Question

Which of the following situations involves a loss that would typically NOT be excluded under a health insurance policy?

A) The insured is injured in combat while serving in the military.
B) The insured is injured with a self-inflicted injury.
C) The insured is injured while vacationing in a state that is not her state of residence.
D) The insured intentionally injures himself while committing a felony.

Answer 1

An insured individual is typically covered by their health insurance policy when they are injured out-of-state on vacation; injuries from military combat, self-inflicted harm, or during the commission of a felony tend to be excluded. The correct answer is option C.

Step-by-step explanation:

The situation that involves a loss that would typically NOT be excluded under a health insurance policy is when the insured is injured while vacationing in a state that is not her state of residence. The other options given, such as injuries incurred in military combat, self-inflicted injuries, and injuries sustained while committing a felony, are generally excluded from coverage under most health insurance policies. Health insurance companies put these exclusions in place to prevent moral hazards and to ensure that the system is not abused, which could drive up costs for everyone.