If an insured has primary coverage from two companies and suffers a $60,000 loss, how much would Company ABC pay if their limit is $35,000?

In the situation described, where an insured has primary coverage from two companies and suffers a total loss of $60,000, the payment from Company ABC, which has a coverage limit of $35,000, will be determined by the principles of shared responsibility in insurance.

If both companies are primary insurers, they would typically share in the payment of the loss up to their respective limits. Given that Company ABC can pay up to $35,000, this means that they are responsible for this amount, as long as the total loss does not exceed the combined coverage limits of both insurers.

Since the total loss is $60,000 and Company ABC’s limit is $35,000, that would mean they would contribute their full amount, which is $35,000, but since they are not the only insurer, they will not cover the entire loss.

However, if another company also has primary coverage and is expected to take on a portion of the loss, Company ABC will fulfill its responsibility based on its limit without exceeding that figure; it cannot contribute less than what it is authorized.

In this case, since the insured total loss exceeds the available limits, if Company ABC is to pay, it will have a calculated share based on the limits available