Final answer:
The term that describes greater coverage of diseases or accidents and higher indemnity payments compared to a limited clause is comprehensive coverage. It provides extensive protection against various risks and higher benefits but often comes at a higher premium. the correct option is a) Comprehensive coverage.
Step-by-step explanation:
In insurance, the scenario described by the student corresponds to comprehensive coverage. This type of coverage provides a more extensive form of protection than what is offered through limited clauses. Comprehensive coverage entails a wider range of potential risks covered, such as a greater variety of diseases or accidents, as well as offering higher indemnity payments.
Comprehensive coverage contrasts with basic or standard policies, which might cover only a limited set of circumstances and potentially offer lower benefit payments. Purchasing comprehensive coverage can give policyholders peace of mind by minimizing their financial exposure to a broad spectrum of unforeseen health-related expenses.
Insurance companies charge a premium based on the likelihood of an insured event occurring, so more extensive coverage typically comes at a higher premium cost.