01.Core Concepts

There are some exceptions to the principle of indemnity: A valued policy pays the face amount of insurance if a total loss occurs Some states have a valued policy law that requires payment of the face amount of insurance to the insured if a total loss to real property occurs from a peril specified in the law Replacement cost insurance means there is no deduction for depreciation in determining the amount paid for a loss A life insurance contract is a valued policy that pays a stated sum to the beneficiary upon the insured’s death ‹#›