Question

Under Part F of the Personal Auto Policy, which of the following is correct when there are two or more auto policies issued by the insurer on the same auto? A The maximum that will be paid is equal to the limit of the policy with the higher limit of liability B Each policy will pay the loss independently of the other C This policy will be excess if the other policy is in a different insurer D Each policy will share equally in the loss

Answer 1

Answer:

C This policy will be excess if the other policy is in a different insurer.

Explanation:

Concurrent Insurance is a situation where there are more than one insurance policy for same risk. This is insurance policy which is usually with one primary policy covering the basic loss and then there is secondary policy which provides the excess loss coverage. There can be some clauses in the policy which will define the extend of the loss coverage. This is suitable for business with significant risks. Here also in the question there are two insurance policies for a personal auto.