Insurance contracts are contract of indemnity because:
A)the courts favor the insured when terms of the contract drafted by the insurer are ambiguous.
B)the insurer agrees to pay no more than the actual loss suffered by the insured.
C)the courts read the contract as an insured would.
D)insureds have no input in the design of a policy's terms.
E)the courts determine the coverage on the basis of the reasonable expectations of the insured.

Question

Quizplus · Accepted Answer

Insurance contracts are considered contracts of indemnity because they are designed to compensate the insured for the actual amount of loss suffered, not to provide a profit or gain beyond the loss.

Insurance Contracts Are Contract of Indemnity Because