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where a number of insurance companies are liable under one policy, the principle ...

where a number of insurance companies are liable under one policy, the principle applicable is ?
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
  • A Subrogation
  • B Contribution
  • C Indemnity
  • D Utmost good faith
Correct Answer: Option B
Explanation:
The contribution principle in insurance is a rule that specifies what happens when a person buys insurance from multiple companies to cover the same event, and that event occurs. The contribution principle of insurance states that if a risk is insured by multiple carriers, and one carrier has paid out a claim, that carrier is entitled to collect proportionate coverage from other carriers.

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