What is the name given to the clause in an insurance policy that makes it uneconomical to underinsure one's property?
A) Indemnity
B) Endorsement
C) Coinsurance
D) Extended

Question

Quizplus · Accepted Answer

The clause in an insurance policy that makes it uneconomical to underinsure one's property is known as coinsurance. This clause requires the policyholder to insure their property for a certain percentage of its actual value, usually 80% or 90%. If the property is underinsured and a claim is made, the policyholder will only receive a partial payment based on the percentage of the property that was actually insured. This means that the policyholder will be responsible for a larger portion of the loss, making it uneconomical to underinsure the property.

What Is the Name Given to the Clause in an Insurance