If you have two insurance policies on the same property,the ____ clause explains how the two insurance companies will share the loss.
A)principle of indemnity.
B)co-insurance clause.
C)other-insurance clause.
D)companies' insurable interest.
E)principle of subrogation.

Question

Quizplus · Accepted Answer

The other-insurance clause explains how the two insurance companies will share the loss when there are multiple insurance policies on the same property. It specifies which company will be primary and which will be secondary in the event of a claim. The co-insurance clause pertains to the amount of coverage a policyholder must have in relation to the value of their property. The principle of indemnity relates to the insurance company's obligation to compensate the policyholder for any loss or damage they incurred. Companies' insurable interest refers to the legal relationship between the policyholder and the insured property, and principle of subrogation allows insurers to assume the rights of policyholders to pursue legal action against third parties who caused the loss.

If You Have Two Insurance Policies on the Same Property,the