(October 2020)
INTRODUCTION
FO-20–Additional Policy Conditions and Property Coverage Terms contains
six conditions and terms that apply to policies written in the American
Association of Insurance Services (AAIS) Farmowners
Program. They are:
- Additional Policy Conditions Applicable to All Coverages
- Additional Policy Terms Applicable to All Property
Coverages–General Exclusions
- What You Must Do in Case of Loss
- How Much We Pay for Loss or Claim
- Payment of Loss or Claims
- Other Conditions
6. Insurance Under More Than One Coverage
The most the insurance company pays is the actual amount of a loss,
regardless of the number of coverages that may apply to a single loss.
Note: This is an
indemnity principle because an insured is not entitled to profit from a loss.
Insurance is intended to return an insured to the condition that existed just
before the loss, not to improve its condition.
7. Insurance Under More Than One Policy
The insurance company pays only its share of the loss or damage if
there is other insurance that also applies to the loss or damage. That share is
the part of the loss that this policy’s limit bears to the total amount of all
insurance that applies to the loss.
