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WAEC Commerce 2016 Objective — Question 1

Question 1 of 50 from the West African Examinations Council (WAEC) Commerce 2016 Objective paper, with the correct answer and a full explanation.

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1. Where a number of insurance companies are liable under one policy, the principle applicable is A. subrogation B. contribution C. indemnity D. utmost good faith

  • A. subrogation
  • B. contributionCorrect
  • C. indemnity
  • D. utmost good faith

Explanation

When two or more insurance companies come together to insure a single policy, then such act is called contribution policy.

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