: The legal principle that insurance should restore the insured to the same financial position they were in prior to a loss, without providing a profit.
This " Dictionary of Insurance Terms " paper provides a foundational guide to the specialized terminology used in the insurance industry, designed to assist consumers, agents, and professionals in navigating complex policy language. Core Insurance Principles Dictionary of Insurance Terms
: A fundamental principle requiring both the insurer and the insured to act with total honesty and disclose all material facts. : The legal principle that insurance should restore
: Coverage primarily concerned with legal liability for injuries to others or damage to their property. designed to assist consumers
: A document providing formal evidence of insurance coverage, often required for business contracts.