Question 11

The accidental death benefit rider is also known as double indemnity.

The accidental death benefit rider is commonly referred to as double indemnity because it typically pays out double the face value of the policy if the insured dies in an accident.

A) incontestability.

Incontestability refers to a clause that prevents an insurer from denying a claim based on misstatements or omissions made by the policyholder after a specified period. It does not relate to the accidental death benefit rider, making this option incorrect.

B) double indemnity.

Double indemnity is the correct term for the accidental death benefit rider. This rider allows for a higher payout in the event of accidental death, effectively doubling the insurance benefit.

C) waiver of premium.

The waiver of premium is a provision that allows the policyholder to skip premium payments if they become disabled. This option is unrelated to accidental death benefits, rendering it incorrect.

D) guaranteed insurability.

Guaranteed insurability is a feature that allows policyholders to purchase additional coverage without providing evidence of insurability at certain times. This concept does not pertain to accidental death benefits, thus making it an incorrect choice.

Conclusion

The term double indemnity accurately describes the accidental death benefit rider as it signifies the increased payout for accidental death. All other options pertain to different insurance concepts and do not relate to the provision of additional benefits for accidental deaths, confirming that B is the only correct answer.