Question

M is the owner of a $100,000 life policy with a triple indemnity rider for accidental death. When M is killed in a car accident, it is determined that the accident was his fault. The triple indemnity rider in M's policy specifies that the death must not be contributed to by the insured in any manner. In this case, what will the policy beneficiary receive?

A) The full $100,000 life policy amount.
B) The $100,000 life policy amount minus the triple indemnity rider.
C) Nothing, as the accident was the insured's fault.
D) The triple indemnity amount specified in the rider.

Answer 1

The policy beneficiary will receive the base amount of the life insurance policy, which is $100,000, because the triple indemnity rider does not apply when the insured's actions contributed to the death.The correct answer is option A.

Step-by-step explanation:

In the outlined scenario, M has a $100,000 life policy with a triple indemnity rider for accidental death.

However, the policy stipulates that the triple indemnity benefit is only payable if the insured did not contribute to their death in any manner.

Given that it was determined M was at fault in the car accident that resulted in his death, the triple indemnity rider does not apply. Thus, the policy beneficiary will receive the base benefit of the life insurance policy, which is $100,000.

The additional indemnity benefit will not be paid out due to the terms of the rider specifying that the insured's actions cannot contribute to the death for the benefit to be payable.The correct answer is option A.