What results in indemnification on a pro-rata basis for two occurrence policies?

Indemnification on a pro-rata basis for two occurrence policies occurs because of the limits of both policies. When more than one insurance policy applies to a claim, the insurers will determine how to share the loss based on the specific coverage limits of each policy involved. If both policies cover the same occurrence, a pro-rata allocation allows each insurer to pay out a portion of the total loss, based on the limits they provide in relation to the total limits available.

This method ensures that no single insurer is unfairly burdened with the entirety of the loss and that the financial responsibility is equitably distributed among all applicable policies. This way, the insured is compensated fairly according to the coverage they maintain, rather than being left underinsured or over-reimbursed based on the policies in play.

The other factors mentioned in the other options—such as the duration of the claim, the cause of the claim, or the total losses incurred—do not directly determine how indemnification is divided between policies in a pro-rata manner. While those elements may be relevant in different contexts, the basis for pro-rata indemnification specifically relies on the limits of the involved policies.