Final answer:
The rider that ensures an Accident and Health policy continues during total disability is the Waiver of Premium rider. It helps policyholders to maintain coverage without paying premiums during the disability period.
Step-by-step explanation:
If a policy owner wants to ensure that their Accident and Health policy continues even if they become totally disabled, the type of rider that should be added is known as a Waiver of Premium rider. This rider exempts the policyholder from paying the premiums on the insurance policy if they are unable to work due to a disability. The policy remains in force, as if premiums are being paid, ensuring continuity of insurance coverage without financial burden during the period of disability.
Information asymmetry in insurance, such as a person knowing their health history better than an insurer can determine, or a driver knowing their driving habits more than an insurance company, exemplifies the challenges in setting premiums. A Waiver of Premium rider adds a level of security for the insured, acknowledging that unforeseen health issues may impact their ability to pay for coverage.