Integrity Mutual Insurance v. State Automobile & Casualty Underwriters Insurance

Peterson, Justice.

This litigation between two insurance companies presents again the vexing question of how to apportion liability between two insurers of the same risk when the policies of insurance contain conflicting “other insurance” clauses. Insurance companies commonly include in their policies other insurance clauses which tend to limit their liability on the risk if the insured has similar insurance available from another company. Some companies use a pro rata clause, limiting the insurer’s liability to that fraction of the loss which the insurer’s limit of liability is of all…