If an insured has multiple Family Protection endorsements, how are coverage limits applied?

In the context of Family Protection endorsements, which provide coverage for insured individuals when damages are incurred from an underinsured or uninsured motorist, the regulations stipulate that coverage cannot be stacked across multiple policies. This means that if an individual has multiple Family Protection endorsements, only one policy's limits can be utilized for a single claim.

The underlying rationale for this rule is to prevent policyholders from effectively doubling their compensation limits by having multiple coverages for the same exposure. Situations could arise where an insured might attempt to claim the maximum from each of their policies, leading to undue financial burdens on insurance providers and creating issues of fairness among policyholders.

Thus, when dealing with Family Protection endorsements in Ontario, only the coverage available from one policy is applicable, ensuring that the insured's maximum protection remains fair and aligned with the policies purchased. This approach promotes responsible insurance practices and ensures that the mechanics of claims processing are straightforward and equitable.