In a contribution by equal shares method, if there are three insurers covering a $500,000 loss, how much will each insurer with equal limits pay?

In a contribution by equal shares method, each insurer participating in the coverage shares the loss equally until the policy limits are exhausted. Given that there are three insurers with equal limits covering a $500,000 loss, each insurer is responsible for an equal portion of the loss, which means they will each start by paying one-third of the loss. However, if the total payment of each insurer reaches their individual policy limit before the entire loss is covered, then the remaining insurers will continue to share the loss until their limits are also exhausted.

Thus, the method ensures that no single insurer bears the entire financial burden unless its limit allows it, and they collectively pay towards the loss in equal shares up to the limit of their policies. This is a fair approach to distributing the financial responsibility among multiple insurers, preventing any one insurer from being overburdened by a loss that is equally insurable under multiple policies.