In the contribution of equal shares, what happens if a policy limit is reached?

In the context of contribution of equal shares, when a policy limit is reached, payments continue until all limits are exhausted. This principle ensures that in situations where multiple insurance policies are applied, each insurer contributes equally until they reach their respective policy limits. This means that if one policy's limit is reached, the other policies will continue to pay out their respective shares until their limits are also exhausted.

This approach is designed to provide comprehensive coverage and protect the insured by pooling resources from multiple insurers, which can often lead to a more equitable distribution of claims in the event of significant losses. It emphasizes that all involved parties go on participating in the settlement of claims until no further payment can be made, thereby ensuring that the insured receives the maximum benefits available under the combined coverage.