An insurance contract must comply with the "principle of indemnity". jarron's friend nick, accidentally destroys jarron's laptop computer. nick pays jarron for the damage, but jarron also submits a claim to his insurance company for the laptop. the claim will be:
a. paid, the fact that jarron has already been paid for the damage has no bearing on the insurance company's obligation to pay. b. denied because jarron has already been paid for the damage. c. paid, but only at 50% of the limit of liability. d. denied because the damage was caused by a friend and not the insured.

B) Denied because Jarron has already been paid for the damage.

Explanation:

If the insurance company somehow found out that Nick already paid Jarron for the damage, then they don't have any duty to pay Jarron.

It is even possible for a person to have two different insurance policies for the same asset, but in case you have some type of accident, only one of them will pay you.

The principle of indemnity state that in case of a loss, the insured should be put back to the same position as before the loss occurred. An insured should not be able to make money due to a loss.

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