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What is the purpose of a co-insurance clause in an insurance policy?
What is the purpose of a co-insurance clause in an insurance policy?
- To exempt the policyholder from any payment obligations in case of a loss
- To ensure the policyholder pays a percentage of the replacement cost in case of a loss (correct)
- To increase the amount of the claim paid by the insurer
- To require the insurer to pay the full replacement cost of the insured property
What happens if a policyholder does not meet the co-insurance requirement in an insurance policy?
What happens if a policyholder does not meet the co-insurance requirement in an insurance policy?
- The policyholder does not need to pay anything
- The insurer will pay the full claim amount
- The insurer will only pay a proportionate amount of the claim (correct)
- The policyholder will receive double the claim amount
How is the recovery amount calculated in an insurance policy with a co-insurance clause?
How is the recovery amount calculated in an insurance policy with a co-insurance clause?
- (Damage claim) x (Percent replacement cost covered ÷ Minimum coverage requirement) (correct)
- (Damage claim) / (Percent replacement cost covered x Minimum coverage requirement)
- (Damage claim) - (Percent replacement cost covered x Minimum coverage requirement)
- (Damage claim) x (Percent replacement cost covered - Minimum coverage requirement)
What does a co-insurance clause in an insurance policy require the policyholder to pay?
What does a co-insurance clause in an insurance policy require the policyholder to pay?
What happens if a policyholder does not meet the minimum coverage requirement in a co-insurance clause?
What happens if a policyholder does not meet the minimum coverage requirement in a co-insurance clause?
In the formula for calculating recovery, what does 'Damage claim' represent?
In the formula for calculating recovery, what does 'Damage claim' represent?
If a home has a replacement cost of $1,000,000 and is insured for $800,000 (80% coverage), what would be the recovery amount if it is damaged?
If a home has a replacement cost of $1,000,000 and is insured for $800,000 (80% coverage), what would be the recovery amount if it is damaged?
What does a co-insurance clause in an insurance policy typically require the policyholder to pay?
What does a co-insurance clause in an insurance policy typically require the policyholder to pay?
In the event that a policyholder does not meet the co-insurance requirement, what will the insurer do?
In the event that a policyholder does not meet the co-insurance requirement, what will the insurer do?
If a home has a replacement cost of $500,000 and it is insured for $400,000 (80% coverage), what would be the recovery amount if it is damaged?
If a home has a replacement cost of $500,000 and it is insured for $400,000 (80% coverage), what would be the recovery amount if it is damaged?
What is the formula used to calculate recovery in an insurance policy with a co-insurance clause?
What is the formula used to calculate recovery in an insurance policy with a co-insurance clause?
What happens if the owner insures a home for less than the required percentage in a co-insurance clause?
What happens if the owner insures a home for less than the required percentage in a co-insurance clause?
What is the purpose of a co-insurance clause in an insurance policy?
What is the purpose of a co-insurance clause in an insurance policy?
In the calculation formula for recovery in an insurance policy with a co-insurance clause, what does 'Percent replacement cost covered' represent?
In the calculation formula for recovery in an insurance policy with a co-insurance clause, what does 'Percent replacement cost covered' represent?
If a policyholder insures a property for $600,000 which is 75% of the replacement cost, with a co-insurance clause requiring 80% coverage, what would be their recovery amount in case of a loss?
If a policyholder insures a property for $600,000 which is 75% of the replacement cost, with a co-insurance clause requiring 80% coverage, what would be their recovery amount in case of a loss?
What would happen if a policyholder insures their property for 90% of its replacement cost in a co-insurance clause demanding 80% coverage?
What would happen if a policyholder insures their property for 90% of its replacement cost in a co-insurance clause demanding 80% coverage?
What does the co-insurance clause stipulate if a policyholder fails to meet the minimum coverage requirement?
What does the co-insurance clause stipulate if a policyholder fails to meet the minimum coverage requirement?
What does a co-insurance clause in an insurance policy require the policyholder to do?
What does a co-insurance clause in an insurance policy require the policyholder to do?
In an insurance policy with a co-insurance clause, what happens if the policyholder does not meet the minimum coverage requirement?
In an insurance policy with a co-insurance clause, what happens if the policyholder does not meet the minimum coverage requirement?
What is the calculation formula for recovery in an insurance policy with a co-insurance clause?
What is the calculation formula for recovery in an insurance policy with a co-insurance clause?
What will happen to the recovery amount if a policyholder insures their property for less than the required percentage in a co-insurance clause?
What will happen to the recovery amount if a policyholder insures their property for less than the required percentage in a co-insurance clause?
What does the percentage requirement in a co-insurance clause typically refer to?
What does the percentage requirement in a co-insurance clause typically refer to?
What does the co-insurance clause in an insurance policy require the policyholder to do?
What does the co-insurance clause in an insurance policy require the policyholder to do?
What is the recovery amount formula in an insurance policy with a co-insurance clause?
What is the recovery amount formula in an insurance policy with a co-insurance clause?
What will happen if a policyholder insures their property for less than the required percentage in a co-insurance clause?
