What does the Primary and Noncontributory condition require when an additional insured is involved?

• A. It allows other insurers to pay first.
• B. It excludes additional insureds from coverage entirely.
• C. It requires the insured to pay its deductible before payment.
• D. It requires the CGL policy to respond first and not contribute with other insurance when the additional insured is involved.

Answer: (D)

The main idea here is how coverage is allocated when an additional insured is brought into a CGL policy. A Primary and Noncontributory clause makes the insured’s General Liability policy the primary coverage for the additional insured, so the insured’s policy responds first to any covered claim. It also requires that this policy not seek contribution from other insurers for those claims on behalf of the additional insured. In short, the additional insured is protected by having the insured’s policy pay first and not be pro-rated with other insurance. This arrangement helps ensure the additional insured isn’t left with gaps in coverage, and it isn’t about excluding coverage or about the insured paying its deductible before payment.