(1) In property insurance, a clause under which the Insured shares in losses to the extent that he is underinsured at the time of loss; (2) Where two or more Insurers each have part of the risk under a single insurance policy.
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An actual total loss can occur in four ways: (1) Where the subject matter Insured is completely destroyed; (2) Where the subject matter Insured ceases to be a thing of the kind Insured (This is termed ‘loss of specie’); (3) Where the assured is irretrievably deprived of the subject matter Insured, although it has retained its specie; or (4) In marine insurance, where a missing ship is deemed an actual loss when it has been posted as “missing” at Lloyd’s.