The principle of indemnity does not apply to life and health insurance.

Question

Quizplus · Accepted Answer

The principle of indemnity applies to property and casualty insurance where the insurer agrees to compensate the insured for the actual amount lost or damage incurred. However, life and health insurance focuses on the risk of financial loss due to illness, injury, or death, and the principle of indemnity is not applicable in these cases. Instead, insurers pay out a predetermined benefit or coverage amount.

The Principle of Indemnity Does Not Apply to Life and Health