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📋 '''Stacking''' is an insurance coverage concept in which a [[Definition:Policyholder | policyholder]] or [[Definition:Claimant | claimant]] combines the [[Definition:Policy limit | limits]] of multiple insurance policies — or multiple coverage units within a single policy — to increase the total amount of recovery available for a single [[Definition:Loss | loss]]. Most commonly encountered in [[Definition:Auto insurance | automobile insurance]] and [[Definition:Commercial general liability (CGL) | commercial general liability]] contexts, stacking questions arise whenever an insured holds more than one applicable policy or pays [[Definition:Premium | premiums]] for multiple vehicles or locations under a single policy and argues that each unit's limit should apply independently.

⚙️ Whether stacking is permitted depends on the [[Definition:Policy language | policy language]], state law, and judicial interpretation. Some jurisdictions allow "intra-policy" stacking, where the insured aggregates limits across multiple insured vehicles on the same policy, while others permit "inter-policy" stacking, combining limits from separate policies issued by different carriers. Many [[Definition:Insurance carrier | insurers]] include [[Definition:Anti-stacking provision | anti-stacking provisions]] or endorsements that explicitly restrict the insured to a single set of limits regardless of the number of policies or covered units. Courts have split on the enforceability of such clauses, creating a patchwork of rules that vary significantly by state and by [[Definition:Line of business | line of business]].

⚖️ From an underwriting and [[Definition:Actuarial analysis | actuarial]] standpoint, stacking represents a material exposure variable. If courts in a given jurisdiction routinely allow stacking, the [[Definition:Expected loss | expected loss]] per policy can be substantially higher than what the rated premium contemplates, eroding [[Definition:Loss ratio (L/R) | loss ratios]] and [[Definition:Underwriting profit | underwriting profit]]. Insurers must therefore monitor legislative and judicial developments around stacking, adjust [[Definition:Rate filing | rate filings]] accordingly, and draft policy language carefully. For [[Definition:Claims adjuster | claims adjusters]], understanding the stacking rules applicable to a specific claim is essential to accurate [[Definition:Loss reserve | reserving]] and fair settlement.

'''Related concepts:'''
{{Div col|colwidth=20em}}
* [[Definition:Stacking of limits]]
* [[Definition:Anti-stacking provision]]
* [[Definition:Policy limit]]
* [[Definition:Other insurance clause]]
* [[Definition:Uninsured motorist coverage]]
* [[Definition:Underinsured motorist coverage]]
{{Div col end}}

Definition:Stacking - Revision history

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