(1) The sum which the assured can recover in respect of a loss on a policy, by which he or she is insured, in the case of an unvalued policy to the full extent of the insurable value, or, in the case of a valued policy to the full extent of the value fixed by the policy, is called the measure of indemnity.
(2) Where there is a loss recoverable under the policy, the insurer, or each insurer if there be more than one is liable for such proportion of the measure of indemnity as the amount of his or her subscription bears to the value fixed by the policy in the case of a valued policy, or to the insurable value in the case of an unvalued policy.