What type of insurance typically entails specific limitations on coverage for certain risks?

The choice of limited policies is particularly relevant when discussing insurance that involves specific limitations on coverage for certain risks. Limited policies are designed to provide insurance for specific situations or types of coverage, meaning they do not cover a broad range of risks. For example, a limited health insurance policy might only cover particular illnesses or surgeries instead of offering comprehensive coverage for all medical expenses.

In contrast, comprehensive insurance aims to cover a wide range of risks without many restrictions. Universal policies are a type of life insurance that combines elements of both term and whole life insurance, generally offering broader coverage over time with adjustable premiums and benefits. Whole life insurance provides a guaranteed death benefit and cash value accumulation, making it a more comprehensive form of coverage without the specific limitations characteristic of limited policies.

Thus, limited policies stand out as the type designed to impose specific limitations on the coverage offered, making them the correct choice in this context.