Kevin Has Three Liability Policies Which Provide for Contribution by Equal

question 27

Multiple Choice

Kevin has three liability policies which provide for contribution by equal shares if other insurance applies to a loss.How much will each policy pay for a $3,000,000 liability judgment if policy A provides $500,000 of coverage,policy B provides $1,000,000 of coverage,and policy C provides $3,000,000 of coverage?

• A)Each policy will pay $500,000,and Kevin must pay the remaining $1,500,000.
• B)Policy A will pay $500,000,policies B and C will each pay $1,000,000,and Kevin must pay the remaining $500,000.
• C)Policy A will pay nothing,policy B will pay $1,000,000,and policy C will pay $2,000,000.
• D)Policy A will pay $500,000,policy B will pay $1,000,000,and policy C will pay $1,500,000.