Under what condition can a handicapped child extend their health insurance coverage as a dependent after reaching the limiting age?

The correct answer pertains to the specific condition under which a handicapped child can extend their health insurance coverage as a dependent after reaching the limiting age. In this context, the law allows for coverage extension when the child is incapable of employment and chiefly dependent on the policyowner.

This provision recognizes that some children may have disabilities that prevent them from becoming self-sufficient or from obtaining employment. Therefore, if the child remains dependent on the policyholder for financial support due to their handicap, they may continue to be eligible for coverage beyond the standard age limit set by the insurance policy. This helps ensure that individuals with disabilities have access to necessary health care services, acknowledging their unique challenges and the ongoing support they require.

Understanding this condition is crucial, as it highlights the focus on dependency and the need for continued care rather than financial independence or employment status, which do not apply to individuals with disabilities who may struggle to thrive in those areas.