State RegulationsFL specificDifficulty 1/5
In Florida health coverage terminology, a dread disease policy is best described as:
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under Chapter 627, Florida Statutes, and the market conduct standards enforced by the Department of Financial Services and the Office of Insurance Regulation, a dread disease policy is a limited policy covering one named disease or condition, most famously cancer policies. Because the coverage is deliberately narrow, marketing it as broad health protection would be misrepresentation, so agents must present it as the supplemental, single-disease product it is.
Why the other options are wrong
- A) Comprehensive major medical coverage spans all illnesses and injuries, the opposite of a single-disease dread policy.
- B) Long-term care policies pay for custodial and related care, not benefits tied to one named disease.
- D) A disability income policy replaces wages during sickness; it is not a dread disease policy, which pays disease-related benefits instead of income.
Memory hook
Dread disease = one disease, one narrow policy.