Question

What is the purpose of "co-insurance" in an insurance

Q: Answer-What is the purpose of 'co-insurance' in an insurance policy?

Co-insurance refers to a situation where two or more insurers share the risk of insuring a particular policyholder or property. In this arrangement, each insurer agrees to cover a specified percentage of the risk, and they share the premium and claims.

policy?

A To share the cost of losses of the insured by more than one insurer

B To insure multiple properties under a single policy

C To provide coverage for losses due to co-insurance

D To insure multiple individuals under a single policy

E None of the above

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What is the purpose of "co-insurance" in an insurance

Solution