American_Bankers_Association
CTFA · Question #377
What is that principle which states that an insured may not be compensated by the insurance company in an amount exceeding the insured's economic loss?
The correct answer is B. Principle of indemnity. See the full explanation below for the reasoning.
Estate Planning
Question
What is that principle which states that an insured may not be compensated by the insurance company in an amount exceeding the insured's economic loss?
Options
- APrinciple of cash value
- BPrinciple of indemnity
- CRight of subrogation
- DCo-insurance
How the community answered
(28 responses)- A11% (3)
- B79% (22)
- C7% (2)
- D4% (1)
Topics
#principle of indemnity#economic loss#insurance compensation#indemnification
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