Which one of the following insurance policy provisions requires the insured to pay for part of the loss if the property is not insured for the specified percentage of replacement value?

Question

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The coinsurance clause in an insurance policy requires the insured to pay for part of the loss if the property is not insured for a specified percentage of its replacement value. This clause is designed to encourage property owners to insure their property to value.

Which One of the Following Insurance Policy Provisions Requires the Insured