# What Is Apportionment?

Apportionment is the process of allocating risk and premium among the various insurers who provide coverage for a given policyholder. The apportionment of risk and premium is typically done on a pro rata basis, meaning that each insurer bears a proportionate share of the risk and premium based on the amount of coverage they provide.

What is an example of apportionment? Apportionment is a way of allocating risk among multiple parties. In the context of corporate insurance, apportionment is often used to allocate risk among multiple insurance policies. For example, if a company has multiple insurance policies with different insurers, the company may apportion the risk of a loss among the policies based on the amount of coverage each policy provides.

What is apportionment of compensation? In the insurance industry, "apportionment of compensation" refers to the way in which an insurer calculates the amount of money that it will pay to an insured person or company in the event of a loss. This calculation is typically based on the amount of the loss, the insurer's policy limits, and the insured's deductible. What does to be apportioned mean? To be apportioned means to be divided among the insured parties in proportion to their respective interests.

How do you calculate apportionment? To calculate apportionment, the first step is to determine the total loss. This is the amount of money that the company will have to pay out in claims. Next, the company will need to determine the amount of the loss that is attributable to each state. This is done by looking at the percentage of the company's sales that are made in each state. The company will then need to multiply the total loss by the percentage of sales in each state to determine the amount of the loss that is attributable to that state. Finally, the company will need to apportion the loss among the states in proportion to the amount of the loss that is attributable to each state. When did apportionment begin? The first apportionment of insurance proceeds occurred in 1868, when the London Assurance Corporation divided the proceeds of a fire insurance policy among the various insurers who had reinsured the policy.