Final answer:
To restore an insured to the prior financial condition that existed prior to the loss is known as indemnification.
Step-by-step explanation:
The correct answer is D. Indemnify.
To restore an insured to the prior financial condition that existed prior to the loss is known as indemnification.
Indemnification is a fundamental principle of insurance, where the insurance company compensates the policyholder for the financial loss incurred due to a covered event.