What method does the standard NCCI workers' compensation policy specify for claims payments when other insurance covers the risk?

The correct answer is based on the standard practice outlined in the National Council on Compensation Insurance (NCCI) workers' compensation policy, which specifies "contribution by equal shares" as the method for claims payments when multiple insurance policies cover the same risk.

In this context, when a worker suffers an injury and there are multiple insurance policies in play, "contribution by equal shares" means that each insurer is responsible for paying an equal portion of the claim up to the limits of their respective policies. This approach ensures that claimants receive fair treatment, as it prevents an insurer from being disproportionately burdened by the costs of the claim.

By utilizing this method, the financial impact of the claim is shared equally among the participating insurance providers, fostering equitable resolution processes in cases where multiple policies might apply. This contrasts with other methods such as those that might prioritize one policy over another or assign varying degrees of responsibility, which can complicate the claims process and delay payment to the injured worker.