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contribution by equal shares

Contribution by equal shares is a method of apportioning loss among multiple insurers.

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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.