Which term describes the process of putting someone back in the same financial position after a loss?

The correct term that describes the process of putting someone back in the same financial position after a loss is indemnity. This principle is fundamental to insurance because it ensures that the insured party receives compensation that restores them to their pre-loss condition, without profiting from the loss. Indemnity serves to prevent the insured from being in a better financial position after the claim than they were before the loss occurred.

Peril refers to the cause of loss or damage in an insurance context, such as fire, theft, or flood. While it is related to the insurance landscape, it does not cover the concept of financial restoration after a loss.

General insurance covers various non-life insurance products, but it does not specifically denote the process of restoring financial status post-loss.

Loss ratio is a measure used to evaluate the profitability of an insurance company, calculated by comparing incurred losses to earned premiums. It does not relate to the concept of financial restoration after a loss.

Thus, indemnity is the term most relevant to the process of ensuring that individuals or entities are made whole again financially after experiencing a loss.