Rhode Island Life Insurance Practice Exam

Which kind of insurance coverage is specifically designed for accidents resulting in dismemberment?

1. Life Insurance

2. Disability Insurance

3. AD and D Insurance

4. Health Insurance

The correct answer is: AD and D Insurance

Accidental Death and Dismemberment (AD&D) insurance is specifically tailored to cover accidents that result in dismemberment. This type of insurance provides benefits in the event of an accidental death, as well as for the loss of limbs or other body parts due to an accident. The coverage is focused on the financial impact that such tragic events can bring, offering policyholders or their beneficiaries compensation that can help alleviate the burdens that come from such life-altering incidents. Life insurance, while providing a financial safety net upon the death of the insured, does not address dismemberment specifically. Disability insurance offers benefits for a loss of income due to inability to work from an injury or illness, but it does not directly cover the loss of limbs. Health insurance may cover medical expenses related to accidents and injuries, but again, it does not provide the unique benefits associated with the specific risks of dismemberment. The specialized nature of AD&D insurance makes it the most appropriate choice when addressing the question regarding coverage explicitly aimed at accidents resulting in dismemberment.