PART VI AUTOMOBILE INSURANCE
Other insurance
277 (1) Subject to section 255, insurance under a contract evidenced by a valid owner’s policy of the kind mentioned in the definition of “owner’s policy” in section 1 is, in respect of liability arising from or occurring in connection with the ownership, or directly or indirectly with the use or operation of an automobile owned by the insured named in the contract and within the description or definition thereof in the policy, a first loss insurance, and insurance attaching under any other valid motor vehicle liability policy is excess insurance only.  R.S.O. 1990, c. I.8, s. 277 (1). Order in which policies are to respond (1.1) Despite subsection (1), if an automobile is leased, the following rules apply to determine the order in which the third party liability provisions of any available motor vehicle liability policies shall respond in respect of liability arising from or occurring in connection with the ownership or, directly or indirectly, with the use or operation of the automobile on or after the day this subsection comes into force: 1.  Firstly, insurance available under a contract evidenced by a motor vehicle liability policy under which the lessee of the automobile is entitled to indemnity as an insured named in the contract. 2.  Secondly, insurance available under a contract evidenced by a motor vehicle liability policy under which the driver of the automobile is entitled to indemnity, either as an insured named in the contract, as the spouse of an insured named in the contract who resides with that insured or as a driver named in the contract, is excess to the insurance referred to in paragraph 1. 3.  Thirdly, insurance available under a contract evidenced by a motor vehicle liability policy under which the owner of the automobile is entitled to indemnity as an insured named in the contract is excess to the insurance referred to in paragraphs 1 and 2.  2005, c. 31, Sched. 12, s. 6 (1). If more than one policy required to respond (1.2) For the purposes of the application of each of paragraphs 1, 2 and 3 of subsection (1.1), if insurance is available under more than one motor vehicle liability policy that is required to respond, each insurer is liable only for its rateable proportion of any liability, expense, loss or damage.  2005, c. 31, Sched. 12, s. 6 (1). Exceptions (1.3) Subsection (1.1) does not apply, (a)  to an insured’s right of recovery referred to in subsection 263 (2); (b)  if the automobile is not a motor vehicle as defined in subsection 1 (1) of the Highway Traffic Act; or (c)  if subsection 267.12 (1) does not apply.  2005, c. 31, Sched. 12, s. 6 (1). Insurer liable only for its rateable proportion of liability, etc. (2) Subject to sections 255 and 268 and to subsection (1) of this section, if the insured named in a contract has or places any other valid insurance, whether against liability for the ownership, use or operation of or against loss of or damage to an automobile or otherwise, of the insured’s interest in the subject-matter of the contract or any part thereof, the insurer is liable only for its rateable proportion of any liability, expense, loss or damage.  R.S.O. 1990, c. I.8, s. 277 (2). Rateable proportion defined (3) “Rateable proportion” as used in subsections (1.2) and (2) means, (a)  if there are two insurers liable and each has the same policy limits, each of the insurers shall share equally in any liability, expense, loss or damage; (b)  if there are two insurers liable with different policy limits, the insurers shall share equally up to the limit of the smaller policy limit; (c)  if there are more than two insurers liable, clauses (a) and (b) apply with necessary modifications.  R.S.O. 1990, c. I.8, s. 277 (3); 2005, c. 31, Sched. 12, s. 6 (2). Lessee defined (4) In this section, “lessee” means, in respect of an automobile, a person who is leasing or renting the automobile for any period of time, and “leased” has a corresponding meaning.  2005, c. 31, Sched. 12, s. 6 (3). Section Amendments with date in force (d/m/y) 2005, c. 31, Sched. 12, s. 6 (1-3) - 01/03/2006 Subrogation