AD&D Insurance
How the Plan Works
The Accidental Death and Dismemberment (AD&D) Insurance Plan pays benefits to you or your covered dependents if you experience a loss as the result of a serious accidental injury. The plan pays your beneficiary if you die as the result of an accident, and it pays you if your covered dependent dies. Covered losses include death, paralysis or loss of a limb, and loss of sight, speech or hearing.
Coverage for You
You may elect AD&D insurance coverage for yourself of one to six times your basic annual earnings, up to $500,000.
Definition of Basic Annual Earnings
Basic annual earnings are defined as your current salary or wage. They do not include bonuses, overtime pay or any other extra compensation. If your job currently includes sales commission, your basic annual earnings will be averaged over the previous 12-month period, or averaged from the date of employment, whichever period is shorter. If your salary changes during the year, your coverage amounts will also change, effective on the date of your salary increase.
Coverage for Your Family
You may also choose AD&D insurance coverage for your spouse and children. You have three coverage options:
Spouse only — 60% of your AD&D insurance coverage amount
Children only — 20% of your AD&D insurance coverage amount
Spouse and children — 50% for your spouse and 15% for your children of your AD&D insurance coverage amount
How Benefits Are Paid
The plan pays a benefit if you or your covered dependents die or suffer a covered physical loss as the direct result of an accident. For the benefits to be paid, the loss or death must occur within 365 days of the accident. The following table shows the covered losses and the benefit amount for each loss.
Covered Loss | Percentage of Benefit Paid |
Life | 100% |
Speech and hearing | 100% |
Use of both arms and legs | 100% |
Use of both legs | 75% |
Sight of one eye | 50% |
Use of one limb | 50% |
Speech or hearing | 50% |
Loss of use of arm and leg on one side of body | 50% |
Thumb and index finger of same hand | 25% |
In the event of an accidental injury, AD&D insurance coverage pays benefits to:
You in the case of certain accidental injuries
Your named beneficiary in the event of your death (see Naming a Beneficiary below)
If you have a double loss that is named together in the table above, both losses must occur in the same accident for the plan to pay 100% of the amount of coverage. If the two losses are not named together in the table, you receive benefits for the greater of the two losses. The maximum amount payable from one accident is 100% of the amount of coverage.
Naming a Beneficiary
A beneficiary is the person, institution or organization you name to receive your AD&D insurance benefits in the event of your death. When you become eligible for AD&D insurance coverage, you complete a form naming your beneficiary. This form must be returned to DallasNews Corporation Benefits. You may name anyone as your beneficiary, and you may change your beneficiary at any time by submitting a new form to DallasNews Corporation Benefits. Your beneficiary will remain the same unless you complete a new form.
If a designated beneficiary dies before you, his or her share will be paid (in equal shares) to any other beneficiaries who are still living and have been named by you. If all designated primary beneficiaries die before you, the benefits will be paid to the designated secondary beneficiaries. If no beneficiary is living or if you do not name a beneficiary for your AD&D insurance benefits, payment is made in the following order:
Your surviving spouse
Equal shares to your surviving children
Equal shares to your surviving parents
Equal shares to your surviving sisters and brothers
Your estate
If you elect dependent life or AD&D insurance coverage for your spouse or children, you are automatically the beneficiary for their insurance benefits.
Wording is important when naming your beneficiary. When making a beneficiary designation, always include your beneficiary’s address, Social Security number and the percentage of the total benefit you would like each beneficiary to receive.
Assignment of Benefit
Your beneficiary may assign a portion of his or her benefit directly to the funeral home to cover the cost of your funeral.
If You Die While Disabled
If you die while totally disabled, your beneficiary would be eligible to receive an AD&D insurance benefit only if you had continued to pay premiums during your absence from work. To receive benefits, your beneficiary must notify the claims administrator within 12 months of your death.
Special Features
In addition to the coverage described above, the AD&D Insurance Plan offers several additional benefits.
Disappearance. The plan will pay benefits if you or your covered dependent dies in an accident and no body is found within one year of the accident. The death must be the result of the accidental wrecking, sinking or disappearance of a conveyance (such as an airplane or boat) on which the insured person was known to be a passenger.
Seatbelt Benefit. If you or your covered dependent dies in a car accident as the driver or passenger, the plan pays an additional benefit if you were wearing a seatbelt:
For you — 100% of your basic AD&D insurance coverage amount or $50,000, whichever is less.
For your dependents — 100% of the dependent AD&D insurance coverage amount or $50,000, whichever is less.
This benefit will be paid if the insurer receives written proof (including a police report) that the death occurred as the result of a car accident and that lap and shoulder restraints were properly fastened at the time of the accident.
Common Accident Benefit. If you and your spouse are both covered, and you both die as the result of the same accident (or separate accidents within 24 hours) and within 90 days of the accident, the plan will increase the benefit for your spouse’s death. The increased benefit will be equal to the amount of your personal AD&D insurance coverage.
Education Benefit. If you die as the result of an accident, the plan pays an additional benefit to each dependent child for higher education. This benefit is payable for up to four consecutive years, as long as the child is enrolled at a post-secondary school before age 23 and within one year of your death. The plan will pay 2% of your AD&D insurance coverage amount or the incurred education expenses, whichever is less. If you do not have children at the time of the accident, the plan will pay the 2% benefit in a lump sum to your designated beneficiary.
Exclusions
Benefits are paid only for losses caused by an accident. The plan does not pay benefits if the loss results from:
Suicide or attempted suicide, while sane or insane
Intentionally self-inflicted injury
Committing or attempting to commit an assault, felony or other illegal act
Physical or mental infirmity, disease or infection, except when caused by accidental bodily injury
War (declared or undeclared) or active duty in any armed service during a time of war (declared or undeclared)
Active participation in a riot, rebellion or insurrection
Injury or death as a result of the covered person operating any motorized vehicle while intoxicated or under the influence of any controlled substance