The provision that establishes the method by which coverage will be applied if other insurance applies to the loss, is sometimes called: pro rata liability.
A pro rata liability clause is a provision in an insurance policy that requires an insurer to cover only one percent of a loss if the insured has other policies from other companies that cover similar risks. on one's own. Once the insurance company pays this percentage, other companies will pay the rest.
For example, if someone buys an insurance policy that is listed at a certain price for an entire year of coverage, but he or she buys only for half the year of coverage, they will pay the insurance company pro rata. , this amount will be up to half. the value of the full policy.
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