What does nonconcurrency refer to in insurance?

Nonconcurrency in insurance refers to the situation where multiple insurers provide coverage for the same risk under different policies that may not have identical terms or coverages. This can lead to complexities in claims handling and potential gaps in coverage since each insurer may have different exclusions or endorsements.

When an insured has policies from various insurers that cover the same risk, but each policy may have different conditions, limits, and terms, this creates a nonconcurrent coverage scenario. Understanding nonconcurrency is essential for both adjusting claims and ensuring that the insured has adequate protection to avoid overlaps or gaps in coverage.

In contrast, the other options describe different insurance concepts that don't align with the definition of nonconcurrency. For example, differing policy limits could indicate issues with underinsurance or overinsurance, but they do not inherently mean that the policies are providing different coverage terms on the same risk in a way that constitutes nonconcurrency. Policies written under the same coverage basis suggest a more aligned approach, while an agreement to share loss equally reflects a specific arrangement (like in a partnership), rather than the broader situation of overlapping insurance that characterizes nonconcurrency.