Double Insurance

Double Insurance

Duplicate protection provided when two companies deal with the same individual and undertake to indemnify that person against the same losses.

When an individual has double insurance, he or she has coverage by two different insurance companies upon the identical interest in the identical subject matter. If a Husband and Wife have duplicate medical insurance coverage protecting one another, they would thereby have double insurance. An individual can rarely collect on double insurance, however, since this would ordinarily constitute a form of Unjust Enrichment, and a majority of insurance contracts contain provisions that prohibit this.

DOUBLE INSURANCE, contracts. Where the insured makes, two insurances on the same risk, and the same interest. 12 Mass. 214. It differs from re-insurance in this, that it is made by the insured, with a view of receiving a double satisfaction in case of loss; whereas a re-insurance is made by a former insurer, his executors or assigns, to protect himself and his estate from a risk to which they were liable by the first insurance. The two policies are considered as making but one insurance. They are good to the extent of the value of the effects put in risk; but the insured shall not be permitted to recover a double satisfaction. He can sue the underwriters on both the policies, but he can only recover the real amount of his loss, to which all the underwriters on both shall contribute in proportion to their several subscriptions. Marsh. Ins. B. 1, c. 4, s. 4; 5 S. & R. 473; 4 Dall. 348; 1 Yeates, 161; 9 S. & R. 103; 1 Wash . C. C. Rep. 419; 2 Wash. C. C. Rep. 186; 2 Mason, 476.

References in periodicals archive ?
The initial shock of the double Insurance Premium Tax rise has now passed, which in part accounts for the 8% rise in 2016.
SEEING DOUBLE Insurance giant Legal & General said its retirement division was set to double sales this year, helped by a trend to unlock cash from property.
Bad credit score can double insurance premiums in Texas, The Dallas Morning News
So those sneaky Reds have taken out a double insurance.
The GCC's rebounding economy is set to double insurance penetration by 2017, as consumers increasingly use financial advisors to plan for major life events.
In particular, this Article focuses on the amendments relating to insurable interest, the insured's duty of disclosure, interpretation of contractual clauses, double insurance, and insurance fraud.
As double insurance, I also sent a list of what I wanted up the chimney, which is one tradition many children are no longer able to follow.
The mutual evaluation revealed the difficulties of organising a single market for services: the massive use by member states of the possibility to reserve certain service activities to certain operators, legal form and capital ownership requirements and double insurance obligations on suppliers of cross-border services.
Arranging $1 million of coverage for a particular shipment is possible, but that can more than double insurance costs.
Pointing out that Emirates NBD is the only bank in the region that offers double insurance coverage with its "Enhanced Credit Life insurance," Krishna said: "With this product, not only is the loan repaid to the bank by the insurance company, but the equivalent amount is also given to the next of kin in the event of unforeseen circumstances.
As the Court commented, distinguishing this circumstance from one where the insured has a primary right against a third party, 'In double insurance the [fully indemnified] assured has no primary right against any third party and so there is no right which an insurer can use to enforce its right to a pro rata contribution from any other insurer.
But they are suffering a double insurance whammy at the moment with prices falling and premiums climbing-both trends are a consequence of the dislocations in the world's financial markets, where assets of all kinds have fallen in value and risks of all kinds have become more expensive to hedge.