When multiple liability policies cover the same loss, which of the following policy provisions applies?

When multiple liability policies cover the same loss, the "Other insurance" provision comes into play. This provision is designed to address situations where more than one insurance policy provides coverage for the same risk or loss. It outlines how claims are handled when multiple policies apply, which may include determining the primary insurance and any excess insurance.

Typically, the "Other insurance" clause specifies how insurers share the responsibility for the claim. This can involve proration, contribution by limits, or stipulating that one policy may act as primary and others as excess. Such provisions ensure that the insured does not receive a windfall from multiple policies for the same loss, but rather that claims are fairly adjusted based on the coverage limits and terms of each policy.

Other choices involve different aspects of insurance. Subrogation refers to the right of an insurer to pursue a third party that caused a loss after compensating the insured. Insurable interest relates to the requirement that the policyholder must have a legitimate interest in the insured property or liability at the time of obtaining coverage. Additional (supplementary) payments pertain to additional services offered by policies beyond the main coverage for losses, but do not specifically address the interaction of multiple policies covering the same loss.