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.

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Definitions:

Opisthokonts

A diverse group of eukaryotic organisms, including fungi, animals, and related groups, characterized by a single posterior flagellum in the motile stage.

Eukarya

One of the three domains of life; consists of organisms with cells featuring a nucleus and other membrane-bound organelles.

Fungi

A kingdom of spore-producing organisms that feed on organic matter, including molds, yeast, mushrooms, and toadstools.

Sexual Spores

Reproductive cells formed during the sexual life cycle of an organism, capable of developing into a new individual upon germination.