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WAEC Commerce 1991 (August) Question 47

Question 47

Insurance

Restoring the insured to his former position by the insurer in the event of his suffering the specified loss is called

  1. A.subrogation
  2. B.compensation
  3. C.indemnity
  4. D.contribution
  5. E.surrender value
Show the answer and explanation

Answer: C (indemnity)

Explanation

Indemnity puts the insured back where he was before the loss, no better off.