The principle of indemnity will prevent:
A)the act of one person from being assigned to another.
B)an insured from collecting more than what he or she has lost.
C)a negligent third party from being held liable for damages if the injured party is insured.
D)a significant amount of loss control activity.
E)an insurer from ever waiving its right to subrogation.

Question

Quizplus · Accepted Answer

The principle of indemnity in insurance ensures that the insured is compensated for their loss but does not profit from the insurance claim, thus preventing them from collecting more than what they have lost.

The Principle of Indemnity Will Prevent