Chapter 1

Question 1

Which best demonstrates indemnification?

a. After a fire, a homeowner is paid retail prices for personal property as well as the cost of rebuilding the structure
b. After a loss, an Insured collects from both her insurance and another person’s insurance
c. An Insured demands a new car when the old car is destroyed
d. After a car wreck, an injured person is paid for medical expenses and vehicle damages

Answer 1

The correct answer is: After a car wreck, an injured person is paid for medical expenses and vehicle damages