Property and Casualty Insurance Practice Exam

Which insurance type addresses both the risk of medical bills and lost income due to sickness or injury?

1. Health and Disability Insurance

2. Life Insurance

3. Property Insurance

4. Endorsement Insurance

The correct answer is: Health and Disability Insurance

Health and Disability Insurance is designed specifically to cover the financial implications of medical expenses and loss of income that may arise from illness or injury. This type of insurance provides benefits that help individuals pay for medical bills incurred due to health-related issues, ensuring they have access to necessary medical care without facing overwhelming costs. Moreover, disability insurance complements this by providing income replacement for policyholders who are unable to work due to a disabling condition. This coverage is essential for maintaining financial stability during periods when an individual is not earning a paycheck because of their health status. In contrast, life insurance is strictly focused on providing a financial benefit to beneficiaries upon the insured's death, which does not address current medical expenses or income loss. Property insurance protects physical assets like homes and vehicles from risks like theft or damage, but it does not encompass health-related costs or income loss. Endorsement insurance typically refers to additional coverage that modifies or adds benefits to existing policies, but it does not specifically pertain to the combined coverage of medical bills and lost income largely addressed by health and disability insurance. This delineation makes Health and Disability Insurance the correct answer for the question posed.