Health · Chapter 13 · Limited Policies — Accident Only
Capital Sum
Definition
The amount payable under an AD&D policy for accidental permanent loss of hearing, speech, sight, or a limb — expressed as a percentage of the principal sum, varying with severity: one foot or hand ≈ 50%, one arm or leg ≈ two-thirds, both feet or sight in both eyes = 100%.
Example
$50,000 for accidental death and $25,000 for loss of one limb or sight in one eye → principal sum $50,000, capital sum $25,000.
Exam tip
The standard exam percentage for the capital sum is 50%. Some policies even pay a capital sum for PARTIAL loss of a foot or hand.
Easy to confuse with
These are what this term gets tested against — if you can't tell them apart cold, drill the contrast.
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