What method does the standard NCCI's Workers' Compensation policy specify for handling claims payment when multiple insurances are involved?

The standard NCCI's Workers' Compensation policy specifies that when multiple insurances are involved in handling claims payments, the method used is contribution by equal shares. This approach ensures that each insurer involved in the claim pays an equal portion of the total claim amount until the total claim is settled.

This method is particularly useful in situations where multiple policies may cover the same loss, as it promotes fairness among the insurers and prevents any single insurer from bearing a disproportionate amount of the claims payment. The equal shares approach supports balanced risk sharing, ensuring that no single insurer is overburdened, which helps streamline the claims process and reduces potential disputes among insurers.

In contrast, the other methods mentioned, such as pro-rata allocation or last resort payment, do not align with the equal contribution principle outlined in the NCCI's guidelines. Pro-rata allocation would distribute payments based on the proportion of coverage provided by each policy, while states that require sequential processing prioritize one insurer's payment responsibility over another. Therefore, understanding the provision of contribution by equal shares is crucial for adjusting claims properly when faced with multiple insurance coverages.