Question

Indemnity insurance:

	1.	reimburses for certain types of losses including fire and theft
	2.	in the basis for most of the health insurance coverage in the U.S
	3.	is often experience-rated with premiums based on expected losses
	4.	is sometimes called "casualty insurance"
	5.	All of the above

Answer 1

Answer- The correct answer is 5 ie., All of the above. Indemnity insurance is one where the one party gets the coverage by another party(the insurer) for any kind of losses as mentioned in the agreement that may arise in the future. Indemnity insurance is not like other general insurance where one gets claims against tha damages like property, instead here the insured hets claim for damages that may arise due to the fault or any kind of negligence caused by the insured party. In case of indemnity insurance the principle of indemnity is followed which states that the insured will be liabable for cliams upto the extent of damage so that the insured will be brought to the position where the damage did not happen. Indemnity may also be called as casualty insurance because in case of casualty insurance the person gets covered for any act that happened due to omission or any negligence on the part of the insured. Also, indemnity is experience based as the insured lerson’s track record is checked and it is observed if he or she has taken any claims in the past and paid the premiums on time. Based on the observations of the insured person’s data, the premium is decided so that any future loss that may occur can be compensated. Health is uncertain and anything can happen to anyone in the future, thus indemnity insurance is used in health insurance where the health loss maybe due to some negligence of the person. Fire and theft also occur when the person are not attentive or due their own negligence and hence here the indemnity insurance comes into play.