Apportionment Clause

Apportionment Clause

When more than one property insurance policy covers the same event, a clause stating that each policy only provides coverage in proportion to the total coverage each policy provides. For example, one may have two policies covering one's home from fire damage. Policy A provides maximum coverage of $40,000 and Policy B provides $60,000, for a total of $100,000. If the home catches fire causing $50,000 in damage, the apportionment clause in each insurance policy requires that Policy A pay for $20,000 and Policy B pay for the remaining $30,000.
Mentioned in ?
References in periodicals archive ?
The apportionment clause has had an accidental but venomous effect on federal tax policy over the years.
There is no requirement under the apportionment clause that the tax burden be apportioned across the states by population, as Professor Jensen says, but only that a direct tax be apportioned.
Jensen, The Constitution Matters in Tax, 100 TAX NOTES 821 (2003) (urging that we take the apportionment clause seriously and claiming that all taxes except income taxes and taxes resembling sales taxes must be apportioned).