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The Principle of Indemnity Means That an

Question 40

Multiple Choice

The principle of indemnity means that an


A) insured can only purchase an insurance policy that covers actual losses.
B) insurance company will only pay the policyholder up to the face amount of the policy.
C) insurance company will reimburse the insured only for actual losses.
D) insured can only purchase insurance to cover his or her own property.

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