General Insurance
How does the principle of indemnity apply differently to life insurance than to property insurance?
Answer and explanation
Answer: B. Property insurance restores the insured to the position held before the loss, but a life cannot be valued that way, so life policies are valued contracts paying the face amount agreed at issue. Proof of financial loss is not required at the claim.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, utmost good faith
More general insurance questions
- An insured pays a single monthly premium and dies the next week, and the insurer pays the full face amount. Which contract characteristic does this illustrate?
- An insurer discovers within the contestable period that a material fact was concealed. What remedy is rescission?
- An insurer formed under the laws of Connecticut writes business in New York. How is it classified in New York?
- An insurer has not been granted authority to transact business in New York. How is it described?
- An insurer has taken late premiums for two years without comment, then declines a claim for late payment. What doctrine answers the insurer?
- An insurer incorporated in Ontario, Canada writes business in New York. How is it classified in New York?
621 New York questions like this one.
Every answer explained, the ones you miss come back on a spaced schedule, and a plan built from your exam date.