DOUBLE INSURANCE AND CONTRIBUTION
Several insurance policies may be effected which, to some extent, cover the same interest, in the same subject matter, in respect of the same risk. This is likely to be the case where there are several persons with an insurable interest in the subject matter, with each party wanting to ensure that his interest is fully covered. In such a case, the parties may well have entered into a contract with each other. Such contracts may have several effects so far as the relationships between the parties and insurers are concerned. Thus, the contract may impose on one or more of the parties an obligation to effect specific insurance. If the whole interest in the subject matter is insured and the insured is bound to account to the other party for the value exceeding his own interest, he may obtain the full amount from the insurer. 1 If he fails to procure the insurance, he will be liable to the other party for any loss he suffers in consequence. 2
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