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Simple English definitions for legal terms

pro rata clause

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A quick definition of pro rata clause:

A pro rata clause is a part of an insurance policy that limits the amount an insurer will pay for a loss. It works by calculating the proportion of the policy's face amount to the total insurance available on the risk. This means that if there are other insurance policies covering the same risk, the insurer will only pay a portion of the loss based on the policy's share of the total coverage. It is also known as a pro rata distribution clause and is different from an escape clause or excess clause.

A more thorough explanation:

A pro rata clause is a provision in an insurance policy that limits the insurer's liability to pay only a portion of the loss. This portion is determined by the face amount of the policy in relation to the total insurance available on the risk. The pro rata clause is usually found in the "other insurance" section of the policy.

For example, if a policy has a face amount of $100,000 and there is a total of $500,000 in insurance available on the risk, the insurer would only be liable to pay 20% of the loss. If the total loss was $50,000, the insurer would only pay $10,000.

The pro rata clause is often used in situations where there are multiple insurance policies covering the same risk. In these cases, each insurer is only responsible for paying their portion of the loss based on the pro rata clause.

pro quantitate haereditatis et temporis | pro rata itineris

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got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
WorthlessAttractiveZombie
7:44
My berkeley paragraph finally disappeared. I definitely think it is just an indicator that they are actively reviewing files, and does not mean anything about A, WL, or Rs
WorthlessAttractiveZombie
7:46
Also has anyone's date disappeared for W&L? Mine did last night
7:55
@WorthlessAttractiveZombie: mine did yesterday morning
7:56
Oops sorry I meant Vilanova. Mine disappeared last week
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