13. An insured has a $100000 policy with an accidental death benefit rider. If he dies on his way to work due to a heart attack what will the insurer pay?
Answer: A
The insurer will pay $100,000.
In this scenario, the insured has a $100,000 policy, and since the death was due to a heart attack rather than an accident, the accidental death benefit rider does not apply. Therefore, the insurer will only pay the standard policy amount.
A) $100,000
This option is correct because the insured's death was caused by a heart attack, which is considered a natural cause of death, not an accident. The accidental death benefit rider only pays out in cases of accidental death, so the insurer will pay the face value of the policy.
B) $150,000
This option is incorrect because there is no provision in the policy for an increased payout of $150,000. The accidental death benefit rider would only apply if the death were due to an accident, which is not the case here.
C) $200,000
This option is incorrect as it suggests a payout that is not supported by the terms of the policy. The policy states a death benefit of $100,000, and without an accidental death, there is no additional benefit that would justify a payout of $200,000.
D) $250,000
This option is also incorrect because the policy does not provide for a payout of $250,000 under the circumstances described. The insured's death from a heart attack does not qualify for any additional benefits, thus the insurer will only pay the standard policy amount.
Conclusion
The correct answer is $100,000 because the insured's death resulted from a heart attack, which is not classified as an accident. As such, the accidental death benefit rider does not apply, and the payout will be limited to the face value of the policy. All other options fail to accurately reflect the conditions of the policy regarding the cause of death.