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contingent insurance

The term contingent insurance refers to a policy that is contingent on the absence of other insurance. For example, the 1973 commercial general liability (CGL) policy stated that it provided "primary insurance, except when stated to apply in excess of or contingent upon the absence of other insurance.… When both this insurance and other insurance apply to the loss on the same basis, whether primary, excess, or contingent, the company shall not be liable [for more than a proportionate share]." (Emphasis added.) In 1986, the phrase "upon the absence of other insurance" was taken out. No change in coverage was intended, however. In modern terms, contingent insurance refers to a policy that has an escape-type other insurance provision saying that it does not apply if there is another policy providing coverage. See also Other insurance clause.


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