Question

Which of the following BEST describes how a policy that uses the "accidental bodily injury" definition of an accident differs from one that uses the "accidental means" definition?

a) Accidental bodily injury focuses on the cause, while accidental means focuses on the effect.
b) Accidental means focuses on the cause, while accidental bodily injury focuses on the effect.
c) Both definitions are practically the same.
d) There is no substantial difference between the two definitions.

Answer 1

The key difference is that "accidental bodily injury" refers to the effect (the injury being accidental) and "accidental means" refers to the cause (the event leading to injury must be unintended and unforeseen). Understanding these terms is vital in the insurance industry which operates on the principle of imperfect information.

Step-by-step explanation:

The question you've asked is about the difference between "accidental bodily injury" and "accidental means" in the context of insurance policy definitions. The answer is that "accidental bodily injury" focuses on the effect — that is, the injury itself must be accidental, irrespective of how it was caused.

Insurance works on the principle of imperfect information; insurers cannot predict individual events with certainty, so they calculate the risk based on the characteristics and choices of groups of people along with the factor of luck. Therefore, understanding the precise definitions of terms like accidental bodily injury and accidental means is essential for both insurers and policyholders.