Question 1016 of 303 · California Life-Only Agent Exam
What is the purpose of the principle of indemnity?
Exactly one answer is correct.
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Correct answer to question 1016
- B: To restore the insured's position, with no profit
Explanation
Indemnity means compensation limited to the actual loss so the insured does not profit. Life insurance is a valued contract and is the main exception because death cannot be measured in dollars.
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