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P is blinded in an industrial accident. Which provision of his life insurance policy will pay a stated benefit amount?

A.Accelerated Benefits provision
B.Entire Contract
C.Accidental Death and Dismemberment clause
D.Consideration clause

User DoubleBass
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1 Answer

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Final answer:

The Accidental Death and Dismemberment clause pays a stated benefit amount if the insured is blinded in an accident, separate from the death benefit and cash value of the policy. Option C.

Step-by-step explanation:

The provision of the life insurance policy that will provide a stated benefit amount if P is blinded in an industrial accident is the Accidental Death and Dismemberment clause (AD&D). This clause is specifically designed to pay out benefits for the accidental loss of life or a physical ability, like sight, hearing, or a limb.

Under the Accidental Death and Dismemberment clause, the life insurance policy outlines specific benefit amounts for different types of bodily injuries that are the result of an accident, and these benefits are separate from the death benefit that is paid out if the insured person passes away.

Cash-value (whole) life insurance policies have a death benefit and also accumulate a cash value over time that can serve as an account for the policyholder's use. However, this cash value is not related to the separate benefits provided under the AD&D clause for accidental injuries such as blindness. option C.

User TheZeke
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