Question

In case of a loss, the indemnity provision in insurance policies

1) Allows the insured to collect 20% more than the actual loss
2) Pays the insured a percentage of the loss above and beyond the loss
3) Pays the insured as much as 95% of the loss
4) Restores an insured person to the same financial state as before the loss

Answer 1

The indemnity provision in insurance policies restores an insured person to the same financial state as before the loss.

Step-by-step explanation:

In case of a loss, the indemnity provision in insurance policies restores an insured person to the same financial state as before the loss. This means that the insurance company pays the insured the actual amount of the loss, minus any deductible, up to the policy limit.