pro rata

/prow reyta/ Proportionately; according to a certain rate, percentage, or proportion. According to measure, interest, or liability. According to a certain rule or proportion. For example, if a corporation has ten shareholders each of whom owns 10% of the stock, a pro-rata dividend distribution of $1,000 would mean that each shareholder would receive $100.

See also per capita

- pro rate

@ pro rata clause

Such clause commonly used as other insurance provision in automobile liability policy provides that when an insured has other insurance available, company will be liable only for proportion of loss represented by ratio between its policy limit and total limits of all available insurance. Putnam v. New Amsterdam Cas. Co., 48 I11.2d 71, 269 N.E.2d 97, 99.

Provision in insurance policy to the effect that the insurer will not be liable for a greater proportion of any loss than the amount of the policy bears to the total amount of insurance on the property

@ pro-rata distribution clause

In fire insurance, provision in the policy that the amount of insurance written shall apply to each parcel of property in the proportion which the value of each parcel bears to the total value of all the property insured under the policy

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