New York Child Abuse Identification and Reporting Practice Exam

Which of the following is covered by a dread disease policy?

1. Common colds

2. Illnesses that do not occur frequently but incur significant costs when they do occur

3. Routine check-ups

4. Standard illnesses

The correct answer is: Illnesses that do not occur frequently but incur significant costs when they do occur

A dread disease policy is specifically designed to provide financial assistance for illnesses that are serious and often expensive to treat but do not occur frequently. This type of insurance is typically aimed at covering the financial impact of major diseases such as cancer, heart disease, or other significant health conditions that fit this criterion. The rationale for this type of policy is its focus on conditions that, while not common, can lead to high medical costs and long-term care needs. This highlights the intent behind a dread disease policy, which is to alleviate the financial burden associated with these illnesses. Options like common colds, routine check-ups, and standard illnesses do not align with the purpose of a dread disease policy, as these do not generally involve the same level of complexity or costs associated with serious illnesses. Thus, the characteristic of covering less frequent but high-cost illnesses makes the selection correct.