Key Concepts
Accidental Means - Requirement of an accident-based policy that the cause of the mishap must be accidental for any claim to be payable.
Accidental Results - Stipulates that only the injury resulting from an accident must be unintentional.
Capital Sum - Amount provided for accidental dismemberment or loss of eyesight. (Indemnities for loss of one member or sight of one eye are percentages of the capital sum.) Capital sum payments are usually expressed as a percentage of the principal sum that varies according to the severity of the injury.
Limited Risk Policy - Provides coverage for specific kinds of accidents or illnesses, such as injuries received as a result of travel accidents or medical expenses stemming from a specified disease.
Principal Sum - The amount that is payable as a death benefit if death is due to an accident. The principal sum is the maximum amount the policy will pay.
Special Risk Policy - Provides coverage for unusual hazards normally not covered under accident and health insurance, such as a concert pianist insuring his or her hands for a million dollars.
Familiarize yourself with the Key Concepts in the Florida study manual, Unit 19.
