contribution by equal shares
A method of apportioning loss among multiple insurers. Under the contribution
by equal shares apportionment method, the loss is shared equally among all the
insurers that have valid insurance on the risk, up to the limit of liability
of the insurer with the lowest limit of liability. After that, if the judgment
or settlement has not been satisfied, all insurers that still have unexhausted
limits will split the loss equally until the next insurer exhausts its limit
or the loss is paid. This will continue until the judgment or settlement is
fully paid or all insurers exhaust their limits.
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