Simple English definitions for legal terms
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The Lamb-Weston rule is a principle in insurance that applies when two insurance policies cover the same loss, and each policy has a clause that conflicts with the other in terms of how the coverage is allocated. In such cases, both clauses are ignored, and the liability is divided proportionally between the insurers.
The Lamb-Weston rule is a doctrine in insurance that applies when two insurance policies provide coverage for the same loss, and each policy contains an other-insurance clause that creates a conflict in the order or apportionment of coverage. In such cases, both other-insurance clauses are disregarded, and liability is prorated between the insurers.
For example, suppose a person has two insurance policies that cover their car, and both policies have an other-insurance clause. If the car is damaged in an accident, the Lamb-Weston rule would apply, and both insurers would be responsible for paying a portion of the damages.
The Lamb-Weston rule was established in the case of Lamb-Weston, Inc. v. Oregon Auto. Ins. Co., where the court ruled that both insurers should share the liability for a loss when their policies conflicted with each other.