A kind of reinsurance, where the insurance company gives a segment of the life insurance policy it has written to the reinsurer. The reinsurer must pay some fraction of the death benefit to the insurance company upon the policy holder’s death. The insurance company must then pay the beneficiary.
Insurance Encyclopedia
Coinsurance provision
1. Clause in a health insurance contract that requires the insured to pay a specific percentage in excess of the deductible of all eligible medical expenses. 2. Clause in property insurance agreement whereby the property owner is to carry insurance up to an amount established with the provisions of the policy. This is a stated percentage of the value of the property.
Coinsurance Requirement
Amount of Insurance which must be carried o avoid a Coinsurance penalty. Although typically stated as a percentage of the value of the insured property at the time of loss, a Coinsurance requirement may also be stated as a fixed rupee amount.
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The total amount of insurance the policyholder must possess so he or she can be covered for the total amount of a loss and not be charged the coinsurance penalty.
Coinsurer
One that shares the loss sustained under an insurance policy. Usually refers to an insured property owner that fails to purchase enough insurance to comply with the coinsurance provision and that, therefore, suffers part of the loss itself.
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One who shares a loss under an Insurance Policy or policies. An Insurer who shares with others in Coinsurance.
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Under an insurance policy, someone who shares in the loss.