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Which of the Following Statements About Group Accidental Death and Dismemberment

question 34

Multiple Choice

Which of the following statements about group accidental death and dismemberment (AD&D) insurance is (are) true?
I.The principal sum is paid if the employee dies in an accident.
II.A percentage of the principal sum is paid for certain types of dismemberments.


Definitions:

Excise Tax

A tax levied on the sale of particular goods or services, such as alcohol and tobacco, usually with the intent of reducing their consumption through higher prices.

Excise Tax

A specific tax levied on the sale of a particular good or service, often included in the price of items such as tobacco or alcohol.

Tax Rate

The percentage at which income or property is taxed by a government.

Pretax Equilibrium

The market equilibrium that occurs before any taxes are applied to goods or services, reflecting the balance between supply and demand without tax-induced price distortions.

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