01.Core Concepts

The purpose of other-insurance provisions is to prevent profiting from insurance and violating the principle of indemnity Under a pro rata liability provision, each insurer’s share of the loss is based on the proportion that its insurance bears to the total amount of insurance on the property Under contribution by equal shares, each insurer shares equally in the loss until the share paid by each insurer equals the lowest limit of liability under any policy, or until the full amount of the loss is paid ‹#›