Lloyd’s Personal Accident Insurance: An excellent supplement or alternative to life insurance in many situations

Lloyd’s is the world’s leading specialist insurance market, home to 46 managing agents and 75 syndicates, which offer an unrivalled concentration of specialist underwriting expertise and talent.

As an approved Lloyd’s coverholder, Hunter McCorquodale offers personal accident coverage, designed to provide solutions for a variety of life insurance needs that can’t be satisfied in the regular market.

When your client has a life insurance need, you wouldn’t normally think of AD&D as a solution….
BUT … what do you do when your client’s need can’t be satisfied in the regular market?
There are many situations where AD&D is an excellent alternative or supplement to life insurance.

Through Hunter McCorquodale you can obtain AD&D coverage customized to meet your clients specific need:

• Sums insured up to $20 million
• AD&D (Accidental Death and Dismemberment) or AD only
• Individual or group policies
• Optional Lump Sum for accidental Permanent Total Disability
• War/terrorism coverage – stand-alone or add-on
• Canadian or US currency

AD&D coverage is normally underwritten and implemented very easily and quickly. Often coverage can be bound instantly, based only on a completed short form application.

Here are some examples of situations where AD&D has been used successfully:

• Medical declines: Most regular market life insurance medical declines will qualify for AD&D coverage at reasonable rates, and without any medical underwriting requirements.
   
• Foreign travel or residence: Life insurers decline many applications due to historical or planned travel. We have provided AD&D to many individuals and groups traveling to or working in the most hazardous parts of the world, including Iraq and Afghanistan.
   
• Exclusions in group/individual policies: We offer AD&D to provide coverage for causes of death that may be excluded in individual life policies or group life/AD&D policies.
  Common examples include war/terrorism and aviation.
   
• Older ages: Individuals 65 and older that require coverage for estate planning needs, frequently find that the cost of full life coverage is prohibitive. Many of these individuals prefer to have AD&D rather than no coverage at all.
   
• Interim insurance: Large life insurance applications can take several months to underwrite. We can provide interim protection using AD or AD&D coverage.
   
• Short term needs: Sometimes life insurance is required for a short period of time e.g. for the duration of a specific work assignment. It is not practical for insurers to issue life insurance contracts for short-term needs. We can provide AD&D for as little as one day.
   
• Employer contract commitments: Employers may be required, by the terms of employment or termination agreements, to provide AD&D coverage that cannot be provided through their regular group plan.

AD&D – sometimes it’s the ONLY solution!
 

(A) General Information:

Issue Ages: 0 to 80

Policy Terms: up to 3 years

Sums Insured: up to $20 million

Premiums:

• Premiums are determined based on the specific risk profile of each case.
• Minimum annual premium is $500, plus $100 policy fee.
• Premiums are payable on an annual basis only.

Benefits:

• Accidental Death
• Dismemberment (loss of use of body members or faculties)
• Permanent Total Disability lump sum
• Temporary Total Disability weekly benefit
• Medical expenses (war/terrorism only)

(B) Summary of Policy Provisions:

Please note: This is intended as a summary of the important features of the plan. The actual policy provisions will prevail.

Insuring Agreement:
Benefits are payable for losses resulting from Bodily Injury caused by an Accident.

Bodily Injury:
Means identifiable physical injury caused by an Accident and resulting, directly and independently of all other causes, in death or disablement within 365 days of the Accident.

Accident:
Means a sudden and unexpected event that occurs at an identifiable time and place. Also includes:

• exposure to the elements following a mishap to a conveyance in which you are traveling, or
• disappearance, with your body not being found within 365 days and there being sufficient evidence to lead to the conclusion that you sustained Bodily Injury causing your death

Schedule of Benefits (AD&D):

100%  Death, loss or loss of use of both feet, sight of both eyes, one hand and one foot, one hand and sight of one eye, one foot and
            sight of one eye, speech and hearing in both ears, paralysis of lower limbs (paraplegia), or paralysis of both upper and lower 
            limbs of one side of the body (hemiplegia).

75%    Loss or loss of use of one arm or one leg

67%    Loss or loss of use of one hand, one foot, sight of one eye, speech, or hearing in both ears

33%    Loss or loss of use of thumb and index finger

17%    Loss of hearing in one ear

Benefits for loss or loss of use are payable only if you survive for 30 days after the accident.

Permanent Total Disability (optional):
Means that as a result of accidental bodily injury you are unable to undertake all the material duties of any occupation for which you are reasonably fitted by training, education or experience for a continuous period of 365 days and at the expiration of the 365 day period, it is reasonably certain that such disability is permanent.

Temporary Total Disability (optional):
Means that as a result of accidental bodily injury you cannot undertake all the material duties of your normal occupation. You must be under the prudent care of a physician.

Single Benefit Limitation:
The total amount payable as a result of all covered losses will not exceed the Principal Sum Insured.

Exclusions:

• Sickness, disease (except bacterial infection resulting from injury), mental infirmity or emotional or psychological trauma
• War, terrorism (may be covered for an additional premium)
• Radioactive contamination
• Taking part in armed forces services or operations
• Riding or driving in any kind of race (may be covered for additional premium)
• Flying other than as a passenger (may be covered for additional premium)
• Suicide, attempted suicid

Here are the steps to follow in applying for Lloyds Personal Accident coverage:

1. Get a Quote. Important: We will not consider Lloyd’s AD&D applications unless we have first provided a quote.

2. Have your client complete the Application Form. Important: We will NOT begin underwriting until we receive a FULLY completed application.

3. Submit:

1. signed quote
2. fully completed application, as well as any supplementary applications or questionnaires that were forwarded to you along with the quote
3. completed Brokers Report
4. (optional) a cheque for the first annual premium, payable to “Hunter McCorquodale Inc.”
   Note: COD cases are acceptable, and this will not delay the effective date of the coverage.

If you are not already contracted with us, we will initiate contracting upon receipt of an application. To begin processing, however, we will need a copy of your current license and proof of E&O coverage.


Important Underwriting Information:

Coverage is normally underwritten and implemented very easily and quickly. Often coverage can be bound instantly, based only the completed application.

Financial underwriting: Financial underwriting for AD&D coverage is comparable to financial underwriting of life insurance. For larger sums insured, appropriate documentation may be required in order to justify the sum insured. For personal needs, the maximum amount of coverage we are able to offer is 10 times annual income, less any other life insurance coverage in force.

Medical underwriting: We rarely require any medical evidence for personal accident coverage. However, since some medical impairments may lead to increased risk of death, additional premiums are often charged for those with serious medical conditions. We are unable to offer coverage to someone that has a current medical condition that is likely to be terminal, or someone that is totally disabled or unable to perform normal activities of daily living as a result of a disability.