Question

To restore an insured to the prior financial condition that existed prior to the loss is considered:

A. Hazard
B. Adhesion
C. Insurable Interest
D. Indemnify

Answer 1

To restore an insured to the prior financial condition that existed prior to the loss is known as indemnification.

Step-by-step explanation:

The correct answer is D. Indemnify.

To restore an insured to the prior financial condition that existed prior to the loss is known as indemnification.

Indemnification is a fundamental principle of insurance, where the insurance company compensates the policyholder for the financial loss incurred due to a covered event.