Opinion ID: 1934281
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Heading: Pro Rata Clause An Exclusion Under Missouri Law

Text: Missouri law provides that exclusions and limitations on coverage cannot be read into a policy: The courts should not read into a policy a ground of avoidance of liability that is not clearly expressed therein, and doubts and uncertainties in the language used should be resolved in favor of the insured. Greer v. Zurich Ins. Co., Mo.Supr., 441 S.W.2d 15, 34 (1969) ( citing Aetna Casualty & Sur. Co. v. Haas, Mo.Supr., 422 S.W.2d 316, 321 (1968)). Missouri courts have defined a  pro rata clause as follows: Generally, a pro rata clause provides the insurer will pay its pro rata share of the loss, usually in proportion which the limits of its policy bears to the aggregate limits of all valid and collectible insurance. Hartford Accident & Indem. Co. v. Western Casualty & Sur. Co., Mo.Ct.App. 712 S.W.2d 722, 724 n. 2 (1986) ( citing State Farm Mut. Auto. Ins. Co. v. Universal Underwriters Ins. Co., Mo.Ct.App., 594 S.W.2d 950, 953 (1980) and 16 G. Couch et al., Couch on Insurance 2d § 62.2 (rev. ed. 1983)). The function of a pro rata limitation is not to endow coverage, but to limit the obligation of the indemnity. Harold S. Schwartz & Assocs., Inc. v. Continental Casualty Co., Mo. Ct.App., 705 S.W.2d 494, 498 (1985). Accordingly, a pro rata limitation on coverage is a policy exclusion under Missouri law. See Id.