along dismemberment (AD&D) coverage with a principal sum equal to the basic term insurance benefit. Which of the following statements about this coverage is (are) true? (Check all that apply.) )if the employee loses only one hand in an accident, he will receive a benefit less than $100,000 from his AD&D policy if the employee dies as the result of a work-related illness, his beneficiary will receive $200,000 OIf the employee loses both hands in an accident, he will receive $100,000 from his AD&D policy if the employee dies as the result of an accident, his beneficiary will receive a

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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An employee has basic term insurance of $100,000 along with accidental death &
dismemberment (AD&D) coverage with a principal sum equal to the basic term
insurance benefit. Which of the following statements about this coverage is (are)
true? (Check all that apply.)
if the employee loses only one hand in an accident, he will receive a benefit less
than $100,000 from his AD&D policy
if the employee dies as the result of a work-related illness, his beneficiary wil|
receive $200,000
O If the employee loses both hands in an accident, he will receive $100,000 from
his AD&D policy
if the employee dies as the result of an accident, his beneficiary will receive a
total of $200,000
Transcribed Image Text:An employee has basic term insurance of $100,000 along with accidental death & dismemberment (AD&D) coverage with a principal sum equal to the basic term insurance benefit. Which of the following statements about this coverage is (are) true? (Check all that apply.) if the employee loses only one hand in an accident, he will receive a benefit less than $100,000 from his AD&D policy if the employee dies as the result of a work-related illness, his beneficiary wil| receive $200,000 O If the employee loses both hands in an accident, he will receive $100,000 from his AD&D policy if the employee dies as the result of an accident, his beneficiary will receive a total of $200,000
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