Which provision in an insurance policy addresses how multiple insurance policies interact for the same loss?

The provision in an insurance policy that addresses how multiple insurance policies interact for the same loss is known as the "Other Insurance Provision." This provision outlines what happens when more than one policy provides coverage for the same risk or loss. Its primary purpose is to prevent the insured from profiting from multiple insurance claims for the same incident and to clarify how the claims will be settled between different insurers.

Typically, this provision may stipulate different scenarios, such as prorating the loss among the various policies based on their coverage amounts or limits. For example, if an individual has two policies covering the same property, the "Other Insurance Provision" will determine how much each insurer is responsible for paying when a claim is made. This mechanism is crucial in ensuring fairness and proper distribution of loss among insurers.

The other provisions mentioned in the choices serve different functions. Assignment relates to the transfer of rights in a policy; subrogation involves the insurer's right to recover costs from a third party after paying a claim, and appraisal is a process for resolving disputes over the amount of a loss. Each of these elements plays an important role in the overall mechanics of insurance but does not specifically address the interaction of multiple policies for the same loss.