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Insurance

Equal shares

In the world of insurance, there exists a method of apportionment known as pro rata. This method involves the distribution of a loss among multiple insurers who have provided coverage for that particular loss. Each insurer is responsible for sharing the loss in proportion to their respective limit of liability. This system ensures that the risk is spread evenly among the insurers and minimizes the financial burden on any one company. It is an important concept to understand in the field of finance and insurance.
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