A Video Explaining the Resolution of Conflicts Involving "Other Insurance" Clauses

Consult Local Coverage Counsel When there Exists a Conflict Between Insurers Other Insurance ClausesShow more

Where two or more insurance policies may be called upon to apply to a loss, conflicts may arise involving the three basic types of other insurance clauses. Since every state seems to apply other insurance clauses differently, regardless of type, it is the obligation of every claims person faced with conflicting other insurance clauses, to seek the advice and counsel of a local insurance coverage lawyer who can explain that the major categories of conflict arise when:

there is no other insurance clause in either of two primary policies;
there is an other insurance clause in one primary policy but not in the other primary policy; there are similar other insurance clauses in both primary policies; or there are dissimilar other insurance clauses in both policies.

Coverage counsel can then provide the claims person with advice about how to fairly and in accordance with the law of the jurisdiction apply the multiple other insurance clauses.

The fairest and easiest method to share obligations to the same insured is a simple mathematical proration based on policy limits. This method will almost always be applied if there is no other insurance clause or if the other insurance clause in the policy is declared invalid or unenforceable.
© 2021 – Barry Zalma

Barry Zalma, Esq., CFE, now limits his practice to service as an insurance consultant specializing in insurance coverage, insurance claims handling, insurance bad faith and insurance fraud almost equally for insurers and policyholders. He also serves as an arbitrator or mediator for insurance related disputes. He practiced law in California for more than 44 years as an insurance coverage and claims handling lawyer and more than 52 years in the insurance business. He is available at http://www.zalma.com and zalma@zalma.com.

Mr. Zalma is the first recipient of the first annual Claims Magazine/ACE Legend Award.

Over the last 53 years Barry Zalma has dedicated his life to insurance, insurance claims and the need to defeat insurance fraud. He has created the following library of books and other materials to make it possible for insurers and their claims staff to become insurance claims professionals.

Go to the podcast Zalma On Insurance at https://anchor.fm/barry-zalma; Follow Mr. Zalma on Twitter at https://twitter.com/bzalma; Go to Barry Zalma videos at Rumble.com at https://rumble.com/c/c-262921; Go to Barry Zalma on YouTube- https://www.youtube.com/channel/UCysiZklEtxZsSF9DfC0Expg; Go to the Insurance Claims Library – https://zalma.com/blog/insurance-claims-library/ Read posts from Barry Zalma at https://parler.com/profile/Zalma/posts; and Read last two issues of ZIFL here.