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Which of the following legal principles means that a person can only claim the value of a loss once, regardless of if they have multiple insurance policies?
Suggested Answer: C
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This is contribution. An example of this is if you have two insurance policies and are going on a business trip that is cancelled last minute. You can claim on the insurance the value of the trip- but only once. So you can either use one policy and not the other, or you can claim half the value of the trip on both policies. This stops people taking out multiple policies and then claiming on them all to make a profit. Legal Principles of Insurance is a known exam topic - this is from p.100-101 of the study guide
12 comments · newest first
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Teresita
3 days ago
Wait, are you sure? I thought it was something else.
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Tammy
8 days ago
Totally agree, that's the right one.
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Huey
13 days ago
It's C) contribution!
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Abel
18 days ago
Just to clarify, it means you can't double dip on claims.
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Kaycee
24 days ago
Wait, are you sure about that? Sounds too simple.
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Alesia
29 days ago
Totally agree, C is the right answer!
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Tomas
1 month ago
I thought it was D) subrogation.
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Linn
1 month ago
It's definitely C) contribution!
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Tegan
1 month ago
I definitely recall something about contribution meaning you can't claim more than the loss, so I think that's the correct choice.
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Luisa
2 months ago
I'm leaning towards A) utmost good faith, but I feel like it could also be related to insurable interest.
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Hildegarde
2 months ago
I remember discussing the principle of subrogation, but I don't think that's the right answer here.
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Theron
2 months ago
I think the answer might be C) contribution, but I'm not entirely sure. It sounds familiar from our last practice session.