Measuring the loss the principle of indemnity lists Chapter 9

Question 1

Five reasons an insured may not receive full indemnity

Answer 1

1. Sum insured or limit of liability
2. Other policy limits
3. Underinsurance and average
4. Excess or deductible
5. Franchise

Question 2

Three extensions to operation of indemnity

Answer 2

1. Reinstatement
2. New for old
3. Agreed value

Question 3

Four methods of providing indemnity

Answer 3

1. Payment of money
2. Reinstatement
3. Repair
4. Replacement

Question 4

Two non indemnity/contingency insurances

Answer 4

1. Life insurance
2. Personal accident and sickness insurance

Question 5

Five indemnity insurances

Answer 5

1. Property
2. Pecuniary
3. Liability
4. Marine
5. Aviation

Question 6

Two examples of policies where policy sum insured must be reinstated following payment of a claim

Answer 6

Property

Household

Question 7

Two examples of a policy where sum insured does not need to be reinstated following a claim

Answer 7

1. Motor
2. Marine