Calculation of indemnities when syndicate has no insurance
The syndicate suffers $8,000 damage.
The syndicate’s insurer does not pay because the damage is not covered under the syndicate’s policy.
The syndicate must apportion the $8,000 among the ten co-owners.
Each co-owner receives an $800 apportionment representing his/her share of the $8,000 ($8,000 x 10% = $800).
The co-owner’s insurer does the following calculation:
Co-owner’s apportionment : $800
The Extensions of Coverage cover 90% of the apportionment :$720
Total payable by
the insurer : $220
The co-owner must personally pay $580.
The syndicate can claim the responsible co-owner for the $8,000
The insurer of the responsible co-owner indemnifies for Civil Liability Coverage