The Concept of Indemnification

Multiple Choice

The concept of indemnification

A) means that the benefit paid under a policy is always large enough to allow the insured to buy a new piece of property as replacement for the one that was damaged or lost.
B) applies only if the premiums that the insured paid are equal to the value of the property that was lost or damaged.
C) usually leaves the insured with a small profit.
D) is important to the concept of an insurable interest.
E) is relevant to third party coverage but not first party coverage.