The principal of indemnity states that:
A) every claim should indemnify the property owner.
B) an insured person will not be reimbursed more than the economic loss he or she actually sustains.
C) premiums may not exceed 50% of the value of a mortgage.
D) lower insurance deductibles mean lower premiums.

Question

Quizplus · Accepted Answer

The principle of indemnity ensures that an insured person is compensated only to the extent of their actual economic loss, preventing them from profiting from an insurance claim.

The Principal of Indemnity States That