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shariq thobani
on Nov 23, 2024

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Henderson owned a concrete block building valued at $20,000. Because it was virtually fireproof, he insured it for only $10,000 under a policy of insurance which contained an 80% co-insurance clause. Some time later, the building was damaged by fire. Under a co-insurance clause, the insured becomes a partial insurer if he fails to maintain the required amount of insurance on the insured property.

Co-insurance Clause

A provision in insurance policies requiring the policyholder to bear a portion of the loss by maintaining coverage of a specified percentage of the value of the property to receive full reimbursement.

Fireproof

The quality of being resistant to or capable of withstanding damage by fire.

Insured

A person or entity covered under an insurance policy, receiving financial protection or reimbursement against losses from an insurance company.

  • Absorb information on the influence of co-insurance clauses over claims and indemnity payment operations.
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Dakota TaylorNov 28, 2024
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