MLchartDataset catalogue

Contribution by limits

Term · Insurance and risk management · MLC-T-INS-000961

A method used by multiple insurers to share the payment of a loss when more than one policy covers the same risk. Under this approach, each insurer contributes to the loss in proportion to its policy limit relative to the total limits of all applicable policies. This method is one way to allocate financial responsibility among co-insurers, alongside contribution by equal shares.

Table 1. Record
IdentifierMLC-T-INS-000961
FieldInsurance and risk management
SubjectCommercial Liability
Record as JSON 
{
  "id": "MLC-T-INS-000961",
  "term": "Contribution by limits",
  "field": "Insurance and risk management",
  "definition": "A method used by multiple insurers to share the payment of a loss when more than one policy covers the same risk. Under this approach, each insurer contributes to the loss in proportion to its policy limit relative to the total limits of all applicable policies. This method is one way to allocate financial responsibility among co-insurers, alongside contribution by equal shares.",
  "subject": "Commercial Liability",
  "url": "https://mlchart.com/terminology/insurance/contribution-by-limits/"
}

Record 762 of 3,708 in Insurance and risk management terminology (MLC-0106). Request the full dataset.