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:

Sinking Funds

A fund established by an entity to set aside money over time for the purpose of paying off debt or a major expense.

Marginal Revenue Curves

These are graphs that show the relationship between the amount of output a firm sells and the revenue it gains from selling an additional unit of output.

Competitive Firm

A company that operates in a market where there is free entry and exit and no single buyer or seller can influence the market price.

Total Revenue

refers to the full amount of income generated by the sale of goods or services before any expenses are subtracted.