A Treatise on the Law of Insurance in All Its Branches; Especially Fire, Life, Accident, Marine, Title, Fidelity, Credit, and Employers' Liability; With an Appendix of Statutes Affecting the Insurance Contract and a Collection of Forms
This historic book may have numerous typos and missing text. Purchasers can usually download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1910 edition. Excerpt: ...hereto. This is known as the pro rata or contribution clause. To admit of its application there must be more than one policy to contribute, and the total concurrent insurance must exceed the general loss.' The provision is calculated to benefit the insurers, since it places upon the insured the burden of establishing what. share of the loss is collectible from each company under the terms of its own policy, and limits him in his recovery against each to its ratable proportion of the loss.' Whereas without this provision he was at liberty to bring his proceedings against the companies of his selection, leaving it to them to obtain equitable contribution from the others." It is commonly said that this clause was designed to avoid circuity of action," and this in a sense is true. It must be observed, however, that when the only dispute relates to the proper method of apportioning an award or admitted amount of loss among the various insurers, to compel the assured to try out with each an issue in which all are interested, not only tends to multiply actions, but may involve embarrassment, since the results in later actions may prove that the recovery in earlier actions is too small or too large.' Influenced by such considerations certain courts have ruled that where the main dispute relates to apportionment of the loss among several companies," or where several companies on the risk are substantially united in their attitude of defense, they may all be joined (where insurance on the portion of the property lost was less than loss, though the whole insurance exceeded the value of the ya-Ioperty); Pencil v. Home Ins. Co., 3 ash. 485, 28 Pac. 1031 (if loss exceed the whole insurancc each policy pays in full, ...
- 189 x 246 x 23mm | 776g
- 13 Sep 2013
- Illustrations, black and white