What will happen if a policyholder insures their property for less than the required percentage in a co-insurance clause?
In the calculation formula for recovery, what does 'Damage claim' represent?
In the calculation formula for recovery, what does 'Damage claim' represent?
What does the percentage requirement in a co-insurance clause typically refer to?
What does the percentage requirement in a co-insurance clause typically refer to?
What is the purpose of a co-insurance clause in an insurance policy?
What is the purpose of a co-insurance clause in an insurance policy?
If a policyholder insures their property for less than the required percentage in a co-insurance clause, what is likely to happen?
If a policyholder insures their property for less than the required percentage in a co-insurance clause, what is likely to happen?
In the calculation formula for recovery in an insurance policy with a co-insurance clause, what does 'Minimum coverage requirement' represent?
In the calculation formula for recovery in an insurance policy with a co-insurance clause, what does 'Minimum coverage requirement' represent?
If a home has a replacement cost of $1,200,000 and it is insured for $900,000 (75% of the replacement cost), what would be the recovery amount in case of damage?
If a home has a replacement cost of $1,200,000 and it is insured for $900,000 (75% of the replacement cost), what would be the recovery amount in case of damage?
What does 'Percent replacement cost covered' represent in the formula for calculating recovery in an insurance policy with a co-insurance clause?
What does 'Percent replacement cost covered' represent in the formula for calculating recovery in an insurance policy with a co-insurance clause?
What does a co-insurance clause in an insurance policy require the policyholder to do?
What does a co-insurance clause in an insurance policy require the policyholder to do?
What is typically the percentage requirement in a co-insurance clause in an insurance policy?
What is typically the percentage requirement in a co-insurance clause in an insurance policy?
In the formula for calculating recovery in an insurance policy with a co-insurance clause, what does 'Minimum coverage requirement' represent?
In the formula for calculating recovery in an insurance policy with a co-insurance clause, what does 'Minimum coverage requirement' represent?
What happens if a policyholder insures their property for less than the required percentage in a co-insurance clause?
What happens if a policyholder insures their property for less than the required percentage in a co-insurance clause?
What does 'Percent replacement cost covered' represent in the formula for calculating recovery in an insurance policy with a co-insurance clause?
What does 'Percent replacement cost covered' represent in the formula for calculating recovery in an insurance policy with a co-insurance clause?
What is the purpose of a co-insurance clause in an insurance policy?
What is the purpose of a co-insurance clause in an insurance policy?
In the recovery calculation formula for an insurance policy with a co-insurance clause, what does 'Damage claim' represent?
In the recovery calculation formula for an insurance policy with a co-insurance clause, what does 'Damage claim' represent?
What happens if a policyholder insures their property for less than the required percentage in a co-insurance clause?
What happens if a policyholder insures their property for less than the required percentage in a co-insurance clause?
What is 'Recovery' in an insurance context with a co-insurance clause?
What is 'Recovery' in an insurance context with a co-insurance clause?
What does the Percentage Replacement Cost Covered represent in the calculation formula for recovery?
What does the Percentage Replacement Cost Covered represent in the calculation formula for recovery?
What is the purpose of a co-insurance clause in an insurance policy?
What is the purpose of a co-insurance clause in an insurance policy?
In the event that a policyholder insures their property for less than the required percentage in a co-insurance clause, what is likely to happen?
In the event that a policyholder insures their property for less than the required percentage in a co-insurance clause, what is likely to happen?
What does 'Percent replacement cost covered' represent in the formula for calculating recovery in an insurance policy with a co-insurance clause?
What does 'Percent replacement cost covered' represent in the formula for calculating recovery in an insurance policy with a co-insurance clause?
What will happen if a policyholder insures their property for less than the required percentage in a co-insurance clause?
What will happen if a policyholder insures their property for less than the required percentage in a co-insurance clause?
How is the recovery amount calculated in an insurance policy with a co-insurance clause?
How is the recovery amount calculated in an insurance policy with a co-insurance clause?
What is the purpose of a co-insurance clause in an insurance policy?
What is the purpose of a co-insurance clause in an insurance policy?
In the formula for calculating recovery in an insurance policy with a co-insurance clause, what does 'Percent replacement cost covered' represent?
In the formula for calculating recovery in an insurance policy with a co-insurance clause, what does 'Percent replacement cost covered' represent?
If a home has a replacement cost of $900,000 and it is insured for $700,000 (78% coverage), what would be the recovery amount if it is damaged?
If a home has a replacement cost of $900,000 and it is insured for $700,000 (78% coverage), what would be the recovery amount if it is damaged?
What would happen if a policyholder insures their property for 85% of its replacement cost in a co-insurance clause demanding 80% coverage?
What would happen if a policyholder insures their property for 85% of its replacement cost in a co-insurance clause demanding 80% coverage?
What does 'Damage claim' represent in the formula for calculating recovery in an insurance policy with a co-insurance clause?
What does 'Damage claim' represent in the formula for calculating recovery in an insurance policy with a co-insurance clause?
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