An exception to the principle of indemnity in about half of the United States is the concept of
A) subrogation,
B) misrepresentation,
C) valued policies.

Question

Quizplus · Accepted Answer

Valued policies are an exception to the principle of indemnity in about half of the United States. Under a valued policy, the insurer agrees to pay a specified amount in the event of a total loss, regardless of the actual value of the loss. This contrasts with the principle of indemnity, which typically aims to compensate the insured only for the actual value of the loss.

An Exception to the Principle of Indemnity in About Half