______________ principle means that the insured is not entitled to make a profit on his loss.

Question

Question: ______________ principle means that the insured is not entitled to make a profit on his loss.

Options:

1.  subrogation
2.  causa proxima
3.  indemnity
4.  uberrima fides

Answer 1

3. Indemnity

Indemnity principle means that the insured is not entitled to make a profit on his loss.

Indemnity is a contractual obligation of one party to compensate the loss incurred to the other party due to the acts of the indemnitor or any other party.

The duty to indemnify is usually, but not always, coextensive with the contractual duty to "hold harmless" or "save harmless".