Double Insurance What is double insurance?

A double insurance exists where the same person is insured by several insurers separately in respect to the same subject and interest. What are the requisites of double insurance? Person insured is the same; Two or more insurers insuring separately; Subject matter is the same; Interest insured is also the same; Ris or peril insured against is li ewise the same. What is the test in determining the existence of double insurance? !hether the insured" in case o# the happening o# the ris insured against" can be directly bene#ited by recovering on both policies; i# he can" there is double insurance. Double insurance is not prohibited when: the policy does not contain any stipulations against it" or an insurer$s consent has been ac%uired as re%uired by its insurance policy What is the purpose of the prohibition against double insurance? It is to prevent over&insurance and thus avert the perpetration o# #raud. Where double insurance is allowed, but over insurance results: The insured, unless the policy otherwise provides, may claim payment from the insurers in such order as he may select, up to the amount for which the insurers are severally liable under their respective contracts; Where the policy under which the insured claims is a valued policy, the insured must give credit as against the valuation for any sum received by him under any other policy without regard to the actual value of the subject matter insured; Where the policy under which the insured claims is an unvalued policy he must give credit, as against the full insurable value, for any sum received by him under any policy; Where the insured receives any sum in excess of the valuation in the case of valued policies, or of the insurable value in the case of unvalued policies, he must hold such sum in trust for the insurers, according to their right of contribution among themselves; Each insurer is bound, as between himself and the other insurers, to contribute ratably to the loss in proportion to the amount for which he is liable under his contract. !hat is over-insurance? There is over&insurance whenever the insured obtains a policy in an amount exceeding the value o# his insurable interest. Over-Insurance One insurer is sufficient The amount of the insurance is always beyond the value of the insureds insurable interest Double Insurance Must be several insurers The sum total of the policies need not exceed the insurable interest of the insured