A coinsurance requirement, if not met, serves to limit the recovery of loss under the policy.

Question

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A coinsurance requirement, also known as a co-pay, is a clause in an insurance policy that requires the policyholder to carry a certain percentage of the total amount of coverage on their own. If the policyholder fails to meet the coinsurance requirement, they may not receive the full amount of reimbursement for a loss covered under the policy. This serves to limit the recovery of loss under the policy.

A Coinsurance Requirement, If Not Met, Serves to Limit the Recovery