Which of the following statements correctly describes a contract of indemnity?

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Which of the following statements correctly describes a contract of indemnity?

A) One party is restored to the same financial position the party was in before the loss occurred
B) The unequal exchange of value or consideration for both parties
C) One party(the insurance company) prepares the contract with no negotiation between the applicant and insurer
D) Only one party(the insurer) makes any kind of enforceable promise

Answer: A) One party is restored to the same financial position the party was in before the loss occurred

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