Property & Casualty Insurance License Test Practice Test
Property & Casualty Insurance License Test Property & Casualty Insurance License Test General Insurance Principles Questions and Answers
The principle of indemnity is a central concept in property and casualty insurance.
Which of the following best describes this principle?
Select your answer
A
The insured should receive the full policy limit for any covered loss.
B
The insured should be restored to approximately the same financial position as before the loss.
C
The insurer is entitled to profit from the premiums paid by the insured.
D
The insured is allowed to collect from multiple insurance policies for the same loss to maximize recovery.
Hint
