Which one of the following explains the effect of a co-insurance clause?
A)A co-insurance clause provides for the insurance claim to be split between two or more beneficiaries.
B)A co-insurance clause provides for several different properties to be insured under the same policy.
C)A co-insurance clause provides for the insurance company to only pay a percentage of any loss.
D)A co-insurance clause provides for more than one person to pay the premium.
E)A co-insurance clause provides for the insurance company to arrange its own insurance on a large policy.

Question

Quizplus · Accepted Answer

A co-insurance clause in insurance policies requires the insured to maintain a certain minimum percentage of the value of the insured property or face a financial consequence in the event of a claim. This means that the insurance company will only pay out a percentage of the loss, with the insured being responsible for the remainder.

Which One of the Following Explains the Effect of a Co-Insurance