Insurance Commission Licensure Exam - Non-Life Practice Questions - Insurance Commission Licensure Exam - Non-Life General Insurance Agent (Philippines) Exam

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If a policyholder has multiple insurance policies covering the same property and a loss occurs, how is the claim payout typically handled under the principle of contribution?

The policyholder can collect the full loss amount from each insurer Only the policy that was purchased first is obligated to pay the claim Each insurer pays a proportional share of the loss based on their limit of liability The government's Security Fund pays the entire claim directly

Correct Answer:

Each insurer pays a proportional share of the loss based on their limit of liability

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