Final answer:
Disability is an example of a peril covered in an accident and health insurance policy, as it generally provides protection against unforeseen injuries or illnesses leading to disability. Old age, normal pregnancy, and elective cosmetic surgery are not considered accidental perils in this context.
Step-by-step explanation:
The example of a peril covered in an accident and health insurance policy from the options provided is b) Disability. This is because accident and health insurance typically cover unexpected events that lead to medical expenses or the need for assistance due to an accidental injury or illness leading to disability. In contrast, old age is not insurable as it is a natural progression, normal pregnancy is generally not considered an accidental peril but a planned life event, and cosmetic surgery is typically elective and therefore not covered unless it stems from an accident or a medical necessity.
Accident and health insurance policies are designed to provide financial protection against the risk of financial loss due to accidents or health issues that are unforeseen. Understanding the coverage of insurance policies is crucial as they are based on the assessment of risk, and they function with the recognition of imperfect information, meaning that it is impossible to predict future accidents or health issues with absolute certainty.