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Insurance

Apportionment

In the world of finance, there exists a concept known as "pro rata", which refers to the division of a loss among multiple insurers who have covered the same loss. This is a crucial mechanism in the insurance industry, as it ensures that the financial burden is distributed fairly among all parties involved. It is a practice that requires careful consideration and calculation, as the proportional share of each insurer must be determined accurately. This is just one example of the intricate terminology that is used in the world of finance, and it highlights the importance of understanding these terms in order to navigate the complexities of the industry.
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