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Policy B
<br />Issued prior to Policy A. Written at a
<br />Limit of Insurance of $150,000 and a
<br />Deductible Amount of $25,000.
<br />Settlement Of Loss
<br />The amount of loss sustained under
<br />Policy A is $175,000 and under Policy
<br />B, $75,000.
<br />The highest single Limit of Insurance
<br />applicable to this entire loss is $150,000
<br />written under Policy B. The Policy A
<br />Deductible Amount of $10,000 applies.
<br />The loss is settled as follows:
<br />(a) The amount of loss sustained under
<br />Policy A ($175,000) is settled first.
<br />The amount we will pay is the Policy
<br />A Limit of $125,000 because
<br />$175,000 loss - $10,000 deductible =
<br />$165,000, which is greater than the
<br />$125,000 policy limit.
<br />(b) The remaining amount of loss
<br />sustained under Policy B ($75,000)
<br />is settled next. The amount we will
<br />pay is $25,000 (i.e., $150,000 Policy
<br />B limit - $125,000 paid under.Policy
<br />A = $25,000).
<br />The most we will pay for this loss is
<br />$150,000.
<br />Example Number 3
<br />The Insured sustained a covered loss of
<br />$2,000,000 resulting directly from an
<br />"occurrence" taking place during the
<br />terms of Policies A, B, C and D.
<br />Policy A
<br />The current policy. Written at a Limit of
<br />Insurance of $1,000,000 and a
<br />Deductible Amount of $100,000.
<br />Policy B
<br />Issued prior to Policy A. Written at a
<br />Limit of Insurance of $750,000 and a
<br />Deductible Amount of $75,000.
<br />Policy C
<br />Issued prior to Policy B. Written at a
<br />Limit of Insurance of $500,000 and a
<br />Deductible Amount of $50,000.
<br />Policy D
<br />Settlement Of Loss
<br />The amount of loss sustained under
<br />Policy A is $350,000; under Policy B,
<br />$250,000; under Policy C, $600,000;
<br />and under Policy D, $800,000.
<br />The highest single Limit of Insurance
<br />applicable to this entire loss is
<br />$1,000,000 written under Policy A. The
<br />Policy A Deductible Amount of $100,000
<br />applies. The loss is settled as follows:
<br />(a) The amount of loss sustained under
<br />Policy A ($350,000) is settled first.
<br />The amount we will pay is $250,000
<br />(i.e., $350,000 loss - $100,000
<br />deductible = $250,000).
<br />(b) The amount of loss sustained under
<br />Policy B ($250,000) is settled next.
<br />The amount we will pay is $250,000.
<br />(no deductible is applied).
<br />(c) The amount of loss sustained under
<br />Policy C ($600;000) is settled next.
<br />The amount we will pay is $500,000,
<br />the policy limit (no deductible is
<br />applied).
<br />(d) We will not make any further
<br />payment under Policy D, as the
<br />maximum amount payable under the
<br />highest single Limit of Insurance
<br />applying to the loss of $1,000,000
<br />under Policy A has been satisfied.
<br />The most we will pay for this loss is
<br />$1,000,000.
<br />Loss Sustained During Prior Insurance
<br />Not Issued By Us Or Any Affiliate
<br />(1) If you "discover" loss during the Policy
<br />Period shown in the Declarations,
<br />resulting directly from an 'occurrence"
<br />taking place during the policy period of
<br />any prior cancelled insurance that was
<br />issued to you or a predecessor in
<br />interest by another company, and the
<br />period of time to discover loss under
<br />that insurance had expired, we will pay
<br />for the loss under this insurance,
<br />provided:
<br />(a) This insurance became effective at
<br />the time of cancellation of the prior
<br />insurance; and
<br />Issued prior to Policy C. Written at a (b) The loss would have been covered
<br />Limit of Insurance of $500,000 and a under this insurance had it been in
<br />Deductible Amount of $50,000. effect at the time of the "occurrence".
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<br />CR 00 21 11 16 ©Insurance Services Office, Inc., 2015 Page 9 of 16
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