Apportionment refers to which of the following?

• A. A provision for computing and assigning to each of two or more contracts covering a claim its proportion of the amount of the loss
• B. A method of calculating interest on a settlement
• C. A requirement to file a proof of loss
• D. A calculation used to determine deductibles

Answer: (A)

Apportionment is the process of allocating a single loss among multiple insurance contracts that cover the same claim, so each policy pays a proportionate share based on its terms and limits. This ensures the total payout matches the loss and prevents overpayment by the insured while respecting primary versus excess responsibilities and policy limits. For example, when two policies cover the same property and both are responsible, the loss is divided in proportion to each policy’s coverage, such as sharing equally if limits are the same, or according to the stated limits and terms if they differ. This concept is distinct from calculating interest on a settlement, filing a proof of loss, or determining deductibles, which involve different processes.