Under the other insurance with other insurer provision, what happens to any premiums the insured paid in excess of those needed for coverage?

In the context of the "other insurance with other insurer" provision, any premiums that the insured has paid in excess of what is necessary for coverage are returned to the insured. This is designed to maintain fairness among policyholders and ensure they are not overpaying for coverage when they hold multiple policies for similar risks.

The rationale behind returning excess premiums lies in the principle of indemnity, which aims to provide financial protection without allowing the insured to profit from multiple coverages on the same risk. By returning the unused premiums, the insurer upholds this principle and resolves any potential financial imbalance resulting from overlapping policies. Thus, the insured is only responsible for the amounts necessary to cover their risk exposure.