The principle of indemnity says that the insured should profit from insurance.

Name: The principle of indemnity says that the insured should profit from insurance.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The principle of indemnity states that the insured should be compensated for their losses up to the amount of the policy, but not receive a profit from the insurance. This is to prevent moral hazard, where someone may intentionally cause a loss in order to collect the insurance payout.

The Principle of Indemnity Says That the Insured Should Profit