HW2 Chapter 9 1. Explain the principle of indemnity 2. What is a valued policy? Why is it used? 3. Explain the principle of insurable interest. Why is an insurable interest required in every insurance contract? 4. Explain the principle of subrogation. Why is the subrogation used? 5. Explain the following legal doctrines: Misrepresentation, Concealment and Warranty 6. List the four requirements that must be met to form a valid insurance contract 7. A drunk driver ran a red light and smashed into Kristen's car. The cost to repair the car is $8000. She has collision insurance on her car with a $500 deductible. Can Kristen collect from both the negligent driver's insurer and her own insurer? Explain your answer. Explain how subrogation supports the principle of indemnity.