When two insurers are liable under a given common policy, the principle of insurance that applies is?

A. indemnity
B. subrogation
C. proximate clause
D. contribution

Correct Answer: Option D

D. contribution

Explanation

The principle holding that two or more insurers each liable for a covered loss should participate in the payment of that loss. Having paid its share of a loss, an insurer may be entitled to equitable contribution—a legal right to recover part of the payment from another insurer whose policy was also applicable.