Mike had both of his legs amputated after a boulder fell on them. He has a policy that pays a lump sum benefit for this injury. What type of insurance does Mike have?

• A. Catastrophic
• B. Accidental death and dismemberment
• C. Major Medical
• D. Hospital expense

Answer: (B)

This question hinges on how dismemberment protection works. An Accidental Death and Dismemberment policy provides a lump-sum payment when an accident results in the loss of a limb or other specified body parts. Losing both legs qualifies as a dismemberment event, so the policy pays a one-time benefit for that injury regardless of medical bills. Major Medical covers medical expenses, Hospital expense covers hospital charges, and Catastrophic typically relates to high-cost medical needs rather than a specific lump-sum payout for an injury. So the scenario described fits Accidental Death and Dismemberment.