Concept:Indemnity is the insurance principle that restores a person to their financial position before the loss.
Explanation:When an insured person suffers a loss, the insurer pays compensation equal to the actual loss.
The aim is to bring the insured back to the same financial state they enjoyed before the loss occurred.
The insured must not make a profit from an insurance claim.
Compensation is based on the value of the damaged or lost property.
Other options do not restore a person to a former position.
Utmost good faith means honesty in disclosing facts.
Insurable interest means a financial stake in the insured item.
Subrogation allows the insurer to take over the insured's rights after paying a claim.
Answer:C. indemnity