Apportionment

Business, Legal & Accounting Glossary

Definition: Apportionment


Quick Summary of Apportionment


The separating of a loss to a proportionate degree among two or more insurers that cover the same loss.




What is the dictionary definition of Apportionment?

Dictionary Definition


  1. The act of apportioning or the state of being apportioned.
  2. U.S. The distribution of members of the House of Representatives according to the population of the various states.
  3. U.S. The allocation of direct taxation according to the population of the various states.

Full Definition of Apportionment


Apportionment is an allocation based on some proportions.

The legal term apportionment means distribution or allotment in proper shares.

Most often apportionment pertains to the allocation of a loss between all of the insurance companies that insure a piece of property.

Apportionment also refers to the time when you come to buy/sell a property and wish to ensure that you only pay electricity, gas, council tax etc for the period in which you own the property. Apportionment in effect means sharing expenses between the buyer and seller of a property. In that way, each party will bear his or her fair share at the date on which the property sale is completed.

The person doing your conveyancing, usually a solicitor, should be able to sort these details out.

In Law, Apportionment is the method used to determine a claimant’s payment for permanent workers’ compensation injury awards. For instance, if you have been previously injured your employer is allowed to reduce benefits for your current injury through the process of “apportionment.”

Factors such as causation, risk factors, age, prior industrial accidents, prior awards and prior disabilities are all factored into the apportionment decision making process. Specific requirements must be met to apportion a certain percentage of your past injury’s disability from the amount of disability that you have with your current injury. Generally, claimants are entitled to their full workers compensation benefits. If you need help getting workers compensation talk to a work comp lawyer.


Examples of Apportionment in a sentence


One of the main jobs of a claims adjuster is to determine the apportionment of payment in third-party liability claims.
She had two insurance policies that were issued by the same home company, and the apportionment was one hundred percent to the insurer.


Synonyms For Apportionment


allocation, division, distribution, allotment, share

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Definition Sources


Definitions for Apportionment are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 30th March, 2020 | 353 Views.