The ________ Says That an Insured Person Cannot Collect More

question 65

Multiple Choice

The ________ says that an insured person cannot collect more than the actual loss from an insurable risk.

• A) law of large numbers
• B) rule of indemnity
• C) law of diminishing returns
• D) rule of finite loss coverage

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Definitions:

General Duty

An obligation or requirement that one must adhere to in a specific role or context, often implying a standard level of care or responsibility.

Causation

The relationship between an action and its effect, where the action is considered to be a contributing factor to the outcome or injury.

Negligence

The failure to exercise the standard of care that a reasonably prudent person would have exercised in a similar situation, leading to harm or damage.

Res Ipsa Loquitur

A legal principle that infers negligence from the very nature of an accident or injury, in the absence of direct evidence on how any defendant behaved.