What is the name of the policy condition indicating that coverage applies equally to each insured?

The correct answer is severability. This policy condition ensures that coverage applies equally to each insured individual or entity under the policy. In practical terms, it means that the actions or omissions of one insured do not affect the coverage available to another insured under the same policy. This is particularly important in liability policies where multiple insureds might be covered, such as family members or business partners.

When severability is in effect, if one insured violates a condition of the policy or makes a claim that is excluded, it does not negate coverage for the other insureds. This principle provides a level of protection and fairness, allowing each insured to potentially receive their fair share of coverage without being impacted by the actions of others.

The other options, while related to insurance concepts, do not describe this specific condition. Assignability pertains to the transferring of policy rights, liability refers generally to the financial responsibility for damages, and concurrent ownership relates to ownership interests, but none of these capture the essence of how coverage applies to each insured equally within a policy.