Aflac Insurance Terms #4 (part 2)-
Questions and Answers
Accidental Results Correct Ans-policies that use the accidental bodily injury provision
(sometimes called the results provision) required that the result of the injury has to be
unexpected and accidental. This is far less restrictive than the accidental means provision.
The Principal Sum under an AD&D policy Correct Ans-the amount payable as a death benefit.
It is the amount of insurance purchased. The principal sum represents the maximum amount
the policy will pay.
Capital Sum Correct Ans-another form of payment payable under an AD&D policy and is the
amount payable for the accidental loss of sight or accidental dismemberment, or the capital
sum. It is a specified amount, usually expressed as a percentage of the principal sum, which
varies according to the severity of the injury. For example, the benefit for the loss of one foot or
one hand is typically 50% of the principal sum. The most extreme losses (such as both feet or
sight in both eyes) generally qualify for payment of the full benefit, which is 100% of the
principal sum.
Limited Risk Policies Correct Ans-coverage for specific kinds of accidents or illnesses, such as
injuries received as a result of travel accidents or medical expenses stemming from a specified
disease.
Special risk policy Correct Ans-policy covers unusual hazards normally not covered under
ordinary accident and health insurance. An actress who insures her legs for $1 million or a pilot
, test-flying an experimental airplane who obtains a policy covering his life while flying that
particular plane are both purchasing special risk policies.
The Beneficiary of an Accidental Death and Dismemberment (AD&D) insurance policy
Correct Ans-the person or entity designated in the policy to receive the death proceeds.
The Primary Beneficiary Correct Ans-the first in line to receive death benefit proceeds.
The Secondary (contingent) Beneficiary Correct Ans-second in line to receive death benefit
proceeds.
The Tertiary Beneficiary Correct Ans-the third in line to receive death benefit proceeds. If no
one named, death benefit will go to insured's estate.
A Revocable Beneficiary Correct Ans-a beneficiary that the policy owner may change at any
time without notifying or getting permission from the beneficiary
An Irrevocable Beneficiary Correct Ans-may not be changed without the written consent of
the beneficiary. The irrevocable beneficiary has a vested interest in the policy, therefore the
policyowner may not exercise certain rights without the consent of the beneficiary.
Per Stirpes (by the bloodline) Correct Ans-in the event that a beneficiary dies before the
insured, benefits from that policy will be paid to that beneficiary's heirs.
Questions and Answers
Accidental Results Correct Ans-policies that use the accidental bodily injury provision
(sometimes called the results provision) required that the result of the injury has to be
unexpected and accidental. This is far less restrictive than the accidental means provision.
The Principal Sum under an AD&D policy Correct Ans-the amount payable as a death benefit.
It is the amount of insurance purchased. The principal sum represents the maximum amount
the policy will pay.
Capital Sum Correct Ans-another form of payment payable under an AD&D policy and is the
amount payable for the accidental loss of sight or accidental dismemberment, or the capital
sum. It is a specified amount, usually expressed as a percentage of the principal sum, which
varies according to the severity of the injury. For example, the benefit for the loss of one foot or
one hand is typically 50% of the principal sum. The most extreme losses (such as both feet or
sight in both eyes) generally qualify for payment of the full benefit, which is 100% of the
principal sum.
Limited Risk Policies Correct Ans-coverage for specific kinds of accidents or illnesses, such as
injuries received as a result of travel accidents or medical expenses stemming from a specified
disease.
Special risk policy Correct Ans-policy covers unusual hazards normally not covered under
ordinary accident and health insurance. An actress who insures her legs for $1 million or a pilot
, test-flying an experimental airplane who obtains a policy covering his life while flying that
particular plane are both purchasing special risk policies.
The Beneficiary of an Accidental Death and Dismemberment (AD&D) insurance policy
Correct Ans-the person or entity designated in the policy to receive the death proceeds.
The Primary Beneficiary Correct Ans-the first in line to receive death benefit proceeds.
The Secondary (contingent) Beneficiary Correct Ans-second in line to receive death benefit
proceeds.
The Tertiary Beneficiary Correct Ans-the third in line to receive death benefit proceeds. If no
one named, death benefit will go to insured's estate.
A Revocable Beneficiary Correct Ans-a beneficiary that the policy owner may change at any
time without notifying or getting permission from the beneficiary
An Irrevocable Beneficiary Correct Ans-may not be changed without the written consent of
the beneficiary. The irrevocable beneficiary has a vested interest in the policy, therefore the
policyowner may not exercise certain rights without the consent of the beneficiary.
Per Stirpes (by the bloodline) Correct Ans-in the event that a beneficiary dies before the
insured, benefits from that policy will be paid to that beneficiary's heirs.
