The capital sum in coverage terms refers to which benefit?

Unlock all questions

This demo includes only 20 questions. Upgrade to access hundreds of questions, flashcards, exam simulations, and disable ads.

Full question bankExam simulationsFlashcards
From $9.99Unlock all

Prepare for the North Carolina Health Insurance Exam. Study with practice test questions related to accident and sickness insurance. Understand the format and expectations to excel in your licensing exam.

Multiple Choice

The capital sum in coverage terms refers to which benefit?

Explanation:
Capital sum is a lump-sum benefit paid out when a covered event, typically dismemberment or permanent loss of a body part or function, occurs. It’s designed as a one-time payout to compensate for permanent impairment, not ongoing protection or income. That’s why this term points to benefits for dismemberment. Accidental death would be a separate death benefit, premium refunds aren’t related to a lump-sum payout, and disability benefits are usually periodic payments rather than a single capital sum.

Capital sum is a lump-sum benefit paid out when a covered event, typically dismemberment or permanent loss of a body part or function, occurs. It’s designed as a one-time payout to compensate for permanent impairment, not ongoing protection or income. That’s why this term points to benefits for dismemberment. Accidental death would be a separate death benefit, premium refunds aren’t related to a lump-sum payout, and disability benefits are usually periodic payments rather than a single capital sum.

More Multiple Choice Questions
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy