Question

"Q and H are co-primary beneficiaries on the $100,000 Accidental Death and Dismemberment policy insuring their mother. Their father is the contingent beneficiary. If Q dies of cancer and the mother is killed in an auto accident two months later, the father will receive a MAXIMUM of?"

a) $50,000

b) $100,000

c) $0

d) $25,000

Answer 1

In this scenario, the father will receive a maximum of $100,000 as the contingent beneficiary on the Accidental Death and Dismemberment policy insuring the mother, even if Q dies of cancer.

Step-by-step explanation:

In this scenario, Q and H are the co-primary beneficiaries on a $100,000 Accidental Death and Dismemberment policy insuring their mother, while their father is the contingent beneficiary.

If Q dies of cancer and the mother is killed in an auto accident two months later, the father will receive a maximum of $100,000.

The Accidental Death and Dismemberment policy pays out the coverage amount to the beneficiaries in the event of the insured's accidental death or dismemberment.

In this case, since the mother was killed in an auto accident, her death qualifies for the policy payout.

Since Q was not the one who died in the auto accident, his death due to cancer does not affect the father's maximum payout of $100,000 as the contingent beneficiary.