Contribution by limits Clause Samples
The 'Contribution by Limits' clause defines how liability is shared among multiple insurers when more than one policy covers the same loss, specifically by referencing the limits of each policy. In practice, this means that if a claim arises, each insurer contributes to the payment in proportion to the maximum amount (limit) their policy covers, rather than splitting the loss equally or by some other method. This approach ensures that each insurer's responsibility is aligned with the level of coverage they have provided, preventing disproportionate financial burden and promoting fairness in claims settlement.
Contribution by limits. If any of such other insurance does not provide for contribution by equal shares, this Insurer shall not be liable for a greater proportion of such loss than the applicable limit of liability under this policy for such loss bears to the total applicable limit of liability of all valid and collectible insurance against such loss.
Contribution by limits. If the remaining coverage does not provide for contribution by equal shares, the Fund will pay the Fund Member’s applicable limit of liability in proportion to the total limit of liability of all other coverage.
Contribution by limits. If any such coverage does not provide for contribution by equal shares, the Pool shall not be liable for a greater proportion of such “loss” than the applicable limit of liability under this Agreement for such “loss” to the total applicable limit of liability of all valid and collectible coverage against such “loss”.
Contribution by limits. If any of the other insurance permit contribution by equal