Which of the following occurs when a single auto policy covers two vehicles, and the court interprets this situation to yield a limit of liability equal to double the amount shown in the policy declarations?
A)Indemnification
B)Redlining
C)Gentrifying
D)Stacking
E)Demutualization

Question

Quizplus · Accepted Answer

Stacking refers to the practice of combining the coverage limits of multiple insurance policies or coverages on multiple vehicles under the same policy to increase the total available coverage in the event of a claim. When a court interprets a policy in such a way that allows for the limits to be combined or "stacked," it effectively doubles (or otherwise increases) the limit of liability beyond what is shown for a single vehicle in the policy declarations.

Which of the Following Occurs When a Single Auto Policy