What Is Indemnity?

Indemnity across 5 exams

Indemnity appears on the following exams. Each defines it in the context candidates are tested on:

Life Insurance

The insurance principle that restores an insured to their financial position before a loss occurred, without allowing profit. Life insurance uses stated benefit amounts rather than indemnity calculations, making it a valued policy contract.

Property & Casualty

The principle that an insured is restored to the same financial position held before a loss, without profiting from it. It underlies most property and casualty coverage.

Personal Lines

The principle of restoring an insured to the same financial position they held before a loss — no better and no worse. It prevents the insured from profiting from an insured event.

All-Lines Adjuster

The principle that insurance should restore the insured to the same financial position they held before a loss — no better and no worse — preventing profit from a claim.

Public Adjuster

The insurance principle of restoring the insured to the same financial position they held before the loss, without allowing profit from the claim.