Lesson 8 Accidental Death and Dismemberment Insurance

Question 1

True or false:

AD&D Insurance is the purest structure of accident insurance and is typically covered in group plans

Answer 1

True

Question 2

AD&D policies provide 2 separate definitions

Answer 2

1. Accidental Bodily Injury

2. Accidental Means

Question 3

Accidental Bodily Injury (Results)

Answer 3

only the injury resulting from the accident must have been unintentional

Question 4

Accidental Means

Answer 4

both the cause and the result of the accident must have been unintentional

normally death caused by accident must occur within 90-180 days of the incident.

Question 5

AD7D policies make benefits payable in 2 forms

Answer 5

1. Principal sum

2. Capital sum

Question 6

Principal sum

Answer 6

stated amount payable as death benefit if death is due to accident

Question 7

Capital Sum

Answer 7

amount payable for accidental loss of eyesight or dismemberment. usually a percentage of principal sum and caries according to severity of injury

Question 8

Limited Risk Policy

Answer 8

coverage for specific kinds of accidents or illnesses

ex. injuries received in travel accidents or medical expenses from particular disease

provide AD&D benefits for a specified cause

Question 9

Special Risk Policy

Answer 9

coverage for unusual hazards normally not covered under accident/health insurance.

ex. pianist insuring hands for millions.