where a number of insurance companies are liable under one policy, the principle applicable is ?
- subrogation
-
contribution
- indemnity
- utmost good faith
The correct answer is: 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.