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Helen and John both own automobiles on which they carry liability insurance. If Helen is negligent ...

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Helen and John both own automobiles on which they carry liability insurance. If Helen is negligent ...

Helen and John both own automobiles on which they carry liability insurance. If Helen is negligent and has an accident while driving John's car with his permission, how will each insurer respond to any liability judgment against Helen?
A) The insurers will pay the judgment on a pro rata basis.
B) John's insurer will pay on an excess basis if Helen's insurance is insufficient to cover the judgment.
C) Helen's insurance will pay on an excess basis if John's insurance is insufficient to cover the judgment.
D) The policies will pay the judgment on the basis of contribution by equal shares.

Textbook

Principles of Risk Management and Insurance

Edition: 12^th

Authors: Rejda, McNamara

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