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

The principle that seeks to share the burden of loss fairly among all insurers is known as contribution. This principle comes into play when a risk is insured by multiple insurers. In instances where a loss occurs, each insurer is responsible for paying a proportion of the loss in accordance with the policy limits that they have underwritten. The objective of this principle is to avoid the scenario where one insurer pays the full amount of the loss when multiple policies cover the same risk.

For example, if a property is insured by two companies and a loss occurs, contribution ensures that both insurers participate in settling the claim, thus distributing the financial burden appropriately. This not only promotes fairness among insurers but also allows for a more equitable compensation process for the insured.

The other options represent separate concepts within insurance. Subrogation involves the right of an insurer to pursue a third party responsible for a loss after they have paid a claim to the insured. Average condition deals with ensuring that the insured does not under-insure their property, as it can affect the recovery amount, while proximate cause pertains to the specific event that led to the loss, determining if the loss is covered under the policy. Each of these concepts plays a distinct role in the insurance framework but does not specifically address the sharing