Rather than ongoing, monthly benefits, these insurance policies pay a lump sum of money in the event of an accidental death or loss of a limb (and sometimes an eye). The amount of the benefit depends on how much insurance is purchased and the nature of the accidental injury, dismemberment or death.
However, as with Long Term Disability insurance (LTD), Accidental Death and Dismemberment (AD&D) insurance carriers do not always stand behind their customers. Sometimes insurance companies, relying on weak evidence, will deny a valid claim for benefits by accusing the claimant or the deceased of being negligent (e.g., operating a motor vehicle while under the influence of alcohol or drugs) at the time of accidental death, or even of having committed suicide.
As with Long Term Disability (LTD) insurance, your AD&D coverage will be governed by ERISA if the insurance is provided in a private employer-sponsored plan. Otherwise, state insurance law will govern your claim.
If your insurance company has denied your claim for benefits under an Accidental Death and Dismemberment (AD&D) policy, contact us.