Which of the Following Statements Best Reflects the Concept Behind

question 91

Multiple Choice

Which of the following statements best reflects the concept behind the rule of indemnity?

• A) If a large number of people are exposed to the same risk, a predictable number of losses will occur during a given period of time.
• B) If a written contract exists between the insured and an insurance company, the insured is entitled to receive the maximum amount stated in the contract in the event of a loss.
• C) If an insurance company's premiums generate excess funds, these excess funds must be returned to the policyholders in the form of dividends or reductions in future premiums.
• D) An insured person cannot collect more than the actual loss from an insurable risk.

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Definitions:

Role Model/Mentor

A role model or mentor is a person whose behavior, example, or success is or can be emulated by others, especially by younger individuals.

Nuclear Families

A domestic arrangement where both parents and their kids cohabit as a singular family unit.

Extended Families

A network of relatives beyond the immediate family, including grandparents, aunts, uncles, and cousins, who often live together or maintain close emotional ties.

Single-parent Families

Households headed by only one parent, encompassing the responsibilities of raising children.