The principal sum represents the amounts paid for 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 $24.99Unlock all

Prepare for the North Carolina Health Insurance Test. Study with flashcards and multiple choice questions; each comes with hints and explanations. Get ready for your assessment!

Multiple Choice

The principal sum represents the amounts paid for which benefit?

Explanation:
The principal sum represents the death benefit under accidental death coverage. When an accidental death occurs, the insurer pays this amount as the principal sum. Other benefits, like disability, medical expenses, or hospital indemnities, are separate types of coverage and aren’t paid as the principal sum. (Some policies also provide a capital sum for specified injuries, but that is a different payment.) So the principal sum is specifically the amount paid for accidental death.

The principal sum represents the death benefit under accidental death coverage. When an accidental death occurs, the insurer pays this amount as the principal sum. Other benefits, like disability, medical expenses, or hospital indemnities, are separate types of coverage and aren’t paid as the principal sum. (Some policies also provide a capital sum for specified injuries, but that is a different payment.) So the principal sum is specifically the amount paid for accidental death.

More Multiple Choice Questions
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy