What is the primary purpose of the Other Insurance clause?

• A. To prevent duplication by coordinating how multiple policies respond.
• B. To require the insured to buy more coverage.
• C. To assign blame.
• D. To transfer risk to the insured.

Answer: (A)

When two or more insurance policies could cover the same loss, the Other Insurance clause coordinates how those policies respond so payments don’t duplicate or leave gaps. Its main job is to allocate the loss among the policies, often on a pro rata basis or by establishing primary and excess layers, so the insured doesn’t recover more than the actual loss and insurers don’t end up paying more than their share. This prevents duplicate payments and disputes over who pays first or how much each policy should contribute. The other options don’t fit because the clause isn’t about requiring more coverage, assigning blame, or transferring risk to the insured.