The loss settlement under which of the following supports the principle of indemnity?

Question

Quizplus · Accepted Answer

Actual cash value property insurance supports the principle of indemnity as it will only reimburse the insured for the actual value of the property that was lost, rather than more or less than the actual value. This is in line with the principle of indemnity, which seeks to restore the insured to their pre-loss position, without providing any profit or loss due to the insurance coverage.

The Loss Settlement Under Which of the Following Supports the Principle