Arizona Life and Health Practice Exam

Which of the following is an example of a Limited accident and health plan?

1. Health Maintenance Organization (HMO)

2. Critical Illness Plan

3. Cancer Plan

4. Comprehensive Major Medical

The correct answer is: Cancer Plan

A Limited accident and health plan is designed to provide specific benefits for particular types of medical issues rather than offering broad coverage like a comprehensive plan. In this context, the Cancer Plan is a prime example of a limited accident and health plan, as it specifically focuses on providing financial assistance for cancer treatment and related expenses. These types of plans are typically less expensive than comprehensive coverage but come with limitations, not covering a wide range of health conditions or services outside of the specified illness. On the other hand, plans such as a Health Maintenance Organization (HMO) and Comprehensive Major Medical are designed to cover a wide array of health services for various conditions and are not limited to a specific illness or accident, making them unsuitable for this classification. The Critical Illness Plan, while also limited, typically covers a broader range of serious health issues beyond just cancer, which makes it less appropriate than a plan specifically targeting one ailment.