According to the 'Other Insurance' condition form in a Commercial Inland Marine policy, how is a loss shared when it is covered by another policy written on the SAME basis as the marine policy?

This option incorrectly suggests that both policies will share the loss on a 50/50 basis, regardless of their respective coverage limits. In reality, the principle of proportionality dictates that the sharing depends on the ratio of the coverage limits of the two policies, not simply an equal split.

This choice implies a hierarchy where the marine policy takes precedence over the other policy, which is not how the 'Other Insurance' condition operates when both policies are on the same basis. The allocation of loss does not depend on which policy is considered primary, but rather on the proportional coverage provided by each.

This option also implies a hierarchy, but in the opposite direction. It incorrectly indicates that the other policy will cover the loss first, while the marine policy acts as a backup. This is not applicable when both policies are written on the same basis, as they are meant to share losses proportionately.