With a primary and noncontributory endorsement for an Additional Insured, how is the loss typically allocated?

• A. The Additional Insured's policy pays first and does not contribute.
• B. The primary policy pays last and the other policies share pro rata.
• C. Each policy pays pro rata, regardless of endorsements.
• D. The insured must pay and seek reimbursement from insurers.

Answer: (A)

When an Additional Insured has a primary and noncontributory endorsement, the loss is funded by that Additional Insured’s policy first. This endorsement makes the insured’s coverage the primary layer and requires it not to seek contribution from other insurers. In practical terms, defense and indemnity are provided by the Additional Insured’s insurer up to its policy limits before any other coverage steps in. The other policies would only respond after those limits are exhausted, if at all. This setup prevents pro rata sharing and ensures the Additional Insured is covered upfront.