Coinsurance Flashcards
1
Q
Designed to encourage insureds to carry adequate amounts of insurance on their property
A
Coinsurance
2
Q
Values needed to calculate coinsurance
A
Building value, deductible, coinsurance percentage, amount of insurance the client purchased, loss amount, amount of insurance the client should have purchased
3
Q
How to calculate should
A
value of building x coinsurance %
4
Q
How to calculate actual cash value
A
Did/should x loss
5
Q
Pay the least of which factors
A
Actual cash value of the loss, the insured’s interest in the property, the amount of insurance that was on the property
