The principle of indemnity would prevent:
A)the act of one person from being imputed to another.
B)an insured from collecting more than he lost.
C)a negligent third party from being held liable for damages if the injured party was insured.
D)a significant amount of loss control activity.
E)an insurer from ever waiving it's right to subrogation.

Question

Quizplus · Accepted Answer

The principle of indemnity is the basis of insurance contracts, which is to make an individual "whole" again after a loss. However, it does not allow the insured to collect more than the actual amount of their loss. This is in order to prevent the insured from profiting from the loss or creating a moral hazard, which could encourage fraudulent claims.

The Principle of Indemnity Would Prevent