range of incidents that lead to bodily harm, allowing the insured to receive treatment without facing excessive out-of-pocket costs. Similarly, coverage for sickness is crucial, as it ensures that medical expenses arising from illnesses are also mitigated. This comprehensive focus on both accidental injuries and various illnesses enables policyholders to plan for and manage their healthcare costs effectively, ensuring that they receive appropriate medical treatment when necessary. Although the other options address important issues, they do not align with the primary function of Accident and Health Insurance. Options that focus on specific scenarios, such as driving under the influence or certain types of health care, do not encompass the broader two major categories of perils included in Accident and Health Insurance. Thus, the emphasis on accidental injury and sickness makes it clear why this choice is the correct answer.