Pro rata distribution clause PRD

{
  "id": "MLC-T-INS-002682",
  "term": "Pro rata distribution clause PRD",
  "field": "Insurance and risk management",
  "definition": "A property insurance provision that divides a single limit covering several locations or items among them in proportion to their reported values when a loss occurs. Each location is insured only up to its share of the limit, unlike a true blanket limit that any one location can draw on in full. For example, $480,000 spread over $600,000 of total values gives a location valued at $100,000 a limit of $80,000.",
  "url": "https://mlchart.com/terminology/insurance/pro-rata-distribution-clause-prd/"
}