Question

    Which principle specifies an insured should not collect

    more than the actual cash value of a loss?
    A Indemnity Correct Answer Incorrect Answer
    B Premium Correct Answer Incorrect Answer
    C Annuity Correct Answer Incorrect Answer
    D Liquidity Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Legal principle that specifies an insured should not collect more than the actual cash value of a loss but should be restored to approximately the same financial position as existed before the loss.

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