According to liability insurance law, how should the calculation of contribution be determined?

The independent liability method, which is considered the correct approach in the context of calculating contributions in liability insurance, functions by assessing each insurer's liability separately. Under this method, the contribution of each insurer is calculated based on their respective coverage limits and the nature of the insurance policies involved, without considering the other insurers' coverages or liabilities.

This method ensures that each insurer pays their fair share of the loss directly related to their policy's terms, which helps maintain clarity and fairness in how losses are apportioned. It prevents situations where one insurer might disproportionately bear the burden of a claim due to the terms or amounts covered by the insurance policies in question.

Other methods, such as the proportional liability method or the combined liability method, might entail different considerations or calculations that could lead to complexities or inequities in how contributions are determined among multiple insurers when a loss occurs. The independent liability method, therefore, is the preferred approach to ensure a straightforward and equitable assessment of each insurer's responsibilities in covering a claim.