Which endorsement is most commonly used to ensure the insured's coverage is primary and noncontributory when coordinating with other insurers?

• A. Newly Acquired Organizations
• B. Additional Insured
• C. Primary & Noncontributory
• D. Waiver of Subrogation

Answer: (C)

The key idea here is coordinating how losses are paid when more than one insurer is involved. The Primary & Noncontributory endorsement specifies that the insured’s own policy will respond as the primary coverage and that it won’t contribute to losses under other policies. This keeps the insured from having to rely on or share the claim with other carriers, making defense costs and indemnity come from the insured’s policy first.

This is especially common when the insured is added as an Additional Insured on another policy. With this endorsement, the insured’s coverage is designated to pay first, and other insurers won’t be asked to contribute until that primary policy has paid or exhausted its limits. It streamlines handling and avoids gaps or delays in payment.

Newly Acquired Organizations helps extend coverage to a newly acquired entity, but it doesn’t establish which policy pays first. An Additional Insured endorsement broadens who is covered, not the order of payment. A Waiver of Subrogation prevents the insurer from pursuing recovery from another party after a payment, but it doesn’t address which policy should be primary or noncontributory.