Final answer:
The policy is based on an Indemnity basis, meaning Kurt will be paid a flat $50 for each day he is hospitalized, regardless of the actual cost of his medical expenses.
Step-by-step explanation:
The policy in question, which pays Kurt a flat $50 a day for each day he is hospitalized, falls under the category of Indemnity insurance. Indemnity insurance is a type of health insurance that reimburses the policyholder for a specified amount for each day or service they receive. In this case, Kurt is being paid a flat amount per day he is hospitalized, regardless of the actual cost of his medical expenses.