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Colorado Multistate Pharmacy Jurisprudence Examination (MPJE) Practice Exam

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Which insurance principle is intended to restore an insured financially to approximately the position occupied immediately before a covered loss without allowing a profit from the loss?
Correct Answer:
Indemnity
Explanation:
The principle of indemnity limits recovery to the insured's covered financial loss, subject to policy terms and limits, so insurance does not become a source of profit.

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