Multiple choice technology testing

------ principle tells how much an insured can collect as insurance payment

  1. Insurable Interest

  2. Proximate Clause

  3. Indemnity

  4. Subrogation
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The indemnity principle limits insurance recovery to the actual financial loss suffered - no more, no less. This prevents insureds from profiting from insurance and ensures coverage restores (not exceeds) the pre-loss financial position.

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