This clause has two provisions.First, it requires you to carry an amount of insurance equal to a specified percentage of the value of the property if you wish to be paid the amount of loss you incur in full, and second, it stipulates a proportional payment of loss for failure to carry sufficient insurance.Identify this clause.
A)Coinsurance
B)Waiver
C)Deductible
D)Duress
E)Estoppel

Question

Quizplus · Accepted Answer

The correct answer is A) Coinsurance. This clause is common in property insurance policies and requires the policyholder to insure their property for a specified percentage of its value to receive full compensation for a loss. If the property is underinsured, any claim payment is reduced proportionally.

This Clause Has Two Provisions