A double insurance exists where the same person is insured by several insurers separately in respect to the same subject and interest.
The ContractDouble Insurance
Section § 590
This law is about double insurance, which means when one person has insurance policies from multiple companies for the same thing or interest.
double insurance multiple insurers same person insured
Section § 591
This law explains how insurers share responsibility when there is double insurance, meaning more than one insurance policy covering the same loss.
For fire insurance, all insurers contribute equally to the loss, regardless of when each policy started.
For marine insurance, insurers cover total losses based on the order of policy dates, unless the policies start on the same date. In those cases, insurers contribute equally. The law specifies that if one insurer goes bankrupt, it doesn't change how much the others must pay.
For partial or average marine losses, all insurers covering the same interest share the cost equally.
In case of double insurance, the several insurers are liable to pay losses thereon as follows:
(a)CA Insurance Code § 591(a) In fire insurance, each insurer shall contribute ratably, without regard to the dates of the several policies.
(b)CA Insurance Code § 591(b) In marine insurance, the liability of the several insurers for a total loss, whether actual or constructive, where the policies are not simultaneous, is in the order of the dates of the several policies. No liability attaches to a second or other subsequent policy, except as to the excess of the loss over the amount of all previous policies on the same interest. If two or more policies bear the same date, they are deemed to be simultaneous, and each insurer on simultaneous policies shall contribute ratably. The insolvency of any of the insurers does not affect the proportionate liability of the other insurers.
All insurers on the same marine interest shall contribute ratably for a partial or average loss.
double insurance fire insurance contribution marine insurance liability
