The principle of average states that:
A. The insurer must pay the average amount for a claim settlement.
B. The insured must pay the average premium amount.
C. The insured is responsible for a proportionate share of a loss if underinsured.
D. The insurer must equally share the loss with the insured.
Answer:C
The principle of average states that:
A. The insurer must pay the average amount for a claim settlement. B. The insured must pay the average premium amount. C. The insured is responsible for a proportionate share of a loss if underinsured. D. The insurer must equally share the loss with the insured.