In which of the following situations is it legal to limit coverage based on marital status?

The correct answer emphasizes that it is never legal to limit insurance coverage based on marital status. This understanding is rooted in anti-discrimination laws intended to ensure equitable treatment for individuals in insurance transactions. Marital status should not affect an individual’s rights or benefits under an insurance policy, regardless of the type of insurance involved.

Limiting coverage based on marital status could lead to discriminatory practices and unfair treatment of policyholders, violating principles of fairness and equity within the insurance industry. Such regulations are vital for protecting consumers and upholding the integrity of insurance practices. Thus, policies must be compliant with these legal standards, which unequivocally state that marital status cannot be a basis for differential treatment in coverage, ensuring that all individuals receive equal consideration when it comes to insurance products.