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📋 '''Other insurance''' is a policy provision — and a broader underwriting concept — that addresses situations in which the same [[Definition:Insurable interest | insurable interest]] or [[Definition:Loss exposure | loss exposure]] is covered by more than one [[Definition:Insurance policy | insurance policy]]. Found in virtually every [[Definition:Property and casualty insurance | property and casualty]] contract, the clause sets out how loss payments will be apportioned when a [[Definition:Policyholder | policyholder]] has overlapping coverage from multiple [[Definition:Insurance carrier | insurers]]. The term also appears in [[Definition:Insurance application | insurance applications]], where applicants are asked to disclose any other insurance in force, giving [[Definition:Underwriter | underwriters]] critical information about potential [[Definition:Moral hazard | moral hazard]] and [[Definition:Over-insurance | over-insurance]].

🔄 These clauses typically invoke one of several coordination methods: pro-rata sharing, in which each insurer pays a proportion based on its [[Definition:Policy limit | policy limits]]; excess coverage, where one policy pays only after another is exhausted; or an escape clause, under which a policy provides no coverage at all if other valid insurance exists. When two policies contain conflicting other-insurance clauses — for instance, both declaring themselves excess — courts or [[Definition:Arbitration | arbitration]] panels must resolve the impasse, sometimes splitting the loss equally. [[Definition:Claims adjuster | Claims adjusters]] must identify all applicable policies early in the [[Definition:Claims handling | claims-handling]] process to ensure proper [[Definition:Contribution | contribution]] among carriers.

⚖️ Proper management of other-insurance situations protects the [[Definition:Indemnity | indemnity]] principle — the foundational idea that insurance restores the policyholder to the pre-loss position without providing a windfall. Without these provisions, a claimant could collect full payment from each carrier, profiting from the loss. For insurers, other-insurance provisions also control [[Definition:Loss ratio | loss ratio]] exposure and prevent [[Definition:Adverse selection | adverse selection]] scenarios where a risk appears artificially attractive because its true coverage overlap is hidden. Brokers and [[Definition:Managing general agent (MGA) | MGAs]] play an important advisory role in helping clients understand how their various policies interact.

'''Related concepts:'''
{{Div col|colwidth=20em}}
* [[Definition:Over-insurance]]
* [[Definition:Contribution]]
* [[Definition:Indemnity]]
* [[Definition:Pro-rata sharing]]
* [[Definition:Coordination of benefits]]
* [[Definition:Subrogation]]
{{Div col end}}

Definition:Other insurance - Revision history

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