Under the average clause, the loss is suffered by both insurer and insured in the ratio ofrisk covered

Name: Under the average clause, the loss is suffered by both insurer and insured in the ratio ofrisk covered
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The average clause in insurance policies ensures that if the value of the insured property is underreported, any claim will be reduced in proportion to the under-insurance, thus sharing the loss between the insurer and the insured.

Under the Average Clause, the Loss Is Suffered by Both