An excess clause requiring the insured to 'first bear' the excess amount does not impose a precondition of payment before the insurer's liability to indemnify is engaged. The word 'bear' means 'to be responsible for' or 'carry', not 'pay'. Accordingly, the insolvency of the insured and its inability to pay the excess does not entitle the insurer to disclaim liability under the policy, and does not defeat a third party's right to proceed against the insurer under s 6 of the Law Reform (Miscellaneous Provisions) Act 1946 (NSW).
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