In AD&D limited coverage, which sum is paid when the insured suffers an accidental dismemberment?

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Study for the Minnesota Life Accident and Health Producer Exam. Prepare with flashcards and multiple choice questions with hints and explanations. Get ready for your exam!

Multiple Choice

In AD&D limited coverage, which sum is paid when the insured suffers an accidental dismemberment?

Explanation:
In AD&D benefits, there are two separate payout types. The death portion is called the principal sum, and the dismemberment portion is called the capital sum. When the insured suffers an accidental dismemberment, the policy pays the capital sum, not the death benefit. This amount may be a fixed sum or a percentage of the principal sum, depending on the specific loss defined in the policy. The premium itself isn’t refunded as a benefit. So for an accidental dismemberment, the capital sum is paid.

In AD&D benefits, there are two separate payout types. The death portion is called the principal sum, and the dismemberment portion is called the capital sum. When the insured suffers an accidental dismemberment, the policy pays the capital sum, not the death benefit. This amount may be a fixed sum or a percentage of the principal sum, depending on the specific loss defined in the policy. The premium itself isn’t refunded as a benefit. So for an accidental dismemberment, the capital sum is paid.

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