Lesson 15 Review
AD&D insurance is the purest structure of accident insurance and is typically covered in group plans.
AD&D policies provide two separate definitions: (1) Accidental Bodily Injury - Only the injury resulting from the accident must have been unintentional; and (2) Accidental Means - Both the cause and the result of the accident must have been unintentional. Normally, the death caused by the accident must occur within 90 to 180 days of the incident.
AD&D policies make benefits payable in two forms: (1) Principal sum and (2) capital sum. The principal sum is the stated amount that is payable as a death benefit if death is due to an accident. The capital sum is the amount payable for the accidental loss of eyesight or for an accidental dismemberment. It is usually a percentage of the principal sum and varies according to the severity of the injury.
Limited risk policies provide accidental death or dismemberment benefits for a specified cause.
Special risk policies provide coverage for unusual hazards not normally covered in other policies.
The information contained in Unit 19 of the Florida study manual has been presented in Lesson 15 of the online course.
