WAEC - Commerce (2015 - No. 38)

when two insurers are liable under a given common policy, the principle of insurance that applies is?
indemnity
subrogation
proximate clause
contribution

Explanation

The principle holding that two or more insurers each liable for a covered loss should participate in the payment of that loss. Having paid its share of a loss, an insurer may be entitled to equitable contribution—a legal right to recover part of the payment from another insurer whose policy was also applicable.

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