The Concept of Indemnification

question 31

Multiple Choice

The concept of indemnification

• A)means that the benefit paid under a policy is always large enough to allow the insured to buy a new piece of property as replacement for the one that was damaged or lost.
• B)applies only if the premiums that the insured paid are equal to the value of the property that was lost or damaged.
• C)usually leaves the insured with a small profit.
• D)is important to the concept of an insurable interest.
• E)is relevant to third party coverage but not first party coverage.