The Principle of Indemnity Will Prevent

question 5

Multiple Choice

The principle of indemnity will prevent:

• A)the act of one person from being assigned to another.
• B)an insured from collecting more than what he or she has lost.
• C)a negligent third party from being held liable for damages if the injured party is insured.
• D)a significant amount of loss control activity.
• E)an insurer from ever waiving its right to subrogation.

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Definitions:

Premise

An initial statement or proposition from which conclusions are drawn or arguments are based.

Strategy

A plan of action designed to achieve a long-term or overall aim, often involving the deployment of resources in a competitive context.

Structure

The arrangement or organization of interrelated elements in a material object or system, or the organization of parts as dominated by the general character of the whole.

Bureaucratic

Relating to a system of government or organization that is managed by departments staffed with non-elected officials, often criticized for excessive procedural complexity.