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<br />.; ,,' ~R. 6.200.1
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<br />3: 30PM
<br />
<br />1heStRnd
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<br />shares, we'll share the damages equally. But
<br />we won't pay more than the limits of
<br />coverage that apply under this agreement,
<br />If any policy reaches its limit before the
<br />entire amount of damages is paid, the
<br />remaining policies will share the balance
<br />equally until their limits have been used Up
<br />or the amount of the damages is paid in
<br />full. For example:
<br />
<br />You are required I:rt a court to pay
<br />damages of $1,000,000. Besides this,
<br />agreement, two other policies apply to the
<br />judgment. The limit under this agreement
<br />is $500,000, Policy B has a $100,000
<br />limit and Policy C's limit is $300,000.
<br />
<br />First, $100,000 Is subtracted from each
<br />policys limit because that is the 1000est
<br />limit provided I:rt any of the three policies,
<br />The result is Policy Ss limit is used up,
<br />the balance due on the jud{Jment is
<br />$700,000. $400,000 remains of this
<br />agreement's limit, and the unused portion
<br />of Policy C's limit equals $200,000.
<br />
<br />Next, $200,000 is subtracted from the
<br />limit under this agreement and Policy C
<br />because that amount equals the smallest
<br />amount of limIt remaining on either policy
<br />after the initial $100,000 payment. The
<br />result Is Policy C's limit Is used up, the
<br />balance due on the judgment Is now
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<br />NO. 293
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<br />P.31/31
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<br />$300,000, and this agreement hEls
<br />$200.000 of its limit remaining.
<br />
<br />Finally, the rest of the limit under this
<br />agreement is paid. The result is this
<br />agreement's limit is used up and the
<br />balance due on the judgment is now
<br />$100,000, which you must pay, The total
<br />paid under each policy Is $500,000 this
<br />agreement, $100,000 Policy 8, and
<br />$300,000 Polfcy C,
<br />
<br />ContributIon by limits, If any of the other
<br />Insurance doesn't permit contribution by
<br />equal shares, we'll pay the portion of the
<br />damages that is equal to our percentage of
<br />the total of all limits that apply, But we
<br />won't pay more than the limits of coverage
<br />that apply under this agreement, For
<br />example:
<br />
<br />You are required by a court to pay
<br />damages of $600,000. Besides this
<br />agreement, another policy applies to the
<br />judgment, The limit under thIs agreement
<br />is $300,000. Policy B has a $100,000
<br />limit. The total limit of all insurance Is
<br />$400.000.
<br />
<br />Our limit is 75% ($300,000/$400,000) of
<br />the total limit. But we worlt pay 75% of
<br />the judgment because that $450,000 share
<br />is more than our limit. We'll pay only our
<br />limIt. which is $300.000.
<br />
<br />~}L'hD
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<br />47150 Rev. 7-01 Printed In U,S,A.
<br />"ð~6 .,Q ~. "Q ",¡::+ P""I J'ir.. An'" M".in.. In"u.ancIO C". 2001 All Rights Reserved
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