Who is protected under the "other insurance with this insurer" provision?

The "other insurance with this insurer" provision is designed to protect the insurance company. This provision typically limits the amount the insurer will pay out when there is more than one policy in force with the same company for the same insured. In cases where multiple policies are held by an insured individual with the same insurer, this provision ensures that the total payout does not exceed the actual loss or limit specified by the insurer.

The intent behind this provision is to prevent over-insurance, which could lead to moral hazard or intent to defraud, where the insured might seek to profit from their insurance coverage rather than just being made whole after a loss. Therefore, by establishing this provision, the insurance company safeguards its financial interests and maintains the integrity of its underwriting process, ensuring equitable treatment for all policyholders.