Which of the following is used to set maximum reimbursement in the event of loss of an asset that you own equal to the value of the item?

Question

Quizplus · Accepted Answer

Indemnity is a principle of insurance which is used to compensate the policyholder for the actual loss suffered, up to the maximum limit of reimbursement set in the policy. So, it is used to set the maximum reimbursement in the event of loss of an asset that you own equal to the value of the item. Screening of applicants and segregation of applicants are methods used by insurers to select and classify risks, while insurable interest is the financial or other interest an insurance policyholder has in the insured asset or person. None of these options address the specific question asked.

Which of the Following Is Used to Set Maximum Reimbursement