According to the rule of indemnity, an insured person cannot collect more than the actual loss from an insurable risk.

Name: According to the rule of indemnity, an insured person cannot collect more than the actual loss from an insurable risk.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The rule of indemnity states that the insured cannot collect more than the actual loss sustained as a result of the insurable risk. This is to prevent over-compensation and fraud.

According to the Rule of Indemnity, an Insured Person Cannot