What is the percentage of the capital sum provided for the loss of one member or one eye as a form of compensation?

Prepare for the Mississippi Life and Health Insurance Test. Utilize multiple choice questions, flashcards, hints, and explanations to ensure you pass with confidence!

The correct answer indicates that a percentage of the capital sum is provided for the loss of one member or one eye as compensation. This approach aligns with standard practices in various insurance policies where compensation is calculated based on percentages to account for the severity of the injury or loss.

When an individual suffers an injury resulting in the loss of one member (such as an arm or leg) or an eye, the insurance policy specifies that the compensation awarded is not the entire capital sum but rather a predefined percentage. This structured method ensures that the compensation is proportionate to the nature of the loss, reflecting the claim's severity.

In typical policies, the capital sum refers to the total amount that would be paid out for the most significant losses (like the loss of life), and for lesser injuries, the policy states that only a percentage of this capital will be paid. Thus, it maintains a fair balance in compensating policyholders for their claims based on distinct circumstances.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy