Life License Qualification Program (LLQP) Practice Exam

In the event of an industrial accident where P is blinded, which provision will provide a stated benefit?

1. Accelerated Benefits provision

2. Entire Contract

3. Accidental Death and Dismemberment provision

4. Consideration clause

The correct answer is: Accidental Death and Dismemberment provision

The Accidental Death and Dismemberment provision is the correct choice because it specifically addresses situations where an individual suffers a loss due to an accident, such as blinding or severe injury. This provision typically outlines the exact benefits payable when certain types of accidental injuries occur, often including the loss of limbs, sight, or other critical body functions. In cases of industrial accidents, like the scenario where P is blinded, the Accidental Death and Dismemberment provision will ensure that the policyholder or beneficiary receives a stated benefit as defined in the policy for such incidents. This provision is designed to provide financial support for unexpected and unfortunate events, which is exactly what is needed in this scenario. The other options, while important in their own contexts, do not specifically relate to providing a stated benefit solely for the loss of sight due to an accident. The Accelerated Benefits provision is generally meant for terminal illness or serious health conditions, the Entire Contract refers to the document that encapsulates the whole agreement between the policyholder and insurer, and the Consideration clause pertains to the requirement of premium payments in exchange for coverage, but none of these directly provide the specific benefit for accidental injuries such as blinding.