Stacking refers to the process of recovering benefits from a second policy on a same claim when recovery from the first policy is inadequate. It is a method to increase coverage for insured. Generally, stacking issues arise in the context of automobile insurance cases. There are two types of stacking:
In the U.S., many state laws do not recognize stacking. However, in states where there is no policy on stacking, courts can permit stacking under the principle of judicial stacking. Judicial stacking refers to a stacking which is authorized by courts under the public policy.
The following is an example of a case law defining stacking:
Stacking is defined as the right to recover on two or more policies in an amount not to exceed the total of the limits of liability of all policies up to the full amount of the damages sustained.[Guidant Specialty Mut. Ins. Co. v. Duncan, 71 F. Supp. 2d 1090 (D. Kan. 1999)].