Which statement about priority of payment and anti-stacking provisions is true?

Which statement about priority of payment and anti-stacking provisions is true?

• A. They ensure all policies pay in full for every claim.
• B. They allow the insured to select the most favorable policy after a loss.
• C. Priority of payment determines which policy pays first, and anti-stacking provisions limit total payout across policies.
• D. They apply only to auto policies.

Answer: (C)

Priority of payment and anti-stacking provisions address how a loss is handled when more than one policy can respond. The order of payment (priority) sets which policy pays first, so there’s a clear sequence rather than competing settlements. Anti-stacking provisions prevent combining the limits of multiple policies to increase the total payout, effectively capping or limiting the recovery across those coverages. Together, they ensure a predictable, orderly payout rather than guaranteeing full payment from every policy or letting the insured pick after a loss, and they apply beyond autos to other lines of coverage.

Priority of payment and anti-stacking provisions address how a loss is handled when more than one policy can respond. The order of payment (priority) sets which policy pays first, so there’s a clear sequence rather than competing settlements. Anti-stacking provisions prevent combining the limits of multiple policies to increase the total payout, effectively capping or limiting the recovery across those coverages. Together, they ensure a predictable, orderly payout rather than guaranteeing full payment from every policy or letting the insured pick after a loss, and they apply beyond autos to other lines of coverage.