At the same time defined as: “To have the same authority; act in conjunction; agree to the same act; contribute to the same event; at the same time. [ 1 Now conflicts can arise within the insurance universe when an insurer has concurrent claims and / or concurrent insurances. For example, policies may include an exclusion clause such as:
1. We do not pay for damages caused directly or indirectly by any of the following. Such losses or damages are excluded regardless of any other cause or event that contributes simultaneously or in any sequence to the loss. 2
In other words, claims for loss or damage covered under insurance policy that coincide with loss or damage excluded under a clause will therefore be denied due to exclusion. However, when an insurer has more than one insurance that covers the same loss or damage, the insurances may contain clauses that limit liability or coverage when other insurance can cover the same loss. 3 This should not affect the rights of insurers as it is valid to have more than one insurance for the same risks or risks ̵
There are some clauses that are often seen related to concurrent policies, e.g. Excess Clause and Pro Rata Clause. The surplus clause converts a primary coverage into a surplus when another primary policy covers the same risk or danger. When two or more insured persons have a surplus provision in their insurance contract, it is necessary to interpret and determine whether they are compatible. It has been established that when they are compatible all will come into force and each insurance company will determine its liability for damages. If insurance is incompatible the liability will be Pro Rata. 5
A Pro Rata clause applies when the insured has another insurance that covers the same risk; the insurer is only liable for the part of the loss that corresponds to the liability limit per insurance in relation to the total liability limit that applies to all insurances that cover the same damage. 6
If you have or are considering having more than one policy to cover the same risks or hazards, it is important to have a copy of each complete policy and check for any of these types of exceptions and clauses would apply.
1 https://thelawdictionary.org/concurrent/, Retrieved July 15, 2020.
2 Diaz Rodriguez v Puerto Rican Am. Ins. Co. (PRAICO) No. JDP1999-0424, 2003 WL 21043539, at * 1 (PR Cir. 31 Jan. 2003).
3 Monteagudo Perez V. ELA 172 DPR 12 (2007).