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WAEC Commerce 2016 Question 1

Question 1

Insurance

Where a number of insurance companies are liable under one Policy, the principle applicable is

  1. A.Subrogation.
  2. B.Contribution.
  3. C.Indemnity.
  4. D.Utmost good faith.
Show the answer and explanation

Answer: B (Contribution.)

Explanation

When several insurers cover the same risk, they share the claim under the principle of contribution.