Question
Kevin has three liability policies which provide for contribution by equal shares if other insurance applies to the same loss. How much will each policy
Kevin has three liability policies which provide for contribution by equal shares if other insurance applies to the same loss. How much will each policy pay for a $6m liability judgment if policy A provides $1m of coverage, policy B provides $2m of coverage, and policy C provides $6m of coverage?
a. Each policy will pay $1m, and Kevin must pay the remaining $3m.
b. Policy A will pay $1m, policies B and C will each pay $2m, and Kevin must pay the remaining 1m.
c. Policy A will pay $1m, policy B will pay $2m, and policy C will pay $3m.
d. Each policy will pay $2m.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started