What Is That Principle Which States That an Insured May

question 233

Multiple Choice

What is that principle which states that an insured may not be compensated by the insurance company in an amount exceeding the insured's economic loss?

• A) Principle of cash value
• B) Principle of indemnity
• C) Right of subrogation
• D) Co-insurance

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Definitions:

Treasurer

An officer in an organization responsible for managing the organization's financial affairs, including the custody and disbursement of funds.

Obligation

A legal or moral duty to do something or refrain from doing something.

Liable

Legally responsible for something, usually resulting in a requirement to compensate for harm or damage caused.

Accommodation Party

An individual who signs a negotiable instrument to lend their credit to another party without receiving a direct benefit.