Which insurance clause indicates that loss payment will be based on the number of applicable policies?

The correct choice pertains to the "Contribution Clause," which specifically addresses how loss payments are handled when multiple policies cover the same loss or risk. When multiple insurance policies are in effect, the contribution clause stipulates that each insurer contributes to the loss in proportion to the amount of their coverage. This ensures that no single insurer pays more than their fair share of the claim based on the total coverage provided.

Understanding how this clause operates is crucial for all-lines adjusters, as it ensures equitable distribution of claims payments and reinforces the principle of indemnity within insurance contracts. Each insurer involved adjusts their portion of the claim based on their policy limits relative to the total amount of coverage in place, which helps avoid overpayment by any single insurer and ensures that the insured does not receive more than the actual loss incurred.

The other options, while related to insurance principles, do not correctly describe the process of loss payment based on multiple applicable policies. The "Equal Shares Clause" typically refers to a scenario where insurers agree to share the loss equally, regardless of their respective limits. The "Pro Rata Clause" relates to adjusting claims based on the proportion of coverage each policy provides, but it does not necessarily indicate that payment will be made based on the number of policies involved.