(July, 2013)

PART A - LIABILITY COVERAGE
Other Insurance
In the event that other sources of liability insurance exist, Part A-Liability Coverage of the Personal Auto Policy will pay on a basis that equals its share of the total amount of insurance available to cover an eligible loss involving an owned auto. If the loss involves a non-owned auto, the PAP responds on an excess basis, paying only after the primary policy has paid its limit.

Example: Let us examine an auto loss that totals $10,000 in damages. The loss is covered by a PAP and some other source of coverage. Assume that both sources have coverage limits greater than the loss amount.
Scenario 1: The loss involves an auto owned by the insured and the PAP and the other coverage source offer the same coverage limits. In this case, payment would be:	PAP - $5,000	Other Source - $5,000
Scenario 2: The loss involves an auto owned by the insured and the PAP and the other coverage source offer different coverage limits. Let us assume that the PAP’s limit represents 40% of the available coverage. In this case, payment would be:	PAP - $4,000	Other Source - $6,000
Scenario 3: The loss involves an auto that is NOT owned by the insured and the PAP and the other coverage source offer the same coverage limits. In this case, payment would be:	PAP - $0	Other Source - $10,000

Note: If a nonowned auto is involved, it would not matter if the PAP and the other source had different limits. The other source would have to pay out its complete limit before the PAP would contribute any payment.
Regarding other existing coverage, the policy reads that, even for autos that qualify as temporary substitutes for covered autos, this policy will respond as excess coverage over protection that may exist elsewhere.

 

ISO HOMEOWNERS 3 - SPECIAL FORM COVERAGE ANALYSIS

(June, 2011) REVISED
SECTION II - CONDITIONS
H. Other Insurance
It is usually a serious complication when a loss occurs and more than one source of coverage exists. It is the business version of “who takes their wallet out, first” to pay for a shared meal. Under this provision, the applicable insurer places itself behind any other available coverage; acting as an excess source. There is an important exception. If the other source of coverage is written specifically as excess liability protection; then this policy responds first (primary coverage).
Related Court Case: Association Group Policy Held Not To Contribute With Member's Homeowners Policy