A car insurance company pays 90 percent of the total damage in case of an accident.This is an example of ________.

Question

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This is an example of coinsurance, where the insurer and the insured share the cost of a claim according to a predetermined percentage. In this case, the insurer pays 90% of the damages, and the insured is responsible for paying the remaining 10%. This type of arrangement is commonly found in property and casualty insurance. Dividend payments are a distribution of profits to policyholders, brokerage fees are charges for intermediating insurance transactions, and subsidies are financial support provided by the government to promote certain activities or industries. None of these concepts are relevant to the scenario described in the question.

A Car Insurance Company Pays 90 Percent of the Total