Chapter 8 - Contribution & Subrogation

Question 1

Which principle of insurance seeks to share the burden of loss, fairly among all insurers who cover the loss?

• Subrogation
• Contribution
• Average condition
• Proximate cause

Answer 1

Contribution

Question 2

Gareth has two policies covering his camera. The sum insured with policy A is £500. The sum insured with policy B is £250. What is the rateable proportion, payable insurer A?

• 1/4
• 1/3
• 2/3
• 1/2

Answer 2

2/3 - 500 + 250 = 750