Which option describes how multiple insurance policies share in covering damages?

In the context of how multiple insurance policies share in covering damages, the correct understanding encompasses various methods through which these policies may operate collaboratively. Each of the methods described contributes to the overall principle of how insurance coverage can be distributed among multiple policies.

Pro rata involves each insurance policy contributing to the claim based on the proportion of coverage each provides. This means if one policy has a higher limit, it will pay more of the claim compared to another with a lower limit.

Contribution of equal shares is another method where all applicable policies share the loss equally. In this scenario, if two policies exist, they would split the claim costs equally, regardless of their individual coverage amounts.

Primary payment refers to the idea that one policy will take precedence over others when a claim is made. The primary insurer will cover the claim up to its limit, and any remaining costs may then be shared among secondary policies.

All these describe different mechanisms of sharing liability and payouts among multiple insurance policies. Therefore, it is accurate to say that all of these approaches are part of how multiple insurance coverages can work together to address damages. Understanding these methods is crucial for determining how claims will be settled when multiple policies are involved.