Question

What is the principle of 'Contribution' in insurance?

a.

It refers to the process of transferring claims from one insurer to another.

b.

It specifies that a policyholder can claim the full value of the insurance from each insurer.

c.

It dictates how the liability is to be met when the insured has multiple insurance policies.

d.

It only applies to life insurance policies.

Answer: (c).It dictates how the liability is to be met when the insured has multiple insurance policies. Explanation:Contribution is the principle that guides how the liability is to be met when the insured has taken insurance from more than one insurer.

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Q. What is the principle of 'Contribution' in insurance?

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