In condo losses where both forms apply, which form is primary for payment?

• A. The Unit Owner form is primary and the Association form is excess
• B. Both pay equally
• C. The two forms are prorated
• D. The Association form is primary and the Unit Owner form is excess

Answer: (B)

When two insurance forms cover the same condo loss and no form is designated as the sole primary payer, the payments come from both policies rather than one taking the lead. In this condo scenario, the Unit Owner form and the Association form coordinate to share the loss rather than one being strictly primary and the other excess. If their limits are equal, they typically split the loss in half, each paying up to its limit. For example, with both forms at $100,000, a $40,000 loss would be paid $20,000 from each. If the loss is larger, they continue to contribute proportionally up to their respective limits. When limits differ, the contribution is pro rata based on the limits, but the key idea is that there isn’t a single primary payer; both share the loss equally if their limits are the same.