O-LevelCommerceInsurance7100/11 · May/June 2011 · Q301 Mark

What does the insurance principle of indemnity mean?

AAll relevant information about the risk must be disclosed.

BThe event causing the loss must be within the terms of the policy.

CThe insured must be restored to her former position.

DThe insured must stand to lose when the event occurs.

✓ Correct answer

C: The insured must be restored to her former position.

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Topic: Insurance, O-Level Commerce (syllabus 7100). Multiple choice, 1 mark.
Source: O-Level Commerce, May/June 2011 Paper 1 Variant 1, question 30.

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