Tuesday, January 09, 2018

Companion Life takes a hit

Related: About 20 or so years ago I had a similar situation with a client. Small group health plan with $15,000 life and AD&D ("Accidental Death and Dismemberment);" the idea was that the death benefit doubled if one died from an accident (as opposed to illness). One of the employees, a young man (of course), decided to play chicken with a Ford Explorer (he was riding a motorcycle).

To my surprise, they actually care-flighted him to the hospital (to no avail, of course).

We submitted the death claim, which was approved for the underlying amount, but the AD&D portion were denied because the wording (more explicit than was the case here) said no "double indemnity" if alcohol was involved.

I had a few questions about that wording, too, but never had the opportunity to raise them.
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