Which of the following best defines a supplemental insurance policy?

A supplemental insurance policy is best defined as one that extends coverage beyond standard options. This means that it is designed to provide additional protection that complements the primary insurance policy. Such coverage can address gaps in the primary policy or offer benefits for situations that the primary policy may not fully cover.

For instance, in the context of property insurance, a supplemental policy might cover specific risks such as natural disasters or equipment breakdowns that are not included in a standard property insurance policy. This extension of coverage allows policyholders to tailor their insurance to their specific needs and risks, ensuring more comprehensive protection.

In contrast, a policy that replaces the primary insurance entirely does not fit the definition of supplemental insurance as it implies complete substitution rather than enhancement. A policy offered only to high-risk individuals may not necessarily function as supplemental but instead could serve a distinct purpose. Lastly, a policy that combines multiple types of insurance does not align with the definition of supplemental insurance either, as it indicates a broader coverage scope rather than an extension of existing coverage.