WebbPrinciples of Risk Management and Insurance, 12e (Rejda/McNamara) principles of risk management and insurance, 12e chapter fundamental legal principles

401 ch9 Flashcards Quizlet

WebbWhich of the following is a fundamental purpose of the principle of indemnity? To reduce moral hazard To minimize physical hazards To settle property insurance losses on a replacement cost basis To require deductibles in all property insurance policies To insure depreciation To reduce moral hazard WebbThe principle of indemnity is an insurance concept which states the purpose of insurance is to make an insured (policy owner) whole again after a loss. It also states insurance is not for profit. How does it ensure the policy owner is made “whole” again? Well, we are talking about financially “whole”. form 6 guardianship

Insurance Chapter 9 Flashcards Quizlet

WebbStudy with Quizlet and memorize flashcards containing terms like Fundamental purposes of the principle of indemnity include which of the following?, The loss settlement under which of the following supports the principle of indemnity? A) life insurance B) valued policies C) replacement cost property insurance D) actual cash value property insurance, … WebbThe principle of indemnity states that the assured will be put back into the same financial position that he enjoyed before his incident. The insurance company will only reimburse … WebbThe basic purpose of insurance is to cover a loss that an insured has suffered. Indemnity is the payment of a loss by the insurer to the insured, but for no more than the actual amount of the loss. Indemnity compensates the insured for loss, but does not allow the insured to make a profit out of the loss. form 80 download