An insured has a life insurance policy with an Accidental Death and Dismemberment rider amounting to $50,000. If both arms are lost in an accident, how much will be paid?

In this scenario, the correct choice indicates that the insured will receive the full benefit due to the loss of both limbs. Accidental Death and Dismemberment (AD&D) riders provide specific benefits in the event of accidental injuries resulting in the loss of limbs, among other things.

When both arms are lost in such an accident, the policy outlines that the insured would receive the full capital sum provided by the rider. This means that the stipulated amount—here, $50,000—would be payable entirely, reflecting the serious nature of the loss.

The key aspect of AD&D coverage is that it specifically addresses the circumstances of loss due to accidents, rather than being influenced by the type of accident (such as whether it occurred in an automobile). Thus, the loss of both arms would trigger the maximum benefit payable under the rider, which supports the notion of the full benefit being paid out directly correlating to the severity of the injury sustained.