What term describes the equal sharing of a loss by multiple insurers until the loss is entirely paid?

The term that describes the equal sharing of a loss by multiple insurers until the loss is entirely paid is known as Contribution by Equal Shares. This method is employed when several insurance companies cover the same risk and need to cooperate in the event of a claim. Each insurer pays an equal portion of the loss up to the limit of their respective policies until the total loss amount is satisfied. This ensures fairness and expedites the claims process, as all participating insurers share the financial burden equally regardless of their individual policy amounts.

In contrast, pro-rata sharing refers to a method where the insurers share losses according to their coverage limits, rather than equally. Loss adjustment involves the process of determining the value of a claim and the amount that should be paid by the insurance company, which does not necessarily involve multiple insurers sharing a loss. Risk pooling is a broader concept that involves collecting premiums from a group to cover potential losses; it does not address the specific equal allocation of a loss among insurers once it occurs.