With coinsurance, the burden is placed on the insured to keep the amount of the insurance proportional to the sound value of the property.

Question

Quizplus · Accepted Answer

Coinsurance requires the insured to maintain a certain percentage of insurance relative to the value of the property to receive full compensation for a claim, thus placing the burden on the insured to keep the insurance amount proportional to the property's value.

With Coinsurance, the Burden Is Placed on the Insured to Keep