A business has its building covered under a standardized Commercial Property policy (Policy A). The business has the same building covered under a separate policy that is written under different terms than the standardized policy (Policy B). When there is a covered loss to the building, which of the following statements indicates how the "other insurance" condition of Policy A will require that the loss be settled?
a. Both policies will settle using the "contribution by equal shares" method.
b. Policy B will be primary and Policy A will be excess.
c. Both policies will pay their "pro-rata share" of the loss.
d. Policy A will be primary and Policy B will be excess.
Ans: b. Policy B will be primary and Policy A will be excess.
You might also like to view...
A lot of 2,000 items has just arrived. A single sampling calls for a sample size of 100 and c = 3
What is the average outgoing quality limit, assuming that all defectives in the entire lot are replaced if it is rejected and all defectives are replaced in the sample if it is accepted? Table G.1 is appended to this exam. A) less than or equal to 0.0150 B) greater than 0.0150 but less than or equal to 0.0175 C) greater than 0.0175 but less than or equal to 0.0200 D) greater than 0.0200
For delivery to occur, the bailee must be given exclusive possession and control over the property
Indicate whether the statement is true or false