Contribution by Equal Shares Clause Samples
The 'Contribution by Equal Shares' clause establishes that, when multiple parties are responsible for covering a loss or liability, each party will contribute an equal portion toward the total amount owed. In practice, this means that if several insurers or indemnitors are involved, each will pay the same share, regardless of the size of their individual obligations or coverage limits. This approach ensures a straightforward and equitable distribution of financial responsibility, preventing disputes over proportional contributions and simplifying the process of settling claims.
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Contribution by Equal Shares. If all of the other insurance or coverage provides for contribution by equal shares, the Fund will not pay for a greater proportion of the loss than its equal share until the share of the other insurance or coverage or the Fund Member’s limits equals the lowest applicable limit of liability under any of the coverage, or the full amount of the loss is paid. Any remaining amount of loss will be paid by any remaining Fund Member’s limit of liability, until exhaustion, by continuing to contribute equal shares to the remaining amount of loss.
Contribution by Equal Shares. If all of the other insurance permits contribution by equal shares, we’ll share the damages equally. But we won’t pay more than the limits of coverage that apply under this agreement. You are required by a court to pay damages of $1,000,000. Besides this agreement, two other policies apply to the judgment. The limit of this agreement is $500,000. Policy B has a $100,000 limit and Policy C’s limit is $300,000. First, $100,000 is subtracted from each policy’s limit because that is the lowest limit provided by any of the three policies. The result: Policy B’s limit is used up; the balance due on the judgment is $700,000; $400,000 remains of this agreement’s limit; and the unused portion of Policy C’s limit equals $200,000. Next, $200,000 is subtracted from the limit on this agreement and Policy C because that amount equals the smallest amount of limit remaining on either policy after the initial $100,000 payment. The result: Policy C’s limit is used up; the balance due on the judgment is now $300,000; and this agreement has $200,000 of its limit remaining. Finally, the rest of the limit on this agreement is paid. The result: this agreement’s limit is used up; the balance due on the judgment is now $100,000, which you must pay; and the total paid under each policy is: $500,000 this agreement, $100,000 Policy B, and $300,000 Policy C.