What does "capital sum" refer to in insurance policies?

The term "capital sum" in insurance policies typically refers to a predetermined amount of money that is paid out in the event of a specific loss, such as the loss of a limb or other severe injuries. This sum is relevant in policies that cover accidental death or dismemberment, where the capital sum represents the policy's principal sum intended for these losses.

When examining the context of the right answer, it highlights that the capital sum is a percentage of the principal sum, which is the total benefit payable in the event of a covered incident. This means that if an insured event occurs, the policy will pay out a specific percentage of the capital sum defined in the policy. This approach allows for a structured and pre-defined payout based on the severity of the injury or occurrence.

The other options do not accurately reflect the definition or function of the capital sum within an insurance policy context, making the selection of the correct answer particularly important for understanding insurance payouts related to capital sums.