Tennessee Insurance Practice Exam

B has a $100,000 Accidental Death and Dismemberment policy that pays triple indemnity for common carrier death. What will the policy pay if B is killed in an accident on a commercial flight?

1. $100,000

2. $200,000

3. $300,000

4. $400,000

The correct answer is: $300,000

The policy in question provides a base coverage amount of $100,000 for accidental death, but it also includes a provision for triple indemnity when the insured is killed in an accident while using a common carrier, such as a commercial flight. This means that rather than the standard payout of the policy, the insured's beneficiaries will receive three times the base coverage amount if the specified tragic event occurs. In this case, since B was killed in an accident on a commercial flight, the triple indemnity clause is triggered. Therefore, the payout would be calculated by multiplying the base amount ($100,000) by three, resulting in a total benefit payout of $300,000. This amount reflects both the basic coverage and the additional benefit provided by the policy when the conditions for triple indemnity are met.