Insurance 101 – Chapter 2 – Volume 5 – Why Escape Clauses Are Disfavored

Why Escape Clauses Are Disfavored

The applicable principle appears to be that “escape” clauses are not favored in the law and that, where they are in conflict with the “other insurance” clause in another policy covering the same risk, with the result that if both clauses are given validity the insured is left unprotected, the “escape” clause will be disregarded and the “other insurance” clauses in both policies will be given effect on the basis of applicable proration.

The following video was adapted from my book, “Insurance Claims A Comprehensive Guide” Published by the National Underwriter Company and is available at the Zalma Insurance Claims Library

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