Insurance · Policy Provisions and Riders

What is the 'accidental death benefit' (ADB) rider and what does it cover?

Correct answer

ADB pays an additional death benefit (typically equal to the face amount — 'double indemnity') if the insured dies as a direct result of an accident, as defined in the rider — usually requiring death within 90 days of the accident and excluding excluded causes

  1. A It covers all deaths regardless of cause
  2. B ADB pays an additional death benefit (typically equal to the face amount — 'double indemnity') if the insured dies as a direct result of an accident, as defined in the rider — usually requiring death within 90 days of the accident and excluding excluded causes
  3. C ADB covers dismemberment only, not death
  4. D ADB eliminates the waiting period for all death claims

Why this is the answer

ACCIDENTAL DEATH BENEFIT (ADB) RIDER — also called Double Indemnity or Accidental Death and Dismemberment (AD&D) in some contexts — provides an additional death benefit on top of the base policy's face amount if the insured dies from a qualifying accident. KEY TERMS: ADDITIONAL BENEFIT — typically equal to the base face amount, effectively doubling the death benefit; QUALIFYING ACCIDENT DEFINITION — death must result directly and exclusively from an accidental bodily injury, independent of disease or other causes; TIMING REQUIREMENT — death must occur within a specified period (commonly 90 days, sometimes 180 days) after the accident; EXCLUSIONS — the ADB does NOT pay for death from: illness or disease (even if an accident-related injury worsens an existing condition); suicide; war; hazardous activities (aviation, some riders exclude drug/alcohol-related accidents); felony commission; PREMIUM — relatively inexpensive compared to the benefit because accidental death is less common than disease-related death; EXAM FOCUS — the rider is tested in the context of claim scenarios: 'client dies 120 days after car accident — ADB paid? Yes if the timing requirement is 90+ days. 'Client dies from heart attack triggered by car accident fright' — ADB probably not paid (death from disease, not accident). 'Client dies from falls while intoxicated' — depends on whether the rider's drunk/impairment exclusion applies.
Source: Life Insurance License Exam, Accidental Death Benefit Rider

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